8 | News
Weak construction sector weighs on Steico sales and profits
Wood fibre insulation board giant Steico saw a 58% hit on its EBIT in the first half of 2023, it reported in a trading update. The company, which also produces LVL and I-joists, said the period was characterised by reserved behaviour by dealers and a further reduction in inventory levels. This was coupled with
intensified competition in the wood-fibre insulation materials segment as well as the generally weak construction sector. Demand recovered in June, however the pace of growth was lower than original expectations. Steico’s revenues in H1 2023 were down by 20% year- on-year to €190m (H1 2022: €237m). In the case of EBIT a
figure of €16m was recorded, which corresponds to a downturn of 58.3% year-on- year (H1 2022: €38m). Despite the challenging
environment, the company’s management continues to believe that demand will recover in the second half of the year. It expects revenues for the year as a whole to be down by 15% year-on-year. According to Destatis, the German Federal Statistics Office, the number of building permits granted from January to April 2023 in Germany fell by 27.3% compared to the same period of the previous year, while order intake in the main construction sector fell in the first four months of 2023 by 16.9% compared to the period from January to
April 2022. Construction revenue in the first four months of 2023 also decreased by 8.9% compared to the same period of the previous year. This downturn in order intake and construction projects in Germany continues to be driven by high costs for construction materials as well as the tense situation for construction financing. In the timber construction
sector, the carpentry and timber construction industry expects sales growth to be positive in 2023 at 4% as a result of the high order backlog in Germany. Positive signals are also visible with regard to political support: The German Cabinet passed the draft for a timber
Acimall says Italian woodworking technology sector returning to normal trading conditions
Italy’s woodworking technology industry says the market’s return to normal trading conditions continues. The quarterly survey by the Studies office of Acimall, the association of Italian woodworking and furniture technology manufacturers, reaffirmed the situation after of period of exponential growth of orders and turnover.
In the April-June period of this year, orders recorded a 17.8% reduction versus the same period of 2022, resulting from an 18.7% decrease in orders from abroad and a 13.8% decrease in domestic orders.
This result replicates the trend of the previous four months, all negative, and brings the general industry index back to 2019 levels. The wood and furniture
technology industry can rely on an order backlog of 5.2
months (unchanged from the previous quarter), while the price variation from the beginning of the year – settled at 1.2% – is helping cool down the inflation that characterized this industry and the entire economy in the past two years. According to the quality survey, 72% of the interviewed companies expect substantial stability in production, while 9% predict further shrinkage and 19% an increase (the balance is plus 10 points). Employment is increasing
according to 14% of the sample, stationary for 81%, decreasing for 5%. Available stocks are stable according to 34% of the interviewees (versus 62% in the January- March period), increasing for 33% and decreasing for 33%. The forecast reveals a less
positive climate compared to the previous quarter: as
WBPI | August/September 2023 |
www.wbpionline.com
to the foreign markets, 33% expect a stable trend (versus 38% in the previous quarter); it will decrease according to 48% (38% in January-March) and increase according to the remaining 19% (versus 24%). As to the Italian market, it will be stable according to 48% of the interviewees (57% in the first quarter 2023), shrinking for 38% (versus 24%) and expanding for 14% (19% in the previous quarter). “This is an expected scenario,” said Acimall director Dario Corbetta. “But there might be a change of direction with the new Industry 5.0 Transition Plan, e awaited not only by the wood and furniture technology industry, but by all mechanical engineering segments and beyond. The scope of this plan might drive the recovery of the Italian market in the coming months, or from the beginning of 2024.”
construction initiative presented by the Federal Minister for Construction Klara Geywitz in June 2023, ensuring the use of timber as a sustainable raw material in the construction sector. In Germany, revenues in H1 2023 were down by 31.4% to €65.6m compared to the same period of the previous year (€95.7m).
In the UK and Ireland, the third largest market with a 10.5% share, revenues fell to €20m, down by 14.3% on the previous year. The US and Australian markets were more positive. Wood-fibre insulation products make up 63% of Steico’s sales, followed by I-joists at 14.2% and LVL at 11.3%.
World first date palm MDF plant project starts in Egypt
Dieffenbacher is to supply the world’s first plant for the production of MDF from date palm fronds to Egypt. The project involves
collaboration with WESER Industrie- und Anlagentechnik GmbH, an engineering, procurement and construction specialist, as well as the Egyptian EPC contractor MT Mixers for the customer National Service Projects Organization (NSPO). The HDF/MDF facility is being built in the Toshka region and is scheduled to produce its first board in the fall of 2025. Work began on site in April of this year. The plant will cover an area of 400,000m², with Dieffenbacher’s scope of supply comprising an extensive range of equipment and machinery.
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