VIENNA, Sept 27 (Reuters) - Austria’s Lenzing expects its 2018 earnings to not be negatively affected by its decision to halt a major expansion project in the United States and also does not expect substantial impairments, its Chief Executive said on Thursday.
The cellulose fibres producer decided to stop the construction of a $322 million plant in Mobile, Alabama for the time being. It said the step was necessary due to a surge in construction costs and likely rising tariffs in the wake of the trade tensions between the U.S. and China.
“We now have neither a profit warning for 2018, neither a change in our earnings, nor do we face a write-off,” Chief Executive Stefan Doboczky told Reuters.
$1 = 0.8560 euros Editing by Thomas Seythal