Woodworking manufacturer Homag has announced the closure of two production sites with the loss of 180 jobs, as part of restructuring.

The closures affect subsidiary Friz Kaschiertechnik in Weinsberg, and the Löhne site, where Torwegge and the service branch of Weeke is located.

“Friz and Torwegge have been making losses for several years,said Homag. “We have intensively examined other avenues, but have been unable to find a feasible alternative.”

Once the full restructuring programme is completed, the management board expects to generate a sustained improvement in earnings ranging between €6m and €8m each year from 2013.

“Backed by this long-term improvement in earnings, the Homag Group will be able to make further investments in growth through innovation and expansion into new markets,it said.

Homag added that the newly developed products of Butfering Schleiftechnik GmbH have proven successful on the market and lent a solid foundation to the Homag Group’s continued expansion strategy in the field of surfacing technology.