Atlas summarised its results of 2021
ATLAS Building Together
One of the largest manufacturers of construction materials in Europe. ?? Supporting the builders since 1991.
Pawe? Kisiel, Atlas Group CEO, stressed that it had been a year of challenges and uncertainty for the entire industry. Unstable situation, particularly on the raw materials market, did not have a negative effect on the Group’s revenues, though.?Atlas forecasts that revenues for the end of this year may be 10% higher than last year, with a simultaneous increase in the Polish market share in the market segments and product categories which matter most to Atlas. The company is planning further expansion of production, as well as intensification of presence on the foreign markets.
The construction industry is struggling with many challenges caused above all by the COVID-19 pandemic. It has resulted in unstable raw material prices and a general uncertainty ruling ?the market. The entire building industry is currently operating in conditions of a moderate investment slowdown. Increases of prices of building materials are noticeable in every segment, and the difficult situation on the raw materials market puts a negative effect on the profitability of manufacturing companies.
Domestic market and investment
The high demand for building materials continues on the Polish market. Contractors, with rising product prices in mind, are stockpiling them. Despite the uncertain situation on the raw material market, Atlas has strengthened its market position.
?“The Group’s results are satisfactory, although the increase of raw material prices and troubles with their availability have been highly apparent, contributing to a drop in profitability of the entire production,” says Atlas Group CEO, Pawe? Kisiel.
Consumers unfortunately still have to deal with growing prices of construction chemicals. On the other hand, the change in the market situation (cost pressure from materials, raw materials and labour) is forcing businesses to invest in automation and robotisation.
“In this area we are experiencing problems with global supply chains, for example lack of components for machines. We already know that many of the planned investments will be delayed by as much as a year, for this very reason", adds Pawe? Kisiel
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In spite of problems with getting supplies of the appropriate components, Atlas Group has made several investments aimed at improving production efficiency, and thus market competitiveness. In Skarszewy, the subsidiary Izohan is building the most modern plant of liquid waterproofing materials in Poland, where production is due to begin in the first half of the next year. And, an additional line for producing rolled sheet materials is being installed at the plant in Jas?o. Atlas has also invested in automating and robotising production systems, including increasing the production output of dispersion products by a factor of two and a half. With the rising energy prices in mind, Atlas Group is also carrying out investments aimed at optimising energy use. Within this field, a feasibility study began in the fourth quarter of this year into the use of hydrogen in the gypsum calcination process. Pawe? Kisiel stresses that the company wishes to work not only on increasing efficiency, but also to conduct eco-investments, hence the start of modernisation of the dust removal systems. Sped Partner, a forwarding company of Atlas Group, is also forming a company in Germany, whose fleet will be powered by LPG.
Increase of the international sales dynamic
Over 75% of the Group’s revenues comes from the sale of products on the Polish market, international sales currently account for around 25%. The Group noted a clear increase in revenues in this area compared to the last year, although Atlas stresses that the COVID pandemic and associated restrictions are still being felt. The company continues to sell to all 32 countries where it previously exported its products, and has also entered a new market in Uzbekistan.
?“We’re very happy with the high export sales dynamic, but the situation on foreign markets is still not stable. Until May, some of those markets were closed, such as Mongolia and Lithuania, lockdowns are currently short-term. Sales results are promising, however. On the Romanian market alone we’ve seen revenues increase by over 30%. In Germany we have a large, dynamic rise in revenues of over 40%.”
Atlas Group is planning to expand its export team in the coming months. The company has already begun the process of reconstructing the team in terms of customer service, and will also be seeking new higher-level employees.
In 2022, Atlas is planning further stages of its expansion onto Asian markets. Throughout this time the Group will also be developing its business in Romania, where it will start the implementation phase of its new factory plans next.?