German sawmiller Pollmeier has confirmed that up to 50% of the workforce may be cut at Malchow sawmill because of poor local log supply.

The company also said that at the end of the summer it will start construction work on a €65-70m new plant at Creuzburg for the production of LVL from beech, creating about 130-140 new jobs.

Pollmeier’s Jan Hassan told TTJ that the company was reducing capacity in Malchow in relation to the volume of regional log supply.

“Transporting logs from other areas of Germany to the Malchow plant does not make economic sense with today’s sawn timber prices,” he said.

“The cutback may cost up to 50% of the workforce in the Malchow plant. The other two sawmills are not affected.”

The new LVL plant is planned to be operational by the summer of 2012.