Hasslacher Group is set to close its glulam manufacturing facility in Rangersdorf, Austria, with production expected to cease by the end of 2026.
The company said the decision reflects continuing weakness in the European construction market, which has left the Rangersdorf facility without sufficient work. Production will be transferred to three other Hasslacher facilities in the region: Stall im Mölltal, Sachsenburg and Hermagor.
The plant was acquired by Hasslacher in 2022 after operating as Gemson, a family business established by Michaela and Gerhard Göritzer in 2000. The operation specialised in smaller production runs and customised timber components, including compact panels and curved columns.
Hasslacher chief executive and owner Christoph Kulterer said the company had anticipated market growth when it acquired Gemson, but construction activity has contracted for several consecutive years amid a series of global economic challenges.
The wider Austrian construction sector is also experiencing a prolonged downturn. Industry figures indicate that the country is heading towards a fifth consecutive year of declining construction activity, with the residential sector accounting for much of the reduction. New home construction fell substantially between 2020 and 2025.
The broader European market is facing similar pressures. Construction output across the European Union declined year-on-year in August, while Austria has experienced an even sharper deterioration since 2021.
Hasslacher said consolidating Rangersdorf’s production at its other regional facilities would improve efficiency by reducing internal transport distances and associated costs.
Despite the closure, most of the plant’s approximately 40 employees are expected to remain within the Hasslacher Group, transferring to facilities at Sachsenburg and Stall. The company will determine how the Rangersdorf site’s 6,000-square-metre production hall will be used by the end of the year.
The closure follows other recent reductions in European engineered-timber manufacturing capacity, including Stora Enso’s decision to shut its cross-laminated timber line at Gruvön in Sweden. The developments highlight the pressure currently facing the European mass-timber and construction sectors as demand growth falls short of earlier expectations.
Hasslacher remains a major European glulam producer, with around 950 of its approximately 2,000 employees based in Upper Carinthia, the region surrounding Rangersdorf.
As construction markets continue to struggle, the company is responding by consolidating production rather than maintaining underutilised capacity. The move is intended to preserve the group’s competitiveness while keeping the majority of Rangersdorf’s workforce within the business.
“The weakness in building construction persists, and a real turnaround is still not in sight,” said Markus Schmölzer, chair of the Austrian sawmill industry.
