Austrian company Holzindustrie Schweighofer acquired the furniture manufacturer Swedwood Romania in Siret (Nord-Est region, Suceava county), owned by the Swedish group Ikea. The transaction was signed in December 2008 and will be completed in spring 2009, according to a press release of Holzindustrie Schweighofer.

Swedwood’s furniture plant in Siret was built in 1999, with a total investment of around 12 million and ceased production in September 2008 due to the 38 million lei (EUR1=RON4.2127) losses reported in the last two years on the backdrop of a 50% hike in wood price, and a high competition on the raw material market, among others.

The equipment of the Siret plant will be adjusted for the needs of Holzindustrie Schweighofer, which plans to manufacture glued timber products in an annual range up to 60.000 square meters. The company plans to hire approximately 200 people in 2009.

Holzindustrie Schweighofer also invested over EUR115 million in a timber plant and another EUR5 million in a three-star hotel, both in Radauti town, northern Romania. The company also plans to build a cogeneration plant with a total capacity of 20 MW, using tree bark as fuel.