Chipboard manufacturer Puhos Board has filed for bankruptcy after hitting financial difficulties.
A statement on the company’s website said raw material price levels had remained on a fairly high level and were expected to increase further.
“The current price level of raw material hinders the possibility to produce at profit,” said the statement.
“The demand for wood-based panels has remained slow and no major improvement of the situation is expected in the near future.”
“Regardless of many actions aimed at improving profitability the business has failed to turn around.”
According to German-based industry publication EUWID, Puhos Board said its difficulties were linked to the “widespread loss of its business with the UK”. The widespread fall in British construction activity is believed to have significantly impacted revenues and profits of the group.
Puhos Board Oy has been in restructuring proceedings since May 2009. It has a turnover of about €30m and employs around 86 people.
