Iraq-ISIS crisis causes supply problems in the Middle East; Austrian sawmill goes bankrupt

Source:
IHB/MK/Wirtschaftsblatt
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The Austrian sawmill Gams GmbH located in the province of Styria has submitted an application for the opening of reorganization proceedings without self-administration at the district court Leoben, Austria.

This is due to the political situation in Iraq and neighboring countries, which have caused supply problems for the company, says the Austrian newspaper Wirtschaftsblatt. Since the ISIS crisis started and fighting and violence bursted, orders had to be canceled and no payments have been made. A major costumer from Saudi Arabia and also cutomers from Iraq were unable to place more orders because of the crisis situation. Attempts to sell through distributors in Austria, failed.

The sawmill Gams is specialized in production of softwood lumber, which is exported to Iraq, Saudi Arabia and Syria. Now, production will be closed, and only the trading business will continue until the inventories will be empty.

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