Building on success

Steico may be a relatively new name to many but, in fact, its products have been sold in the UK for over 25 years, originally direct from its mills or via a small number of UK agency customers.

In 2006 the first Steico-owned UK office was set up in Dartford, Kent predominantly to market the Munich-based group's new I-joist products. The fact that it was a very difficult and technically demanding market to enter, coupled with a rapidly deteriorating economy and a 50% downturn in new home building, made the first few years difficult. However, although housing starts still remain at stubbornly low levels Steico has managed to establish itself as one of the front running I-joist suppliers in the UK and the largest producer in Europe.

The cornerstone of the Steico success story in Europe has been based on its innovative range of insulation products manufactured from wood and hemp fibre. In countries such as Germany and France wood fibre products are stocked in most timber and builders merchant outlets and they have become a lifestyle product, with consumers becoming increasingly knowledgeable about the benefits of healthy living, sustainability and summer heat protection.

With the vast majority of new homes in the UK being built by a few, very large national housebuilders, the UK market for such products has lagged behind and consumer knowledge has traditionally been poor. However, with sustained promotion, including at the annual Ecobuild exhibition in London, targeted marketing and media communication, a new website and a series of seminars, Steico has managed to play its part in educating and promoting the significant advantages of using wood fibre to professionals and consumers alike.

Easily sourced
Today, natural wood fibre products are increasingly being specified and can be easily sourced from a growing number of distribution partners. Sales are increasing and customer satisfaction is high. It is clear the UK is becoming a real growth market for sustainable wood fibre-based building products, even during difficult economic times. New initiatives from the government can only help to accelerate the demand from consumers who want to invest in a healthy living environment and save money on energy costs at the same time.

In a further development, in January 2010 Steico completed the purchase of wholesale wood-based panel supplier Puhoswood Ltd - a former supplier to Trus Joist. Puhoswood'smain achievement in the UK was to introduce the radical concept of using chipboard externally as a floor decking, fully exposed to the elements for up to six weeks. The company's Weatherdek product started a revolution 20 years ago and major housebuilders quickly adopted it as an ideal partner for their new I-joists in exposed applications. Today, tongue and grooved chipboard sold either with a peel off or fully sealed surface has a manufacturer's market value in excess of £25m.

In October 2010 the two businesses merged to form the company that exists today - Steico (UK) Ltd. The combined activities allow Steico UK to act as a system provider, offering a complete building solution comprising I-joists, flooring products and insulation materials.

Customer base
The Steico Group had a turnover of €145m in 2011, selling across Europe and increasingly to emerging markets worldwide, while the UK business's contribution to the group's bottom line is in excess of €22m. The UK team sells to major merchant groups such as Travis Perkins and Grafton as well as many leading independent timber merchants, timber engineers and builders merchant outlets. Major DIY chains, timber frame manufacturers, acoustic floor providers and specialist ecological stockists complete the widening customer base.

Operations focus on two market sectors - structural building products and components; and natural wood fibre insulation (both flexible and boards). Products within the former include Steico joist/wall, ultralam LVL, glulam beams, Weatherdek and Weatherprotect, dek chipboard flooring, WISA sprucefloor plywood and the company's cool-roof system.

Wood fibre insulation
The natural wood fibre insulation offered includes thermal boards, special sarking boards, underfloor acoustic underlay boards and external render boards.

More recent developments include the new Steico tradejoist, which brings all the advantages of engineered floor beams to the smaller builder and renovator in a simplified single specification TJ60/220mmdeep I-joist format. It's available off-the-shelf in three cut lengths 3.6m, 4.8m and 6m and can be supplied with all the accessories - decking products, for example - to complete a project.

And service as well as the product range has been improved. For example, a prompt delivery service of mixed items on one trailer combining TG Type P5 chipboard flooring with a full range of MDF and OSB products has been introduced. This service helps customers' cash flow by reducing stock holding.

The story of Steico in the UK has just entered a new phase with a move to larger premises in St Albans, Hertfordshire. For the first time all sales, technical and administration functions will be under one roof, which will enhance both customer service and technical support.