Panel producers, bracing up for renewed decline

The main players on the thermo-insulating panel market do not
expect a market rebound this year, either, after a decline of above
30% last year, and an upbeat scenario sees flat demand at the 2009
level. Thus, producers’ targets have shifted to boosting exports
and market share. As production capacity is currently 250-260%
oversized against demand, domestic producers have to halt part of
production lines, meaning on the one hand a temporary headcount
reduction and on the other, rising maintenance costs, not covered
by production. The thermo-insulating panel market last year dropped
by around 33%, in line with market estimates, to a volume of around
5.5 million square metres. In terms of value, the decline was even
steeper, by over 40%, so that the value of the market in 2009
revolved around 76m euros. Domestically, producers’ attention
mainly focuses on investment projects with secured funding, as many
projects risk being left unfinished because of tight access to
funding.