Pfleiderer shuts down plant in Germany

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The Executive Board and the Supervisory Board of SDAX-listed Pfleiderer AG have approved the decision of the management of Business Center Western Europe to permanently shut down the production plant in Gschwend, Germany. The reason for this decision is the sharp decrease in demand for particleboard caused by the recession, which is leading to structural adjustments in the industry. The Gschwend plant has been on short-time work for the past 13 months due to sustained operation at well below its optimum capacity.

“Even in the long term, there is still no recovery in sight for the market for raw particleboard,” stated Michael Wolff, Managing Director of Pfleiderer’s BC Western Europe. “In view of substantial overcapacity, it is therefore absolutely essential to adjust our production output. We are convinced that the phase of consolidation in the engineered-wood industry will continue. Furthermore, our margins are under pressure from sharp increases in raw-material prices.” Pfleiderer will therefore increase its prices in Western Europe by a further 20 to 30 euros per cubic meter this November.

Pfleiderer already adjusted its production capacity at the Gschwend plant to significantly weaker demand more than a year ago. All of the remaining 93 employees there have been on short-time work since then. The management immediately commenced consultations with the local employee council to jointly search for ways of reducing personnel in a socially acceptable manner. In this context, the establishment of a qualification and employment company will also be discussed.
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