Homann Holzwerkstoffe Delays Production Start at Lithuania Plant

Homann Holzwerkstoffe GmbH, a major European producer of thin wooden fibreboards, announced a postponement of production at its new facility in Lithuania, pushing the expected start to September 2024. Originally scheduled for late 2023, the delay comes as a decision to ensure economic and competitive production, questioning the robustness of the current environmental permit.

Despite these delays, the company has taken steps to mitigate operational costs, including part-time work schedules for Lithuanian employees and further training measures. Homann Holzwerkstoffe is in talks with authorities to secure the necessary permits promptly.

The delay impacts the Lithuanian plant's expected earnings contributions for 2024, but the company's existing operations are anticipated to largely offset this shortfall. This outlook is supported by the preliminary financial figures for 2023, showcasing an adjusted operating EBITDA of approximately EUR 55 million from sales of around EUR 354 million, amidst challenging market conditions.

Fritz Homann, Managing Director, expressed satisfaction with the company's overall performance in 2023 but acknowledged the setback in Lithuania as a significant component of their long-term expansion strategy. Homann Holzwerkstoffe commits to resolving the permitting issues within six months and remains optimistic about the involvement and interest of all parties to overcome these challenges.

The company plans to release its consolidated financial statements for 2023 on 26 April 2024, promising further updates on the Lithuanian plant's status.