One of Austria's longest-established family-owned sawmills is preparing to enter court-supervised restructuring after its financing bank called in existing loans and suspended payment transactions. The filing follows a \u20ac27 million investment in new production capacity that was later affected by commissioning delays, at a time when European sawmills continue to face weak lumber demand and high sawlog costs.<\/p>\n
Schaffer S\u00e4gewerk-Holzexport, based in Eppenstein in the Austrian state of Styria, said it expects to file for insolvency proceedings within the next two weeks. Management stressed that the objective is not liquidation but restructuring and the continuation of operations, while preserving jobs at the company's production site. The group's roundwood purchasing company, SMRH Handels GmbH, is not affected by the planned proceedings.<\/p>\n
According to the company, the immediate trigger was the decision by its principal financing bank to call existing loans and halt payment processing. Without access to working capital, management concluded that continuing operations outside a formal restructuring process was no longer possible.<\/p>\n
Production problems after \u20ac27 million investment<\/strong><\/p>\n The financial difficulties follow a substantial investment programme announced last year, when Schaffer Holz committed around \u20ac27 million to a new production line designed to strengthen its position in the high-value timber segment.<\/p>\n Instead of delivering the expected productivity gains, however, the commissioning of the new installation proved considerably more difficult than planned. Technical issues during start-up, combined with lengthy defect rectification work, resulted in prolonged delays and significantly reduced production performance.<\/p>\n These operational setbacks came at a time when the international lumber market was already under pressure. Demand across many European construction markets has remained subdued, while inventories have stayed elevated in several countries. At the same time, prices for large-diameter sawlogs\u2014the raw material on which Schaffer specialises\u2014have remained comparatively high despite weaker finished lumber markets, squeezing already thin sawmilling margins.<\/p>\n Management also pointed to continuing global economic uncertainty, saying weaker export markets had further reduced sales opportunities.<\/p>\n Company aims to preserve production<\/strong><\/p>\n Managing director Markus Schaffer said the company intends to use the restructuring process to secure the future of the business rather than wind it down.<\/p>\n The company has begun looking for strategic partners that could accelerate the restructuring and help restore full production capacity. Its stated objective is to maintain manufacturing at Eppenstein while safeguarding employment.<\/p>\n Whether the restructuring succeeds will depend largely on securing fresh financial backing, restoring normal production following the delayed commissioning of the new line, and improving market conditions for European lumber producers.<\/p>\n A specialist in premium large-diameter timber<\/strong><\/p>\n Founded in 1914, Schaffer Holz has developed from a regional family sawmill into one of Austria's best-known specialists in processing large-diameter spruce and larch logs. Today the fourth-generation family business employs around 60 people and processes approximately 100,000 cubic metres of logs annually at its Eppenstein sawmill.<\/p>\n Unlike high-volume commodity sawmills, Schaffer focuses on premium-value products manufactured from large-diameter alpine timber. The company is regarded as Central Europe's market leader in rift-cut lamellae used primarily in high-quality window production, while also ranking among Austria's largest processors and exporters of premium larch lumber. Its products are supplied to customers across Italy, Germany, Switzerland, France, the Netherlands, Slovakia, Slovenia and Spain.<\/p>","protected":false},"excerpt":{"rendered":" One of Austria’s longest-established family-owned sawmills is preparing to enter court-supervised restructuring after its financing bank called in existing loans and suspended payment transactions. The filing follows a \u20ac27 million investment in new production capacity that was later affected by … Continue reading