Egger Group takes over chipboard plant in Markt Bibart, Germany

The Rauch chipboard plant is located in Markt Bibart (Image: Egger)

On 8 Sep 2023, the Egger Group has signed an agreement to purchase a Rauch chipboard plant in Markt Bibart, Germany.

Rauch Group is a family-owned company that has been manufacturing and selling high-quality wardrobe and bedroom ranges for over 125 years.

In 1958, Rauch took over the chipboard plant and from then on was able to produce its own chipboard for furniture manufacturing. The chipboard plant now supplies not only Rauch furniture plants but also other national and international furniture and door customers.

With this purchase, the Egger Group continues to pursue its strategy of growth, further strengthening its position in its home market in Europe.

After the sale, the Rauch Group will focus fully on the further development of its furniture plants to further expand its strong market position.

“Since the share of deliveries to third-party customers and thus the product range has increased continuously in recent years, we have gradually detached ourselves from the original business idea,” said Rainer Hribar, CEO of the Rauch Group.

“In order to remain competitive in the chipboard market in the long term, high expansion investments are required. The Egger Group has the power to leverage the potential of the Markt Bibart location and Rauch can now fully focus on the further development of the furniture plants.”

Subject to approval by the cartel law authorities, the chipboard plant in Markt Bibart will be the 22nd production plant of Egger Group. The parties have agreed not to disclose the purchase price and further details of the transaction. The Rauch Group’s furniture plants remain unaffected by the takeover.

“Sustainable growth based on our own performance is our declared objective. We are successfully continuing our strategy with this additional location in our core market Germany,” emphasised Thomas Leissing, Egger CFO and speaker of the Group Management.

“The many years of expertise of the staff in Markt Bibart, together with the synergy effects resulting from our group presence, enable great growth potential for the location.”

According to Egger, they see “great opportunities” to expand the business model in Germany by supplying fixed dimension boards to customers.

The plant in Markt Bibart has facilities for the production of raw chipboard with a capacity of up to 650,000m3 annually.

With regard to processes and systems, Egger is striving for a rapid integration of the plant into the group. In addition, the wood-based material manufacturer is already examining the first investment projects at the location.

Egger is counting on the experience of the local staff. The wood-based material manufacturer will take on all 195 employees of the Rauch chipboard plant at the time of closing.

“We are looking forward to welcoming our new qualified and committed colleagues as part of our global corporate family. We are convinced that together we will successfully develop the Markt Bibart plant in the long term,” concluded Thomas Leissing.