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.