Austrian Holzindustries Schweighofer to set up Euro 80 million plant in Romania

Feb 23, 2006. /Lesprom Network/. Austrian timber processing company Holzindustries Schweighofer will invest Euro 80 million ($93.6 million) in the setting up of a processing plant in Romania, company CEO Gerald Schweighofer said. The unit, whose construction is to begin in 2006, is expected to start operation in 2008. It will be located in Romania's northeastern county of Suceava. Holzindustries Schweighofer has also allocated Euro 20 million ($23.4 million) to buy forest areas. The company has a timber processing plant in Alba country, northwestern Romania. The unit was launched in September 2003, costing Euro 80 million ($93.6 million). According to Apropo.ro, the plant closed 2005 with Euro 85 million ($99.4 million) turnover, 15% lower than initial expectations. The unit's turnover is estimated to reach Euro 100 million ($117 million) in 2006.