Pfleiderer AG, finalizing its operational re-structuring in Germany, has announced the imminent closure of its facility in Nidda, in Hessen, Germany. The closure affects 140 employees.

The factory, which manufactures medium-density and high-density fibreboard (MDF/HDF), will cease production on June 30. The customer base and products will be taken on by the MDF/HDF factory in Baruth, Brandenburg. Until now, Baruth has specialized 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.

By shutting down production in Nidda, Pfleiderer has withdrawn the smallest and oldest MDF factory from the market, thereby implementing the operational restructure which was initiated in the autumn of 2010.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 overcapacity in the market and achieving better utilization in the remaining five factories in Germany.

 Michael Wolff, ceo for the Pfleiderer Business Center Western Europe, said, “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.”