Vienna stock exchange listed Lenzing, the global leader in man-made cellulosic fibre production, has acquired a 100% shareholding in the Czech pulp producer Biocel Paskov A.S. Lenzing has held a 75% stake in the company since it acquired its majority stake from the Austrian Heinzel Group, which has now sold its remaining 25% shareholding to Lenzing.

Since 2010 Lenzing has been restructuring the Biocel Paskov facility to transform it into a “swing capacity” producer of pulp, investing approximately EUR 100 million. From 2013 Biocel Paskov will be able to completely produce both paper pulp as well as high quality dissolving pulp used in the manufacturing of cellulose fibres. A total of 60,000 tons of dissolving pulp were produced last year with plans calling for a production volume of around 115,000 tons of the same pulp quality in the current year.

“In the course of 2013 Biocel Paskov will operate as one of the world‘s most high-performance and advanced manufacturing plants for this special pulp thanks to a further debottlenecking program, increased energy efficiency and new recovery facilities,” Lenzing said in a press announcement today.”

“The nominal capacity of the plant will amount to 260,000 tons of dissolving pulp at that time. The pulp will mainly be used by the Lenzing Group for its fibre production operations. This vertical backward integration represents an important means for the Lenzing Group to safeguard its raw material base, both in terms of prices and volumes.”

Biocel Paskov commenced production in 1985 and was subsequently modernized and expanded during the 1990s in line with ecological standards. The Heinzel Group led by the Austrian industrialist Alfred Heinzel acquired the plant in 2001, and continued the modernization drive.

Since 2004 Biocel Paskov has been cooperating with a neighbouring sawmill operated by the Austrian Mayr-Melnhof wood industry group, which contributes part of the raw materials needed to manufacture pulp in the form of wood chips. Biocel Paskov employs a work force of close to 400 people.

The Lenzing Group is a world market leader with headquarters in Austria, production sites in all major markets as well as a worldwide network of sales and marketing offices. The company supplies the global textile and nonwovens industry with high-quality man-made cellulose fibres and is the leading supplier in many markets. The company’s portfolio ranges from dissolving pulp, standard and specialty cellulose fibres to high-quality plastic polymer products and engineering services.