Hardwood Specialist Danzer Continues to Grow

Danzer opens up further market segments

Danzer opens up further market segments

Dornbirn, Austria, May 2023 – Danzer, the hardwood company specializing in wood from temperate forests of the Northern Hemisphere, has recorded a 23% increase in revenue for the year 2022, reaching 209 million euros compared to 170 million euros in 2021. The business of sawn hardwood products benefited from the sustained strong demand in Europe and North America. However, Danzer's revenue from sawn North American hardwood declined due to a weak global market. Expanding into additional market segments, Danzer has successfully introduced its innovative hardwood products.

Market dynamics provice tailwind
Out of the total revenue of 209 million euros in 2022, 64% came from the sale of sliced products, 23% from sawn products, and the remaining 13% from logs, specialties, and services. The surge in revenue was particularly high, at 40%, for sliced wear layers used in the hardwood flooring industry, as their products experienced strong demand. Danzer's revenue from sawn wood decreased by 3% compared to the previous year due to lockdowns in China that significantly dampened demand in the global market.
In 2022, Danzer delivered products to 71 countries. The top ten countries accounting for 78% of the revenue were, in order: USA, UK, Germany, Canada, Poland, Austria, Slovakia, Mexico, China, and Bulgaria.
The origin of processed wood was distributed as follows: 57% from American wood species, 37% from European wood, and 6% from the rest of the world. Overall, Danzer supplied more than 100 different wood species, with over 80% of the revenue coming from various subspecies of oak, walnut, maple, and ash.

Limited capacities
The impact of the Ukrainian oak suppliers' stoppage did not affect the company significantly, as Danzer had already sourced very little raw material from there in the past to limit risks. The company continued to reliably supply its customers with wood that is verified by FSC®, PEFC®, or similar programs. Nonetheless, the demand for the company's products could not be fully met due to labor shortages in both North America and Europe, with open positions in production remaining unfilled.

Expected consolidation
For 2023, Danzer anticipates weaker demand and is investing in efficiency improvements, particularly focusing on energy conservation and generation measures. A major photovoltaic system is planned for the Melnik, Czech Republic facility, aimed at enhancing energy sustainability. Moreover, Danzer is exploring additional application areas for hardwood, where it can be an attractive substitute for less sustainable materials.

About Danzer
Danzer is a leading company in the hardwood industry, specializing in hardwood species from temperate climate forests. With approximately 1,150 employees, the company serves customers from 18 sales offices worldwide. Founded in 1932, Danzer is currently being led in the third generation as a family-oriented enterprise. Danzer produces lumber, veneers, and finished wood products used in furniture, flooring, automobiles, interior design, and other applications.