PRESS FOLDER 50 YEARS OF EGGER ST. JOHANN JULY 2011 EGGER CELEBRATES ITS 50TH BIRTHDAY The tyrolean wood-based material manufacturer pursued for 50 years its motto “more from wood”. The family company EGGER has developed over the past five decades from a small chipboard plant in St. Johann in the Tyrol into one of the leading woodbased material manufacturers. Fritz Egger sen. set the corner stone in 1961 for an internationally orientated family company, which is regionally rooted. Today, around 6,500 employees are working in 22 countries worldwide for EGGER, head quarters being in St. Johann in Tirol. We value personal relationships and manufacture tangible products. EGGER stands for innovation just as much as for reliability,” said Michael Egger. Since 2009, Group Management consists of Walter Schiegl, head of Production/Technology EGGER Group, Thomas Leissing, head of Finance/Administration EGGER Group and Ulrich Bühler, head of Marketing/Sales EGGER Group. From the beginning, the wood-based material manufacturer regarded its employees as the central factor for the success of the entire company. EGGER therefore, accordingly pays alot of attention to giving employees prospects. EGGER is deemed to be an employer where a multitude of career possibilities are provided. “We from EGGER are the sum of our workers. Many of our managers started as apprentices here”, revealed Walter Schiegl, head of Production/Technology EGGER Group, who he himself also started as an apprentice at EGGER. ENTREPRENEURIAL COURAGE AND VISION In 1961, Fritz Egger Senior decided to invest in a chipboard plant with DM 50,000 in start-up capital. Even back then, he recognised that the raw material wood was too valuable to throw away the waste generated by sawmill production. He put his money on the comparatively new material chipboard. He closed the family’s modern sawmill, which was doing well, in favour of the new venture. Chipboard production commenced in St. Johann in Tirol on 18th December 1961. “Much of what defines EGGER today can be traced back to my father,” said Michael Egger in his commemorative speech. “He exhibited entrepreneurial courage and vision when he founded our company. His values, such as honesty, reliability and diligence shape us to this day. PARTNERSHIPS FOR SUCCESS A key entrepreneurial principle of Fritz Egger Senior also remains very important today: partnerships. In 1961, he decided to close the existing sawmill so that he would not be a competitor to his future suppliers – the sawmill operators. However, this example also illustrates how things change over time. Today EGGER operates its own sawmill, which is not only a key component of the newly founded EGGER PRESS FOLDER 50 YEARS OF EGGER ST. JOHANN JULY 2011 Building Products Division, but also makes the Brilon plant (Germany) a full-scale integrated location, securing the supply of wood for board production there. INTERNATIONAL GROWTH EGGER manufactured its products exclusively in Austria until Fritz Egger Senior suddenly died in an accident. His three sons Michael, Fritz and Edmund carried on his life work and successfully expanded abroad. The first plant outside of Austria was established in 1984 in Hexham (UK). The number of plants has grown to a total of 17 in the meantime. Since May 2011, the latest addition is the Gagarin plant in Russia where EGGER is now represented with two production facilities. FOCUS ON CUSTOMER BENEFITS Wood is a versatile material. No wonder the EGGER motto is “More from Wood”. In the course of its 50-year history, the company has managed to set industry standards time and time again. An example for this is the development of decors and textures that meet current interior design trends. Innovative materials are also part of this trend, for example the EUROLIGHT lightweight board which EGGER has been producing on an industrial scale since 2006 – as the first company to do so – at the headquarters in St. Johann in Tirol. The focus is always on additional benefits for the customer and on costs. One of the latest EGGER innovations pursues this direction as well: the digital solutions, which range from digital decor development to digital printing to the digital presentation of decors using the Virtual Design Studio. This allows the decor development and selection process to be significantly accelerated while reducing costs. CREATING SUSTAINABLE VALUE For EGGER, sustainability is not a trend but the basis of economic success. Not only did the company invest in sustainable production concepts early on, for example in its own biomass plants. It has also applied the concept of sustainability to its business relationships and especially to its employees. “Not only do we have highly modern, state-of-the-art plants, we also have the right employees,” Michael Egger explains. “Without them the best plants would be no good to us. We are more than a family company, we are a team. EGGER is defined by its employees and we want to promote their development in the company. This process starts with our apprentices.” In appreciation for the performance of its employees, EGGER therefore announced the payment of an anniversary bonus to all employees so they can partake in the success of the company. 02 PRESS FOLDER 50 YEARS OF EGGER ST. JOHANN JULY 2011 OUTLOOK Notwithstanding the tremendous challenges faced by the industry, such as the scarcity of the wood supply, volatile markets and a lack of skilled workers, which are demanding more and more flexibility and creativity among all participants, Michael Egger believes the group is well positioned for the future. “We are a highlyrespected family company. We are changing as the world around us also changes. But we remain true to our core values.” ABOUT EGGER The Tyrolean family company with around 6,500 employees and turnover of approximately EUR 1.8 billion has 17 production plants in seven countries across Europe. EGGER supplies its products to the furniture industry, wood distributors, cabinetmakers, flooring installers and carpenter trades as well as wood construction companies, pre-fabricated home manufacturers and DIY markets. 22 sales offices and an international network of distribution partners ensure the worldwide distribution of EGGER products. These are found in many different areas of private and public life: in kitchens, bathrooms, offices, living rooms and bedrooms. Following the guiding principle “More from Wood”, the Tyrolean wood processor offers a comprehensive product range of wood-based materials, timber and laminate flooring under the EGGER umbrella brand. 03 PRESS FOLDER 50 YEARS OF EGGER ST. JOHANN JULY 2011 50 YEARS OF EGGER The tyrolean wood-based material manufacturer pursued for 50 years its motto “more from wood”. Altogether EGGER has approximately 6,500 employees Company founded in St. Johann in Tirol, 1961 The attitude of founder Fritz Egger Senior defined the company over the long term Employees, personal relationships, innovation and reliability are important factors for company success Innovations focus on customer benefits Internationalisation since 1982 17 plants in Europe, Russia and Turkey as well as 22 sales offices worldwide Sustainability for employees and in production Well prepared for the future HISTORY – 1961-2011 1961: Commissioning of the first chipboard plant in Tirol (AT) in December 1966: Takeover of a soft fibreboard plant in Wörgl in the Inntal; today the operation is the largest manufacturer of thin chipboard in the world 1970: Commissioning of the chipboard plant in Unterradlberg (AT) 1978: Commissioning of the Unterradlberg Brewery 1982: Alternation of generations at EGGER with the brothers Edmund, Fritz and Michael Egger 1984: The chipboard plant in Hexham (UK) as the first foreign investment for EGGER 1988: Commissioning of the first continuous chipboard press (“ContiRoll press”) in German-speaking regions in St. Johann in Tirol (AT) 1988: Start of beverage production with “Radlberger Limonaden” (soft drinks) 1988: Production of premium chipboard (melamine faced boards) 1989: Takeover of laminate production in Gifhorn (DE) 1990: Commissioning of the chipboard plant in Brilon (AT) 1992: First wet electrostatic precipitator in the wood-based material industry at the plant in St. Johann in Tirol (AT) 1994: Takeover of the pre-fabricated furniture component plant in Bünde (DE) 1994: Takeover of the chipboard plant in Rion des Landes (FR) 04 PRESS FOLDER 50 YEARS OF EGGER ST. JOHANN JULY 2011 1995: Commissioning of a laminate flooring line in St. Johann in Tirol (AT) 1995: Takeover of the thin MDF plant in Bevern (DE) 1998: Commissioning of the raw chipboard plant in Barony (UK) 1999: Commissioning of EGGER’s "Europe Plant" in Wismar (DE) 1999: Takeover of the lamination plant in Marienmünster (DE) 2000: Commissioning of the OSB plant in Wismar (DE) 2000: Takeover of the chipboard plant in Rambervillers (FR) 2000: New management structure at EGGER: Group Management, national subsidiaries with managers who are responsible for them 2005: Commissioning of the chipboard plant in Shuya (RU) 2006: Production launch of EUROLIGHT® lightweight boards in St. Johann (AT) 1999: Production launch of laminate flooring with direct print technology (DPR) in Brilon (DE) 2008: Start of chipboard production in the Radauti plant (RO) 2008: Commissioning of the first group-owned sawmill in Brilon (DE) 2009: Completion of the energy and environmental project in St. Johann (AT) 2009: Michael Egger resigns as CEO and joins the group’s Advisory Board. New Group Management: Walter Schiegl (Head of Technology/Production EGGER Group), Thomas Leissing (Head of Finance/Administration EGGER Group), Ulrich Bühler (Head of Sales/Marketing EGGER Group) 2010: Commissioning of the digital printing line in Brilon (DE) 2010: Takeover of the edging manufacturer Roma Plastik (TR) 2011: Takeover of the Russian chipboard manufacturer “OOO Gagarinskiy Fanerniy Zavod” in Gagarin (RU) 05