The Danish furniture manufacturer Tvilum is experiencing increasing growth on the global market for ready-to-assemble furniture, and as a result Tvilum will be establishing new production facilities in Poland
Tvilum continues to see increased demand for its product line. The Danish manufacturer of ready-to-assemble furniture is making a move to remain competitive while expanding manufacturing capabilities internationally. After a very successful 2015, which included an offensive growth strategy into several emerging markets globally, Tvilum is poised to take advantage of a more regionalized manufacturing approach.
“This establishment will bring us closer to our customers in Europe, where more than 60 % of our products are sold,” says Andrew Long, CEO of Tvilum. “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.”
Mr. Long goes on to say: “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.”
The managing director of Kronospan Poland, Tomasz Janczak, 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.”
An ambitious investment
Today, Tvilum has production at three different production sites in central Jutland where consumption of particle board equals 23 km every day. The customers are large international furniture chains finding their partnership with Tvilum as a supplier of furniture perfect as Tvilum matches the strategy that these chains have chosen. Andrew Long has been CEO of the company since 2014. The company is headquartered in Faarvang, which is also the location of Tvilum’s largest manufacturing facility and distribution center. Since December 2013, Tvilum has been owned by the American private equity firm Revolution Capital Group.
As a global company, Tvilum maintains offices in the USA, Russia, Dubai, South America, Australia and at several European locations. During the second half of 2016, they will add Poland to this list. Mr. Long goes 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, both Tvilum, our customers and suppliers will benefit from our establishment in Poland.”
Proactive approach to market conditions
Tvilum plans to establish approximately 80 jobs in Szczecinek in Western Poland. Andrew Long emphasizes that Tvilum’s Danish production and warehouse facilities still have their full justification. He states: “We have excellent skills among our Danish employees, and they 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.”
For additional information please contact:
Andrew Long, CEO at Tvilum – Phone: +45 87 57 36 00