Herzberg, Germany, August 23--German wood fibre board manufacturer Homanit is likely to abandon its plans to invest EUR80m in the Polish city of Karlino because it is having trouble obtaining raw materials.
The company has to secure supplies before it launches the venture. "The general director of the Lasy Panstwowe (State Forestry, an organisation managing Poland's forests), said he could not secure supplies for us starting 2007," said the director of Homanit Polska, Jerzy Barczyk. He added that without the raw materials the investment, which could boost employment by 100 percent to 500, is likely be moved abroad.
According to a Lasy Panstwowe representative, the demand for the product sought by Homanit is much higher than supply. Lasy Panstwowe currently have eight strategic clients, including Homanit's rivals such as Kronospan and Pfleiderer Grajewo. However, they are also said to be struggling to find the right amount of material.
