With the country's textile industry eyeing more value-added products, the demand for healthy and functional fabrics has grown in recent years.
China has become Lenzing's largest single market for Tencel fiber, says Ernst Sandrieser, general manager of Lenzing Fiber (Shanghai) Co Ltd.
Because it combines moisture management and a smooth surface, the company says Tencel results in a tender feeling for the skin. The properties provide a coolness that helps prevent irritation and maintain the skin's natural balance. The organic product does not contain any pesticides or agricultural chemicals.
Tencel fiber, which was introduced in the country in 1999, has been widely used in both woven and non-woven materials, such as bed covers, mattresses, bed linens, denim and knitwear.
The general manager tells China Business Weekly that the company will take a comprehensive marketing approach for Tencel products in order to reach out to more local manufacturers.
"It (the skincare fiber) is a relatively new concept in China, although Lenzing developed it almost a decade ago. Therefore we will put a lot of focus on communicating with potential clients," he says.
Lenzing has three plants for Tencel fiber production, in Austria, the United States and the United Kingdom, with total output each year reaching 120,000 tons. The company declines to release sales figures for China.
Over 60 percent of Tencel fibers used in China are made into textiles or apparel and exported abroad.
"China is promising as an export country as well as a consumer market," Sandrieser says, predicting that growing domestic demand will be the driving force for Tencel in the future.
Over 15 years ago, Lenzing began supplying viscose fibers to the Asian market through its Indonesian associate, South Pacific Viscose.
The company has exported modal and lyocell fibers to China since 1999. Business developed so well in Asia that Lenzing opened an office in Hong Kong in 2000 and a Shanghai office in 2004.
Modal fibers are already accepted among Chinese consumers and are used in lingerie articles due to their softness. The main applications for lyocell fibers are in woven fabrics such as silky blouses and shirts.
The company in March launched its first plant in China, producing viscose fiber. The factory, located in Nanjing, capital of East China's Jiangsu Province, is a joint venture with Nanjing Chemical Fiber Co.
The capacity for the first phase is 60,000 tons a year. Sandrieser says the company expects to double or even triple capacity within five years.
Lenzing contributes the key technology to ensure compliance with European environmental standards and high product quality. As China's seventh-biggest viscose fiber producer, Nanjing Chemical Fiber provides the infrastructure.
Before the plant was launched, viscose fiber was imported from Lenzing's plants in Austria and Indonesia to meet growing demand in China, which annually uses up to 800,000 tons of the material.
"By manufacturing in China we come closer to our customers on this important market," he says.
Lenzing fibers viscose, modal and lyocell are made from wood, a renewable raw material. They are used by the textile industry garments, home textiles and technical fabrics as well as by the non-woven industry for sanitary, medical and cosmetics use.
Its revenue exceeded 1 billion euros last year, with over 80 percent from exports.
