No more investments for Schweighofer in Romania until after the crisis

Austrian businessman Gerald Schweighofer, owner of several wood processing plants in Romania, with turnover put at more than 250m euros this year, says he plans no further acquisitions on the domestic market, after taking over two companies in one year, one in Siret (Suceava) and the other in Comanesti (Bacau).

"(...) We will make no further investments until the political crisis is over," said Gerald Schweighofer, in an interview with ZF.

The most recent acquisition is the takeover of the entire stake of Finnforest Baco Production from Wood Product Industry, the wood processing unit of Metsaliitto Cooperative Finnish group. The value of the deal was not disclosed, but, according to some consultants asked by ZF, a sum of below 10m euros was involved. The first acquisition was sealed last December, but was concluded in 2009. The Austrians took over the former IKEA plant of Siret. Both acquired plants were among Holzindustrie Schweighofer's clients.

The deal is pending Competition Council approval and the new company will be named Holzindustrie Schweighofer Baco.

Finnforest's production is largely exported mainly to Germany, Italy, France, and Greece. Schweighofer has not disclosed the value of the deal involving IKEA, either.

The Austrian has so far invested around 250-300m euros domestically and owns, besides the two acquisitions, wood processing units in Sebes and Radauti, 11,000 hectares of forests in several Romanian counties, a 100-room hotel in Radauti and several renewable energy investments. The group, also including an agricultural farm in Botosani, currently has 1,450 employees, and is set to reach 2,000 with the integration of Finnforest.

Gerald Schweighofer also owns 50 hectares of land in Radauti and 20 hectares in Bacau through the plants.

The plants of Romania will reach 250-300m euro turnover this year, up from 2008. This year's growth will primarily come from boosting the company's production capacity.