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2016-01-28 00:00:00
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Tvilum, Danish producer of ready-to-assemble furniture, has announced that they will be opening new production facilities in Poland as a result of increasing international demand. The Danish company are hoping to remain competitive whilst also moving into a number of different markets. Tvilum have enjoyed a significant increase in demand in recent years and 2015 only saw this increase further and their strategy has had to adapt accordingly. With these new facilities, Tvilum are hoping that they can be closer to where the demand is.
CEO of Tvilum since 2014, Andrew Long, has said “This establishment will bring us closer to our customers in Europe, where more than 60% of our products are sold. In addition to this, our largest supplier of raw material, Kronospan, is located close to our factory in Poland. These two factors will together reduce our logistics costs considerably and it is important for Tvilum. A large part of the cost of our products is made up of particle board, and part of that price is generated by logistics costs, therefore, we must increase our competitiveness by establishing production closer to the raw materials. At the same time, we will be able to offer FSC-certified products out of Poland, which is also an important competitive resource for us and of high value to our customers.”
Tomasz Janczak, the Managing Director of Kronospan, said “We already have a long-standing and good relationship with Tvilum, whom we know as a strong and significant player in the industry and together with Tvilum, we look very much forward to gearing ourselves for the growth we see in the furniture industry right now. We look forward to welcoming Tvilum to Szczecinek.
At the moment, Tvilum operates in three different sites when it comes to productions which are all based in central Jutland, an area where demand for particle boards is around 23 kilometres every single day. Most of the customers for Tvilum are international furniture chains that find that the Danish company meet their strategic requirements. With its headquarters in Faarvang, also home to Tvilum’s largest manufacturing facility, the company is now owned by Revolution Capital Group, an American private equity firm.
Poland will become yet another nation added to Tvilum’s global prowess with offices already based in the United States, Dubai, South Africa, Australia, Russia as well as many other European countries. Andrew Long went on to say “The establishment in Poland is an ambitious investment but it is necessary for us to meet our goal of regaining our position as the world’s leading manufacturer of ready-to-assemble furniture. Production facilities in Poland will make Tvilum a more sustainable, financially strong and profitable business. Therefore Tvilum, our customers and suppliers will all benefit from our establishment in Poland.”
Around 80 jobs are thought to be created by the new production centre in the west of the country but Andrew Long was quick to give the company’s full support of the current production plant in Denmark. “We have excellent skills among our Danish employees and they will help develop Tvilum every day. Supply, demand and market conditions will dictate the long-term plans for our Danish facilities; however, we fully expect to maintain operations in Denmark in the years to come. We see this expansion as part of being extremely proactive and investing in our future growth.”
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