German chipboard plant to close

A sharp reduction in demand for chipboard in Europe has led to Pfleiderer closing its Gschwend factory permanently.

The plant has been on short-time work for the past 13 months due to sustained operation at well below its optimum capacity.

“Even in the long term, there is still no recovery in sight for the raw chipboard market,” said 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.”

Ninety-seven remaining staff at the factory are undergoing consultations with the local employee council.

Pfleiderer also warned it would increase its prices in western Europe by a further €20-30 per m³ from November due to increasing pressure on its margins from big rises in raw material prices.