Austrian wood-based panel manufacturer EGGER is expanding its international edging business through two investments in Europe and Asia, adding manufacturing capacity and distribution operations to its existing network. The acquisitions come as the group continues to spend heavily on its business despite sluggish demand in the furniture and construction industries.<\/p>\n
The latest deals follow another year of substantial capital expenditure at EGGER, which has maintained investment in its factories while looking to expand its position in furniture components. The company is pursuing these investments at a time when many European wood products manufacturers are struggling with weak orders and limited growth.<\/p>\n
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EGGER has acquired a 65% stake in Italian edging specialist Kromaplast and signed an agreement to purchase 30% of Chinese manufacturer Sinowolf. The two transactions, announced in September, will expand the group's edging operations in two important furniture manufacturing markets.<\/p>\n
The Kromaplast acquisition was completed on September 30, 2026. The company, based in Cessalto in northern Italy, specialises in cutting, processing, packaging and distributing edging products.<\/p>\n
Founded in 1990, Kromaplast supplies furniture manufacturers from its local stock, providing edging in the dimensions and quantities required by individual customers. The business employs 21 people and will continue under Managing Director Francesco Lorenzon.<\/p>\n
EGGER already produces edging at its factories in Brilon, Germany, and Gebze, T\u00fcrkiye. The acquisition gives it an established distribution and processing operation in Italy, where furniture manufacturers represent a substantial market for decorative panels and matching edging.<\/p>\n
Rather than adding another manufacturing plant, EGGER is buying a business with existing customer relationships, stockholding facilities and processing services. Kromaplast will continue operating under its current management.<\/p>\n
The purchase price was not disclosed.<\/p>\n
Chinese investment adds major production capacity<\/strong><\/p>\n The agreement with Sinowolf, announced on September 30, gives EGGER a minority interest in one of China's established edging manufacturers.<\/p>\n Founded in 2007, Sinowolf operates factories in Zhaoqing, Guangdong province, and Huzhou, Zhejiang province. Its annual production capacity is reported at approximately 1 billion linear metres of edging.<\/p>\n The company manufactures ABS, PVC, polypropylene and PMMA edging, with a product range that also includes digital printing and laser-edge technologies. It exports to more than 30 countries.<\/p>\n The transaction is expected to close in November 2026, subject to the remaining conditions. Sinowolf will retain its existing management and continue operating under its own brand.<\/p>\n The Chinese investment differs from the Kromaplast acquisition. EGGER is taking a minority position in a large-scale manufacturer rather than acquiring control of a local distribution business.<\/p>\n Sinowolf brings production capacity, technical expertise and an established export network. EGGER, in turn, has a substantial international customer base for decorative panels and furniture components.<\/p>\n With its existing edging plants in Germany and T\u00fcrkiye, the group will have interests in manufacturing and distribution operations across Europe and Asia.<\/p>\n EGGER invested \u20ac450 million in its latest financial year<\/strong><\/p>\n The acquisitions come after another year of heavy investment by the Austrian group.<\/p>\n EGGER spent \u20ac450.1 million on maintenance, modernisation and expansion projects during its 2025\/26 financial year, which ended on April 30, 2026.<\/p>\n Group revenue increased to \u20ac4.26 billion from \u20ac4.13 billion a year earlier. EBITDA reached \u20ac541.8 million, little changed from the previous year's \u20ac541.3 million.<\/p>\n The results came against a difficult market for wood-based panels. Construction activity remained weak in several European countries, while furniture manufacturers continued to face subdued consumer demand and price competition.<\/p>\n EGGER reported an equity ratio of 41.6% at the end of the financial year.<\/p>\n The family-owned group operates 22 production sites worldwide and employs approximately 12,000 people. Its businesses include particleboard, MDF, HDF, decorative panels, OSB, flooring and timber products, as well as edging.<\/p>\n The \u20ac450.1 million investment figure relates to the financial year ended in April and therefore does not include the two transactions announced in September.<\/p>\n EGGER strengthens its position in furniture components<\/strong><\/p>\n The investments also extend EGGER's activities beyond wood-based panel production. The group already manufactures edging in Brilon, Germany, and Gebze, T\u00fcrkiye, supplying products matched to its decorative board ranges.<\/p>\n Kromaplast gives EGGER an established operation in Italy, where local stockholding, cutting services and delivery times are important to furniture manufacturers. Sinowolf brings two production facilities in China, substantial manufacturing capacity and an existing international customer base.<\/p>\n The two businesses will retain their management teams. EGGER has not disclosed the value of either transaction or announced plans for additional production capacity at the acquired operations.<\/p>\n The Kromaplast acquisition is complete, while the Sinowolf investment is expected to close in November 2026.<\/p>","protected":false},"excerpt":{"rendered":" Austrian wood-based panel manufacturer EGGER is expanding its international edging business through two investments in Europe and Asia, adding manufacturing capacity and distribution operations to its existing network. The acquisitions come as the group continues to spend heavily on its … Continue reading