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Production
Pfleiderer Engineered Wood has six production sites in Germany with output and annual sales
of around 2.2 million m 3 of raw particleboard, 65 million m 2 of melamine-faced chipboard,
22.5 million m 2 of high-pressure laminate, 6.3 million m 2 of post-forming elements – and since
November 2004 around 130,000 m 3 of MDF (annual production).
While the German market for engineered wood has been profiting from greater export demand
since mid-2004, increased pressure on plants due to excess capacity, together with downward
price movement, was still being felt in the first half of 2004. The industry responded by greatly
reducing particleboard production capacity in Germany. For its part, Pfleiderer decided to close
down its Rheda-Wiedenbrück plant at the end of November 2004, thereby further reducing overall
domestic particleboard production by 6 percent or around 500,000 m 3 . Major parts of the
production plant are now being used on other sites within the Group.
This move was followed up in the autumn of 2004 when it was decided to consolidate production
at the Gütersloh plant.
Steady ordering in Germany and abroad resulted in production running at a high level in all our
plants during 2004. However, an explosion in the conveyor line at the Rheda-Wiedenbrück plant
led the production closing down there for one week. Nevertheless, Pfleiderer Engineered Wood
was able to complete all existing outstanding orders without major delay by drawing on existing
inventories and using its production capacity at its other sites in Germany.
During fiscal 2004, around 1.39 million m 3 of raw particleboard was produced at the Polish
sites of Grajewo and Wieruszow. In order to adjust Polish production to increased demand in
eastern Europe, raw particleboard production capacity at the Grajewo plant was extended by
around 5 percent, at the same time improving productivity. During the fitting period, deliveries
were maintained from German production plants within the Pfleiderer Group.
Prices
Increased export demand for engineered wood products in the second half of 2004 had a positive
effect on prices for raw particleboard in Germany. Long overdue double-figure percentage
increases were recorded from July 2004 onwards, with the annual average price for raw particleboard
standing at 119.88 euros per m3 . Compared with 110.79 euros per m3 for 2003, this represents
an average increase of 8 percent on the previous year. Prices remained stable in other
product markets that Pfleiderer Engineered Wood serves. While pressure on prices for directfaced
white particleboard became noticeable in 2003, price levels stabilized during 2004. However,
prices for these products still need to catch up.
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MANAGEMENT REPORT BUSINESS SEGMENTS