In 1994, Lenzing AG, the largest area in the world by the manufacturer decides whether to expand the production of viscose South Pacific, its Indonesian subsidiary. Indonesia is a growing market for the area, but management still has some concerns about the expansion. First, for the plant to remain successful, Lenzing distribution network customers - textile producers - must remain in Indonesia. Second, although located in the area of tropical forests, the Indonesian plant has local access to the pulp, its most important input. Finally, with the expansion, Lenzing will increase their exposure to the country, which remains politically and economically uncertain. "Hide
on Lygeia Ricciardi, Laura Bures, Debora L. Spar Source: Harvard Business School 23 pages. Publication Date: December 21, 1995. Prod. #: 796099-PDF-ENG
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