Pfleiderer state-of-the-art MDF plant inaugurated in Grajewo

Sep 26, 2007. /Lesprom Network/. Pfleiderer Aktiengesellschaft officially inaugurated on September 19, 2007 its new medium density fiberboard (MDF) plant in Grajewo, Poland. This newest and most state-of-the-art plant for medium density fiberboard, the best in Eastern Europe among its competition, was constructed in Grajewo in a record ten months, and will in the first stage produce 250 000 cubic meters, or the equivalent of 100 million square meters, of thin medium density fiberboard per year. Pfleiderer invested a total of Euro 83 million in this high-tech production facility and created approximately 160 new jobs. The first fiberboard already came off the line in July. The operating company of the plant in Poland is a 50-50 joint venture between the majority-held Pfleiderer Grajewo S.A. and a wholly-owned subsidiary of Pfleiderer AG. Due to its approximately 65% interest in the listed Pfleiderer Grajewo S.A., the Pfleiderer Group will receive over 82% of earnings generated by the MDF plant. “The new MDF plant in Poland is an important milestone in the Pfleiderer Group’s continued growth strategy,” said Hans H. Overdiek, Pfleiderer AG’s executive board spokesman, during the inaugural ceremony. “Going forward, we aim to capture a larger share of the Eastern European market by further expanding our production in Poland and Russia, as well as by making acquisitions in other regions,” commented Overdiek on the further growth strategy. The executive board spokesman has his eye on neighboring countries, such as Belarus, the Ukraine, and the Baltic states. Eastern Europe’s engineered wood markets have long been among the Pfleiderer Group’s core growth markets and are gaining even more importance. Poland is an especially attractive and promising market, since demand for engineered wood products will experience double-digit growth rates there in the coming years. “The most up-to-date facilities and production technology, which we are employing here, are a precondition for optimal product quality, high productivity, and maximum flexibility,” said Dr. Robert Hopperdietzel, Pfleiderer ag executive board member responsible for technology/operations, as well as for the group’s Eastern European business, during his inaugural address. Its particleboard plants in Poland and Russia and the new thin MDF plant in Grajewo, Poland, now make it possible for Pfleiderer to offer a significantly expanded product portfolio, from raw particleboard to high-quality products and surface-finished engineered wood products, Dr. Hopperdietzel explained further. Pfleiderer’s executive board is expecting a 25% EBITDA margin for the Polish MDF plant as early as next year. At the new MDF plant in Grajewo, the integration of fiberboard manufacturing and subsequent surface coating lead to a highly efficient production process. Optimized logistics lower cost and increase added value. At the same time, the plant’s low-emissions technology is particularly environmentally friendly. “Going forward, we are looking to accelerate our organic growth in Eastern Europe and start operations at two new plants there each year,” commented Dr. Robert Hopperdietzel on the further growth strategy. With last year’s opening of the newly constructed plant in Novgorod, Russia, and the inauguration of the new thin MDF plant in Grajewo, Pfleiderer has commenced operations in one additional plant per year thus far. In July 2007, construction was announced for another medium density and high density fiberboard (MDF/HDF) plant in Podberesje (Novgorod, Russia).