In Radauti, HS Timber Group produces glued timber products, such as posts and beams for house construction in Asia. According to information provided by the company, the production capacity for glued panels and finger-jointed products was 150,000 m³ a year (use of lumber) in the spring of 2022. In the second quarter of 2022, the timber company had shuttered its sawmill in Radauti (cutting capacity 1.45 million m³ of log wood year) as well as its panel plant in Siret (HS Timber to shutter sawmill and panel plant).
According to the company, the reasons for the curtailment of production at the Radauti site are increasingly unfavorable factors concerning the location – as was the case in 2022. The purchase of Romanian softwood sawlogs has been restricted by law for HS Timber Group since 2016. Neighboring Ukraine and Russia are no longer available as raw material suppliers because of the war in Ukraine and the ban on imports from Russia. In addition, outdated railway infrastructure in this part of Romania as well as complex import regulations make it difficult to import timber from other EU countries. Hurdles in the production and marketing of green electricity are another issue.
160 employees are affected by the curtailment of production. HS Timber plans to employ most of them in different positions within the Romanian group.
HS Timber Group operates two sawmills and one blockboard factory, which are not affected by the curtailment, in other parts of Romania.