German door blank and panel product manufacturer Moralt Tischlerplatten says business continues as normal despite filing for insolvency.
The company, established in 1900, said it had suffered setbacks of high timber prices, competition from a lower-cost Romanian producer and liquidity issues (due to Moralt’s bank BNP Paribas Fortis withdrawing credit lines).
But order in-take and turnover are up around 20% in the first seven months of 2011, compared to a year ago, while prices have been successfully increased and it is expected that the result in the second half of the year will be positive.
“Moralt’s day-to-day business remains unaffected, and all business procedures remain unchanged,” said a Moralt statement.
“Furthermore we do not foresee a necessity for implementing a factory closure.”
The company’s management will continue to run the company unhindered with the support of a temporary insolvency practitioner.
“The basis for the continuation of the business is an already written redevelopment report, which shows a positive prognosis. Each and every Moralt employee has pledged their full support to the company through continued hard work and absolute commitment.”
As well as eastern European competition in the blockboard market, the civil war and resulting unrest in the Ivory Coast brought about a blockade of veneers, and this further blighted Moralt’s ability to compete.
All the factors combined to produce negative financial results since 2009.
Bad Tölz-based Moralt employs 152 people and has an annual turnover of around €32m, of which 35% comes from exports.
