WoodUpp, the furniture manufacturer based in Ribe, Denmark is pursuing aggressive growth abroad, even as profits decline. Mads Vesterby Hansen, the company's 32-year-old director, has maintained that international expansion is vital, despite earnings dropping significantly from DKK 44 million to DKK 11 million in the 2023/24 financial year.
Photo: WoodUpp.
The company, known for its acoustic panels, has made significant strides in global markets this year, launching operations in six new countries through a mix of acquisitions and establishing new subsidiaries. WoodUpp now has subsidiaries in the Netherlands, the USA, Sweden, France, Norway, Poland, Italy, South Africa, and the UAE (Dubai).
'We aim to set up a local presence when entering a new market,' says Hansen. 'We look for suitable storage facilities to create a warehouse and offer local customer service. Typically, we also hire a country director who receives a minor stake in the subsidiary.'
Production has also expanded internationally, with the company taking over manufacturing facilities in the USA in January. Acoustic panels are now produced in the USA as well as at the Ribe and Skærbæk factories.
The rapid expansion has resulted in a workforce increase, with the number of employees rising from 54 to 88. Personnel costs surged from DKK 14 million to DKK 39.4 million. Despite these rising costs, Hansen is confident the strategy will pay off. 'We are already seeing positive results in the current financial year,' he notes.
Source: www.wood-supply.dk