#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 invests EUR 27 million in US facility to expand specialty fibers for nonwovens

The Lenzing Group is investing EUR 27 million (USD 31 million) to expand specialty fiber production capabilities at its lyocell fiber site in Mobile, Alabama, USA. The investment forms part of the company’s “Grow NW. Reset TX.” strategy and will strengthen its global Nonwovens business, with a particular focus on short-cut fibers and customized wood-based solutions for specialty applications.

Lenzing improves profitability as strategic transformation gains momentum

The Lenzing Group reported improved operating profitability in the first nine months of 2026 despite declining revenue and a challenging market environment. Revenue decreased by 2.3 percent to EUR 1.93 billion, while adjusted EBITDA remained stable at EUR 353 million. The adjusted EBITDA margin increased from 17.9 percent to 18.3 percent, reflecting progress in the company's strategic transformation under its “Grow Nonwovens. Reset Textiles.” strategy.

Lenzing and Kaihara to debut REMOD denim collection at Kingpins Amsterdam

The Lenzing Group, a global producer of wood-based fibers for the textile and nonwovens industries, has partnered with Japanese denim manufacturer Kaihara Corporation to launch the “REMOD Collection”. The collection combines three of Lenzing's fiber offerings for denim applications: TENCEL™ Lyocell Standard, TENCEL™ Lyocell – HV100 and TENCEL™ Lyocell dtex 2.2.

Kraig Biocraft Laboratories launches performance yarn development program based on spider silk

Kraig Biocraft Laboratories has launched a development program for high-performance yarns based on its recombinant spider silk technology. The initiative follows the company's first commercial shipment of a custom spider silk yarn to a performance apparel customer and includes the delivery of spider silk samples to a textile technology company with experience in aerospace-related material development.

Circ and Huafon partner to scale textile-to-textile recycling in China

Circ® and Huafon, a leading spandex producer in China, are partnering to build and scale a new multi-phase textile-to-textile recycling site in China, expanding Circ's global pathway to industrial scale. The project will be located within Huafon's industrial footprint and will use Circ's technology to process polycotton textile waste and recycle both inputs, recovering recycled PTA, recycled MEG and recycled cellulosic pulp for use in new textiles. The site will be developed in phases, with Phase 1 designed for approximately 200 metric tons of textile waste per day and additional capacity planned.

Marks & Spencer expands across Asia Pacific through partnership with Global Fashion Group

Marks & Spencer (M&S) and Global Fashion Group (GFG) have announced a strategic partnership to expand the British retailer's fashion business across Asia Pacific. M&S has launched on Southeast Asian fashion platform ZALORA and plans to enter THE ICONIC in Australia and New Zealand in early 2027. The agreement also introduces regional fulfilment for Australian M&S.com orders, enabling faster deliveries and returns while supporting a capital-light international growth strategy.

Woolmark survey: 82% of consumers prefer natural fibres over synthetics

A new consumer survey commissioned by Woolmark and conducted by Ipsos across five major markets reveals a strong preference for natural fibres over synthetic alternatives. On average, 82% of respondents in the United States, France, Germany, Italy and China said they would choose natural fibres when price, style and fit are equal. The findings coincide with the launch of Woolmark's new global brand platform, “Return to Real”, which highlights the natural performance properties of Merino wool and the growing importance of verified fibre quality.

KARL MAYER introduces MULTIPLY BX for high-efficiency wind turbine reinforcement fabrics

KARL MAYER is expanding its composite machinery portfolio with the new MULTIPLY BX, a biaxial warp knitting machine specifically developed for the production of reinforcement textiles used in wind turbine rotor blades. Designed for high output and efficient material utilisation, the machine achieves production speeds of up to 500 m/h and offers a productivity increase of 20 to 25% compared with the established MAX GLASS ECO. The MULTIPLY BX will make its debut at the KARL MAYER (China) Product Show in Changzhou during ITMA ASIA 2026.

ReSpin founder Åsa Strandberg receives Innovation Champion of the Year 2026 award

Åsa Strandberg, founder and CEO of Swedish textile recycling company ReSpin AB, has been named Innovation Champion of the Year 2026. The award recognises her development of RespinJenny, a patented technology designed to recycle textile waste into new, high-quality fibres without using water, chemicals or additional virgin raw materials. The distinction was presented by the Olle Oscarsson Foundation and Axera Inkubator at Guldgalan in Sweden.