Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The timber company Holzindustrie Lenzing is to close down its operation by the end of October 2012, thus making 104 employees redundant.
The German owner of the company, Sturm Holzindustrie, stated that the reason for the closure is due to a shortage in raw materials. While round timber is scarce and thus by far too expensive, prices for sawn timber to be sold are too low and non-profitable for processing.
The closure will be realised in two steps: By the end of September, processing of sawn timber will be stopped; by the end of October, the planning factory and glued wood factory will be closed down. At first, the owner Mr Sturm announced that no social plans will be provided for the dismissed employees, however, due to the fact that the trade union's consent for a reduction of the time limit of the closure is needed, this will be reconsidered.
Up until 2010, the company was making profits but since then the econimic situation has dramatically worsened.
Eurofound (2012), Holzindustrie Lenzing, Closure in Austria, factsheet number 74091, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/74091.