Fellow hardwood traders expressed regret and sadness at DLH’s announcement that it is winding down its UK office. But some speculated that it might retain ‘presence’ here to help maintain UK sales.
Danish-based DLH has been undertaking a cost-cutting programme across its international operations over the past year and in mid-December DLH-UK managing director Steve Sullivan wrote to customers telling them that its office in Kent was also closing as part of the restructure.
“In line with many other exotic hardwood traders, DLH has felt the impact of the economic crisis and therefore decided to embark on a new strategy concentrating supply from fewer, but much stronger hubs,” he said. “DLH’s UK activities will be transferred to our trading departments in Denmark for back-to-back offers, as well as to our Antwerp office serving the UK from established European stocks.”
Another international hardwood trader said he “took no pleasure in the demise of a household hardwood name like DLH UK”. “They’ve been a good, friendly competitor,” he said. “But it’s a reflection of tough times in the market, particularly in the African trade.”
A hardwood agent said that long-term structural changes in the sector added to the challenges companies like DLH faced.
“The days of the big hardwood business, shipping over large quantities to big customers are numbered; today it’s about small shipments, flexibility and customers buying little and often,” he said. “Basically it’s far more competitive and you can no longer expect to turnover stock four or five times a year.”
A leading distributor and DLH UK customer, however, thought there was a “role for this kind of international trader supplying the UK market. “It’s easier for companies like ours to buy basic purchasing and top up stock from this kind of business,” he said, adding that his company would now “buy more direct and from other international traders.”
He also said DLH had played a valuable role developing supply of and demand for legal timber.
Given the “continuing significance” of the UK market to DLH, one agent said he’d be “surprised it wasn’t keeping a few people on the ground here”. Another speculated that it might “retain some sort of physical presence, once things have settled down”.
TTJ understands that DLH is winding down the UK office, which employs 11 people, over the next six months.
Mr Sullivan told customers it would discuss new sales arrangements with them this month.
