PDF, 3.2 MB - Pfleiderer AG

While the prices paid for paraffin and urea-based glue in 2004 moved clearly upwards, supplies
of resins stabilized over the last few months. Nevertheless, tighter supplies are expected, but
this should not lead to shortages. Energy prices are expected to remain at their present high
levels.
Corporate Structure and Personnel
The corporate structure of the Pfleiderer Group is continuously being refined to gain further cost
efficiency. At present, no deep-rooted organizational changes are envisaged.
The number of employees will grow beyond current figures when the new particleboard plant in
Novgorod, Russia, starts production in 2005.
Capital Expenditure
Due to the cautious forecasts on business growth in the domestic market, all spending in the
Pfleiderer Group will be concentrated in the coming year on developing and expanding the
Company’s presence in other growth regions. Overall, planned corporate spending is expected
to come to around 96 million euros.
The biggest investments planned for fiscal 2005 are the new particleboard plant currently being
built in Novgorod, Russia, and the construction of a new MDF/HDF plant. Construction work
on the particleboard plant in Novgorod, Russia, is running according to plan so that production
should start towards the end of 2005.
In fiscal 2005, the Business Segment Infrastructure Technology will be concentrating on strengthening
its international presence in the growth markets of central and eastern Europe, southeastern
Europe, as well as India, South-Korea, China and other countries in south-eastern Asia.
Other Post-Closure Events
On February 8, 2005, Pfleiderer announced that an exclusivity period had been agreed in which it
was carrying out a due diligence on the Kunz Group. This follows on from a letter of intent signed
on December 6, 2004 between Pfleiderer AG and Kunz Holding GmbH & Co. KG, Gschwend, in
which the Pfleiderer Group has an option to aquire the Kunz Group.
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