#Nonwovens

2026-03-26

VEOCEL™ Lyocell production expands to Asia – Launching a new chapter for nonwovens in the region

Lenzing’s Thailand production plant starts producing nonwoven-grade lyocell fibers, marking a significant milestone. Built to serve Asia from Asia, the site strengthens regional lyocell fiber supply and reduces the fiber’s transport-related environmental impact due to significantly shorter lead times © 2026 Lenzing

VEOCEL™, Lenzing's flagship specialty nonwovens brand, expands production at its Thai plant in Prachinburi. This is the first-ever production of its nonwoven-grade lyocell fibers in Asia. Built in 2022 with a 100,000-ton annual production capacity, the facility - previously focused on fibers for textile applications - now can directly meet the demand for VEOCEL™’s biodegradable¹, wood-based lyocell fibers for nonwovens products. These fibers are an essential ingredient for high-quality nonwovens products, ranging from baby wipes to facial sheet masks and everyday personal hygiene items.

Serving Asia from Asia

For more than 25 years, Lenzing has led the way in lyocell fiber production, driving sustainability, pioneering innovation, and setting new standards in cellulosic fibers. This expansion brings those fibers closer to nonwovens customers and value-chain partners across Asia, improving access and reinforcing VEOCEL™’s commitment to the region. With production in Thailand, manufacturers and brand partners can now count on greater supply chain stability with significantly shorter lead times.

Localized production also means fewer miles traveled. Sourcing these fibers directly within Asia, rather than from Lenzing’s other lyocell facility in Austria, reduces the need for intercontinental imports. This significantly contributes to reducing transport-related emissions, supporting the environmental commitments of both Lenzing and its partners in Asia.

“This expansion is a landmark achievement for the VEOCEL™ brand and the broader nonwovens industry in Asia,” said Patricia A. Sargeant, Executive Vice President Nonwovens at Lenzing AG speaking at the launch ceremony on 18th March in Prachinburi. “We are now ideally positioned to serve our valued customers with enhanced speed, stability, and sustainability². We deeply value the partnership we have built so far, yet there is more to come. We believe that true progress is only possible when we move forward together. By offering a robust local supply of biodegradable¹, wood-based lyocell fibers, we are empowering our partners in Asia to meet the consumer demand for environmentally responsible wipes and hygiene products, while significantly reducing the carbon footprint associated with global logistics.

Building on a sustainable foundation

The Prachinburi plant itself exemplifies Lenzing’s commitment to responsible fiber manufacturing. Its production of VEOCEL™ Lyocell fibers utilizes a resource-efficient, closed-loop production process that results in low air and water emissions². The facility also drives Lenzing’s broader climate goals, targeting 95 percent biomass energy by 2027 and Scope 1 and 2 carbon neutrality by 2030³.

“Our site in Thailand was built with future growth and our ambitious climate goals in mind,” added Krishna Manda, Global Head of Sustainability for Lenzing Group. “Expanding the facility’s capabilities for VEOCEL™ fibers is a testament to our ongoing investments in sustainable innovation. Once fully commercialized, this capability will play a vital role in transitioning the regional nonwovens industry from fossil-based synthetics to biodegradable, cellulosic alternatives. We look forward to strengthening collaboration as we begin this new chapter together.”

The plant uses optimized processes to guarantee the high performance, skin comfort, and sustainability benefits VEOCEL™ is known for. By aligning local supply with global environmental standards, Lenzing is advancing an eco-conscious supply chain and reinforcing its leadership in environmentally responsible fibers.

¹ A range of LENZING™ Lyocell fibers for nonwoven applications are certified by TÜV AUSTRIA to be biodegradable in soil, freshwater and marine conditions and compostable under home and industrial conditions.

² VEOCEL™ Lyocell fibers have gained a commendable reputation for their environmentally responsible, closed loop production process, which transforms wood pulp into cellulosic fibers using a highly resource-efficient process with low ecological impact. Within this solvent-spinning process, the process water is recycled, and the solvent can be recovered up to 99.8 percent and reused.

³ Please refer to Lenzing Annual and Sustainability Report 2025.

Lenzing reports improved half-year results and advances strategic transformation

Despite a persistently challenging market environment in the first half of 2026, characterized by volatile energy and raw material prices, subdued global consumer demand and intensified competition from Asia, the Lenzing Group significantly improved its financial performance. Net result after tax more than doubled to EUR 35.6 million, compared with EUR 15.2 million in the first half of 2025. Free cash flow increased to EUR 45.8 million, while EBITDA amounted to EUR 239.2 million. Revenue totaled EUR 1.27 billion, compared with EUR 1.34 billion in the previous year.

Cinte Techtextil China 2026 wraps up successfully, setting stage for next-gen advancement across key applications

Asia’s premier trade fair for technical textiles and nonwovens delivered a vibrant and productive edition this year, bringing together key players from around the world. Featuring over 300 exhibitors from 15 countries and regions across 32,000 sqm, the platform drew nearly 19,000 visits from an increasingly diverse international audience spanning 86 represented markets.

25 years in the room: EDANA’s OUTLOOK™ returns to Cascais to shape a changing industry

The market does not wait, and it does not grant easy answers. Across the absorbent hygiene, personal care, and wipes sectors, business is undergoing a period of intense, necessary adjustment. New European rules on packaging, single-use items, product safety, and end-of-life are forcing companies to drop old assumptions about materials and performance. At the same time, producers must keep their goods safe, reliable, and affordable for the babies and aging adults, who rely on them every day.

ITMA Asia 2026: How Barmag is reshaping the future of man-made fiber production

The textile industry is entering a groundbreaking era. Manufacturers face rising energy prices, growing sustainability demands, increasing labor shortages, and an unprecedented need for flexibility. For a globally active textile industry, where competitiveness is closely linked to production efficiency and cost leadership, this means that technology is no longer merely a means of improving operational processes – it is increasingly becoming a strategic differentiator.

YKK subsidiary Golden Hill Tower Limited marks 25 years of operations in Myanmar

Golden Hill Tower Limited, a subsidiary of YKK Corporation, celebrated its 25th anniversary with a ceremony in Myanmar on September 21, 2026. The event brought together approximately 230 guests, including senior executives from the YKK Group, to commemorate the company's development since the launch of its serviced apartment business in November 2000.

SHIMA SEIKI to showcase digital product creation at Apparel Sourcing Week

Leading digital textile solutions provider SHIMA SEIKI MFG., LTD. of Wakayama, Japan will exhibit at Apparel Sourcing Week 2026 in Bengaluru, India next month. The exhibition provides a platform for the entire apparel value chain, bringing together manufacturers, brands, suppliers and solution providers in one location.

SNA GZ accelerates its on-demand production strategy with Kornit Digital

SNA GZ is leveraging the Kornit Atlas MAX PLUS to expand its music merchandise production, streamline e-commerce order fulfillment, and grow its print-on-demand business across Europe. This investment increases SNA GZ's textile production capacity by 150% (2.5×), enabling the company to meet growing demand and support its continued expansion.

NEUMÜHLE launches mono-material hoodie designed for textile recycling

With the Circular Mono Hoodie, Zurich-based label NEUMÜHLE introduces a new essential designed around a single-material principle. The textile construction is cotton throughout, right down to the sewing thread. Entirely free from elastane, the hoodie launches as a Limited Drop for CHF 139. Take-back, collection and existing recycling partnerships complement its circular design.