Neumarkt -- Pfleiderer AG, an international leader in the manufacture of wood-based products, finalises its operational re-structuring in Germany with the imminent closure of its facility in Hessen.

The factory in Nidda, which manufactures medium-density and high-density fibreboard (MDF/HDF), will cease production on 30th June 2011, as has already been announced. The customer base and prod-ucts will be taken on by the MDF/HDF factory in Baruth, Brandenburg, where the appropriate investments are being made to support this. Until now, Baruth has specialised in the production of very thin HDF panels for laminate flooring manufacturers but in future it will be set up for the production of black coloured MDF, deep milled quality and thick MDF panels. An additional €4 million will be invested overall this year in the Baruth site.

The closure affects 140 employees. Pfleiderer is currently holding talks with employee and union representatives on the reconciliation of interests for Nidda. Negotiations are also underway with several po-tential buyers for the facility.

By shutting down production in Nidda, Pfleiderer has withdrawn the smallest and oldest MDF factory from the market, thereby implement-ing the operational restructure which was initiated in the autumn of 2010. The measures form part of the restructuring plan agreed with Pfleiderer’s creditors. Alongside general price reductions and increases in efficiency, they included closure of the German factories in Gschwend, Ebersdorf and Nidda, with the aim of cutting down over-capacity in the market and achieving better utilisation in the remaining five factories in Germany. Reducing overcapacity was a requirement for aligning production levels to the lowered demand and improving the margin.

Michael Wolff, CEO for the Pfleiderer Business Center Western Europe states: “The very tough - but successful - restructuring in Germany has made a significant contribution towards bringing the Pfleiderer Group as a whole back on the path to success. Demand for MDF in the market continues to be low, which shows that our decision to cut back on capacity in this area was strategically sound.”

About Pfleiderer:

Pfleiderer AG is one of the worldwide leading manufacturers of engineered wood products, surface finishing and laminated flooring. It employs around 5,200 staff at 18 locations in North America and western and eastern Europe, manufacturing for the furniture industry, specialist and home improvement stores and interior design suppliers.

SOURCE: Pfleiderer AG