EGGER Eastern Europe:

Definite decision about the new site depends on the cooperation with local authorities and institutions

The wood-based materials producer EGGER has confirmed its plans to establish a new site in Eastern Europe. The province of Suceava in the North of Romania (a future EU member state) is a possibility for a location. The final decision about this location will depend on the cooperation of the local authorities and institutions. Promises to provide the appropriate infrastructure and the positive and quick completion of the ongoing environmental impact assessment are also conditions necessary to realise this project.

The expansion of the wood-based material plant is planned to be made in several phases: In the first expansion phase Egger plan to produce rawboards and coated chipboard and in the second phase Egger has planned to produce and upgrade fibreboards (MDF/HDF) for laminate flooring production. State-of-the-art production technology and environmentally sound equipment, the same as has been tested in other EGGER locations in Europe would be used. EGGER pioneers the use of ecological production processes.

Aiming at Eastern European markets
All Egger production locations work at full capacity. The Central and Eastern European countries have been the driving forces of growth in the past few years. Romania is a particularly attractive market, showing dynamic growth and development in decorative and constructive wood-based materials.
The majority of the boards produced in the planned plant would be manufactured to supply the Romanian market, with the remainder being exported to the neighbouring countries – particularly to the adjoining Ukraine.
 
Economic benefits for the region
 The completion of the Egger plant would secure long-term employment for up to 700 people. The indirect employment effect in local forestry, for building companies and the transportation industry as well as different service providers would be substantial.   In addition to the employment benefits, the establishment of the new EGGER plant would assist the economic regeneration of Romania.

Securing the supply of raw materials
Following the start of Egger’s new plant in Russia in September 2005, Egger are looking at the proposed new plant in Romania to further optimize its logistics structure. The region around Suceava has a well developed infrastructure in terms of roads and railways.  The supply of raw materials, such as carefully selected and quality controlled tree thinnings and wood residues, would be secured through domestic sawmills and forest enterprises to ensure the sustainability of both the forest and the environment.

In order to confirm the environmental sustainability of the plant and to judge the effects on the environment, EGGER has already commissioned tests for environmental sustainability. EGGER has commissioned the “European Bank for Reconstruction and Development” (EBRD) for the financing of the project. In addition, EBRD will support Egger in environmental policy questions.

Initial investigations show that the proposed location would be suitable for the plant and that the installations would be designed in such a way that they correspond to both the Romanian and the EU-wide environmental standards. The project will have no negative impacts on the environment.