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Lenzing Group and smartfiber AG Intensify Their Cooperation

(PresseBox) (Lenzing, ) Lenzing AG, world market leader for man-made cellulose fibers and the German company smartfiber AG/Rudolstadt are expanding their cooperation. In the future Lenzing will exclusively produce the lyocell specialty fibers smartcel(TM) and SeaCell® developed by smartfiber at the Lenzing site in Upper Austria.

In 2007, Lenzing already granted smartfiber a license for the pilot production of new types of lyocell specialty fibers. Moreover, smartfiber and Lenzing have been cooperating for several years to develop fabrics and on various research projects.

For reasons of profitability, the pilot plant of smartfiber is being relocated from Rudolstadt to Lenzing in order to be able to rapidly move ahead with the commercial exploitation of smartcel(TM) and SeaCell® fibers in spite of rising energy and raw material prices. The integration of the facility in Lenzing, the world's largest cellulose fiber production site, will enable a significantly better cost structure. Moreover, the smartfiber pilot plant had recently reached its capacity limits due to the continually increasing order volume, which no longer made it possible to optimally coordinate incoming orders and accept large orders. smartfiber will continue to be responsible for the sales and marketing of smartcel(TM) and SeaCell®.

The smartcel(TM) and SeaCell® fibers are primarily used in home textiles as well as in the fashion and medicine segments. The SeaCell® fibers contain valuable active substances from seaweed which promotes health, nurtures the skin and protects against free radicals. smartcel(TM) sensitive is the first antibacterial, natural fiber available on the market to which the essential trace element zinc is added, thus enabling regenerative skin care and hygiene in textiles.

The management of smartfiber considers the intensified cooperation with Lenzing to be an important and future-oriented step for the benefit of customers which comprises a win-win situation for the two companies involved. Thus the high level of competence on the part of Lenzing with respect to the production and processing of lyocell fibers under the brand TENCEL® will be combined with the original and innovative patented technology of the function-oriented fiber products developed by smartfiber. The objective of smartfiber is to be able to offer the best possible quality, service-oriented order processing and intensified sales-driven marketing support to customers in the future.

For Lenzing the launch of pilot production for smartfiber at the Lenzing site is a consistent continuation of the research and development partnership which smartfiber and Lenzing have pursued for years.

About smartfiber AG:

smartfiber AG headquartered in Rudolstadt (Thuringia) develops and sells nature-based lyocell fibers with various functionalities for the international market. Established in the year 2005, smartfiber AG combines the scientific know-how of more than 20 years of research and development work carried at the renowned Thuringia Institute for Textile and Plastics Research in Rudolstadt with the entrepreneurial background of the marketing and sales professional Michael Kohne.

The high-tech fibers distributed under the brand names smartcel(TM) and SeaCell® comprise the basis for innovative products in the textile segment and other industrial sectors. In order to ensure the high-quality processing of the fibers, the company works with selected international production partners in the entire textile processing industry. In this regard, customer- and service-orientation are the focal points of its corporate strategy. For this reason, smartfiber AG attaches considerable importance to quality controls carried out by independent institutes and laboratories. The fiber technology featuring the quality seal "Made in Germany" has been given numerous awards, for example the well-known "German Innovation Prize" in 2010.

More information can be found at www.smartfiber.de.

About Lenzing AG

The Lenzing Group is an international group of companies with headquarters in Austria, production sites in all major markets and a global network of sales and marketing offices. Lenzing provides the global textile and nonwovens industry with high-quality man-made cellulose fibers based on the renewable resource wood.

Lenzing quality and Lenzing innovative power set standards for man-made cellulose fibers world-wide. More than seventy years of fiber production expertise make us the only producer world-wide of all three man-made cellulose fiber generations, from classic viscose to modal and lyocell. Lenzing's unique combination of consistent customer orientation with leadership in quality, innovation and technology is the foundation of our success.

Lenzing is committed to the principles of sustainable management and very high environmental standards.

Lenzing's core business fibers and plastics are complemented by our activities in business field engineering.

Key Figures Lenzing Group 2010:
Sales: EUR 1.77 bill.
Export share: 91.3 %
Fiber production: 653,717
tons Staff: 6,530

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