Reduction of working hours at the factory in Heiligenkreuz in Burgenland, temporary shutdown of production lines, cost savings program! In recent months it has already become clear how much pressure Lenzing AG is under. The fiber producer, which operates from Upper Austria, has now presented its 2022 figures, which show a loss.
The fire equipment supplier Rosenbauer, recently hit by a cyber attack, was in the red last year because material costs had risen enormously and part of the prices could not be passed on. With Lenzing AG, another Austrian model company is now in the red for the past year. Although the fiber producer from Upper Austria increased its turnover to 2.57 billion euros, it still achieved an annual result of minus 37.2 million euros.
The Lenzing site will be reduced by 150 jobs
Because the result was already visible and the demand for fibers also declined, CEO Stephan Sielaff set up a cost-cutting program. This also affects the workforce, where overtime and holidays are reduced, weekly working hours are generally adjusted and jobs are also cut. 150 jobs are being created at the Lenzing site alone, but part of this is also the result of natural departures that are not filled.
“Coming out of this crisis stronger”
Sielaff is not worried about Lenzing’s future: “Due to the many crises of the past year, we were exposed to very strong headwinds. Nevertheless, we can look to the future with great confidence, because the need for sustainable innovations in the medium and long term remains unbroken and the demand for eco-friendly fibers will continue to rise.”: “We emerge from this crisis strengthened.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
