Lenzing is perpetually trying to do better for both the people and the planet through its products and practices.
With that in mind, the wood-based cellulosic fiber producer’s business model looks slightly different from that of a traditional fiber fabricator, with relationships spanning B2B to B2C. In emphasizing “intense collaboration and innovation support” throughout the value chain, the Austrian company makes meaningful moves—from investing in green energy and modernizing facilities to collaborating with eco-champions like Ganni and Reformation—all in an effort to provide the industry with the best it can offer.
Sourcing Journal checked in with Lenzing Group’s new chief executive officer, Rohit Aggarwal, who shared his perspective on current industry trends, how his business economist experience benefits Lenzing and his strategy to strengthen the group’s role in shaping the global textile landscape.
Sourcing Journal: How will you transition your knowledge and expertise as a strategic business economist into a unique vision for Lenzing moving forward?
Rohit Aggarwal: I see a promising future for Lenzing, where we will continue to be industry leaders and trailblazers in sustainable fiber solutions. Drawing from my experiences in various positions across the textile and chemical industries, I have come to understand the critical importance of an innovation pipeline and an integrated value chain in driving organizational success. Therefore, beyond sustainability, which remains at the core of Lenzing’s ethos, innovation would continue to serve as our key differentiator. Our innovations go beyond being cellulosic and environmentally friendly; Tencel Lyocell stretch fabrics and Veocel Lyocell fibers with Lenzing Dry technology serve as prime examples, allowing us to develop unique and high-performing solutions that meet the needs of brand partners and consumers alike. On the value chain front, I aim to continue developing our relationships with blue-chip textile and nonwoven customers by involving the group in those customers’ value chain decision processes. These strategies would be instrumental in shaping Lenzing’s business trajectory moving forward.
SJ: How will you bolster Lenzing’s role in shaping the ever-evolving global landscape of textiles and nonwovens?
RA: The “Better Growth” strategy is at the heart of Lenzing’s business. It’s not just about elevating Lenzing as a company but also contributing positively to the world at large. This strategy propels our sustainable growth, steering us confidently toward our vision of leading the transition toward an eco-conscious textile and nonwoven industry. We are dedicated to catering more effectively to the burgeoning demand for our fibers, proudly marketed under the Tencel, Lenzing, EcoVero, and Veocel brands.
Fostering collaboration would be one of the key drivers in our “better growth” strategy. To catalyze systemic change and capitalize on collective efforts, we aim to increase our early-stage collaborations with industrial customers such as spinners or roll-good manufacturers. This will facilitate the development of our fiber solutions in the textile and nonwoven chains. By marketing our innovative and tailored branded products to textile and nonwoven manufacturers and retailers, we can reach stakeholders—who often determine the mix of fibers sourced from mills—to spotlight Lenzing’s high-quality and high-performance products to their direct suppliers.
SJ: What’s your current take on key industry trends?
RA: As the world population grows, the overall fiber industry is set for solid expansion. The market is expected to grow by 2-3 percent in the medium term, driven by population growth and a more affluent middle class. However, long-term capacity bottlenecks are likely. Cotton will be unable to fill this gap due to its extensive land use. Oil-based synthetic fibers increasingly come under scrutiny for their fossil origin, high emissions in their production process and release of microfibers into oceans. Hence, there will be an increasing demand for alternatives. Lenzing’s cellulosic fibers are well-positioned to lead in this space.
We are also adapting to the call for greater transparency and accountability, which is continuously increasing. In this sense, we’re not only adapting to regulatory changes like the EU Commission’s Green Deal but also responding to the needs of our partners, customers and consumers. We welcome these changes and want to provide clear substantiation for the credentials of our fibers; we published a comprehensive set of fiber claims on a dedicated webpage, offering unprecedented transparency in raw material certification within the industry.
SJ: Can you share any details about the Cobalt Fashion collaboration?
RA: Our partnership with the Hong Kong-based manufacturer marks a significant milestone in bringing our scientific breakthrough to consumers. What sets these Lenzing fibers used in this knitwear collection apart is the fact that they are the first-ever cellulosic fibers to be dyed using waterless dyeing technology. Developed by technology start-up Exponential Envirotech, this technique reduces water usage by 95 percent compared to traditional dyeing, which typically requires 120 tons of water per ton of yarn. Thanks to Cobalt Fashion, these specially dyed fibers are woven into soft, comfortable knitwear, offering a new sustainable solution to the mainstream knitwear market.
SJ: In the release corresponding to your appointment, Lenzing supervisory board chairman Cord Prinzhorn noted some “ambitious tasks still lie ahead.” What are those tasks?
RA: This period is still characterized by geopolitical tensions and changing conditions in the global economy. Existing trade conflicts, the Israel-Gaza war, the ongoing war against Ukraine and the high inflation and economic slowdown had a negative impact on the global economy. Although there were slight signs of recovery in the relevant commodity and energy markets as well as in demand, the results in the first half of 2024 are largely characterized by the performance measures developed and implemented by Lenzing’s team. Nevertheless, we are still not waiting for a tailwind from the market; instead, we are actively adapting to market conditions to position Lenzing as a resilient, profitable and strong market player. This process of improving results must and will continue to be implemented and will accelerate over the coming quarters and years.
SJ: What roles do digital transformation and technological innovation play under your leadership?
RA: Technological innovation will be central to our strategy moving forward. We will continue investing in enhancing our production facilities and refining our production processes. Beyond ongoing digitalization in Lenzing’s own operations, we are also committed to integrating digital solutions throughout the value chains, promoting transparency and traceability in the textile and nonwoven sectors. Lenzing has already laid a foundation with its fiber identification system and E-branding service platform, maximizing the visibility of the fiber’s supply chain journey and its sustainability credentials. These efforts are complemented by real-time ocean shipment tracking technology, which provides customers with real-time insights into their fiber orders. We will continue actively seeking opportunities to leverage technology and digital solutions to further elevate our offerings and transparency.
SJ: What are your priorities for Lenzing’s growth in new markets and regions?
RA: While Europe and the Americas have long been key markets of Lenzing, we are also actively capitalizing on growth opportunities in the expanding Asia-Pacific markets. Understanding the local market dynamics for which we adapt our growth strategies and building relationships across the supply chain are our top priorities for the region.
For example, on the textile side of the business, our strategic partnerships with local and regional mills and brands have been our key efforts in driving collaborative innovation in emerging APAC markets.
To help strengthen our market presence, we are cultivating deeper ties within the local and regional industry through trade events, such as the Intertextile Shanghai Event and our Conclave event series in India. These initiatives provide us with the ideal platform to foster and deepen relationships with our key stakeholders, enabling the exchange of insights on evolving consumer trends and the future landscape of textile fibers and fabrics.
The APAC region also holds significant growth opportunities for our nonwovens business. Here, we are prioritizing setting ourselves apart from our competitors. This means delivering on our differentiated values, where we are not just a fiber supplier but also a service provider. To ensure we can meet supply and demand, we have multiple sourcing sites to make sure we can diversify our deliveries from Europe, America or Asia and mitigate any risk that could affect our supply chain.
SJ: How do you plan on further strengthening Lenzing’s position as a leader in sustainable fibers?
RA: Our strategy is anchored in connecting our rich legacy of quality, a strong commitment to sustainability, value chain transparency and exceptional branding. I believe Lenzing is the only fiber company that achieved stellar ratings from CDP, MSCI and EcoVadis. It brings me great pride to say that we have earned “Triple A” from CDP, an AA from MSCI, and received the EcoVadis Platinum status four times in a row. Going forward, we will continue to innovate our product offerings, developing premium fibers suitable for application in various apparel, footwear, home interiors, hygiene, self-care and beauty products. We will also enhance our collaboration with stakeholders across the supply chain, from raw material suppliers to brands and retailers. We are also looking to engage with customers and consumers more actively. Our recently refreshed Tencel brand theme—“Nature. Future. Us.”—Is a testament to our forward-thinking approach and commitment to adapting to and fulfilling evolving consumer needs.
SJ: What are your plans for fostering talent and culture within the group?
RA: We’re committed to the continuous education and development of our employees. Through specialized programs and training, we aim to enhance their skills and knowledge—preparing them for future challenges. We promote a culture of innovation and creativity by supporting projects that contribute to the circular economy and encouraging our employees to develop new ideas and solutions. Diversity and inclusion in the workplace are also very important to us; we strive to create an inclusive work environment where all employees can fully realize their potential. Furthermore, we invest in programs that promote the health and well-being of our employees, encompassing both physical and mental health initiatives. These measures are designed not only to foster the individual development of our employees but also to contribute to the creation of a positive and productive corporate culture.
