NEUMARKT, GERMANY -- Pfleiderer AG announced it will permanently shut down its production plant in Gschwend, Germany.

The company said the decision was based on the "sharp decrease in demand for particleboard caused by the recession, which is leading to structural adjustments in the industry." The Gschwend plant had been on a reduced production cycle for the past 13 months.
 
“Even in the long term, there is still no recovery in sight for the market for raw particleboard,” said Michael Wolff, managing director of Pfleiderer’s BC Western Europe. “In view of substantial overcapacity, it is therefore absolutely essential to adjust our production output. We are convinced that the phase of consolidation in the engineered-wood industry will continue. Furthermore, our margins are under pressure from sharp increases in raw-material prices.”

Read Pfleiderer's press release.

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