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The European Parquet Industries in 2008
In line with the January forecast of the European Federation of the Parquet Industry (FEP) and amplified by the further deteriorating market situation in the fourth quarter, the figures for 2008 - “a challenging year for the European Parquet Sector” - indicate a decline in both parquet production volumes and consumption on the European market – this after years of steady growth that the sector has experienced. The new development did not come unexpectedly, FEP observes, as the industry was confronted with steady business slowdown throughout last year. “The weakening performance of the traditionally largest markets, as a consequence of the global economic crisis, the unprecedented turmoil in the financial sectors and the sharp drop in local construction activities, are undoubtedly crucial factors contributing to the general market decline.” The total production in FEP territory fell by 15,56%, to a volume of 84.725 m2, slightly above the level attained in 2003. Sharp declines witnessed in Sweden (-29,41%), France (-20,00%), Spain (-18,58%), the Nordic cluster (-17,40%) and Germany (-15,05%) had a major impact on the negative development of the entire sector.
As regards the absolute production figures by country, Poland has now clearly taken the lead with an impressive 18,03%, followed by Sweden with 14,16%. Germany completes the top three ranking with 13,03%. In general terms, the 2008 parquet production percentages per type are proportionally practically the same as last year. That is to say: mosaic 3%, multilayer 77% (2007: 76%), lamparquet 2% and solid 18% (2007: 17%). The usage of wood species in 2008 indicates that oak is advancing further to reach 57,6% of the total, tropical wood species are regressing but only slightly compared to last year to 14,7%, ash is losing ground and falling to 7%, whereas beech remains stable at 6,5%.
Consumption in the FEP area also regressed, by 9,51%, to a level of 101.547 m2. Important relapses are witnessed especially in Spain (-21,77%), France (-15,00%), Germany (-13,63%) and the DK/FIN/NO area (-11,82%). Some of the Eastern European countries though (especially Hungary: +20,82%) and Switzerland (+3,49%) succeeded in improving their consumption figures in these difficult times. Europe’s largest parquet market in spite of a slight relapse remains Germany with a consumption percentage of 17,61%. Spain is experiencing a considerable decline to 13,85% but still holding second position, whereas Italy is firmly third improving its market percentage to 12,61%. Based on presently available data, FEP estimates the total market share of parquet slightly above 5%.
Based on reports from member companies, currently available economic indicators and ongoing consultations with the services of the European Commission in Brussels, FEP estimates that 2009 will remain a difficult year for the parquet manufacturers.
FEP/Euparal, June 2009
FEP: CE-marking obligation extended until 2010
With reference to the FEP press release issued on 30th January 2009 and specifically the exact date on which the CE-marking for parquet & wood floorings will become mandatory, this is an excerpt from the official reaction to FEP’s direct inquiry which was received on February 6th from the European Commission. “CE marking of Wood flooring is still possible now on the grounds of EN 14342:2005. As of 1/03/2009, CE marking of Wood flooring will be possible on the grounds of EN 14342:2005+A1:2008. CE marking of Wood flooring will be obligatory as of 1/03/2010.” After conflicting reports which were circulating on this issue the federation states one can now conclude that, based on the above statement, the CE-marking obligation for parquet & wood flooring will officially enter into effect on 1 March 2010. “FEP trusts that this clarification from the European Commission will bring an end to the confusion which during the past weeks has arisen on the subject and is confident that the further extension will provide yet additional time for the members to undertake the necessary steps to reach conformity with EN 14342.”
FEP/Euparal, February 2009
‘FEP: global economic crisis halts growth in parquet sector’
After several years of steady growth, 2008 saw a decline of parquet sales on the European market. FEP, the Brussels based European Federation of the Parquet Industry estimates that based on preliminary information obtained from companies in its member countries, parquet sales in 2008 backslided by close to 7% in comparison with 2007. Indications are that the decrease is proportionate to the relapse witnessed in the flooring market in general. In the same line, a regression in parquet production volumes was also apparent in the global EU area. This new development does not come as a surprise, according to FEP, as the steadily weakening tendency has been observed throughout the course of most of last year, and especially during the last quarter. The slackening performance of the traditionally largest markets (Germany, Spain and France in particular), induced to an important degree by a sharp drop in local construction businesses impacting both the delivery of new dwellings and to a lesser degree the renovation segment, is certainly one of the major factors behind the general market decline, FEP states. Available data presently point in the direction of a total consumption in the EU/EFTA area of around 112 million m2. FEP wishes to stress that complete statistical data will only be available at the federation’s General Assembly next June.
FEP: “The reasons for the unfavourable business climate which left a mark on the EU parquet industry as well can no doubt be attributed to the steadily declining consumer confidence induced by the large scale recession and of late unprecedented turmoil on the financial markets, prompting a climate of uncertainty, distrust, and low level investment readiness. Persistent and fierce pressure from competing low-cost markets, rising energy and supplies costs through most of last year, concerns about raw material availability & pricing, stiffer bank-loan policies as well as the generally overrated Euro further amplified the existing challenges for the industry. FEP hence calls for swift and focused measures at all relevant levels to safeguard the EU parquet industry’s competitiveness, and help insure its sustainable functioning and future stability.”
Meanwhile, the number of officially licensed Real Wood-logo companies at the end of December 2008 has further risen to 53, compared to 42 at the beginning of the year. Regarding the CE-marking for parquet, FEP expects this obligation for parquet and wood flooring products to officially enter into effect on 1 March 2009, after two previous extensions of the co-existence period regarding EN 14342. FEP says (dated 2009-01-30) it trusts that the postponements in question have granted the necessary time for parquet producers to carry through the required steps for reaching conformity with the norm in question.
FEP/Euparal, February 2009
EPLF: decline on global market
The global laminate flooring sales of the EPLF European Producers of Laminate Flooring are likely to be lower than the previous year’s figures. This is revealed by the projection of EPLF’s sales figures for the first three quarters of 2008 In 2008, the 19 producers which belonged to EPLF (a figure which has since risen to 21) sold 469 million m2 of European-made laminate flooring around the world, compared with 507 million m2 in the previous year. This represents a decline of 7.5% in global market sales. Sales in Western Europe amounted to 272 million m2, a fall of 7.8% compared with the previous year (295 million m2). EPLF: “Unsettled by the crisis in the global economy, a decline in building investments and general reluctance to spend, Western Europe is experiencing a tangible fall in sales.” With sales of 85 million m2, compared with 96 million m2 in the previous year, the German market showed the greatest decline, but remains the single most important market in Europe. France performed relatively well in 2008 with 40 million m2 (42 million m2 in the previous year) and retains its second place in the sales ranking. UK sales fell from 39 million m2 in 2007 to 32 million m2 in 2008, placing it third. Sales in the Netherlands remained stable at 22 million m2 (22 million m2 in the previous year), placing it fourth, while Spain dropped to fifth place with 19 million m2 (22 million m2 in the previous year).
The situation on the Eastern European markets is more encouraging, according to EPLF. European laminate flooring manufacturers sold 131 million m2 in Eastern Europe in 2008, a slight increase of 1.5% over the previous year (129 million m2). Poland and Russia notched up sales of 33 million m2 and 27 million m2 respectively, approaching the sales figures of Western European markets. Sales were also strong in Romania and Hungary, two countries offering further growth potential in years to come. The figures for North America and Asia continue to decline owing to the construction of local production plants. In North America sales of European-made laminate flooring fell from 54 million m2 to 38 million m2. The greatest decline was seen on the US market, which shrank from 34 million m2 to 23 million m2. Sales in the Asian region totalled approximately 8 million m2. This low volume is due to the large number of local suppliers, particularly in China. South America remained stable with modest sales of 12 million m2. Mexico and Chile emerged as particularly promising markets. In Africa, South Africa and Egypt are still the only markets of interest.
EPLF/Euparal, January 2009
FEP: ‘Promising forecast surpassed’ in 2007
An analysis of the provisional annual data compiled by FEP, the European Federation of the Parquet Industry, indicates that parquet is further consolidating its growth, notwithstanding the ‘fierce competition’ from a variety of other flooring alternatives. The already positive forecast which the federation traditionally issues at the start of Domotex, was in end effect even outdone. “An encouraging development confirming that the focused efforts of the European Parquet Industry on promoting amongst others the multiple inherent advantages of genuine wood floorings are bearing fruit and are progressively materializing in concrete results,” according to FEP. Total production in 2007 in the FEP area has increased by 2,47%, for the first time surpassing the hurdle of 100 million m2 and peaking at a volume of 100,334 million m2. The overall result, though far from being uniform at European level, was to a large extent influenced by surging volumes in Poland, France and also the Czech Republic.
Though multilayer still represents by far the largest slice of the production cake, mosaic and lamparquet are holding their position with respectively 3% and 2%, whereas solid is strengthening and has extended its market share from 16% to 19%. In absolute production figures, Sweden is still number one with 16,94%, but Poland is practically at the same level with 16,62%. Germany follows in third position with 12,96%. As regards the pro capita production, Sweden is still on top with 1,85 m2/inhabitant, with Austria in second place with 1,02 m2/inhabitant. Total pro capita production in 2007 amounted to 0,25 m2. The usage rate of oak is still increasing and has meanwhile attained the figure of 56,7%. Tropical wood species have also reinforced their market share and are now at 15,4%. With 7,8%, ash has replaced beech in third position.
The solid 4,89% growth of consumption exceeds the forecast at the start of this year as well. In line with the tendency of the past years, the development strongly varies from country to country, with generally a strong performance in most countries and Poland in particular. Somewhat surprising though, says FEP, are sharp declines in Hungary and the Czech Republic. Consumption reached a new high of over 112 million m2 in the FEP member area. The highest consumption per capita can be found in Austria with 0,90 m2, with Sweden (0,78 m2) and Switzerland (0,69 m2) completing the podium. The consumption per inhabitant in FEP territory now amounts to 0.28 m2. Germany remains Europe’s biggest parquet market with a share of 18.5%, followed by Spain, Italy and France. According to the data available, FEP estimates that the market share of parquet remains in the vicinity of 6% in the total European flooring market.
Euparal/EPLF, July 2008
Members’ Conference EPLF
At the EPLF’s Ordinary Members’ Conference, held last month in Austria, the Association’s leadership was unanimously elected to office: Ludger Schindler (MeisterWerke) remains in post as Chairman of the Board and EPLF President, with Martin Prager (Kronotex) re-appointed as his Deputy. Theo Smet (Unilin) was also re-elected as Coordinator of the Technology Committee. There was a change in the Market and Image Committee, which was previously led by Ralf Eisermann. The new Chairman is Volkmar Halbe (Parador), who – like Theo Smet – received a unanimous vote. Both are members of the EPLF Board. The EPLF’s new auditor is Stefan Pletzer (Egger), succeeding Johannes Schulte, who has held the post for many years.
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| The EPLF Board (l. to r.): Martin Prager, Ludger Schindler, Volkmar Halbe (not in picture: Dr. Theo Smet) |
Current sales figures from manufacturers affiliated to the EPLF indicate that it is still too soon to forecast results for 2008. Western European markets are posting a slight upturn, while Eastern European markets continue to grow. Russia and Poland head the rankings, although the new EU member states are also enjoying exceptional growth.
Euparal/EPLF, June 2008
Nybron names new Executive leadership
Nybron Flooring International (NFI), Europe’s market leader in engineered wooden flooring, recently announced the return of two Senior Executives now tasked with management of the company’s three business units Kährs, Bauwerk and Marty. Per Skårner was appointed as new Chief Executive Officer and Stefan Jacobsson as new Executive Chairman. “I am delighted to re-join Nybron - a company whose brands, products, and people I believe in,” said Skårner. “We have lots of work ahead of us but I am confident we can further improve upon a great company.” In March this year, NFI announced that CEO Gérard Legtmann had left the group - “after implementing operational improvements that had already resulted in significant improvements at its three subsidiaries, Kährs, Bauwerk, and Marty” - and that the board of directors, including Jürgen Schaubel, NFI’s CFO, would take over Legtmann’s duties on an interim basis.
Earlier that month, NFI had finalised a debt-for-equity swap with its lenders, significantly reducing Nybron’s debt position and interest costs. As part of the deal, Nybron’s senior lenders have taken a majority stake in the restructured entity, and have substantially reduced their claims. The agreement leaves Nybron’s senior lenders holding EUR 185m of debt, made up of EUR 10m in a new revolving facility, EUR 110m in two senior loan facilities, and EUR 65m in a new second lien facility. In return for accepting this reduction of their claims, the senior lenders have been given 90 percent of the preferred equity in the new entity, and 77 percent of the 3.1m new ordinary shares. Nybron, which was owned by investment firm Vestar Capital, faced a restructuring process due to unfavourable market conditions as well as Vestar’s decision not to commit further funding for the group. End of May, Marty in France filed for ‘Plan de Sauvegarde’ protection.
Euparal/NFI, May 2008
First patent victory of Unilin in China
Unilin recently announced that the SIPO (the Chinese intellectual property office) in Beijing has confirmed the validity of more than 20 patent claims of Unilin’s Chinese patent CN1087056. This patent is one of the two granted patents and 20 patent applications of Unilin in China that protect the glueless technology in flooring panels. An opposition was filed in March 2006 to invalidate this patent by certain Chinese organizations. Flooring Industries, the intellectual property company within the Unilin Group, explains that the decision by the SIPO results in a patent that claims essentially the same as its European and US counterparts in relation to similar patents in those regions. It is presented as further confirmation of the 2007 decision of the US International Trade Commission (ITC). “This is of course a crucial step in Unilin’s Chinese enforcement strategy,” according to Raymond Hegarty, managing director of Flooring Industries. “It is clear that our legal team will take the next steps in stopping the illegal sales in China which are harming the business of our Chinese partners and licensees exporting to China.” The Unilin Group is part of the American company Mohawk Industries.
Euparal/Unilin, May 2008
China’s Wood Flooring Industry 2008-2010
At present, there are about 5,400 wood flooring manufacturers in China and the output of flooring, according to the China National Forest Products Industry Association, will hit 500 million m2 in 2010, with an annual growth rate of around 13%. Zhang Senlin, president of the China National Forest Products Industry Association, predicts that China’s wood flooring industry will prosper for a long time. However, 2008 will be a year of ‘reshuffle’ for the wood flooring industry. Adding value, brand building and innovation will be greatly emphasized. Furthermore, great pressure will face the whole industry as the state intensifies macro control. Other trends he notices are that the supply of raw materials will not fluctuate dramatically and that for large brands, raw materials must be partially self supplied step by step, to maintain a sustainable development. Finally, he observes that big brands will insist on exporting.
According to ‘China Wood Monthly Market Report’ (Feb. 2008) the ‘promising’ Chinese wood flooring industry is in fact experiencing internal and external difficulties and hardships. “On one hand, domestic market is full of miscellaneous brands, homogeneous products and disordered market competition. Low-level marketing resorts - superstar spokesman, advertising on famous TV channels, price war - eventually bring companies into cut-throat competition. On the other hand, domestic wood flooring manufacturers also are facing competition from abroad, international anti-dumping and price hike of oil and timber.” The report quotes an insider who believes that “China’s wood flooring industry is a typical perfectly competitive industry with so many domestic manufacturers and foreign brands; the whole industrial environment is very hard at present for flooring companies.”
Euparal/China Wood International, March 2008
BAU 2009 before Domotex 2009
Between 12 and 17 January 2009 around 2,000 exhibitors from 40 countries will be presenting their products and solutions on 180,000 square metres of exhibition space at BAU 2009 in Munich, Europe’s largest trade fair for architecture, building materials and building systems. The range of products and solutions presented at BAU 2009 covers the whole bandwidth of planning, building and design. The 17 exhibition halls are divided up according to building materials, product and theme areas. The entire spectrum of floorings – from elastic (linoleum, PVC, rubber, cork) and textile to laminates and parquet – will be on show in a compact section in Hall B6 and parts of Hall A6, on around 12,000 square metres of exhibition space. A list of exhibitors is available on the internet at: www.bau-muenchen.com/en/home.
Next year, BAU will for the first time be organized before Domotex in Hannover. Domotex 2009 (January 17 up to 20) starts on the day BAU closes.
Euparal/Bau, March 2008
EPLF presents final 2007 sales figures
The final sales figures of 2007 across the EPLF show that global sales of ‘made in Europe’ laminate floorings are on the increase with slight growth in Western Europe and major gains in Eastern Europe. Worldwide in 2007, the 19 member companies of the EPLF European Producers of Laminate Flooring achieved sales of 507 million m2 of laminate flooring produced in Europe (previous year = 468 million m2). This represents an increase in global sales of 8%. The overall market share held by EPLF member companies in the world market is estimated by the association to be around 55%. In Western Europe, 295 million m2 of laminate flooring (previous year = 285 million m2) were sold, while in Eastern Europe the figure was 129 million m2 (previous year = 88 million m2). This represents growth of 3.5% in Western Europe and 46.6% in Eastern Europe.
The German market remains relatively stable at 96 million m2 (previous year = 98 million m2) and continues to be the largest single European market. France has grown to 42 million m2 (previous year = 36 million m2) and lies in second place in Western European market rankings. The UK recorded a slight reversal with sales of 39 million m2 (previous year = 40 million m2) and takes third place. Spain is making gains and with sales of 22 million m2 (previous year = 18 million m2) has achieved fourth place for the first time. With 22 million m2 (previous year = 21 million m2), the Netherlands are close behind and take fifth place. In North America, the EPLF continues to record a downturn in sales of ‘made in Europe’ laminate flooring. A year-on-year comparison shows a reduction in total sales from 68 million m2 (2006) to 54 million m2 (2007). This corresponds to a drop of 20.6%. “Laminate flooring manufacturers affiliated to the EPLF can therefore be satisfied with the sales trend in 2007, although the North American market continues to recede for many European producers,” the association concludes.
Euparal/EPLF, March 2008
European parquet industry in 2007
The European Federation of the Parquet Industry (FEP) estimates that in accordance with the preliminary information obtained from the federation’s member countries, parquet sales on the European market have seen a further growth of 4% in 2007, in line with the upward tendency witnessed in the past years.
The figures analysed so far seem to indicate that total parquet consumption in the EU and EFTA countries has meanwhile surpassed the hurdle of 120 million m2. According to FEP, a consistent growth was also witnessed on the production side, substantially influenced by a surge in production capacities in Central and Eastern Europe. As regards the specific parquet product ranges, multi-layer is performing strongly and solidifying its ‘overwhelming’ market share. Solid and mosaic are ‘struggling but alive’ and some small but positive indicators give ‘cause for hope in a better future’.
The Brussels based federation remarks that it should be stressed that the general picture as regards consumption (+4%) is somewhat troubled by the lower than expected company results mainly induced by a combination of rising raw material prices and not fully accomplished price increases for parquet products. Looking forward, FEP states: “The promising development in the past year lays a solid basis for optimism regarding the continuation of the positive trend throughout 2008 as well, but such will undoubtedly be dependent on parquet products further strengthening their market share in various domains of a fiercely competitive market, in relation with the health of the economy in general and the evolution of the construction business in particular.” The FEP continues: “The industry’s performance is additionally compromised by ever increasing energy and supplies costs. Furthermore, deep concerns about adequate wood availability and cost increases for raw material wood pose difficult challenges for all market players concerned when it comes to ensuring their future competitiveness and call for measures at all relevant levels to provide the parquet industry with a fair chance of successfully countering the ever bigger threats it is facing.”
Euparal/FEP, February 2008
EPLF sales figures for 2007
The annual results for internal sales figures across the EPLF on the basis of the first three quarters of 2007 reveals that global sales of ‘made in Europe’ laminate floorings are on the increase, with slight growth in Western Europe and major gains in Eastern Europe.
“Laminate flooring manufacturers affiliated to the EPLF can therefore be satisfied with the sales trend in 2007, although the North American market continues to recede for many European producers,” comments the Association in a recent press release. Worldwide in 2007, the 19 member companies of the EPLF achieved sales of 496 million m2 of laminate flooring produced in Europe (2006: 468 million). This represents an increase in global sales of 6%. The overall market share held by EPLF member companies in the world market is estimated by the Association to be around 55%. In Western Europe, 297 million m2 of laminate flooring (2006: 285 million) were sold, while in Eastern Europe the figure was 121 million m2 (2006: 88 million). This represents growth of 4.2% in Western Europe and no less than 37.5% in Eastern Europe. Ahead of the field in Western Europe are Germany, France, UK, Spain and the Netherlands, while their counterparts in Eastern Europe – Poland, Romania and Russia – each recorded sales of between 20 and 30 million m2 of laminate flooring.
The figures indicate that the markets of Western Europe remain the most important sales areas for EPLF member companies. The German market remains stable at 98 million m2 (2006: 98 million) and continues to be the largest single European market. France has grown to 42 million m2 (2006: 36 million) and lies in second place in Western European market rankings. The UK recorded a slight reversal with sales of 38 million m2 (2006: 40 million) and takes third place. Spain is making gains and with sales of 23 million m2 (2006: 18 million) has achieved fourth place for the first time. With 22 million m2 (2006: 21 million), the Netherlands are close behind and take fifth place. Finally, the US market reports a minus figure for 2007 of 36%. This development is related to individual EPLF member companies setting up their own production facilities in the USA and also to the increase in Chinese exports to the USA.
Euparal/EPLF, February 2008
Domotex 2008 consolidates leading position
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| Picture by Deutsche Messe |
The 20th Domotex Hannover set new records, with 1,442 exhibitors (2007: 1,336) - from over 60 different nations - occupying some 97,083 square meters of display space (up from 91,757 square meters in 2007).
The organizers Deutsche Messe AG say that Domotex surpassed all expectations as well as last year’s figures, drawing attendance by more than 47,000 trade visitors (2007: 43,538) from a total of 80 different countries. Stephan Ph. Kühne, Managing Board Member at Deutsche Messe emphasized the highly international character of the event: “Over 78 percent of all exhibitors and around 56 percent of the show’s 47,000 trade visitors came from abroad.” This year’s event also met one of its most important strategic goals by ‘”significantly boosting’” attendance by skilled tradespeople. One in every five visitors was from this sector, with “particularly impressive” growth in attendance by interior furnishers, according to Kühne.
Ludger Schindler, President of the European Association of Laminated Flooring Manufacturers and Sales Director at MeisterWerke Schulte comments: “This year’s event separated parquet and laminate flooring for the first time, enabling each segment to communicate more effectively. The mood at Domotex 2008 has been good. We never had such a wide range of laminate floors on display. Many customers are now quite prepared to pay more - for environmentally friendly products, for example.” And according to Ralph Plessmann, President of the German Parquet Industry Association, “the mood has been upbeat, if not euphoric. Wooden flooring is likely to continue to gain market share.”
The next Domotex Hannover will take place from Saturday, 17 January, through Tuesday, 20 January 2009.
Euparal/Domotex, January 2008
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