While the five business areas of the Wietersdorfer Group developed positively despite the declining construction industry, GRP pipe systems (GRP = glass fibre reinforced plastics) recorded a significant increase of 19.7% and, with a turnover of €482.8 million, were once again the business area with the highest turnover of the Carinthian Group. €69.8 million was generated by the youngest member of the Wietersdorfer Group – the Latin American O-tek Group, which was acquired in 2023. The internationalisation strategy thus proved to be an excellent step in the sales of the countries: North and South America together accounted for around a quarter of sales in 2023. With sales of €194.92 million, the USA became the market with the highest turnover in 2023, overtaking Austria for the first time. Despite a slight decline in sales of 2.15%, Europe continues to be the continent with the largest share of sales for the Wietersdorfer Group.
Enormous potential in American markets
Despite a challenging financial year due to inflation, the Wietersdorfer Group was able to increase its sales by around 10% in the 2023 financial year compared to 2022 (2022: €974 million; 2023: €1071 million). The decisive driver of this success was the consistently pursued internationalisation strategy. This came to fruition in 2023 in particular with the acquisition of the O-tek Group in Mexico, Colombia and Argentina as well as in the associated market entry in Latin America. North and South America together generated sales of €273.44 million in 2023, which corresponds to a 58% increase in sales in this region. The markets in North and South America have enormous potential. In the coming years, high investments in infrastructure measures, especially in the areas of drinking water supply and sanitation, are expected in these regions. “We invested in North and South America at an early stage in order to exploit the enormous market potential for ourselves and to position the Wietersdorfer Group for the future”, explains Michael Junghans, CEO of the Wietersdorfer Group. “The Wietersdorfer Group now has 89 production and sales locations in 47 countries and has sales activities in over 110 countries”, explained Junghans.
In the middle of the green transformation
The goal of CO2-neutral production is also pursued very resolutely within the group of companies. The importance that the Wietersdorfer Group attributes to the green transformation is reflected not least in 260 relevant initiatives and projects throughout the Group, ranging from the use of renewable energies to raising awareness among its own employees. In order to achieve its goal of CO2 neutrality by 2035, around €31 million was invested in green transformation projects in 2023, including the development of low-CO2 cements, the use of renewable energies, the use of recycled materials and substitute set raw materials and substitute fuels. With the achievement of energy neutrality in Spain, a milestone in the green transformation was implemented in 2023: In addition to the installation of 2000 solar panels covering 51% of the energy needs of the Spanish plant and the use of recycled resins, the remaining CO2 emissions were offset by the reforestation of almost 80 hectares of the Borela forest in Pontevedra in Galicia.
The course of the green transformation will continue in 2024. On the one hand, the Wietersdorfer Group, as part of an Austrian-Slovenian consortium, together with Energie AG Oberösterreich and the ÖKOENERGIE Group, invested in AAE Gamit, a Slovenian specialist for projects in the field of renewable energies. Together, wind power and photovoltaic plants are being built in Slovenia. And in the USA, too, a PV system will cover a third of the energy demand there in the future.
GRP pipe systems continue to generate strong sales
As in previous years, the business areas of the Wietersdorfer Group developed positively in 2023. The largest revenue generator within the group is the GRP pipe systems business area with €482.8 million, which corresponds to 45% of the group’s annual sales. With €267 million, the cement and concrete business areas follow in second place and industrial minerals in third place with €172.9 million. The decline of the PP pipe systems business segment by 9% to a turnover of €102.3 million is due to the beginning of the slump in the construction industry, which will also be felt in the coming financial years. The lime business area accounted for €51.4 million.
In 2023, the USA will be the country with the highest sales for the first time, accounting for 18.2% of the Wietersdorfer Group’s total sales. In Europe, Austria is one of the countries with the highest turnover with 16.6%, followed by Germany with 14.2%. Overall, the Wietersdorfer Group generated 69.9% in Europe, followed by North and South America (25.5%), Africa (2.9%) and Asia & Australia (1.7%).
Investments as a growth engine
The Wietersdorfer Group continues to focus on progress and development. “The investment volume of around €90 million per year in the years 2022 to 2024, of which around €17 million in Austria, forms the growth engine of the group”, explains Hannes Gailer, CFO of the Wietersdorfer Group. “With our targeted investments, we always have our finger on the pulse. We ensure that our sites are always at the cutting edge of safety and technology so that we remain internationally competitive in the long term.”
Challenging years 2024 and 2025
The coming financial year will bring a number of challenges. The decline in the construction industry, especially in Germany and Austria, is clearly notable, but the uncertainty of electricity price developments, the existing shortage of skilled workers as well as the overregulation of European markets and dependence on third countries are also putting pressure on the European economy. “All these topics will be reflected in the sales of European companies in particular, and we do not expect an increase in sales in 2024 either. But we are excellently positioned both through our business areas and through the internationalisation of our business. We are well prepared for the developments”, Michael Junghans stated.
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Publish date : 2024-06-26 03:59:00
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