German panels giant Pfleiderer is looking at closing two of its European factories due to raw chipboard and MDF market overcapacity.
The company has started consultations with employees at the Ebersdorf chipboard mill and Nidda MDF plant. About 300 employees are affected by the move.
“As a result of the fall in demand in recent years, western Europe will have structural overcapacity in the medium term of between 10-15% of the currently installed production capacities,” said Michael Wolff, managing director of Pfleiderer’s business centre western Europe.
“The market situation is being exacerbated by the increasing scarcity and rising price of wood as well as the foreseeable increase in energy costs over the coming years.”
