Deal #4700

Location #1

Spatial accuracy level
Administrative region
Location
Argeș County, Romania

Target country
Romania

Location #2

Spatial accuracy level
Administrative region
Location
Harghita County, Romania

Target country
Romania

Location #3

Spatial accuracy level
Administrative region
Location
Hunedoara, Romania

Target country
Romania

Location #4

Spatial accuracy level
Administrative region
Location
Prahova, Romania

Target country
Romania

Location #5

Spatial accuracy level
Exact location
Location
Vâlcea County, Romania

Latitude
45.07980509999999
Longitude
24.083528200000046
Target country
Romania
Comment on location
The company has purchased land in Obărşia Lotrului and Voineas for sure. Other locations in Valcea County are not excluded.

Location #6

Spatial accuracy level
Exact location
Location
Satu Mare, Romania

Latitude
47.79
Longitude
22.889999999999986
Target country
Romania

Location #7

Spatial accuracy level
Administrative region
Location
Covasna 525200, Romania

Target country
Romania

Land area

Size under contract (leased or purchased area, in ha)
[2014] 11000
[2018] 12368
Comment on land area
Overall, the company seems to manage 14,299 hectares (#5642) of forest in Romania. However, it is not clear whether the company merely manages parts of this land or bought/leased the entire area. What is known is that the company owns 11000 hectares.

Intention of investment

Intention of the investment
Timber plantation (for wood and fibre), Forestry unspecified

Nature of the deal

Nature of the deal
Outright Purchase

Negotiation status

Negotiation status
[2003] Concluded (Contract signed)
[2018] Concluded (Oral Agreement)
Comment on negotiation status
Contracts were concluded between 2003 and 2011

Implementation status

Implementation status
[2018] In operation (production)

Contract farming

Contract farming
No

Operating company

Operating company
Comment on investment chain
The CEOs Gerald Schweighofer and Christian Hoefburger. In the wood industry the company presents itself as "Holzindustrie Schweighofer". Therefore I have chosen it as the name of the investment project, too.

 

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Data source #1

Data source type
Media report
File
Date
2015-05-21

Data source #2

Data source type
Media report
File
Date
2015-05-21

Data source #3

Data source type
Company sources
File
Date
2018-03-26
Comment on data source
Information about acqusition on the official website

Data source #4

Data source type
Media report
File
Date
2018-03-27
Comment on data source
Media about acqusition

Data source #5

Data source type
Media report
File
Date
2018-03-27
Comment on data source
Media about acqusition

Data source #6

Data source type
Media report
File
Date
2015-05-21

Data source #7

Data source type
Research Paper / Policy Report
File
Comment on data source
Report from 2015.

Data source #8

Data source type
Research Paper / Policy Report
File
Date
2015-04-01

Data source #9

Data source type
Media report
File
Date
2015-05-21

Data source #10

Data source type
Media report
File
Date
2015-05-21

Data source #11

Data source type
Media report
File
Date
2015-05-21

Data source #12

Data source type
Company sources
File
Date
2015-05-21

Data source #13

Data source type
Media report
File
Date
2015-05-21

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
In 1/2014 the local communities demonstrated against the decision of County Council of Covasna allowing Holzindustrie Schweighofer to build a new plant in Reci.

Displacement of people

Comment on displacement of people
There were probably no forced of people. However, company's investments prevent the maintenance of local economies and thus cause a loss of traditional jobs as well as rural migration.

Promised benefits for local communities

Comment on promised benefits for local communities
In the light of the Corporate Social Responsibility, the company took part in some social projects and provided a financial support for kindergardens, playgrounds, reconstruction of hospitals or for communities affected by a natural catastrophe.

Former land owner (not by constitution)

Former land owner
State
Private (smallholders)
Private (large-scale farm)
Comment on former land owner
The land was purchased often from Romsilva which is the National Forest Administration of Romania. In Case of Izvoarele (Prahova County) the land has been bought by a private company. Moreover the company owns 130 ha of forest land in the village of Satu Mare, which the Romanian businessman G.C. Babiuc asquired stepwise from its owners in order to resell it later to the Holzindustrie Schweighofer. Holzindustrie Schweighofer previously had the lease to 2018 as the Secondary investor.

Former land use

Former land use
Forestry

Former land cover

Former land cover
Forest land

Detailed crop, animal and mineral information

Crops area
Trees (unspecified)

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
According to the data from 2014, the "Holzindustrie Schweighofer" has exported its products in 67 countries worldwide: 44% to Asia and America, 21% to the Middle East and 20% to Europe. From the new saw mill opened 2/2014 in Réci (Covasna County) 80% of the produced lumber will be exported to markets in Asia (mostly Japan).

In country processing of produce

In country processing of produce
No
Comment on in country processing of produce
But the company Holzindustrie Schweighofer runs two sawmills in Rădăuți and Sebeș, three plants in Comăneşti (bought from FinnForest, 2010), Siret (bought from IKEA, 2009) and in Raci.

Overall comment

Overall comment
According to the control reports of Territorial Inspectorates for Forestry and Hunting (ITRSV) the company is involved in illegal logging. In addition, from the very beginning of companies' activities in Romania, specific arrangements of legislative conditions for massive exploitation of forests have been noticed.

May 21, 2018, 12:34 p.m.

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May 18, 2018, 6:12 p.m.

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Sept. 27, 2017, 12:08 p.m.

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Sept. 11, 2017, 7:57 p.m.

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Jan. 18, 2016, 5:31 p.m.

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May 29, 2015, 8:20 p.m.

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May 21, 2015, 3:01 p.m.

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