A Danish panel manufacturer, has experienced a significant drop in profits, with their pre-tax earnings falling from 66.9 million DKK to just 4.8 million DKK. According to CEO Karl Venø, the main factor behind this decline is the increasing competition from Chinese producers. "Prices are being pressured by Chinese manufacturers," he stated, noting that they quickly replicate new products and sell them at lower prices due to much lower labour and operational costs, including electricity.
Photo: Dreamstime.
Fog & Venø's CEO, also speculated that Chinese companies might receive state subsidies, similar to incentives for electric vehicles.
Despite this setback, Venø remains optimistic about the company's future. Fog & Venø has invested in new production equipment, increasing their daily capacity from 2,000 to 15,000 acoustic panels. Venø also hopes that changes under the new US administration, such as potential tax cuts and tariffs on Chinese products, might provide relief to his business.
Fog & Venø, based in Aulum, Denmark, was founded in 2019 by Karl Venø and his long-time partner, Ove Fog Jørgensen. The company specialises in the production of acoustic panels, and its rapid production expansion has helped to boost exports.
The company's financial results for 2023 show a decline in gross profit from 107.2 million DKK in 2022 to 56.6 million DKK, and a fall in net profit from 52.1 million DKK to 3.7 million DKK. Despite the challenges, the company has seen growth in staff numbers, increasing from 72 employees in 2022 to 88 in 2023.
Source: www.wood-supply.dk