Binderholz the new number one in Europe

“In Germany and Austria, production has always been at a similarly high level over the past few years. In Finland, we are currently increasing capacity at our pine sawmill in Nurmes by adding another shift. Our US sawmills are in regular operation and, thanks to stronger demand, we are also producing more in Riga and in the UK than we did in 2023,” Binder says, explaining why production growth can be achieved this year.

Markets with a slight improvement in 2024

“Last year’s market slump fully set in in April and May. Many companies adjusted their production too late and now, manufacturers’ and customers’ stock levels are low. As a result, the situation is more robust in almost all sales markets and there are also better options in sales. Whether in Japan, the Far East, the MENA countries, Italy or the DACH region – demand and prices have stabilized in general,” Binder analyzes but also notes that “the US continue to perform below expectations.”

Demand from the DIY sector improved noticeably again this year after a weak past year and in Great Britain, the gardening business got off to a good start after the rainy winter and spring. There is also increased need for repairs following the damage caused by the winter storms. Binder: “We have all the necessary products in our portfolio.”

Almost everything is processed in-house

“This year, we will produce more than 4.5 million m³ of lumber. However, only 15% of this volume will be sold on the market. The vast majority is further processed into planed timber, profiled boards, construction slats, glulam, solid wood panels and cross-laminated timber. In Great Britain, over 35,000 m³ of lumber are processed into pallets every month,” Binder tells us.

“After the sharp drop in prices in 2023, the increases we partly achieved for lumber and the end products are still not sufficient – further adjustments are necessary. Fortunately, the order backlog is much higher this year. In general, the economic situation will improve with the upcoming interest rates,” Binder says, looking to the future with optimism. “In our industry, too, a sustainable EBITDA margin of 15% will be necessary in order to cope with the higher financing costs and the strong increase in investment costs compared to the pre-Covid era. The panel and paper industries and the brick industry, too, are setting an example in this respect.”

More dynamic market due to higher Scandinavian lumber prices

“In Sweden and Finland, the reduced availability of log wood and rising prices are helping to ease the situation. Now, the similar prices level there are similar to those in Germany and Austria. This means that Scandinavian lumber prices will inevitably have to be adjusted again. In addition, there are the usual shutdowns in July,” Binder continues.

Binder does not want to make a five-year forecast, but: “The US mills have great potential if and when the market situation improves. The necessary investments have been made or are about to be completed in Live Oak and Enfield.”

Several investments

“Several investments, such as the log yard in Riga, the new planing mills in Fügen and Kösching, the solid wood panel plant in St. Georgen, the ongoing expansion of drying capacities etc., prove that we are doing our homework everywhere,” Binder emphasizes in conclusion.