By Liz White, UT staff
Greiner Group, which operates the Eurofoam joint venture in flexible foam with Recticel, achieved an 8.4 percent increase in turnover to reach Euro 819 million in 2005, despite difficult market conditions.
This "purely organic growth," was achieved, the group said, in spite of high raw materials and energy prices and weak economic conditions in important sales countries. Greiner attributes its success to two main factors: "consistent pursuit of the diversification strategy," and the organisation's ability to innovate.
The US Gulf Coast hurricanes added to shortages in the raw materials market, which inevitably led to higher prices, Greiner said. The situation was "aggravated by rising demand for raw materials worldwide, the economic boom in China and market speculation," said the group's 2005 results statement. High raw materials prices were accompanied by high energy costs, Greiner stressed.
Eurofoam forms 20.7 percent of Greiner Group's Euro 819 million turnover, with Greiner Purtec, the group's foam product making unit, adding 4.1 percent and its foam recycling venture Greiner Perfoam adding 7.7 percent.
The group's biggest units are Greiner Packaging with 28.7 percent of turnover and its pharma-diagnostic technology business Greiner Bio-One at 24.8 percent. Greiner's extrusion equipment business adds 12.9 percent, and a small rubber operation, Greiner Rubbertec, forms 1.1 percent of sales.
Nearly 40 percent of Greiner's production is in Austria, and 18.2 percent in Germany, with other EU countries accounting for 25.9 percent. Greiner has 106 locations in 26 countries and added four new locations during the year.
For 2006, Greiner aims for growth of about 10 percent across the board.
The Eurofoam JV with Belgian group Recticel was set up in 1992, to serves the markets in eastern Europe, as well as Germany and Austria. Eurofoam now supplies customers in more than thirteen central European countries, through a network of over 40 production and processing plants.
The business makes and processes flexible polyurethane foam for upholstered furniture and mattresses, and for use in textiles, shoes and automotive parts. The core business "includes tailor-made solutions for special packaging and soundproofing," according to the company, which also operates a major packaging business.
PURtec has two units. One is seating, where it specialises in soft furnishings for commercial aircraft interiors and the other is boilers, where it supplies turnkey insulation systems for water storage vessels. Currently, Greiner PURtec operates facilities in Austria, the Czech Republic, Germany and the US.
Pic: Eurofoam's deflammo flexible foam is classified under Austrian standard A3800 as barely flammable (B1) and low-smoke (Q1). "