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FALCO Zrt. - Sustainability Report - 2021 / 2022 Dear Readers, Dear Stakeholders! Please allow us to briefly introduce the role of our company - FALCO Zrt - in the life of the city of Szombathely, its economic and social role and especially its activities related to environmental protection and sustainability. We would like to introduce you to the development and improvements of our company, as well as to the processes and roles in which FALCO Zrt, as a key player in the economic life of Szombathely, is involved in the life of the city and the region. We believe that we are on the right track with our activities in the direction of sustainable development and we hope that this will become clear to the Honourable Reader after reading this publication! Our short introduction should not be complete without citing the main message of Dr. h.c. Dr. Winkler András’s book titled Faforgácslapok : "The basic idea of particleboard production: to use wood sparingly, to make a valuable product from the so- called poor selection, as well as from the waste generated in the harvesting and processing of wood." Thank you in advance for your attention! FALCO Team 2 / 91
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FALCO Zrt. - Sustainability Report - 2021 / 2022 FALCO Zrt. has grown from a small sawmill to one of the leading manufacturers of wood-based panels in Central Europe. FALCO Zrt. and its predecessors have been a major industrial player in the life of Vas County and Szombathely for more than 80 years. Perhaps few people know today that the sawmill founded in 1939 and the first wood chipboard factory established in Hungary in 1959 developed into the West-Hungarian Wood Economy Combine with its 4,700 employees by the early 1980s. The large company at that time included the forestry, the furniture and ready- made house factory founded in Sopron, the Ládagyár and sawmill factories in Körmend, the furniture parts factory in Szentgotthárd, the furniture factory in Vasvár and several smaller sawmills in the county. As an employer, FALCO Zrt. has played and continues to play a role in the lives of many families in Vas County and Szombathely for decades. The change of regime has also fundamentally affected the company structure. The main factory in Szombathely has kept its main profile, the production of wood chipboard, laminate board, kitchen worktops and cement-bonded wood chipboard. The importance of its product portfolio in European terms meant that the company quickly found a new owner in the privatisation process. Since 2007, when FALCO Zrt. joined Kronospan, the company has continued its tradition of innovation, ensuring its existing market position and the sustainability requirements placed on the company through continuous technological, technical, environmental and product development activities. Over the last 60 years, the continuous technical and technological development of particleboard production has been accompanied by a major increase in capacity, from an initial (nominal) capacity of 6,000 m3/year to 875,000 m3/year. FALCO Zrt. is now the only company in Hungary that is engaged in laminating activities for the production of wood chipboard and the further processing of the raw materials produced. Thanks to developments in the production activity, the company is now a leader in the field of wood-based panel production in Central Europe. 3 / 91
