#Yarn & Fiber

2020-06-04

IFC and IDB invest co-lead a USD 1.1 billion financing to LD Celulose

IFC, a member of the World Bank Group, and IDB Invest, a member of the IDB Group, are co-leading a USD 1.1 billion financing to LD Celulose S.A., a joint venture between Lenzing AG and Duratex S.A., to build one of the largest dissolving wood pulp plants in the world, in Minas Gerais State, Brazil. The export credit agency Finnvera and seven commercial banks are participating in the financing. The investment will strengthen the competitiveness of Brazil’s pulp industry, create jobs, and support the country’s efforts towards climate change mitigation.

The financing co-led by IFC and IDB Invest will support LD Celulose’s investment program for 2020-2022, which consists of the construction of a dissolving wood pulp (DWP) mill and the installation of a cogeneration plant with a capacity of 144 megawatts. As part of the project, LD Celulose will also sustainably plant and manage approximately 70,000 hectares of eucalyptus plantations.

The plant will operate among the highest productive and energy-efficient in the world and will feed the 40 percent of excess bioelectricity generated on site as green energy into the public grid. DWP is the main raw material used to produce wood-based textile fibers, a biodegradable and more environmentally friendly fiber alternative. The end-products of DWP include textiles and hygiene products, among others. Once operational in 2022, LD Celulose will have capacity to produce up to 500,000 tons of DWP per annum.

Brazil is one of the most competitive pulp producing countries in the world, due mainly to its availability of high-quality land, favorable soil and climatic conditions, and high forest productivity. The forestry sector plays an important economic and developmental role in the country, employing about 350,000 people, mainly in rural areas, and accounting for 4.2 percent of the country’s exports.

This investment will help strengthen the competitiveness of the pulp industry in Brazil and support job creation. In addition, LD Celulose’s cogeneration plant will contribute to an increase in the share of sustainable biofuels and renewable energy in the country’s energy mix, enhancing diversification and contributing to the country’s effort to mitigate climate change. The financing will also increase sustainability standards for the pulp industry and the plantation forestry sector through LD Celulose’s adoption of IFC’s Environmental and Social Performance Standards.

The USD 1.1 billion loan package is comprised of three parts: (i) a USD 500 million financing package arranged by IFC; (ii) a USD 500 million financing arranged by IDB Invest; and (iii) a USD 147 million, 13-year door-to-door loan from financial institutions backed by the Finnish export credit agency Finnvera.

The IFC arranged financing includes: (i) a USD 200 million, 11-year loan for IFC’s own account; (ii) a USD 50 million, 11-year loan through the IFC Managed Co-Lending Portfolio Program (MCPP), a platform that allows institutional investors to participate in IFC’s loan portfolio; and (iii) a USD 250 million, 9-year loan syndicated to international commercial banks. Similarly, the facility arranged by IDB Invest includes: (i) a USD 200 million, 11-year loan for IDB Invest’s own account; (ii) a USD 50 million, 11-year loan through IDB Invest’s administered China Co-financing Fund for Latin America and the Caribbean; and (iii) a USD 250 million 9-year loan syndicated to international commercial banks. Participating banks in the combined USD 500 million syndicated portion jointly arranged by IFC and IDB Invest are: Banco Santander, BNP Paribas, Commerzbank Aktiengesellschaft (Filiale Luxemburg), Erste Group Bank AG, HSBC Bank plc, KfW IPEX-Bank GmbH, and Raiffeisen Bank International AG.

The Lenzing Group is a world market leader for wood-based cellulosic fibers, and Duratex is the largest producer of industrialized wood panels in the southern hemisphere. The LD Celulose joint venture, created in 2019, is owned 51 percent by Lenzing and 49 percent by Duratex.

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.

Expansive innovations converge in Shanghai as Yarn Expo Autumn 2026 opens doors next week

With just days to go, industry enthusiasm is building for the opening of Yarn Expo Autumn, Asia’s premier yarn and fibre trade fair, running from 25 – 27 August at the National Exhibition and Convention Center (Shanghai). Across 27,000 sqm in Hall 8.2, buyers will find nearly 600 exhibitors from 14 countries and regions, spread across seven specialised zones that range from cutting-edge man-made and regenerated fibres to time-honoured cashmere and silk. Beyond the extensive sourcing options, a fringe programme of trend showcases, presentations and product launches rounds out the three¬day event with design, innovation and market intelligence.

Dornbirn GFC 2026 expands conference program with new thematic sessions

For 65 years, Dornbirn GFC has stood for innovation and is one of the world’s leading conferences in the fiber industry. From September 16 to 18, 2026, the international fiber community will meet in Dornbirn, Austria, to discuss current trends, technological developments, and forward-looking solutions. More than 600 experts from industry and academia from over 30 countries are expected to attend. With around 100 presentations by renowned speakers, a 2,5-day conference program, and three parallel presentation rooms with moderated sessions, Dornbirn GFC provides a first-class platform for knowledge exchange, networking, and international collaboration. Together, participants will generate ideas and impulses that will sustainably shape the future of the global fiber industry.

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.