EMCC European Monitoring Centre on Change

HS Timber Productions

Company/Organisation:
HS Timber Productions

Geographic Location

Country: Romania
Region: Suceava; Nord-Est
Location of affected unit(s): Siret and Radauti

Company

Sector: Manufacturing
Manufacture of wood and paper products, and printing
16.10 - Sawmilling and planing of wood
Number Employed: 2400
Group: HS Timber Productions

Employment Effects

Announcement Date: 18-01-2022
Planned Job Reductions min: 600
Planned Job Reductions max: 600
Type of Restructuring: Internal restructuring
Employment Effect Start: 18-01-2022
Foreseen End Date: 31-03-2022
Direct Dismissals: 600
Other Job Reduction Measures: 600

Additional Information

The Austrian  wood processing company HS Timber Productions is reducing production at its Romanian mills by 30%. 600 employees will be affected by the restructuring.

As of 30 March 2022, the company will close its solid wood panels factory in Siret (Suceava County). Furthermore, in the Radauti factory (Suceava County) lumber processing operations will be interrupted.

According to the company, there are several reasons for the restructuring including the difficult conditions in the timber market, the lack of rail infrastructure in the region and high bureaucratic costs. Furthermore, the company cites difficulties associated with the production of green energy and the sale of green certificates as a reason for the restructuring.

The company aims to reduce the social impact of the restructuring process by offering affected workers jobs at its other factories in Romania.

The company continues to operate two sawmills and a panel mill in two other locations. It currently has approximately 2,400 employees.

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