Schweighofer continues investment in production facilities

The general manager of Holzindustrie Schweighofer, Gerald Schweighofer, has announced new investment plans, despite the fact that the company he runs missed its turnover target for last year by 15%.

The Austrian company, which specialises in wood processing, will begin investments in a new production facility close to Radauti, Suceava County, which should start production in 2008.

“The new investment amounts to more than 80 million euros and will be carried out alongside the investment made in the area by the Egger Group, one of the leading European manufacturers of processable wood,” Gerald Schweighofer, the general manager and owner of the company stated yesterday.

He explained that the two companies would build the infrastructure and the utilities in the area where they will develop the investments, and Egger would begin construction of the production facility in 2006, while Holzindustrie Schweighofer would begin construction as late as in 2007.

“The area where the two investments will be carried out, located between Radesti and Dornesti, has a special advantage, because there is a railway for industrial use that can be extended up to the industrial site, so that raw material doesn”t have to switch transportation means,” Schweighofer said.

The two investments will see the Egger facility employ about 1,000 people, while Holzindustrie Schweighofer will create another 500 jobs.

“It is only natural for a company that makes timber to invest close to the site of a prefab boards manufacturing facility, which will use some of the waste in our manufacturing process.

“We estimate to begin production at this new facility in Suceava in 2008. At that time we will need more raw material, and we will get 50% of it from imports,” the company official said.

The local authorities announced the project of the two companies amounted to 570 million euros, with 120 hectares of land in Radauti City and Dornesti, Satu Mare and Fratautii Vechi communes having been acquired in view of this investment.