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:Vietnamese
  • | 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

    • March 2023
    • Faculty Research

    The Almost Nearly Perfect People: Sweden's Utopia at a Crossroads

    By: Debora L. Spar and Julia Comeau
    • March 2023
    • Faculty Research

    Halftime for Heidelberg

    By: Debora L. Spar
    • March 2023
    • Faculty Research

    Afrigen Biologics: Vaccines for the Global South

    By: Debora L. Spar and Julia Comeau
More from the Author
  • The Almost Nearly Perfect People: Sweden's Utopia at a Crossroads By: Debora L. Spar and Julia Comeau
  • Halftime for Heidelberg By: Debora L. Spar
  • Afrigen Biologics: Vaccines for the Global South 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