Sonae Industria may close plant in Germany
LISBON, Sept 19
LISBON, Sept 19 (Reuters) - Portugal's Sonae Industria (SONI.LS), the world's second-biggest wood panel maker, may close another production line in Germany due to weakening demand, Chief Financial Officer Rui Correia said on Friday.
"We are trying to be disciplined to avoid exerting pressure on the market and we've been adjusting production to demand. That led us to close one production line in Germany last year ... we may have to close another line in that country," Correia told Reuters during a conference hosted by BPI bank.
Sonae Industria has seven plants in Germany after buying Hornitex company there in 2006. Germany accounts for about 35 percent of its global sales.
The company's net profit plunged 86 percent to just 6 million euros ($8.70 million) in the first half of the year and revenue fell 10 percent to 965 million euros due to a construction sector slowdown and high prices of carbamide used in the production of plywood and panels.
Correia said he expected carbamide prices to have reached their peak and hoped they would fall in the months to come. (Reporting by Shrikesh Laxmidas and Ruben Bicho; Writing by Andrei Khalip; Editing by Greg Mahlich)
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