Neumarkt/Gschwend, October 11, 2010 – The Executive Board and the Supervisory Board of SDAX-listed Pfleiderer AG have approved the decision of the management of Business Center Western Europe to permanently shut down the production plant in Gschwend, Germany. The reason for this decision is the sharp decrease in demand for particleboard caused by the recession, which is leading to structural adjustments in the industry. The Gschwend plant has been on short-time work for the past 13 months due to sustained operation at well below its optimum capacity.

“Ongoing phase of consolidation in the engineered-wood industry”

“Even in the long term, there is still no recovery in sight for the market for raw particleboard,” stated 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.” Pfleiderer will therefore increase its prices in Western Europe by a further 20 to 30 euros per cubic meter this November.

Pfleiderer already adjusted its production capacity at the Gschwend plant to significantly weaker demand more than a year ago. All of the
remaining 93 employees there have been on short-time work since then.

The management immediately commenced consultations with the local employee council to jointly search for ways of reducing personnel in a socially acceptable manner. In this context, the establishment of a qualification and employment company will also be discussed.

About the Pfleiderer Business Center Western Europe:

With eight production facilities and approx. 2,800 employees (including 130 apprentices) in Germany and two locations in Sweden, Western Europe is the largest Business Center in the Pfleiderer Group. Business units operate largely independently under the umbrella of BC Western Europe: wodego, Thermopal, Pfleiderer Industrie, Duropal and Pergo.

About Pfleiderer:

SDAX-listed Pfleiderer AG (ISIN DE 0006764749) is one of the world’s leading producers of engineered wood. The company employs approximately 5,600 people and operates 22 sites in North America, Western and Eastern Europe producing engineered wood, surface finished products and laminate flooring. Pfleiderer is a preferred partner of the furniture industry, specialist and home improvement stores, and interior design suppliers. In fiscal year 2009, the Group generated consolidated revenues of approximately €1.4 billion and EBITDA after restructuring costs of approximately €100 million.

Source: Pfleiderer AG

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