hs timber group

HS Timber to shutter sawmill and panel plant

Article by Martina Nöstler (adapted for holzkurier.com; translated by Eva Guzely) | 19.01.2022 - 11:54

In Radauti, part of the production site, specifically the sawmill, will be shuttered. The post and beam production, on the other hand, will be continued. The panel plant in Siret, which processes lumber from the sawmill in Radauti, will be closed down entirely. This step will reduce the cutting capacity of HS Timber Group’s Romanian sawmills by 30%, as the company announced. The cutting capacity in Radauti is said to be 1.45 million m³ a year, while the annual production of glued panels and finger-jointed products is 150,000 m³ (use of lumber).

The group gives the increasingly challenging supply in Romania as reason for the restructuring. For HS Timber Group, the purchase of Romanian log wood has been subject to restrictions since 2016. Neighboring Ukraine and Russia are not available as raw material suppliers due to export bans which are in force in the two countries. The outdated railway infrastructure in this part of Romania as well as complex import regulations make it difficult to import wood from other EU countries. Furthermore, the generation and distribution of green energy has been made more difficult.

According to the company, bigger investments which would have to be made in the Siret site are not economically viable give the current circumstances.

Around 600 employees are affected by the restructuring. The company is making an effort to offer many of its staff employment at the group’s Romanian sites. In those cases, where this is not possible, HS Timber will try to minimize the social impact.

HS Timber Group operates two sawmills and one blockboard plant at other sites in Romania (figures refer to capacities as stated on HS Timber’s website):

  • Sebes: cutting 1.45 million m³/year, planed timber 580,000 m³/year (raw), glued timber products 52,000 m³/year (raw), pellets 198,000 t/year, briquettes 30,000 t/year, two CHP plants which generate, respectively, 8.6 MW and 24 MW of heat and 2.4 MW and 8.5 MW of electricity
  • Reci: cutting 1.2 million m³/year, planed timber 400,000 m³/year (raw), pellets 198,000 t/year, CHP plant which generates 38 MW of heat and 15 MW of electricity
  • Comanesti: blockboards and formwork panels 145,000 m³/year, pellets 66,000 t/year

These production sites are not affected by the restructuring process but are to be further strengthened.