Shelman, one of the largest and oldest woodwork firms in Greece, has announced that it will shut down its factory at Vasiliko in Halkida. The firm, which is owned by the Alpha Woods groups, has been hit hard by the massive drop in construction of the past five years.

According to the firm’s top brass, one of the reasons of the shutdown was the employees’ unwillingness to accept pay cuts or job rotation. The firm also cited that orders were down 26% in a nine-month period in 2012 compared to the same period in 2011 and 46% compared to 2010. Costs also skyrocketed, with wood going up by 20% and glue by 13%, as well heating oil doubling in price.

The factory employed 174 people, while the firm’s second factory, in Komotini, has been subsidized with over 20 million euros. The worker’s union claims that Alpha Wood wants to take advantage of the private port and the 200 acre plot of land in Vasiliko for tourist purposes.