Neumarkt -- The Supervisory Board of SDAX listed Pfleiderer AG has agreed to the closure of the particleboard plant in Ebersdorf and the MDF plant in Nidda, as proposed by the Executive Board. The closures will affect around 300 employees at the locations concerned and in the administrative offices in Neumarkt and Gütersloh. While alternative continuation concepts for Ebersdorf were rejected as non-expedient, alternative usage possibilities are still being sought with possible strategic investors, irrespective of the discontinuation of MDF production in Nidda.

"This is a bitter decision for those concerned, but regrettably unavoidable in view of the substantial over-capacities for particleboard and MDF in Europe. In combination with the continual price increases in raw materials such as wood and adhesive, and energy costs, the continued operation of both plants is no longer feasible", said Hans H. Overdiek, Chairman of the Executive Board of Pfleiderer AG. "With the well-being of the German business in mind, this consolidation was unavoidable in the long term. We have therefore decided on this step."

The closures will lead to one-off costs of about EUR 42 million, of which approx. EUR 25 million will have a cash effect. This is partly counteracted by expected revenue from the sale of plant and property in the amount of approx. EUR 25 million. The company is currently negotiating with interested parties for the plant and potential buyers of the sites, who intend to manufacture other products here.

With the plant closures in Gschwend, Ebersdorf and Nidda, Pfleiderer AG in Germany is concentrating on the locations with value added production in future. In Ebersdorf the delivery of particleboard to customers will stop at the end of December 2010 and production in Nidda will cease at the end of June 2011.

SOURCE: Pfleiderer AG

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