As one of the world’s leading manufacturers of profile PVC systems for windows and doors, as well as terrace, facade, and roofing systems made from patented wood and plastic material Twinson, PVC, and aluminum, Belgian Deceuninck operates in over 90 countries and employs more than 3,700 people. In Croatia, headquartered in Dugo Selo, it has been operating since 2004 and currently has production and storage facilities divided across three locations. By investing in a new modern facility with increased capacity, the goal is to integrate all activities, emphasizes Luc Vankemmelbeke, CEO of Deceuninck, a company whose construction products are all durable, easy to maintain, and fully recyclable.
What does the new facility mean for your business in Croatia and neighboring countries?
– This important step emphasizes Deceuninck’s firm belief in the growth potential of the countries in the region. Besides local markets, the factory in Zagreb is well positioned for other important markets. Our well-trained people with extensive experience in processes and products will move to this new facility.
You operate worldwide. How did you perform last year?
– Deceuninck is a truly global player. We are distributed across four main zones: Europe, the United States, Turkey, and developing markets, from Chile through Colombia to India. Why is this important? Namely, we are not the largest player in our market, but we are the most global. This means that the challenges of the continent or country in which we operate are often very different. The geographical spread of the Group is one of its strongest assets. To meet the needs of local markets, we strive to be an agile organization with an efficient and flexible industrial footprint. The availability of resources will remain crucial and requires flexibility to maintain the trust of our customers as their true partner. In 2021, our consolidated sales worldwide significantly increased – by 30.5 percent, reaching a new record of 838.1 million euros.
How do the economic, energy, and war crises in the world affect your business?
– There are two important aspects: availability on one side and price on the other. Regarding availability, we have never run out of resin; only some necessary additives were unavailable or difficult to procure, so we had to work with different formulas and operate differently in the factories. Delivery instability makes planning difficult for us, but pigments for colors have had the most impact. Simply put, we could no longer offer certain colors. Meanwhile, the market has somewhat stabilized, and we can assess it better. Besides availability, the price aspect is currently catastrophic. The price of our resin has more than doubled since 2021, which is significant. After all, it is the same everywhere; everyone is complaining, but in the end, we have only two choices: either stop producing or continue calculating. Compared to the circumstances ten to fifteen years ago, inflation is now present in the system, primarily driven by energy prices, labor, and increased transportation costs. Our generation has actually never experienced inflation; prices have not risen since 2000. And now they are: prices are rising, wages are rising. New construction will become more expensive, which is why I expect solid growth in renovations, partly due to subsidies. I believe the trend of building smaller houses, terraced houses, or houses with three families will continue. But that is also a sustainable evolution.
Since such conditions have also affected the business of your partners worldwide, how do you continue to collaborate?
– Of course, in a positive spirit. We seek long-term and deep partnerships, which in itself has value. We are in this business for the long term, just like our customers. We will have to adapt together to market changes, which will further strengthen our collaboration.
