"The way that our employees have tackled the strong demand has been crucial for us being able to deliver as well as we have done," says Morten Kristiansen, CEO of Moelven Industrier ASA.
Moelven had a turnover of just over NOK 14.8 billion in 2021. This is an increase of NOK 3.2 billion compared to 2020. The operating profit was NOK 3 billion, compared with NOK 662 million in 2020. This is Moelven's strongest annual result ever.
"The company's earnings over the past few years have created an opportunity for further growth and development. The decision has been taken to complete major development projects such as Moelven Edanesågen AB and Moelven Valåsen AB and more are under consideration. This will strengthen the Group's international competitiveness and contribute to increased use of wood nationally and internationally," says Kristiansen.
"The global market could not get enough of wood products in 2021, and this has affected demand. I am proud that we have managed to maintain our activity level and ability to deliver both in Norway and internationally, despite low stockpiles and considerable uncertainty related to the corona situation. The pandemic has also made it challenging to get the goods into the market, from a purely logistics standpoint. This would not have been possible without our people who have shown impressive adaptability and flexibility," says Kristiansen.
Prices in the international market fell somewhat through the fourth quarter of 2021, but stabilised towards the end of the quarter. Activity in the building products trade in Scandinavia was somewhat lower in the fourth quarter than in the corresponding period in 2020. There is a stable market situation in the glulam, building modules and system interiors businesses.
The CEO believes that the pandemic will also create great tensions in the future.
"Demand for wood products remains high internationally, but the domestic market will be affected by the infection control measures and travel restrictions in force. The increased infection rate leads to an increase in sickness absence, and it becomes more challenging to maintain planned production rates and activity on construction sites. In particular, this will apply to businesses located in the Østlandet region of Norway if the government's heralded introduction of prohibition against the hiring of manpower is implemented. Abnormally high electricity prices will also affect the Group's cost level," says Kristiansen.
A unified Group
2021 was not only a financially strong year for Moelven. The Group also managed to significantly lower its injury statistics.
“We are well on our way to achieving the goal that there will be no work-related injuries in Moelven. In 2021, we also carried out our cultural development programme "Active employee participation" and "Active leadership" together with our 3,300 employees and managers. In addition, we have launched our new brand. Overall, this means that we will leave 2021 as a stronger and more unified Group," says Kristiansen.
Read the quarterly report for Q4 2021 here (PDF).
The future is built with wood
Sustainability is crucial to our competitiveness. Therefore, we have set ambitious and concrete sustainability goals within four main areas. For one thing we can state for years to come: We will contribute to a sustainable future in wood.Read more about our sustainability goals