Kronospan acquires the Sebeș factory of Ziegler Group

Kronospan officially announced the takeover of the ZG Timber factory in Sebeș, Romania, formerly owned by the Ziegler Group, in a deal that marks one of the most important moves in the timber sector this year.

The acquisition agreement, signed on March 1, 2025, follows the insolvency proceedings that Ziegler Holding GmbH entered at the end of last year. The deal is expected to be finalized by the middle of the year, after obtaining all necessary approvals from the authorities.

Background on Ziegler insolvency

The Ziegler Group, a major player in the European wood-processing industry, entered insolvency in November 2024 after a period of aggressive expansion and the accumulation of significant debts. According to 2022 financial reports, the group had accumulated debts of €407 million, including €326 million in bank loans.

Of the 45 group companies, 27 had to file for insolvency by the end of November 2024. According to official communication of the insolvency administrator, the group had about 3,000 employees in three countries (Germany, Sweden and Romania) and reported sales of about €750 million in 2023, in a difficult market.

The Sebeș mill, with significant processing capacity, had not been acquired by Ziegler from HS Timber (formerly Holzindustrie Schweighofer) until the summer of 2023, less than two years before the actual sale. The company in Romania, ZG Timber Sebes S.R.L., was not among the 27 group companies that filed for insolvency.

The insolvency administrator, Dr. Volker Böhm of Schultze & Braun, managed a structured process of identifying and approaching potential investors internationally. According to him, with the sale of the Romanian operation, "all of Ziegler's international operating holdings have been sold to reputable investors in the industry", with no jobs lost as a result of these transactions.

Transaction details

Kronospan, which already operates factories in Romania, signed on March 1 the agreement to acquire ZG Timber Sebes S.R.L. According to the official press release, the transaction ensures continuity of operations and preserves all of the approximately 500 jobs at the factory.

The Sebeș plant produces high quality wood products and sawdust pellets and by-products from the gater. Although the value of the transaction has not been disclosed as it is subject to a confidentiality agreement, it is conditional on the approval of the competition authorities and is expected to be finalized by mid-year.

Development plans and synergies with existing operations

Kronospan will integrate timber products into its global portfolio, complementing the existing production of wood-based panels at its Romanian plants:

Chipboard (PB) - produced in Sebeș
Medium density fiberboard (MDF) - produced in Sebeș
Oriented Strand Board (OSB) - produced in Brasov

The acquisition presents significant synergy potential, given that Kronospan already operates a panel factory in Sebeș, close to the facility now acquired. The company announced its intention to invest in the modernization of the sawmill to increase efficiency and production capacity.

Kronospan presence in Romania

Kronospan has been active in Romania since 1998 and has reported investments of more than 600 million euro in the country. The company currently operates:

Two production units (Brasov - OSB and Sebeș - PB and MDF)
A logistics center in the Port of Constanta
More wood collection and recycling centers nationwide

Products manufactured in Romania are distributed both domestically and exported to 75 countries worldwide. By acquiring the timber factory in Sebeș, Kronospan diversifies its product range and strengthens its position on the local and international market.

This transaction represents a significant restructuring in the Romanian timber industry in the context of the current economic challenges in the construction sector. According to the press release, the Ziegler Group has been "strongly affected by the collapse in demand in the construction sector as a result of the war in Ukraine and rising interest rates", which shows the structural difficulties currently facing the European wood processing industry.