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Wood Market News from Europe
¡¾Jan.31, 2002¡¿

On 28 November 2001 the Kunz Group started production of MDF boards at its new plant in Baruth, eastern Germany. Regular operation is to start by early 2002. The plant has an annual capacity of 330,000 sq.m. Beside MDF boards for the furniture industry, it will produce HDF boards for laminated flooring.

IKEA (with 330 employees in Finland and whose turnover in Finland increased to euro 70mil in the financial year 2000-2001) is likely to start construction of a new 260,000 sq.m outlet in Vantaa, Finland, which will be opened in July or August 2003. The project will cost about EUR 42mil.

Ikea is also to invest a total of US$12mn in its three existing stores in Denmark and will also put pressure on competitors by cutting prices by 2.5%. In addition, the company has also invested in a new call centre in order to boost mail order sales, which at present account for five per cent of Ikea's total sales.

Magnum Slovakia, a subsidiary of the Czech parquet producer, is expecting to generate a turnover of Sk 30-40mn after its first year's operation in the country. The firm, who wants to become the leading supplier of wooden flooring in the country, has now a distribution centre in Slovakia as well as production facilities, which have been operative since April.

According to the Association of Finnish Furniture, exports of Finnish furniture amounted euro 193 mil January-September 2001 (volume remaining stable). Exports to the USA increased by as much as 84%. Imports grew by 4.8%., with imports from Estonia, Germany and Italy increasing rapidly.

Four Swedish employers organizations have been merged into the Swedish Timber and Furniture Industry Association, which will have some 700 member companies, representing 25,000 employees.

According to the consulting firm - RegioPlan-, the sales area in the Austrian furniture trade (which is composed of 1,050 outlets) is reported to have increased by 5.6% to 2.46 mil. square metres in 2000, whereas the turnover stagnated at around euro 4.4mn. Expansion is expected in the area of mega outlets, which will rule out some of the small- and medium-sized companies.