Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • December 1995 (Revised January 2008)
  • Case
  • HBS Case Collection

Lenzing AG: Expanding in Indonesia

By: Debora L. Spar
  • Format:Print
  • | Language:English
  • | Pages:23
ShareBar

Abstract

In 1994, Lenzing AG, the world's largest rayon manufacturer, is deciding whether to expand production in South Pacific Viscose, its Indonesian subsidiary. Indonesia is a booming market for rayon, but management still has some concerns about the expansion. First, for the plant to remain successful, Lenzing's downstream customers--textile producers--must also remain in Indonesia. Second, despite being located in an area of tropical forests, the Indonesian plant has no local access to wood pulp, its most critical input. Finally, with the expansion, Lenzing would be increasing its exposure in a country that remains politically and economically uncertain.

Keywords

Competition; Production; Expansion; Logistics; Manufacturing Industry; Indonesia

Citation

Spar, Debora L., Lygeia Ricciardi, and Laura Bures. "Lenzing AG: Expanding in Indonesia." Harvard Business School Case 796-099, December 1995. (Revised January 2008.)
  • Educators
  • Purchase

About The Author

Debora L. Spar

General Management
→More Publications

More from the Author

    • November 2023
    • Faculty Research

    'Care in Every Drop': Ayala Corporation and Manila Water (B)

    By: Debora L. Spar, Paul Healy, Tricia Peralta and Julia Comeau
    • November 2023
    • Faculty Research

    'Care in Every Drop': Ayala Corporation and Manila Water (A)

    By: Debora L. Spar, Paul Healy, Tricia Peralta and Julia Comeau
    • October 2023
    • Faculty Research

    Taiwan After Globalization: Twilight of the Developmental State?

    By: Debora L. Spar and Julia Comeau
More from the Author
  • 'Care in Every Drop': Ayala Corporation and Manila Water (B) By: Debora L. Spar, Paul Healy, Tricia Peralta and Julia Comeau
  • 'Care in Every Drop': Ayala Corporation and Manila Water (A) By: Debora L. Spar, Paul Healy, Tricia Peralta and Julia Comeau
  • Taiwan After Globalization: Twilight of the Developmental State? By: Debora L. Spar and Julia Comeau
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College