Oct 14, 2005. /Lesprom Network/. Hungarian chipboard manufacturer Falco Rt. plans to close down its plant in Szentgotthard, western Hungary, which has been operating at a loss for years, it was reported on October 13, 2005. The company will move its Szentgotthard production to Falco's new, 4,000 sq m plant in Szombathely, also in western Hungary. Falco decided to close the plant as it cannot be further expanded and does not comply with the environment protection regulations. The Szentgotthard plant currently employs 70. In order to save the plant and avoid lay-offs, Szentgotthard municipality and Falco held talks on the construction of a new facility in the town's industrial park. Such a project, however, would have been expensive for the company, which consequently decided to move production to its Szombathely base, which has sufficient production and warehouse area. Falco's new plant is expected to start production at the beginning of 2006. Falco offered the Szentgotthard plant's employees to continue working for the company at the Szombathely plant offering a daily transportation as well, but only nine workers accepted the job.