Kronospan’s business down 20% in H1

“The reduction in production, the number of finished homes and real estate transactions, as well as harsher lending conditions have led to a significant drop in demand on the domestic market, as well as for export. We felt the regression on the furniture market especially in the first few months of the year. In recent months, the situation has stabilized, and the market trend is rising slightly. However, there was a 20 percent drop in turnover in the first half of the year,” according to a statement for Business Standard by Botond Bandi, General Manager of Kronospan Sebes. Bandi added that furniture producers, the company’s clients, have registered declines between 20-50 percent in half-year turnover.

A market rebound was felt in April-May, with the coming of summer. “Developers, as well as individuals, resumed projects already started, although new investments are blocked. A slight relaxation in consumer lending, but also the intervention of the state, in the form of the “First Home” program, has offered the necessary faith in a market that is presently quite sensitive to any fluctuation,” according to the Kronospan official.

The Austrian group produces PAL and MDF chipboard in the central Romanian town of Sebes, and has completed the construction of an oriented strand board (OSB) and construction raw material factory in Brasov, in which it invested €200 million.

Main Kronospan competitors are the Egger and Holzindustrie Schweighofer groups.