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Rehau

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Sells its business in Russia

The Rehau Group will sell its business in Russia to the local management and thus withdraw completely from the country. A corresponding preliminary agreement has now been signed by both parties. Already on March 4, 2022, the company had decided to shut down its business in Russia in a controlled manner. Developments in recent weeks have made further decisions unavoidable.

The Rehau Group has been active in Russia for around 30 years and has served the market there primarily with polymer-based solutions for the window, construction and furniture sectors.

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Bosch Power Tools

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Double-digit sales growth

Bosch Power Tools generated sales of 5.8 billion euros in fiscal 2021. Adjusted for exchange rate effects, this corresponds to growth of 16 percent (nominally 14 percent) compared with the previous year.

“For the second year in a row, we achieved record sales in a very dynamic environment – despite many challenges such as cost burdens due to supply bottlenecks or price increases for transport and raw materials,” said Henk Becker, chairman of the divisional board of Bosch Power Tools. He also said the company had a significant increase in demand in 2021. The main growth driver was the online business. It accounted for nearly 30 percent of sales in 2021. More and more users are taking advantage of digital offerings to obtain information from the comfort of their own homes and subsequently select the ideal tool for their needs. In this sense, the cooperation with multi-channel as well as online retailers is therefore to be further expanded worldwide.

The company achieved double-digit sales growth in all regions for the first time in 2021. Overall, Bosch Power Tools recorded 19 percent more sales for Europe year-on-year after adjusting for exchange rate effects. Growth in Germany amounted to 13 percent. Bosch Power Tools achieved a ten percent increase in sales in North America, 14 percent in Asia Pacific, 34 percent in Africa, and as much as 37 percent in Latin America.

The market environment remains challenging for the current year. In view of the high level of uncertainty, it is not possible to make a reliable forecast of business development at the present time.

Battery-powered devices continue to be in particularly high demand. “The opening of our battery platforms with 18 volts was an important strategic milestone. We have thus created two cross-manufacturer systems that are highly appreciated and excellently received by our private and commercial users,” says Becker. Bosch Power Tools recorded significant growth in both the “Power for All Alliance,” which is geared toward do-it-yourselfers, and the “Professional 18V System,” which is designed for craftsmen. Compared to the previous year, sales generated in the “Power for All Alliance” increased by almost 150 percent in 2021 and two new partners were added – meanwhile, sales doubled in the “Professional 18V System” and two new partners were also added. More well-known partners will join the battery platforms in the summer and fall.

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Ahlstrom-Munksjö

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Reorganization of Decor business ownership

Ahlstrom-Munksjö Holding 3 Oy’s Board of Directors has agreed an ownership reorganization plan under which the production assets, debts, and liabilities relating to its Decor business will be transferred from Ahlstrom-Munksjö Holding 3 Oy, without liquidation, to a newly formed company that will be named Munksjö.

In the ownership reorganization, Ahlstrom-Munksjö Holding 3 Oy will divest the majority share of and remain with a minority share in the new Munksjö company to Ahlström Capital BV (wholly owned subsidiary of Ahlström Capital Oy) and Nidoco AB, both of which are affiliates of the current minority owners of Ahlstrom- Munksjö Holding 3 Oy. The planned reorganization is subject to customary closing conditions and is expected to be completed by the end of the third quarter of 2022, following which Ahlstrom-Munksjö Holding 3 Oy will start preparing plans for changing its business name to Ahlstrom.

Based on the strategic review of the Decor business the board has concluded that a standalone company would provide the best framework for the future development of this business. As separate companies, the increased management and board focus will support the newly named Ahlstrom and Munksjö in achieving further sustainable growth and profitability through a more focused and ambitious agenda on a global basis. Once the reorganization has been completed, both companies will offer distinctive characteristics that are expected to attract investors, provide access to new capital, and drive increased value.

Ahlstrom-Munksjö has actively developed its Decor business over the years, by establishing a strong growth platform in South America through the acquisition of Caieiras’s specialty paper mill in Brazil, and more recently by entering the world’s largest and fastest growing decor paper market in China through the acquisition of the decor paper manufacturer Minglian New Materials Technology in Xingtai, Hebei Province. Through these strategic acquisitions, the Decor business has become a leading international player, well positioned to serve its customers in all essential decor paper markets globally. As a standalone company the Decor business will accelerate its growth, strengthen its competitiveness and global leadership in innovation. The Decor business has operated under the Munksjö brand for more than 25 years, and although lately under the Ahlstrom-Munksjö brand, the business is most commonly known as simply “Munksjö”, a brand recognized for outstanding quality and service across the decor industry.

Hans Sohlström, President and CEO of Ahlstrom-Munksjö, comments: “Having actively participated in development of both Ahlstrom and Munksjö, I am very proud that the Decor business has grown into a leading global business. It has successfully adapted and managed changing market fundamentals which demonstrates its strength and agility, as well as its relevance for the future. The Decor business and the Munksjö brand are naturally a great match, and by bringing them together we create more value for both. I am convinced that our colleagues and customers will see that this reorganization is beneficial and supports continued success for all parties.”

Lasse Heinonen, President and CEO of Ahlström Capital, continues: “The Ahlstrom-Munksjö Decor business is a leading global business with a broad product portfolio and a market-leading brand, Munksjö. This business is already the leader in higher value market segments and has strengthened the competitiveness in standard decor papers with a footprint in China following the acquisition of Minglian New Materials Technology. For Ahlström Capital, the Munksjö Decor business is a key investment in our core fiber segment.”

About Decor business area: The Decor Solutions business area is one of Ahlstrom-Munksjö‘s five reporting segments. The business offers the broadest assortment of high-quality decor papers in its industry. Decor papers are primarily used as the decorative surface material in laminated wood-panel based furniture, flooring and other interior and exterior building material applications. Key markets are Europe, North and South America, China and selected export markets. The production takes place at six plants: Unterkochen and Dettingen in Germany, Tolosa in Spain, Arches in France, as well as Caieiras in Brazil and Xingtai in China. Including Xingtai, acquired in January 2022, annual net sales is approximately EUR 500 million and production capacity around 250,000 tons. Currently the combined businesses employ 1,200 people. The transfer of the Decor activities in France, including dedicated parts of the Arches plant, is subject to a prior consultation of employee representatives in France.

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Danzer

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25 percent increase in sales

Danzer, the hardwood company specializing in wood from temperate forests in the Northern Hemisphere, reported annual sales of 170 million euros in 2021. Adjusted for the activities of the sawmill in Bradford, Pennsylvania, which was sold in April of 2021, this represents a 25 percent increase over the previous year (2020: 136 million euros). As the market leader, Danzer was able to benefit disproportionately from the high demand for hardwood. Operationally, the year was dominated by bottlenecks and price increases in raw materials, transportation and labor. Strategically, Danzer continues to invest steadily in systems for intelligent wood utilization and process automation.

Fifty-seven percent of the 170 million euro revenue in 2021 came from the sale of sliced products, 28 percent from sawn products, and the remaining 15 percent of revenue came from logs, specialties and services. In 2021, hardwood specialist Danzer shipped products to 71 countries. 78 percent of sales were generated in the following ten countries, in this order: the USA, the UK, Germany, Canada, Poland, Austria, China, Slovakia, Mexico and Sweden. Adjusted for the activities of the sawmill in Bradford, Pennsylvania, which was sold in April of 2021, sales in 2021 were thus 9 percent higher than in the pre-pandemic year 2019 and 25 percent higher than in 2020, respectively.

In addition to the successful expansion of the parquet decking business in Europe and in North America, CEO Hans-Joachim Danzer attributes the company’s disproportionate growth to procurement advantages: “Major customers who wanted to ensure a reliable supply of hardwood from sustainable sources in the tight market in 2021 relied on the market leader for sliced hardwood in Europe and North America. Danzer has the largest procurement organization in the industry and follows strict due diligence procedures.” Almost all of the wood processed by Danzer is FSC or PEFC certified or verified by similar programs. Danzer regularly reports on progress in implementing its environmental agenda, which is based on the UN Sustainable Development Goals (SDGs).

For the coming years, the company is committed to continuing its adopted strategy. “At Danzer, we are focusing on areas where we have competitive advantages. We will continue to invest in new products, systems for intelligent wood utilization and automation of processes,” explains Hans-Joachim Danzer. The optimization software of the automatic trimming system for parquet top layers, which Danzer installed at the Melnik veneer plant in the Czech Republic in 2020, was further optimized by the company in 2021. As a result, the yield from tree to product was further improved. In addition, Danzer invested in improvements to its “VS 4000” slicers in the U.S. and Europe in 2021. In order to increase the efficiency of production processes and pursue new approaches in marketing and sales, the company is also continuously advancing digitalization. Product innovations in 2021 include the development of a new decorative wood surface, which was supplied for the first time to an automotive customer in Asia.

In the current year 2022, Danzer is continuing its growth course. “In the current challenging environment, characterized by uncertainty and cost increases for raw materials and supplies, we plan to further expand our activities and maintain our growth course,” emphasizes Hans-Joachim Danzer.

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EFIC

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High-profile “Furniture Day 2022”

Yesterday, the hybrid EFIC conference “The Furniture Day 2022” was successfully held in Brussels. In addition to many participants on site, around 400 listeners were also connected via live stream. They experienced presentations and discussions on the burning issues of sustainability, scarcity of raw materials, price explosion and digitalization.

Prof. Sascha Peters from Haute Innovation pointed out that if we do not change our lifestyles, we will need three earths by 2050. He also sees great potential in the furniture industry to manufacture more sustainably. For example, there are already many ideas on how to do without adhesives or plastic, or how to use other materials instead of wood, leather or foam (e.g. fish scales or coconut fiber).

Maila Puolamaa from the EU Commission explained the opportunities and challenges facing the European furniture industry with its approximately 120,000 companies. In addition to the Ukraine war and raw material problems, these include the “Green Deal”, the most ambitious agenda the EU has ever given itself. The goal is to be the first continent to become climate neutral. Thus, there are various “Action Plans” that have a clear impact on manufacturers.

The panel discussion that followed was led by moderator Mariam Zaidi VDM Managing Director Jan Kurth, Giovanni del Vecchio, CEO of Giorgetti, Stina Wallström, Public Affairs Manager at Ikea, Martin Brettenthaler, CEO of the Swiss Krono Group, and Andre Dorner, Managing Director Germany at Blum (from left). They agreed that the current challenges are immense, that companies need to increase their flexibility, change their purchasing policies and strengthen their communication with customers. They also have their sights set on becoming a circular company. But: “Of course sustainability is important. But if a manufacturer is no longer able to be successful, that is not sustainable either,” said Giovanni del Vecchio. In this context, the participants called on politicians to work together and create laws that help instead of hinder, that apply to all market players – including importers – and that compliance with these laws is consistently monitored.

After the lunch break, Matjaz Malgaj from the EU Commission first explained the current package of proposals for eco-design for sustainable products. He explained what impact the regulations will have on the European furniture industry. These include, for example, a digital product passport and the obligation to avoid substances of concern. The conference was rounded off by two panel discussions. First, Robin Ljungar, environmental manager at TMF, Kees Hoogendijk, general director of CBM, and Cathy Dufour, general director of l’Ameublement France, spoke about the European furniture industry’s reaction to the EU proposals and national initiatives to support manufacturers. Philippe Moreau, President of l’Ameublement France, Maria Porro, President of Assarredo, Jan Desmet, President of Fedustria, Patrizia Toia, Member of the EU Parliament, and Chris De Roock, General Manager of Wood.Be, then discussed what the European furniture industry needs from policymakers in order to continue to compete globally.

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Systemceram

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Invests 30 million euros

Extensive investments at Systemceram: The company will invest around 30 million euros over the next three years: for a new administration building including an exhibition, the reorganization of logistics and modern production facilities and machinery.

The groundbreaking ceremony for the new administration building is scheduled for August 2022. A five-story building with 2,220 square meters of floor space and state-of-the-art building technology is being built at the Siershahn site. The building will also include a showroom with a functional kitchen for events and spacious rooms for training courses. The anticipated move-in date is late fall 2023.

The reorganization of logistics has already been initiated. To this end, Systemceram has taken over the 16,000-square-meter premises of a company in the neighboring town of Wirges, around two kilometers from the headquarters in Siershahn. The buildings and areas will be used in the future as a logistics center and for the finishing of kitchen and bathroom ceramics products.

The expansion of production at the Berggarten 1 site in Siershahn will begin in the second half of 2023. The project envisages the demolition of part of the existing warehouses (6,000 square meters) and the construction of a new production hall with approx. 8,000 square meters of floor space. This expansion will involve considerable investment in machinery. This includes, among other things, a new shaping plant for sinks and worktops, new glazing equipment and a new kiln for the production of ceramic products. In addition, there will be further machinery.

“With these extensive investments, we are setting Systemceram up for the future,” explain managing partners Kevin Göbel and Felix Engel. The second-generation family business employs around 250 people in Siershahn. This number will increase in the short term. This is because systemceram has just taken over a competitor in the laboratory ceramics business. This is associated with an expected 40 percent increase in sales in this segment. The additional production will gradually be incorporated into the company’s own production.

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Sonae Arauco

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Subscribes to first sustainability-linked loan of 184 million euros

Sonae Arauco has subscribed to its first financing linked to sustainability measures (Sustainability-Linked Loan), in the amount of 184 million euros. The interest rate varies depending on two ESG (Environmental, Social and Governance) indicators: the increase in the purchase of recycled wood and the decrease in work accidents with resulting absenteeism.

 “This financing is in line with Sonae Arauco’s strategic objectives and demonstrates our commitment to the sustainable growth of our business, with a focus on the health and safety of our employees,” explains António Castro, Chief Financial Officer at Sonae Arauco. “Linking Sonae Arauco’s sustainability efforts to the company’s financial performance is a natural step towards realizing our vision of developing wood-based material solutions that improve people’s lives and make an important contribution in the fight against climate change.”

With this financing, Sonae Arauco commits to increase the share of recycled wood in its products by 19 percent by 2026. The company also sets itself the goal of significantly reducing the number of occupational accidents with resulting absenteeism.

The defined performance indicators have been validated by S&P and are in line with the Sustainability-Linked Loan Principles issued by the Loan Market Association.

The underwriting was coordinated by CaixaBank with the participation of ABANCA, Caixa Geral de Depósitos, Export Development Canada and Bank of Nova Scotia.

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"Domotex" 2023

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Focuses on new value awareness

“Floored by nature” is the keynote theme of “Domotex” 2023, which will take place in Hannover from 12 to 15 January. More topical than ever, the keynote theme deals with the questions about a healthy, natural and sustainable living in our working and living spaces. Value-based themes and issues surrounding responsibility towards our environment and nature will be on the agenda of “Domotex”. “Floored by nature” also stands for the fascination that nature exudes as a source of inspiration and serves as a perfect role model. The world’s leading trade show for carpets and floor coverings invites all participants in the 33rd edition to take a new perspective on the central spatial element of flooring. New areas of application, trends and innovations are waiting to be discovered at “Domotex”. Eight months before “Domotex” 2023, the hall spaces are already very well booked. Both organizers and exhibitors are optimistic and anticipate a strong event, which will once again be organized as an onsite trade show including digital participations.

“The resource-saving use of materials, the circular economy, a new sourcing debate, healthy living and working, and advancing digitalization in all areas of life are also shaping the flooring industry and with it the world’s leading trade show ,Domotex’. ,Floored by nature’ stands for sustainable and natural materials that are taking over our living spaces. Inspired and fascinated by nature, ,Floored by nature’ means discovering new environmentally compatible possibilities and making optimum use of existing resources. The goal: to create healthy, sustainable and at the same time inspiring spaces,” says Sonia Wedell-Castellano, Global Director “Domotex”, Deutsche Messe AG, explaining the 2023 keynote theme. “But serious raw material shortages, high transport costs and further rising energy prices are also creating major challenges for the industry. “Domotex” is also a showcase for these issues, highlighting potential, addressing opportunities and risks, and providing best practices,” continues Wedell-Castellano.

Three focus topics form the basis for the main theme: “Connecting Markets”, “Conscious Living” and “Colourful Nature”.

“Connecting Markets” highlights the need to adapt to changing conditions. Markets are in a constant state of transformation: constantly changing import and export relationships, supply relationships, supply bottlenecks, increased energy and production costs, digital services and new online trading platforms are changing the economy. Digital technologies offer the possibility to launch new collections across sales floors and national borders and to connect with existing customers. Social media, in particular, has also become an important sales channel in the flooring industry alongside stationary retail.

The focus topic, “Conscious Living” implies the desire for healthy living and working, the commitment to environmentally friendly materials and manufacturing processes with the aim of creating balanced and at the same time trend-conscious living and well-being spaces. “Conscious Living” puts the implementation of innovative solutions and the circular use of materials – keyword circular economy – in the foreground.

With the third focus theme “Colourful Nature”, “Domotex” is presenting nature as a new focal point as a source of inspiration for trendy designs, colour plays and patterns. Nature fascinates not only with its perfect recycling systems and with measured use of resources, but also with its changing and surprising plays of colour, shapes, patterns and trendy designs – which find expression in perfect living and feel-good spaces. These shapes and patterns can be seen on carpets and floors for demanding areas of use, for example, in the contract sector: carpets, wood and composite floors for outdoor living spaces and the merging of indoor and outdoor areas. This means that floor coverings can be seen both as decoration and as a unit with furniture and fabrics, and with their versatility they make a significant contribution to the atmosphere in a room.

As a global marketplace and source of inspiration, “Domotex” 2023 will address the central themes of the carpet and floor coverings industry and provide answers to the questions that are currently on the minds of participants. The next edition will be a hybrid event from 12 to 15 January (Thursday to Sunday) at the Hannover Exhibition Center.

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"FSC Furniture Awards" 2022

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Call for entries

In keeping with the motto “Better living, healthier forests” FSC launches the new edition of its awards looking for the most sustainable furniture manufacturers and retailers throughout Europe.

The “FSC Furniture Awards” is a Europe-wide competition created by the Forest Stewardship Council® to recognize the commitment to FSC and sustainability of companies in the indoor and outdoor European furniture sectors. The awards are open to FSC-certificate holders and promotional license holders in the furniture sector that have their headquarters in one of the following European countries: Austria, Belgium, Bosnia and Herzegovina, Croatia, Czech Republic, Denmark, France, Germany, Italy, Montenegro, Netherlands, North Macedonia, Poland, Portugal, San Marino, Serbia, Slovenia, Spain, Switzerland and the United Kingdom.

Companies that apply will have the chance to win one of the three award categories: Commitment, Brand and Communication (one for manufacturers or one for retailers in each category).

The FSC Commitment awards will be given to certificate/license holders that are committed to FSC preference in procurement and commercial policies. The FSC Brand awards will honour companies that use the FSC trademarks in an extraordinary way. The FSC Communications awards will reward companies that convince the Jury with their promotional and communication activities and campaigns including and featuring FSC.

Additional categories include: Manufacturer of the year for indoor and for outdoor furniture and Retailer of the year.

Alexia Schrott from FSC Italy, responsible for the project, proudly explained the rapid growth of the initiative: “After a successful kickoff of “FSC Furniture Awards” in Italy, in 2021, the initiative was expanded to 11 European countries. Into its 4th edition this year – the contest will be even bigger and open to FSC-certified companies as well as to FSC Trademark Licence holders active in the furniture sector in 20 European countries”.

“There are over 12 000 FSC-certified companies in the furniture sector worldwide. Europe represents almost 50 per cent of the share with most companies located in Poland, Italy, United Kingdom, Netherlands and Germany. Therefore the ,FSC Furniture Awards’ are covering the most important furniture strongholds”, Schrott added.

“The furniture industry carries responsibility in ensuring the legal and sustainable origin of the forest-based materials and products. As the world`s most trusted sustainable forest management solution, FSC is a credible partner of furniture companies to achieve this goal and aims to advance sustainable timber value chains. Together with the furniture industry we aim to deliver sustainable products and solutions for conscious consumers and protect the world’s forests through responsible management”, said Schrott.

The application for the “FSC Furniture Awards” can be submitted until 8th of September, 12 AM CET, through the official website fscfurnitureawards.org. Participation is free of charge.

For applications and further info, please visit the official website or contact your national office.

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