{"id":1959,"date":"2018-09-28T02:06:17","date_gmt":"2018-09-28T02:06:17","guid":{"rendered":"http:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/?p=1959"},"modified":"2018-09-28T02:06:17","modified_gmt":"2018-09-28T02:06:17","slug":"lenzing-to-focus-on-thailand-expansion-after-halting-u-s-project","status":"publish","type":"post","link":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/2018\/09\/28\/lenzing-to-focus-on-thailand-expansion-after-halting-u-s-project\/","title":{"rendered":"Lenzing to focus on Thailand expansion after halting U.S. project"},"content":{"rendered":"<div class=\"ArticleHeader_container\">\n<div class=\"ArticleHeader_upper-container\">\n<div class=\"foreground\">\n<div class=\"TwoColumnLayout_container TwoColumnLayout_fluid-left\">\n<div class=\"TwoColumnLayout_column TwoColumnLayout_left\">\n<div class=\"ArticleHeader_content-container\">\n<h1 class=\"ArticleHeader_headline\">Lenzing to focus on Thailand expansion after halting U.S. project<\/h1>\n<\/div>\n<\/div>\n<div class=\"TwoColumnLayout_column TwoColumnLayout_right\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"lower-container\">\n<div class=\"TwoColumnLayout_container inner TwoColumnLayout_fluid-left\">\n<div class=\"TwoColumnLayout_column TwoColumnLayout_left\">\n<div class=\"ArticleHeader_content-container\">\n<div class=\"BylineBar_first-container ArticleHeader_byline-bar\">\n<div class=\"BylineBar_border-wrap\">\n<div class=\"BylineBar_byline\"><a href=\"https:\/\/www.reuters.com\/journalists\/kirsti-knolle\" target=\"_blank\" rel=\"noopener\">Kirsti Knolle<\/a>,\u00a0<a href=\"https:\/\/www.reuters.com\/journalists\/alexandra-schwarz-goerlich\" target=\"_blank\" rel=\"noopener\">Alexandra Schwarz-Goerlich<\/a><\/div>\n<div class=\"BylineBar_last-container\">\n<p class=\"BylineBar_reading-time\">3 MIN READ<\/p>\n<div class=\"BylineBar_share-container\">\n<div class=\"SocialTool_container\">\n<ul>\n<li><\/li>\n<li><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"TwoColumnLayout_column TwoColumnLayout_right\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"TwoColumnLayout_container StandardArticle_content TwoColumnLayout_fluid-left\">\n<div class=\"TwoColumnLayout_column TwoColumnLayout_left\">\n<div class=\"StandardArticleBody_container\">\n<div class=\"StandardArticleBody_body\">\n<p>VIENNA (Reuters) &#8211; Austrian fibers producer Lenzing (<span id=\"\u201dsymbol_LENV.VI_0\u201d\"><a href=\"https:\/\/www.reuters.com\/finance\/stocks\/overview?symbol=LENV.VI\">LENV.VI<\/a><\/span>) will focus on setting up a new production facility in Thailand after halting its planned U.S. expansion due in part to rising trade tensions, its chief executive said on Thursday.<\/p>\n<div class=\"PrimaryAsset_container\">\n<div class=\"Image_container\">\n<figure class=\"Image_zoom\">\n<div class=\"LazyImage_container LazyImage_dark\">\n<div class=\"LazyImage_image LazyImage_cover LazyImage_fallback\"><\/div>\n<\/div>\n<div class=\"Image_expand-button\"><\/div>\n<\/figure>\n<div class=\"Image_caption\">FILE PHOTO: Stefan Doboczky, CEO of Austrian cellulose fibers maker Lenzing, talks during a news conference in Vienna, Austria, October 11, 2016. REUTERS\/Heinz-Peter Bader\/File Photo<\/div>\n<\/div>\n<\/div>\n<p>The firm, which makes cellulose fibers used in textiles, said late Wednesday it was mothballing a $322 million project in Alabama, partly due to rising tariffs between the United States and China, where much of the project\u2019s production was destined.<\/p>\n<div>\n<div class=\"DPSlot_container StandardArticleBody_dp-slot-inline\">\n<p>SPONSORED<\/p>\n<div id=\"dpslot_canvas_3595990_USKCN1M71RM\" class=\"DPSlot_ad-container\">\n<div class=\"teads-inread\">\n<div>\n<div id=\"teads0\" class=\"teads-player\"><\/div>\n<\/div>\n<\/div>\n<div class=\"teads-inread\">\n<div>\n<div class=\"teads-ui-components-adchoices\"><\/div>\n<div class=\"teads-ui-components-label\">ADVERTISING<\/div>\n<div id=\"teads1\" class=\"teads-player\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Stefan Doboczky told Reuters on Thursday that a final investment decision on a new facility in Thailand would be made in a few months.<\/p>\n<p>Thai production volumes would be around 90,000 tons per year &#8211; roughly the same as initially planned for the new U.S. plant, he added.<\/p>\n<p>Lenzing is expanding internationally and announced in summer last year that it planned to enter the Thai market.<\/p>\n<div class=\"Image_container\">\n<figure class=\"Image_zoom\">\n<div class=\"LazyImage_container\">\n<div class=\"LazyImage_image LazyImage_contain LazyImage_fallback\"><\/div>\n<\/div>\n<div class=\"Image_expand-button\"><\/div>\n<\/figure>\n<div class=\"Image_caption\">\n<div class=\"Image_line\"><\/div>\n<p>FILE PHOTO &#8211; Stefan Doboczky, CEO of Austrian cellulose fibers maker Lenzing, looks on during a news conference in Vienna, Austria, October 11, 2016. REUTERS\/Heinz-Peter Bader<\/p><\/div>\n<\/div>\n<p>\u201cIt is &#8230; one of the few countries that have free trade agreements in the ASEAN (Association of Southeast Asian Nations)region as well as with China and India,\u201d Doboczky said, when asked why the new focus on Thailand.<\/p>\n<p>\u201c(To be able) to supply customers worldwide is extremely important in our business.\u201d<\/p>\n<p>Chinese textile exports to the United States now face a 10 percent tariff, and Doboczky said it was possible those tariffs might increase and that China would respond with counter-duties.<\/p>\n<div><\/div>\n<p>\u201cOur assessment is that products such as our Lyocell fiber may be affected.\u201d Lyocell, a fiber produced from wood, is one of the group\u2019s top-sellers.<\/p>\n<p>Lenzing shares closed down around 14 percent on Thursday.<\/p>\n<p>Doboczky said the company would wait until there was clarity regarding tariffs before deciding when to restart the U.S. project.<\/p>\n<div class=\"StockChart_container\">\n<div class=\"StockChart_module-container\">\n<div class=\"quote-container\">\n<div class=\"StockChart_quote-data-container\">\n<div class=\"StockChart_header\">\n<div class=\"StockChart_row StockChart_top\"><span class=\"StockChart_name\"><a href=\"https:\/\/www.reuters.com\/finance\/stocks\/overview?symbol=LENV.VI\">Lenzing AG<\/a><\/span><span class=\"StockChart_quote\">89.1<\/span><\/div>\n<div class=\"StockChart_row bottom\">\n<div class=\"StockChart_info\"><span class=\"StockChart_ric\">LENV.VI<\/span><span class=\"StockChart_exchange\">VIENNA STOCK EXCHANGE<\/span><\/div>\n<div class=\"StockChart_change\"><span class=\"StockChart_net-change StockChart_neg\">-15.20<\/span><span class=\"StockChart_net-change StockChart_neg\">(-14.57%)<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"StockChart_quote-chart-container\">\n<div class=\"StockChart_chart\"><img decoding=\"async\" src=\"https:\/\/www.reuters.wallst.com\/reuters\/next\/chart\/chartsgen2?symbols=LENV.VI&amp;numberOfDays=90&amp;width=286&amp;height=178&amp;realtime=0&amp;scaleFactor=2&amp;ChartsGen2=true\" alt=\"LENV.VI\" \/><\/div>\n<\/div>\n<\/div>\n<div class=\"StockChart_ric-buttons\">\n<ul>\n<li class=\"StockChart_button StockChart_selected\">LENV.VI<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<p>He also wants to see signs that the local jobs market is easing, as a big rise in labor costs was another reason for stopping construction at the Alabama site.<\/p>\n<p>\u201cIt is our clear target to continue (building the U.S. site) and to push the start button again at the right time.\u201d<\/p>\n<p>The CEO said he did not expect substantial impairments due to the construction halt and 2018 earnings would not suffer.<\/p>\n<div><\/div>\n<p>\u201cWe now have neither a profit warning for 2018, neither a change in our earnings, nor do we face a write-off,\u201d he said.<\/p>\n<p>Lenzing expects 2018 earnings to be lower than in the last two years, partly due to increased commodity prices and strong competition on the fibers market.<\/p>\n<p>($1 = 0.8560 euros)<\/p>\n<div class=\"Attribution_container\">\n<div class=\"Attribution_attribution\">\n<p class=\"Attribution_content\">Editing by Thomas Seythal and Mark Potter<\/p>\n<\/div>\n<\/div>\n<div class=\"StandardArticleBody_trustBadgeContainer\"><span class=\"StandardArticleBody_trustBadgeTitle\">Our Standards:<\/span><span class=\"trustBadgeUrl\"><a href=\"http:\/\/thomsonreuters.com\/en\/about-us\/trust-principles.html\">The Thomson Reuters Trust Principles.<\/a><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Lenzing to focus on Thailand expansion after halting U.S. project Kirsti Knolle,\u00a0Alexandra Schwarz-Goerlich 3 MIN READ VIENNA (Reuters) &#8211; Austrian fibers producer Lenzing (LENV.VI) will focus on setting up a new production facility in Thailand after halting its planned U.S. expansion due in part to rising trade tensions, its chief executive said on Thursday. FILE PHOTO: Stefan Doboczky, CEO of&#8230; <a href=\"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/2018\/09\/28\/lenzing-to-focus-on-thailand-expansion-after-halting-u-s-project\/\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":115,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1959","post","type-post","status-publish","format-standard","hentry","category-analysis"],"_links":{"self":[{"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/posts\/1959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/users\/115"}],"replies":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/comments?post=1959"}],"version-history":[{"count":1,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/posts\/1959\/revisions"}],"predecessor-version":[{"id":1960,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/posts\/1959\/revisions\/1960"}],"wp:attachment":[{"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/media?parent=1959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/categories?post=1959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/eastasiaandoceaniablog\/wp-json\/wp\/v2\/tags?post=1959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}