Diana Forest closes 120-employee plant

Diana Forest, one of the leading players in the wood processing field, last year decided to close one of the factories it owns in Bacau, following the decline in the RON/EUR exchange rate and the increase in the price of raw material. “Fil Onesti recorded losses worth some 3 million euros, caused mainly by the very high costs of the raw material (logs) and by the low profit derived from the log processing business. The decline in the exchange rate also contributed to the companyes losses, given that 90% of production is exported,” sources from the company told ZF. According to the same sources, the increase in the price for utilities and the rise in amortisation expenses were additional concerns, given that the equipment did not generate the expected production. Diana Forest also includes the plants in Margineni, Bacau and the one in Comanesti. Fil Onesti mainly produced timber at its log processing plant. The plant, which is about to close employs about 120 people who can either opt for a position within the Margineni-based plant, or can benefit from law provisions regarding collective redundancies.