RESTRUCTURING THE ROMANIAN WOOD PROCESSING INDUSTRY

Abstract

UDK 630*8:674(498)

The paper provides a summary of restructuring in one of Romania’s basic industries that has seen major changes since 1989 on account of privatisation and the construction of new capacity. Although production has not returned to the levels of the 1980s there has been a major qualitative improvement thanks largely to foreign investment, with of new projects currently underway. While the basic commodities are likely to see further recovery in output, in sympathy with greater felling (after a significant relaxation in the early 1990s), progress of engineered wood products – beyond medium-density fibreboard (MDF) and particleboard or chipboard (PAL – according to the Romanian acronym) – seems less assured, though increasing domestic consumption could provide an incentive. Meanwhile stiff price competition in the paper industry helps to keep production some way behind consumption especially in the case of newspaper. On the other hand, good design and high labour productivity in some sections of the furniture industry is helping to maintain a good export performance while attracting investment from global producers such as Ikea.