Binderholz closes MDF plant – 111 employees affected

The Binderholz Group will terminate production in the MDF plant in Hallein/AT by the end of March. Yesterday the employees were informed in an internal staff meeting about this decision. "We deeply regret having to go down this lane", explains Hans Binder, owner and CEO of Binderholz group. He added that in the past few years everything had been done to avert the plant closure. "Ultimately, however, the economic pressure in the wood products industry was much too great and competition from low-grade producers overwhelming", explains Binder.According to Binder, no relief of the strained market situtation for MDF is in sight.

MDF Hallein was established in 1999 by the Binderholz Group, Fügen/AT, Tirol. The location has been struggling with very high costs for industrial wood and wood chips. "In addition, what we see now is an increased relocation of the furniture and flooring industry from Western Europe to Eastern Europe and the Far East – so important customers for the MDF plant Hallein are simply gone now", says Binder.

In recent years restructuring measures have been taken by the Binderholz Group and the financing bank. Despite these efforts, the company could not achieve the turnaround due to continuing adverse conditions.

The closure of the plant directly affects 111 employees. Binderholz has expressed their intentions to employ them somewhere else within the Group – wherever possible. "If this cannot be done, we will assist in finding another job in the region", Binder emphasizes. The manager seeks an orderly closure in which all outstanding claims are properly settled or pending deliveries are carried out as planned, says Hans Binder .