Austrian group Holzindustrie Schweighofer decided to reduce by 30% the cutting (hence timber processing) capacity in Romania, effective the end of March.

The panel plant in Siret, which processes sawn timber from the Rădăuți mill, will be closed down entirely, along with parts of the plant in Rădăuți - the sawmill.

Among other reasons, the company invoked the restrictive conditions on the Romanian raw material market, the export ban in Ukraine and Russia, and lack of modern railway infrastructure. Larger investments required at the factory site are not economically feasible under the current framework conditions, the company concluded.

Roughly 600 employees will be affected by the restructuring.

In Romania, HS Timber Group GmbH continues to operate two sawmills and one blockboard factory at other locations, employing about 2,400 people. These factories are not affected by the restructuring and will be further strengthened.

andrei@romania-insider.com

(Photo source: Facebook/HS Timber Group)