Some of the UK and western Europe’s leading chipboard and MDF producers are taking downtime during December in response to a combination of rising raw material costs and the seasonal reduction in demand.
Kronospan is stopping chipboard production at Chirk for 12 days during the first half of this month while its two MDF lines will shut for five and six days respectively over the same period. Normally, the company would continue production over the Christmas period.
Managing director Ludwig Scheiblreiter attributed the decision to increases principally in direct costs which, in the case of gas and methanol, have more than doubled for the fourth quarter. Building stocks over Christmas and then selling cheap product was no longer an option, he has told customers.
Mr Scheiblreiter also confirmed plans to implement chipboard and MDF price increases during January and February; these are expected to average around 3%.
Sonae UK managing director Tony Hackney said chipboard output at Knowsley would be halted for six days from December 22 inclusive; this follows a six-day shutdown in October. With some customers taking breaks of almost three weeks over the festive period, “I don’t see much point in building stock and then selling it at loss-making prices,” he told TTJ.
December shutdowns of MDF and/or chipboard capacity were also confirmed for Germany, Belgium and France among other countries. However, the MDF factory at Clonmel in Ireland will continue to produce over the Christmas period, confirmed Malcolm Cowley, Medite sales manager for Great Britain. “We have had a lead time for most of this year and we still have a lead time,” he said.
