Fundermax trims workforce as raw material costs rise

Fundermax has reduced its workforce in response to difficult market conditions and rising raw material prices, while its Neudörfl industrial plant remains protected from higher energy costs because it generates its own electricity and heat, ORF reported.

The company currently employs about 150 people, making it one of Austria’s largest industrial businesses. Although the plant is operating at high capacity, Fundermax cannot fully pass higher raw material costs on to customers, putting pressure on profits.

The company is focusing on efficiency and developing its products, particularly decorative elements built around the Rossmann board produced in Neudörfl. It is also using less recycled wood because it has become more expensive, and is seeking more stable supply solutions through research projects and sawmill products.

About two years ago, Fundermax cut 50 of its 200 jobs. Its managing directors said no further workforce reductions were currently planned. The cuts followed weak construction and furniture markets in countries including Germany, Austria and Italy.

Production at the plant is currently suspended for maintenance work expected to continue for several more days. Under normal conditions, the factory produces particleboard, which is either processed further or sold directly.