On February 5th, the German wood processing company HIT Torgau has ended the supply contract with German Pellets. The reason, as HIT managing director Günther Hilmer stated, is the delay in payments. Since approximately four weeks now, bills haven't been paid.
The manufacturing contract was signed between the two companies back in November 2015. Under the contract, HIT Torgau was delivering wood residues to the German Pellets plant in Sachsen, which were further manufactured into pellets.
Also read:
German Pellets: bond debts and Kago's insolvency
Sales reorganization and downtimes at some plants for German Pellets