Mercer International is launching one of the largest restructuring programmes at its Torgau wood products complex in years, planning to eliminate around 350 positions as the company responds to weaker demand, rising production costs and continued pressure on profitability.<\/p>\n
The Canadian forest products group said the restructuring will reshape production capacity, simplify internal processes and adjust the site's product portfolio in an effort to better match current market conditions. The programme has already begun and is expected to be completed in phases by the second quarter of 2027.<\/p>\n
An initial reduction of about 100 contractor positions is scheduled for July, with further workforce adjustments to follow over the coming months.<\/p>\n
The announcement underlines the difficult environment facing Europe's wood processing industry, where sluggish construction activity, subdued packaging demand and elevated operating costs continue to weigh on manufacturers despite lower timber prices in some markets.<\/p>\n
Mercer said the decision follows a prolonged period of pressure from global economic uncertainty, higher raw material prices and increased energy costs, all of which have reduced the competitiveness of the Torgau operation.<\/p>\n
The company stressed that the restructuring is intended to secure the long-term future of the facility rather than prepare it for closure.<\/p>\n
\"We have already implemented extensive measures to improve operational performance, including significant investments to modernise production,\" said Managing Director Dr. Carsten Merforth. \"While these investments have increased efficiency, additional structural changes are now necessary to ensure the site's long-term economic viability.\"<\/p>\n
Mercer said discussions with employee representatives are underway to implement the workforce reduction in what it described as a socially responsible manner.<\/p>\n
One of Europe's largest pallet producers<\/strong><\/p>\n Located in Saxony, Mercer Torgau is one of Europe's largest manufacturers of EPAL pallets and a major employer in the region.<\/p>\n The integrated complex produces construction timber, packaging lumber, pallets, planed wood products, pellets, briquettes and landscaping materials. The site also operates biomass-based energy facilities that supply electricity for its own production while exporting surplus power to the public grid.<\/p>\n Its broad product mix has traditionally helped cushion fluctuations in individual market segments. However, weakness across several end markets has limited that advantage over the past two years.<\/p>\n Part of a wider industry adjustment<\/strong><\/p>\n Mercer's announcement follows a series of restructuring measures across Germany's wood products industry as manufacturers adapt to a prolonged downturn in residential construction and weaker demand from the furniture and packaging sectors.<\/p>\n Although sawlog prices have softened in several European regions during 2026, many processors continue to struggle with energy costs, labour expenses and lower capacity utilisation. Several companies have responded by reducing shifts, postponing investments or cutting production.<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" Mercer International is launching one of the largest restructuring programmes at its Torgau wood products complex in years, planning to eliminate around 350 positions as the company responds to weaker demand, rising production costs and continued pressure on profitability.<\/p>","protected":false},"author":1,"featured_media":99294,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-99293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n