Company information
Lenzing is a global leader in wood-based specialty fibers and pulp for the textile and nonwovens industries
Industrials & other manufacturing
Processing
Engagement time
2024 - 2025
Owned by
Publicly listed. Main shareholder: B&C Group
Revenue (at entry)
€ 2.6 bn
Adj. EBITDA margin
(at entry)
< 10%
Employee number
8.0 k
Bickel & Company set-up
Client feedback
Patrick Lackenbucher
Chairman of the Supervisory Board of Lenzing AG
"Walter Bickel and his CTO team are passionate implementers. They always think holistically and know how to convincingly translate strategy, operating model and necessary adjustments to structures, processes and the cost base into operational measures while taking the organization with them. Their consistency in implementation and their integrated approach guarantee that their measures are not only visible in the P&L in the short term, but also lead to a significant increase in the company's performance in the long term. At Lenzing, they clearly exceeded the targets set for the performance program within the defined period and thus created a solid basis for a successful financing transaction."
Challenge
In 2024, Lenzing had built a strong market position around premium sustainability-led brands and a highly integrated production footprint spanning fibers and pulp. However, despite its attractive strategic positioning, the business had come under significant operational and financial pressure due to rising competition from China and India. A combination of weak market demand, pricing pressure, cost inflation, operational inefficiencies, and the burden of large-scale capital investments had materially eroded profitability and cash generation.
Approach
Launch of a company-wide value creation program focused on cost leadership, overhead reduction, operational excellence including production planning and logistics
Establishment of robust governance structures, including dedicated VCP oversight and monthly performance reporting to ensure transparency and execution discipline
Optimization of the cost base through personnel restructuring and reduction of direct and indirect operating expenses
Deployment of targeted turnaround programs at underperforming sites, supported by new leadership teams and focused operational workstreams
Creation of a centralized operations function and strengthened data management capabilities to drive cross-site efficiency and sustainable performance improvement
Impact
VCP success level
Recurring VCP impact
c. € 130 m
(prospective c. € 180 m, 7% of revenues)
Improvement in free cash flow
c. € 290 m
