SCHOPFLOCH, GERMANY -- Homag Group AG announced it will eliminate 180 positions as part of its evolving restructuringand consolidation plan that includes shutting down two woodworkng machinery manufacturing plants.

Homag's supervisory board voted to discontinue the production and administration activities of its surfacing technology subsidiary Friz Kaschiertechnik GmbH of Weinsberg, The company said it will retain a development and service unit of Friz consisting of 15 workers.

In addition, Homag said it will completely close down its Löhne site, including operations of the subsidiary Torwegge Holzbearbeitungsmaschinen GmbH and the service branch of Weeke Bohrsysteme GmbH located there.

Homag previously announced plans to restructure Buetfering, a manufacturer of sanding equipment. Those plans are proceeding as planned, with the company touting the successful launch of new Buetfering surfacing technologies. The company added that product segments served by Friz and Torwegge will be "expanded" at Homag Holzbearbeitunssystems GmbH in the future.

Homag CEO Dr. Markus Flik said, "The companies Friz and Torewegge have been making losses for several years now. We have intensively examined other avenues, but have been unable to find a feasible alternative... (T)he machines and production lines that Friz and Torwegge have been manufacturing until now are subject to massive fluctuations in demand, which means that it is only possible to produce them viably within a larger portfolio of products."

Homag said as a result of its expansion of restructuring measures, its extraordinary expenses are expected to total about 20 million euros ($27.48 million) in 2011.

Homag is exclusively represented in the United States by Stiles Machinery of Grand Rapids, MI. The company operates as Homag Canada, based in Mississauga, ON.