"German Pellets is asserting its leading position. Through advantageous manufacturing costs in the USA, and by the expansion of our sales in almost all European core-markets, we have succeeded in improving earnings despite what, in part, were difficult market conditions," says Peter H. Leibold, Managing Director of German Pellets GmbH.
The end-customer business was further reinforced in the third quarter by targeted marketing initiatives. At the same time, new medium-term and long-term supply contracts were able to be concluded in the market segment of commercial and municipal facility operators, in addition to numerous new orders being generated with DIY chains and food retail chains in Western Europe. This secures constant turnover for German Pellets that can be built into plans.
As expected, direct sales to end customers developed positively in the 3Q and underwent a noticeable revitalisation. This is primarily due to the purchases for storage and new installations of pellet-heating units that were postponed into the second half-year. With the founding of the joint venture "best:Pellets" together with ZG Raiffeisen Genossenschaft Karlsruhe, concluded in the 4Q, German Pellets will further expand its end-customer business in south-western Germany.
The price advantage of 30% to 35% that wood pellets offer compared to fossil-based energy sources (one that is indeed substantially higher in other European countries) in combination with the security of supply of wood as a renewable resource from non-crisis countries will lead to continued future growth in the market for pellet heating units, pellet-fuelled stoves and also large-scale pellet-burning facilities for commercial and industrial applications.
German Pellets is one of the world's leading producers and distributors of wood pellets.
