Lenzing AG : A World Player Supplying The Textile Industry
Lenzing
is one of the world''s market leaders in the cellulose fiber market.As part of
their sCore TEN strategy, the company is transforming itself from a
volume-based player to a more specialized company.This
shift is expected to improve their market position and profitability.This
company could prove to be a very good dividend growth investment in the long
term.I like to review lesser-known European companies which I think offer good
opportunities for dividend growth investors. In the past, I wrote about the
Dutch bicycle producer Accell (OTCPK:ACGPF) and the soft commodity.
Trader Acomo (OTC:ACNFF). This is
an article about another promising company which is not well known but does
have a market capitalization of almost €3 billion on the Vienna Stock Exchange
in Austria.Lenzing (OTCPK:LNZNF) is an Austrian company which produces
cellulose fibers. The company originates from the town of Lenzing, which
explains their name. They have production sites in all major markets as well as
a worldwide network of sales and marketing offices. The company operates in a
market with very good prospects and they supply a product which is expected to
become more important in our world in the near and more distant future. Because
of these prospects and their experience in this market, Lenzing is a good
choice for dividend growth investors.
Let us first take a look at the market of cellulose fibers. Cellulose fabric is
material which is extracted from various plants. These fibers are used for
producing textile, filtration applications and composite materials. In comparison
with engineered fibers, cellulose fibers have the advantage that they have a
relatively low density (they are relatively light), a low cost, and they are
recyclable and biodegradable. In the case of Lenzing, they have been producing
viscose for more than 75 years already.
Source: Business Day, Nigeria
Monday, 15 January 2018