Market and News from around Europe
¡¾2002.05.27¡¿

Parquet Industry Down

Domestic production in the German parquet industry has declined by 7.65%, down to 10.6mil. square metres in 2001. Parquet consumption decreased for the first time in seven years, by 11%, reaching some 22.3mil. square metres. This was a respectable amount compared to the very good year 2000. In 2001, five German parquet manufacturers were forced to register insolvency and a further five had to cease production in Germany.

Domestic Furniture Production

Imports are causing financial difficulties for the Finnish furniture industry. The Finnish Furniture Association has, in fact, calculated that if furniture imports continue at present levels and demand increase by 3% per year, domestic production of furniture will end in Finland by mid 2010. The basic problem in the sector is that it is scattered. The majority of companies are small sized and the industry needs, so-called "engine" companies that can lead marketing and that could lift the output of small shops into volume products.

Success for Sprela.

Sprela AG, the eastern German producer of laminates, had a turnover of EUR 18mn in 2001. The company, with 160 staff, produces laminates for floor and wall coverings, for window sills and for stairs and has recently won a contract from Ikea, which will use Sprela laminates for all of its kitchen lines. Sprela exports 52% of its output to 35 countries.

Leading furniture chain faces economic problems

Inbodan, that runs the Garant and Idemoebler furniture chains in Denmark, faces economic problems following a considerable loss of net capital over the past years. This was caused by the firm investment's in its own stores. The bank has now requested the 115 independent store-owners to pay DKr15mn in fresh capital.

Paloheimo Group Results in 2001.

Finnish Paloheimo Group reports turnover of EUR 147.1mn in year 2001, down compared to EUR 160.1mn in 2000. The operating loss totalled EUR 18.1mn, with Paloheimo Parquets accrued an operating loss of about EUR 5mn. Decision to end parquet production caused extraordinary costs of EUR 13.6mn. Paloheimo Wood's turnover decreased by 9.4% and the unit accrued a loss. Window unit Fenestra's result deteriorated due to 8% drop in demand in Finland. The firm will concentrate on low energy solutions and special windows in its product development.

Stora Plans For Window Market

In the UK, Stora Enso of Finland wants to boost the timber window market. The company, which has joined the British Woodworking Federation as an approved supplier, aims to work with UK window manufacturers in the BWF's Timber Window Accreditation Scheme. The firm, which spends a significant sum to develop durable heartwood products, fingerjointed clear wood products and Thermowood for use in timber windows, hopes that the manufacture of timber windows utilising the new products will start in the UK by the end of 2002.

Conforama Opens New Outlet

The French homeware retailer, Conforama, has inaugurated the fourth outlet in Portugal (where it has had a presence since 1991), creating 60 new jobs. The company, which is owned by the group Pinaut, Printemps and Redoute, invested EUR 11mn in a total sales area of 4,000 square metres plus 6,500 square metres in warehousing. Conforama, which competes against Moviflor in the furniture segment and with Worten in the home appliances sector, and which turned over EUR 30mn in 2001, plans to open three to four new sites

Source: ITTO News.