Jul 10, 2007. /Lesprom Network/. Pfleiderer Aktiengesellschaft started production of medium-density fiberboard (MDF) in Grajewo (Poland) on schedule following successful test runs last week. This is another new production facility for Pfleiderer in Eastern Europe, following the successful startup of a particleboard plant in Russia last year. This state-of-the art plant for the production of thin MDF was completed after a construction period of just 10 months. The annual nominal capacity is about 250 thousand cubic meters. Shift operation is to begin in the middle of July. The operating company is a 50-50 joint venture between a 100% Pfleiderer AG subsidiary and the majority-owned Pfleiderer Grajewo S.A. “Starting production of MDF boards in Poland is an important milestone in the group’s growth strategy. Pfleiderer intends to participate in the dynamic market growth of the furniture industry in Eastern Europe by means of acquisitions and expanded production capacity,” explained Dr. Robert Hopperdietzel, Pfleiderer AG executive board member for technology/operations, with regard to the group’s strategic goals. The Eastern European furniture market is very attractive for the Pfleiderer Group with its strong growth prospects and earnings potential, and sales of MDF boards offer particularly attractive profit margins. “We expect this plant to deliver an EBITDA margin of at least 25% next year,” stated Dr. Hopperdietzel, who also has executive board responsibility for the group’s business development in Eastern Europe, with regard to operational targets.