Hornbach drops Austrian timber supplier after illegal logging scandal in Romania

German DIY retailer Hornbach announced that, starting January, it would end the cooperation with Austrian timber producer Holzindustrie Schweighofer for the sale of construction and planed wood in its Romanian stores. "We want our suppliers and business partners to respect the principles of responsible forestry," said Mugurel-Horia Rusu, director general Hornbach Romania. Holzindustrie Schweighofer has been accused of processing wood from illegal logging. Last year, after an international organization presented evidence that the company was encouraging illegal logging in Romania, the Ministry of Environment decided to check Holzindustrie Schweighofer’ factories in Sebes and Radauti, and at the headquarters of the company’s main timber suppliers. As the inspectors found some irregularities, including the fact that the group worked with several companies that supplied timber without legal forms that may have come from illegal logging, the Ministry notified the prosecutors. Holzindustrie Schweighofer has denied the accusations repeatedly, and said that they would collaborate with the Romanian authorities in this matter. Referring to the decision to stop the collaboration with Schweighofer, Hornbach Romania's general manager said: "We work closely with our suppliers to prove the origin of the wood and prevent the existence in our offer of products made of wood coming from illegal or uncertain sources. For this reason, we’ve always been in close dialogue with Schweighofer and FSC (Forest Stewardship Council). We have watched carefully the re-certification process of Schweighofer and we have decided to stop working with this company on the construction and planed wood segment." Hornbach has already found a new supplier to replace Schweighofer. According to the company's internal business code, the wood coming from regions outside the EU must have the FSC certification. For the wood coming from the EU, the European law applies. Founded in 1877, German DIY retailer Hornbach currently runs 154 mixed stores in in nine countries in Europe, with six of them being located in Romania. The group ended the 2015/2016 financial year with a net turnover of over EUR 3.75 billion, up some 5% year-on-year. Holzindustrie Schweighofer is the biggest timber producer in Romania. The company had a turnover of EUR 447 million and a net profit of EUR 46 million, in 2015. It employed over 2,000 people. Irina Popescu, irina.popescu@romania-insider.com