The executive board and the supervisory board of Pfleiderer AG have approved the decision of the management of Business Center Western Europe to permanently shut down the production plant in Gschwend, Germany.
The reason for this decision is the sharp decrease in demand for particleboard caused by the recession, which is leading to structural adjustments in the industry.
The Gschwend plant has been on short-time work for the past 13 months as reported by WBPI in Focus on Particleboard Part I, Issue 5, 2010, p14.
“Even in the long term, there is still no recovery in sight for the market for raw particleboard,” stated 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.”
