Pfleiderer permanently shuts down plant in Gschwend, Germany

Oct 11, 2010. /Lesprom Network/. The Executive Board and the Supervisory Board of 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, company said in a statement received by Lesprom Network. “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 Euro 20 to 30 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, the company said.