Wood firm wants forest agreement before pressing ahead with new plant

The development is a central element to the firm's quality improvement plan, drawn-up to meet the challenges presented by changing technologies. The company decided to concentrate on the production of MDF and HDF boards after sales rose by 18.8% in 2003, proving to be the fastest growing segments in the wood-processing industry. Company president Paweł Wyrzykowski said the investment will require new agreements with the state forests body as a shortage of supply could jeopardize the undertaking. Location of the plant in Grajewo will be dependent on the extension of the Special Economic Zone, which would enable the company to recoup 50% of the investment outlays in the form of tax exemptions. If the authorities turn down Pfeifer Grajewo's plans the company will consider locating the new plant in Russia. (Puls Biznesu p.6, Parkiet p.4) M.G.