Ziegler Holzindustrie GmbH, a German timber company, is set to acquire the largest timber factory in Romania from HS Timber Group, formerly known as Holzindustrie Schweighofer. The transaction was announced on April 14, 2023, although the value of the deal has not been disclosed. The Romanian Competition Council has initiated an analysis of the acquisition due to its potential for economic concentration.
Ziegler Holzindustrie GmbH specializes in timber cutting and planing, and is part of the Ziegler Group, which operates in a variety of industries, including wood processing, logistics, wooden house construction, timber trade, engineering, decorations, gastronomy/hotel industry, and media. In 2022, the German group had total sales of €1.2 billion and employed over 5,000 people.
The acquisition of the timber factory in Romania is expected to significantly expand Ziegler Holzindustrie GmbH’s production capacity and strengthen its position in the European timber market. The factory, located in Sebes, Romania, has an annual production capacity of 400,000 cubic meters of sawn timber and 200,000 cubic meters of laminated timber.
HS Timber Group, the current owner of the factory, is a major player in the Romanian timber industry. The company has faced criticism in recent years for its alleged involvement in illegal logging activities in Romania. In 2021, the company was fined €35 million by Romanian authorities for its role in the illegal logging of protected forests.
The acquisition by Ziegler Holzindustrie GmbH has raised concerns among environmental groups and local communities in Romania. They fear that the acquisition will lead to further deforestation and environmental degradation in the country. Activists have called on the Romanian government to ensure that the new owners of the factory comply with environmental regulations and respect the rights of local communities.
The Romanian government has yet to comment on the acquisition. However, the country’s Minister of Environment, Water and Forests, has previously stated that the government is committed to combating illegal logging and protecting Romania’s forests. The minister has also emphasized the importance of sustainable forest management and the need to balance economic development with environmental protection.
The acquisition of the timber factory in Romania is part of Ziegler Holzindustrie GmbH’s strategy to expand its operations in Europe. The company has been actively seeking opportunities to acquire timber factories and sawmills in the region. In 2021, the company acquired a sawmill in Poland and a timber factory in Ukraine.
Ziegler Holzindustrie GmbH’s expansion in Europe is driven by the growing demand for timber products in the region. The European timber market is expected to grow at a CAGR of 4.5% between 2021 and 2026, driven by the increasing demand for timber in the construction and furniture industries. The market is also expected to benefit from the growing popularity of sustainable and eco-friendly products.
The acquisition of the timber factory in Romania is expected to be completed in the coming months, subject to regulatory approval. Ziegler Holzindustrie GmbH is optimistic about the future prospects of the Romanian timber industry and is committed to investing in the country’s sustainable development.
In conclusion, Ziegler Holzindustrie GmbH’s acquisition of the largest timber factory in Romania from HS Timber Group is a significant development in the European timber market. The acquisition is expected to strengthen Ziegler Holzindustrie GmbH’s position in the market and expand its production capacity. However, concerns have been raised about the potential environmental impact of the acquisition, and activists are calling on the Romanian government to ensure that the new owners of the factory comply with environmental regulations and respect the rights of local communities.
