Egger to double chipboard production at Radauti plant

Egger Romania, which manufactures wood-based materials, announced its intention to double its share of the melamine-faced chipboard market in Romania, from 20% to 40%, before its Radauti-based plant opened. The investment in the 80-ha plant started in 2006 and amounted to 210 million euros. Production kicked off in January 2008, whilst company representatives expect the plant to reach full capacity in the autumn. “If the economic results of the production facility improve, market demand increases and the Romanian infrastructure is developed, we will invest 500 million euros in total in the Radauti plant,” says Mihai Sandru, commercial manager of Egger’s plant in Romania. Currently, the plant in Radauti manufactures only plain chipboard and melamine-faced chipboard. In its first stage of expansion, the Austrian company opened a plant in Russia, on a 110-ha plot, whilst the plant in Radauti is the second largest unit. “The reasons for investing in Romania are the high potential of sales to already existing clients, the potential for developing on the market, and the local tradition of wood processing,” said Mihai Sandru.