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16 being focused: being better
Germany
Although the European market grew during fiscal 2001, particleboard capacity in Germany
declined by 7 percent to 9.4 million m3 in 2002 compared to 2000. This reflects the continued
weakness of the domestic construction and furniture industries. Three production plants, comprising
a total capacity of 0.9 million m3 , closed in 2001, while a further five plants continued
operating although insolvent. Overcapacity of around 900,000 m3 continues to hamper the
market. As a result, the European Panel Federation is forecasting a continuing downward trend
for 2002, and does not expect the market to pick up before 2003.
Poland
In 2001, the Polish market grew sustainably by around 6 percent to 2.8 million m3 . While
domestic demand remained generally constant at 2.6 million m3 , exports continued to rise,
particularly to other eastern European markets.
In view of the weak state of the German market, neighboring European markets have
grown in importance for Pfleiderer Wood-Based Panels. Today, the Polish market is experiencing
continued growth and stable prices, with increasing export activities taking place with its
neighbors. The neighboring western European markets offer further growth through increasing
export opportunities. Pfleiderer intends to expand its existing presence on these markets
through its local production sites or by greater export volumes, giving the Company greater
independence from the German economy.
Infrastructure Technology
The main factors affecting market growth for products manufactured by the Infrastructure
Technology Business Center are capital expenditure activity by industry, as well as public
sector spending on measures relating to track systems, power generation, town planning and
telecommunication.
The August floods in the eastern parts of Germany caused damage amounting to several
million euros to the track network of Deutsche Bahn, Germany’s railway operator. Several other
projects were postponed to ensure the financing needed to reconstruct sections of track destroyed.
As a result, the market for concrete sleepers increased slightly in the autumn of 2002.
Apart from that, Deutsche Bahn’s capital expenditure plans to expand the German rail network
are going ahead as scheduled.
Privatization in the power generation and supply sector, particularly in the USA, presents
a growth market for Pfleiderer Masts. In 2001, Pfleiderer’s US-based subsidiary, Newmark Inc.,
experienced greater demand for spun concrete power transmission masts. This trend continued
unchanged in 2002.
The German Renewable Energies Act (EEG), promulgated in 2001, provides a legal basis
for promoting alternative energies. It guarantees minimum payments for production of regenerative
energy. As such, the Act is of considerable importance for Pfleiderer Wind Energy and for
Pfleiderer Wood-Based Panel’s co-generation plants.