Annual Report 2005: Häfele Group achieves 8% growth

Häfele, the international group that specialises in hardware and electronic locking systems, has reported excellent growth rates. In 2005 the company increased its group turnover by 8 percent and earned 648 million € around the globe with its 30 branches (2004: 600 million €). Parent company Häfele GmbH & Co KG also grew by some 5 percent to 162 million € on the domestic market in Germany (2004: 155 million €).

Whereas architectural and project hardware business helped the company to achieve above-average growth rates in previous years, the growth that was achieved in 2005 mainly came from furniture fittings. Comfort topics such as barrier-free living and new materials such as lightweight panels have raised the profile of hardware technology in the industry. However, the German hardware industry is also confronted with an increasing amount of competition from Eastern Europe and Asia. Increasing raw material prices are also a problem. With four plants in Germany, Häfele of one of the world’s biggest manufacturers of connector technology for the furniture industry and processes large quantities of zinc and steel.
As a global player, the company earned 70% of its 2005 group turnover outside Germany. International project business was one of the most important springboards for good growth rates.
Häfele’s income from the company’s 30 foreign branches and direct exports from the Nagold headquarters has increased by 8.9% to 460 million €.
The company’s Asian branches experienced particularly rapid growth.
Häfele already has its own branches in three of the rapidly developing BRIC countries, Brazil, India and China, and there are plans to establish a branch in Russia in the near future.
Business growth in Western Europe was more modest in 2005, whereas some Easter European countries experienced a similar economic boom to Asia.
In 2005 the Häfele group employed some 3400 staff worldwide. That is an increase of about 300 compared to the previous year. This year the Häfele group has plans for growth of 8%.