Diana Forest

Type
Closure
Country
Romania
Region
Macroregiunea Doi; Nord-Est; Bacău
Location of affected unit(s)
Onesti
Sector
Manufacturing
(16 - 17) Manufacture of wood and paper materials
16 - Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
16 - Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
120 jobs
Number of planned job losses
Job loss
Announcement Date
20 February 2007
Employment effect (start)
28 February 2007
Foreseen end date

Description

Diana Forest, one of the leading players in the wood processing sector in Romania, decided to close one of the factories, located in Onesti, County Bacau, "following the decline in the RON/EUR exchange rate and the increase in the price of raw material". According to the statements of the company representatives "Fil Onesti recorded losses worth EUR 3 million, 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 RON/EUR also contributed to the company losses, given that 90% of the production is exported".

Diana Forest also owns the plants in Margineni (Bacau County) and one in Comanesti. Fil Onesti mainly produced timber. The plant employs about 120 people who can either opt for a position within Margineni based plant, or can benefit from law provisions regarding collective redundancies.

Sources

  • 21 February 2007: Ziarul Financiar

Citation

Eurofound (2007), Diana Forest, Closure in Romania, factsheet number 64974, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/64974.