HS Timber Group Announced Restructuring of Operations

The above actions will reduce cutting capacity of the company’s Romanian sawmills by almost 30%.

SEATTLE (Scrap Monster): HS Timber Group GmbH announced major restructuring of its Romanian operations. This will significantly reduce the sawmill cutting capacity in the region.

According to company press release, part of the business, especially the sawmill, in Radauti will not be continued from end-March this year, owing to difficult general operating conditions. However, the site will continue to operate production of posts and beams at the site. Also, the panel plant in Siret will be shut down completely by the end of first quarter 2022. The above actions will reduce cutting capacity of the company’s Romanian sawmills by almost 30%.

The company has been facing several challenges. For instance, the company has been restricted from purchases of Romanian needle saw logs since 2016. Moreover, it has been facing challenges in raw material sourcing, due to export bans in neighboring countries of Ukraine and Russia. The highly complicated import regulations coupled with outdated railway infrastructure have badly impacted timber imports from other countries in the EU region.

The restructuring of operations is likely to affect around 600 employees. The company assured all possible measures to ensure that the social impact of restructuring is kept as low as possible.

YOU MAY ALSO BE INTERESTED IN:

WRI Predicts Reduced Timber Surplus Over The Next Decade

BinderHolz Group Completed Acquisition of BSW Timber Assets

• 20th August, 2024: North American Scrap Metal Prices Raised on Index