Sales of German Wood Industry Decline
German sawmills have done slightly better than the average sectors of the timber industry, with a minor decline of 0.6% and ‚¬2 billion turnover.
Also the wood material industry had a sales trend above the average. In the first half, the decline was only 1% with a turnover of ‚¬2.2 billion. This includes the veneer industry, which is currently struggling with sales problems.
Despite the overall negative trend, the parquet producers sales were up 3.1% (‚¬160 million). This increase is primarily due to an upward demand in housing, but also to a higher external demand. However, the domestic production of parquet fell in the first six months of this year.
Manufacturers of prefabricated houses, windows and doors also benefited from the recovery in the housing sector. Sales of the 178 companies rose slightly by 0.7 percent to ‚¬ 2.2 billion.
The demand trend in prefabricated houses remains unbroken. The number of approved manufactured homes stood at plus 8.3 percent, above the average of other construction methods. In contrast, the number of building permits rose in one-and two-family housing construction by only 2.7 percent. A total of 49,780 single- and two-family homes were approved from January to June of the current year, of which 7,813 prefabricated structures. The prefabricated house production is already too busy for the rest of 2013. The market share of manufactured homes placed slightly over the previous year at 15.7%.
The 2% decline in sales of the total timber trade was mainly caused by a collapse in foreign demand. While the decrease in domestic sales was 1%, foreign sales fell by 5%. Therefore, the export share was only 25.1%, well below the previous year (26.1%).
For the second half of 2013, HDH expects a positive development of building permits, an intact domestic market demand and a better economic performance.
Bauwerk Boen Group closes M¶lln plant in Germany
In June 2013 Bauwerk Boen AG announced to integrate their production site in Salzburg with the state-of-the-art facility in Kietaviskes, Lithuania. The Group has now decided to close their production plant in M¶lln (Northern Germany) and relocate production to Lithuania.
Reason for the relocation is to ensure competitiveness. Although demand in Europe has picked up since the 2007€"2008 crises, the parquet flooring market continues to be dominated by cheap imports and excess supply. The European Federation of the Parquet Industry (FEP) recently published the 2012 figures, which indicate that sales in 2012 was down with 5% compared to 2011 and were lower than in 2003 (89.7 million m2).
The M¶lln site serves the German, Austrian, Swiss markets in addition to central and southern European markets. The M¶llnsite will continue to operate as a key sales office and logistical facility. The closure will affect 35 staff. Production will continue in M¶lln until end-February 2014.