Deufol announces start of production in Hungary
Hofheim am Taunus, 03.12.2019
Deufol, global leader in supply chain solutions and industrial packaging, will start production of wooden packaging materials in Debrecen, eastern Hungary, in December 2019.
While the first phase of construction of the new packaging and logistics center in the Debrecen Southern Industrial Park is in full swing, preparations are underway to start production on a temporary site. Business operations in Hungary have been running since May 2019. Deufol launches production in Debrecen, which operates independently from other European production sites of the Deufol Group. This will ensure the future supply of wood packaging for Deufol's customers in Hungary and neighboring countries.
In terms of sustainability and flexibility, Deufol's plan is to acquire for its Debrecen operations raw materials and other goods needed for its activities directly in Hungary and to produce the necessary packaging products locally.
The completion of the first construction phase with 4,000 square meters of hall and office space and 30,000 square meters of open space is planned for the second quarter of 2020.
You may find the Hungarian language version of the press release here for download. (46 KB)
Deufol: Ground-breaking ceremony in logistics park Debrecen
Hofheim am Taunus, 08.10.2019
Within just three months of acquiring a piece of land in the Southern Industrial Park of Debrecen, Eastern Hungary, and only two months after starting preparatory earthworks, Deufol, the global market leader in supply chain solutions and industrial packaging, is already embarking on the next phase of its strategic plan. With the ground-breaking ceremony on October 08, 2019, the project is right on schedule three weeks after the official opening of the neighboring production plant of strategic client KRONES.
Jürgen Hillen, CFO of the Deufol Group and Managing Director of Deufol Hungary, described the symbolic ceremony of the start of construction as a milestone for the development of Deufol’s investment in Debrecen as well as for the Southern Industrial Park and the Debrecen region. Once again, he underlined that Debrecen will not only be the location of the future Deufol logistics park, but that Deufol's activities in the South-East European region will also be managed from there.
In the first construction phase, which begins now, two production halls and warehouses, each with 4,000 square meters of size as well as offices will be built. In addition, a paved open space of almost 30,000 square meters will be created for storage of raw materials and packaged goods. Thus, the planned buildings and superstructures of the first phase cover about 40 percent of the entire site. The completion of this construction phase is planned for the second quarter of 2020.
While the preparatory earthworks have been carried out by OK Bau Kft., the construction work will be continued by Market Épitö Zrt. as general contractor.
There are plans for further halls for the remaining property. The next expansion by 1 to 2 halls and further open space is expected to start in the course of 2020 and targeted to be completed in spring 2021. Deufol is investing well over 20 million euros in these first two phases.
In the meantime, more than a dozen Deufol employees have already been recruited in Debrecen. The number of new jobs is supposed to increase to around 50 by the beginning of 2020, and by the end of the second phase Deufol intends to have created well over 120 new jobs in the region.
Jürgen Hillen emphasized that by opening the logistics hub, Deufol will not only be focusing on one business area, but will also be offering the broad range of Deufol services along the supply chain to every potential customer in the region.
In his speech, mayor Dr. László Papp once again welcomed Deufol as an investor and employer in the city and wished the company every success with their investment.
The symbolic ground-breaking ceremony was held at the end of the event by two managing directors of Deufol Hungary, the mayor and deputy mayor of Debrecen, representatives of the local Economic Development Center (EDC) and Debreceni Vagyonkezó (municipal operator of the Southern Industrial Park), as well as the architects’ office (Tecton) and the participating construction companies (OK Bau and Market Èpitö).
You may find the Hungarian language version of the press release here for download. (482 KB)
Deufol in Hungary
Hofheim am Taunus, 10.09.2019
Deufol in solidarity with the city of Debrecen – Heading for new shores!
After Deufol, the global market leader for industrial packaging, announced early July in Budapest its expansion into Hungary, the company today specified its intentions in more detail in a joint press conference with the city of Debrecen in eastern Hungary.
Deufol already started operations in Debrecen in May 2019 and serves its Hungarian customers from an interim location. By the end of September, Deufol will already have around a dozen employees in Hungary, who are currently supported by employees from other European locations.
Deufol is building a packaging and logistics center in the South Industrial Park and plans to offer a wide range of services, also beyond Hungary's borders. Industrial packaging, logistics services, order picking, warehouse management, transport handling and IT-based solutions along the supply chain of industrial customers are the company's core business.
Construction work in Debrecen started on schedule at the beginning of August with preparatory earthworks. At the beginning of October, the actual construction work for the packaging and logistics center will commence with the ground-breaking ceremony on October 8.
At today’s press conference, CFO Jürgen Hillen explained that the company plans to create at least 120 new jobs in various areas by 2021. In order to build up the necessary qualified personnel and secure them for the long term, Deufol is currently developing training concepts together with local educational institutions, including the University of Debrecen, and is examining, among other things, the possibilities for dual study courses in the fields of logistics and economics. In addition, at the latest with the opening of the Deufol packaging and logistics center, internships and jobs for working students will be offered.
The completion of the first construction phase for the Deufol Group's 91st location is planned for spring 2020, so that the new packaging and logistics center in Debrecen is expected to go into operation in the middle of the year. Due to the high demand for packaging and logistics services, Deufol has also already started planning for the second development phase where two additional halls are expected to be erected on Deufol's 15-hectare site by the beginning of 2021. In addition, Deufol is also currently building up external packaging capacity to perform its activities on the premises of potential customers.
Deufol is closely following the efforts of the city of Debrecen to further improve the infrastructure and, in particular, to enhance road and rail connections for freight traffic.
Deufol SE: Half-year result of 2019
Hofheim am Taunus, August 16, 2019
Deufol defies economic slowdown in industrial manufacturing and engineering
Weak rates of growth in industrial production and a significant slowdown in the German manufacturing and engineering sector have influenced Deufol’s development and performance in 2019. Despite these challenging economic circumstances, Deufol continued focusing on the digitalization and optimization of processes as well as extending its services across all supply chain challenges of our customers. First deliverables resulting from economies of scale and standardization of services are already visible in the Deufol world. Gaining further market shares in a currently shrinking market verifies the accuracy of our strategy. We are confident that Deufol will be able to lift the full potential of this strategy when economic conditions will stabilize and normalize again.
Following this development, these are the results for the first half 2019:
- Sales € 128.2 million (prior year € 131.5 million)
- EBITDA € 13.3 million (prior year € 8.2 million)
- EBIT(A) € 3.1 million (prior year € 3.9 million)
- Net result € 2.0 million (prior year € 1.6 million)
In the first half of 2019, sales were at € 128.2 million, which is 2.5% or € 3.3 million below prior year. Changes in sales are only partly caused by the challenging global economy. The main cause for the overall reduction were one-off transactions done in 2018 in the automated packing sector in Europe outside Germany.
There were no material changes in the scope of consolidation. Due to the US-Dollar appreciation against the Euro of about 6.7%, Deufol’s sales in US-Dollar increased by € 1.4 million. Taking this into account, total sales declined by € 4.7 million in the first six months of 2019.
Significantly increased result for the period
The operative result (EBITA) amounted to € 3.1 million, which is approx. 21% below prior year (€ 3.9 million). Despite challenging economic circumstances, Deufol was able to stabilize its operational profitability. Main reason for the decreasing operational result in 2019 were the one-off transactions already mentioned above, which led to higher margins in 2018.
The result for the period increased to € 2.0 million after € 1.6 million in prior year. After deduction of the earnings of noncontrolling interests, the net profit raised to € 2.0 million for the Shareholders of Deufol SE, after € 1.6 million in prior year’s period. This is an increase of nearly 25% compared to the first six months of 2018. The earnings per share are at € 0.047 for the first six months of 2019 (prior year € 0.035).
Increased financial liabilities due to IFRS 16 (new Leasing Standard)
The operative cash flow of the Deufol-Group amounted in the reporting period to € 9.0 million and was below prior year’s level (€ 12.4 million).
The financial liabilities considerably increased within the first six months 2019 from € 63.8 million to € 90.9 million. This increase is solely due to new accounting rules for leasing (IFRS 16) and corresponds to an equivalent raise in fixed assets (+ € 30.8 million). Due to decreased cash (€ - 3,4 million), the net financial liabilities, defined as a sum of liabilities less financial receivables and cash, increased even stronger, from € 34.1 million on December 31, 2018 to € 64.6 million at the end of the reporting period.
Overview of the first 6 months
Outlook – Achieving original planning will be challenging
In the light of the economic slowdown and shrinking exports in Western and Central Europe, Deufol expects that its sales for 2019 will be slightly below the target corridors of € 270 million and € 290 million as originally published in the financial report for 2018. For the operating result (EBITDA), Deufol now expects to achieve between € 25.5 million and € 27.5 million. Due to new accounting rules for leasing (IFRS 16), the EBITDA for 2019 is not comparable to prior year and to the original planning.
Please find the complete press release as PDF download here.
PRESS RELEASE Deufol SE: Siemens and Deufol - Partner in logistics
Hofheim, August 01th, 2019
Deufol, global market leader for industrial packaging and supplementary services, enters into a new partnership with Siemens Gas & Power and wins the contract for Siemens Logistics Centre in NRW. For thirty years now, there has been a close business relationship between the Deufol location in Mülheim an der Ruhr and Siemens AG in Duisburg and Mülheim.
In the past, Deufol has served Siemens with all types of packaging and related IT solutions for outbound supply chain processes with the support of several direct interfaces to the Siemens IT infrastructure. Now Deufol was able to win the long-term tender for inbound warehouse logistics with the aim of consolidating all Siemens Gas & Power units in the Ruhr area. The benefits that Deufol could present were deep process know-how, founded on many years of partnership, as well as a detailed logistics concept, which illustrates Deufol's high performance and flexibility in the supply chain logistics sector.
"In addition to the very positive sales development associated with this project, we see great potential in the expansion of our business to further expand and refine our service profile in the region in order to further grow our market position in other services along the supply chain," says Daniel Dreiner, Regional Operation Manager Deufol West, explaining this milestone for Deufol.
Until the new service is implemented in February 2020, Siemens and Deufol will jointly work together to optimize processes, redesign infrastructure and consolidate components into one warehouse. The contract between Siemens and Deufol has an initial duration of five years and once again underlines the long-standing partnership between Siemens and Deufol.
Please find the complete press release as pdf download here
PRESS RELEASE Deufol SE: Deufol constructs new packaging and logistics location in Hungary
Hofheim, April 04th, 2019
Deufol, global market leader for industrial packaging and related supply chain services, will build a world class packaging and logistics center in Debrecen, Hungary. The new location will be adjacent to the production facility of a relevant existing customer of Deufol and will offer its services from Debrecen to the Hungarian and Romanian market. Construction planning is already well advanced, and construction is scheduled to start in the summer 2019.
Packaging services and the associated production has already begun in an external location in order to ramp-up as efficient as possible and to start marketing Deufol services.
On an area of approx. 150,000 sqm, Deufol is building a packaging facility, supplementary warehouses as well as a spacious external storage for the efficient logistical handling of packaged goods. In addition, further building extensions are already planned in order to be able to flexibly react to future requirements.
With this investment, Deufol is following a trend that the Municipality of Debrecen has described as a "small industrial revolution". More than 40 well-known German companies have already settled in and around Debrecen, some of which already belong to Deufol's customer base.
Debrecen is developing into one of the leading industrial clusters in Eastern Europe, thanks to its strategic economic policy regulation. It is located in the eastern part of Hungary, some 30 kilometers from the Romanian border, and with just over 200,000 inhabitants it is the country's second largest city. Various customer locations as well as the new Deufol plant will be located in the new Industrial Park South. In future, the city expects annual double-digit economic growth rates and the settlement of further industry.
The project was officially presented to the public in Budapest on July 4th 2019 by the Hungarian Minister of Economics and Foreign Trade, Péter Szijjártó, representatives of the city of Debrecen, as well as Jürgen Hillen and Jürgen Schmid, managing directors of Deufol SE and managing directors of the Hungarian Deufol companies. The Deufol project represents a further milestone in the development of Debrecen as an industrial location and is therefore also supported by the Hungarian Economic Development Agency within the framework of public development programs.
Completion of the 91st Deufol site is scheduled for spring 2020. Deufol is thus expanding its offerings of IT-based industrial services to more European countries and continues to closely follow its customers. By doing so, over 100 new jobs will be created in the region around Debrecen.
With the opening in Debrecen, Deufol's international network continues to grow and is extended to 91 locations in 12 countries on 3 continents. Deufol is thus further expanding its global strength for industrial services along the supply chain of its customers and strengthening its position as market leader in this area. The new plant will be a milestone in the efficient logistical process design for both Deufol and its customers.
Please find the complete press release as pdf download here.