18 June, 2024 16:30:16 IST 
Brazil’s pulp producer, Suzano, is set to purchase a 15% stake in Lenzing, the Austria based producer of wood-based textiles, non-wovens and packaging materials, for €230-mn.
Suzano will acquire the stake from B&C, Lenzing’s current majority shareholder. Suzano and B&C plan to form a “long-term syndicate” holding a majority stake in the company, and under the partnership Suzano has the option to acquire a further 15% stake from B&C until 2028.
With an annual net revenue of more than Euro 7-bn in 2023, Suzano claims to be the world’s largest market pulp producer. Suzano, which is currently in its centennial year, isn’t a direct competitor of Lenzing and has extensive experience in pulp, a raw material, which it believes will benefit Lenzing.
Mr. Walter Schalka, CEO of Suzano, said, “Lenzing is already a leading global supplier of premium cellulosic fibres for the textile and non-wovens industry and we recognise opportunities exist for further growth with its established technology, product range and technical knowledge. “Our deep-rooted understanding of pulp production and cost excellence makes Suzano, alongside B&C, an ideal partner for Lenzing as it seeks to strengthen its competitive position and global presence. For us, this represents a continuation of our strategy focused on investments that enlarge our addressable market in scalable and competitive business models and move us closer to the end-consumer,” he added.
The partners have agreed on a long-term commitment to the existing Lenzing site which will ensure the company’s headquarters, production facilities and key R&D activities remain located in Austria. The partnership also guarantees the continued listing of Lenzing shares on the Vienna stock exchange.
