The Austria-headquartered group specialises in the production of cellulose and fibres for textiles and nonwovens, and the use of renewable materials and the sustainability of its products are fundamental to its business.

In a statement, the €2.2bn (£1.97bn) turnover group said suspending guidance on earnings for the current financial year “in view of the drastic deterioration of the market environment in the current quarter”.

“The further course of the 2022 financial year can only be estimated to a limited extent due to the extremely low visibility on the demand side and the high volatility of energy and raw material costs.”

It has also scaled back one of three production lines at its Heiligenkreuz site.

A Lenzing spokesperson told Printweek: “At the moment, the aim is to be able to continue producing at break-even, and to this end we are looking at all options on a daily basis there. We cannot say at present whether further production lines will follow. 

“Total production capacity at the Heiligenkreuz site is well below 10% of group-wide production capacity. At the HQ site in Lenzing (Upper Austria), we have the advantage that we can use our own biomass as an energy source and are therefore more than 90% self-sufficient and thus independent of external energy.”

The group’s share price has lost more than 16% of its value over the past month, and descended to a 52-week low of €57.40 last week (52-week high: €134.20).

Lenzing brands include Tencel, EcoVero and Veocel. It is the only worldwide manufacturer able to produce viscose, modal and lyocell on an industrial scale.

The group has a 40% stake in the separate Lenzing Papier paper business.