Vienna - Austria fibre-maker Lenzing on Monday said it made record profits in 2007, owing to an excellent business environment and strong growth.

Net profits were up 33.1 per cent to 117.6 million euros (185.9 million dollars), the company said in a press release, confirming preliminary numbers released last month.

Operating profits were up 50.6 per cent to 162.3 million euros, consolidated sales increased by 20.9 per cent to 1.6 billion euros. The company, which is listed at Vienna's stock market, is expected to pay a dividend of 14 euros per share.

Profits were boosted by the opening of a new production site in Nanjing, China, rising prices in the field of cellulose fibres - Lenzing's core business - and acquisitions in the field of plastics, the company said.

For 2008, Lenzing, a leading producer of special cellulose fibres and high-tech plastics polymers, expects a stable first quarter, but a weakening of demand in the further course of the year. (dpa)