Ziegler Holding, Owner of One of Europe’s Largest Sawmills, Declares Insolvency

The owner of one of Europe’s largest sawmills filed for insolvency in German court last Wednesday, BR24 reported (11-22-24).

According to announcement on Friday by the law firm Schultze & Braun, after the parent company Ziegler Holding GmbH filed for insolvency on Wednesday, the first individual companies of the group are now following. Accordingly, Ziegler Holzindustrie GmbH, based in Plößberg, filed for insolvency in a district court on Friday. This is the original company of the Ziegler Group; its sawmill, which is one of the largest plants in Europe, employs about 700 people.

According to the insolvency administrator, it should be clear by the end of this week which other Ziegler companies will have to file for insolvency. Two subsidiaries based in Pressath have already taken this step: Pelletwerk Ziegler Naturenergie GmbH and the Ziegler Holzzentrum GmbH. Ziegler has not published any employee figures for the pellet plant, but according to the company, around 100 people are employed in the wood center.

The timber industry has been struggling with weak sales for months, partly due to fierce international competition and the construction crisis, BR24 reported. According to the Central Association of the German Construction Industry (ZDB), orders in residential construction fell by more than 12% in the first half of 2024 alone compared to the previous year. The situation is just as bad for the furniture industry, also an important buyer of wood. In addition, there are significantly increased production costs, partly due to increased energy prices.