Aluminium Systems Segment
Production, sales and major assets of the Segment
The Aluminium Systems Segment, whose leading company is Aluprof S.A., deals with designing, manufacturing and selling aluminium systems for the construction industry, including: window and door, façade, and internal partition systems, e.g. for shaping of office space, sun protection systems (roller blinds, or external blinds also known as screens), and also roll-up garage and industrial gates.
The product offer is complemented with fire-safety solutions for public buildings, based on the fire-rated glass manufactured by the Segment.
The Segment focuses on developing environmentally-friendly and sustainable building solutions, with the use of non-toxic preparations and chromium-less aluminium treatment. Its offer includes a number of modern products which, thanks to their high thermal insulation properties and innovative technical solutions, are used in public buildings which are awarded BREEAM or LEED certificates.
The Segment also holds Environmental Declaration Certificates for window and door systems as well as façade systems.
The EPD (Environmental Product Declaration) is an independent certificate recognised around the world that testifies to a product’s impact on the environment.
It is awarded on the basis of Life Cycle Assessment, which should reduce the negative environmental impact of the product.
The production infrastructure consists of five plants with the total storage area exceeding 250,000 m2, equipped with modern and fully automated machines. They are located in Bielsko-Biała, Opole, Goleszów, Ogrodzona, and Złotów. The last of the plants is now being extended to become a new distribution centre for the customers in northern Poland.
The Segment avails of powder paint shops with highly efficient, fully automated lines equipped with quick-change paint booths, as well as vertical paint shops. The entire painting process is computer-controlled, which guarantees stability and repeatability of coating parameters. The effective supervision of coating parameters has been confirmed with certificates by Qualicoat and Seaside organisations, as well as many powder coatings suppliers.
The Segment products are sold both on the Polish market and on foreign markets, among which the most important ones are the Czech Republic, the UK, Germany, Belgium, Romania, Ukraine, Slovakia, Hungary, and to a lesser extent also the USA, Arab countries and Vietnam.
Products distribution is made through Aluminium Systems Segment’s representation and sales offices as well as distribution centres located in Germany (Aluprof Deutschland GmbH), the United Kingdom (Aluprof UK Ltd.), Belgium (Aluprof Belgium), the Netherlands (Aluprof Netherlands B.V), the Czech Republic (Aluprof System Czech s.r.o.), Romania (Aluprof System Romania s.r.l.), Hungary (Aluprof Hungary Ltd.), Ukraine (Aluprof System Ukraina Sp. z o.o.) and the United States (Aluprof System USA Inc).
The Segment has approximately 1,900 active customers in Poland and abroad. One of the groups of customers are companies dealing with the manufacturing and fitting of windows, doors and façades for the commercial market, non-residential public facilities, as well as residential buildings, without an extensive sales network.
Another group is made up of companies manufacturing windows, doors, as well as sun protection systems, offering finished products for the residential customer market, single-family homes and residences, with sales network in Poland and abroad.
A separate group of customers, characterised by considerable fragmentation, are companies engaged exclusively in manufacturing and fitting of sun protection systems, mainly for the individual customer market.
In 2023, a major customer of the ASS was Eko-Okna S.A. (a company that is not related by persons or capital with the Issuer and is not a subsidiary of the Capital Group), responsible for approximately 11.5% of the Segment consolidates sales (ca. 5% of consolidated revenue of the Capital Group).
In 2023 no other customer of the Segment contributed to more than 10% consolidated sales of the Segment, and there is no other dependence on one or more customers.
Both the Polish and European market of aluminium systems is characterised by relatively high competition, resulting mainly from a large number of companies operating thereon.
In Europe the market is dispersed, with no dominating share of either of the companies. The main competitors of the Segment are established global brands, such as Schuco, Wicona, Reynaers, Aliplast, Kawneer, Sapa, or Ponzio, and in the area of aluminium roller shutters manufacturing: Alutech, Alukon, BeClever, BuildingShutter, Heroal, Hosten, and Portos.
In Poland, the ASS holds the leader’s position with market share ranging from 40% to 60% depending on the product group.
Aluminium systems are manufactured from aluminium profiles, which are mainly supplied by the Extruded Products Segment (roughly 85% of supplies).
The remaining part of profiles is imported from proven external suppliers, chiefly European ones. A major material used in the process of aluminium systems production is sheet aluminium purchased by the Segment in 95% from foreign suppliers located mainly in Europe and the Middle and Far East.
Aluminium systems also include additional components, such as hardware and accessories, some of which are produced within the Segment and approximately 75% of which are sourced from external suppliers in Poland, Europe and Far East.
In 2023, with the exception of the aforementioned Extruded Products Segment, the share of none of the suppliers of raw materials, semi-finished products and materials exceeded 10% of the Segment’s consolidated sales revenue, and there is no dependence on one or more suppliers.
Year 2023 was a difficult one for the manufacturers and suppliers of aluminium systems in Poland and Europe.
The economic downturn, which began in the second half of 2022, was still evident, as well as a decline in demand mainly due to general uncertainty brought about Russian aggression against Ukraine, increased inflation and consequently higher interest rates, translating into finance costs and the value of loans granted.
The aforementioned factors had a negative impact on the construction industry. They have slowed down both the activity in the secondary market related to renovation and replacement of older solutions, which is more important for Western European markets, as well as the implementation of new projects driving the industry in Central and Eastern European markets.
This has translated negatively into the production and sales of joinery (windows, doors, façades) and indirectly into aluminium systems for their production. It is estimated that in 2023 in Europe, in volume terms, 12-14% fewer windows were produced y/y, and the value of all joinery production decreased by 5-7% y/y. In Poland, it is estimated that in 2023 there were produced approximately 15% less windows y/y.
In 2023, the Segment focused mainly on expanding its own portfolio, introducing new solutions and attracting new business partners. A number of sales-supporting and marketing initiatives were also undertaken, which included participation in fairs and exhibitions in Morocco, Turkey, or Vietnam, among others. Information about new products and solutions are available online at: https://aluprof.com/firma/aktualnosci and https://aluprof.com/blog.
According to the Segment, the situation in the construction business will gradually improve in the coming years, which should have a positive impact on the demand for the Segment products, whereas an important factor stimulating that market may be the planned programs for thermal modernization of buildings as part of their renovation.
The development of the façade market will depend on the situation in the sector of new commercial buildings, due to the fact that the renovation market is still of little importance to it. Currently, about 95% of façades in Poland are assembled in new buildings, but the importance of the renovation market is forecast to grow in 3-5 years, while the rate of the growth will depend, among other things, on the attractiveness of programs supporting thermal performance improvement in commercial buildings.
Despite the difficult economic environment, the Segment’s consolidated revenue reached PLN 2,372 million in 2023 and was lower by roughly 3% y/y.
The share of the Segment foreign sales in 2023 remained at 40%, similarly as in 2022.
The Aluminium Systems Segment attaches great importance to continuous development and maintenance of the highest level of its products and services, as well as development of revolutionary new products including those made to individual orders.
Ever-increasing building standards in terms of energy efficiency, low-emission properties, circularity of solutions and protection of people from the effects of fire and smoke, count among the most important expectations faced by modern architecture and these guide the Segment in its research and development work.
The drive to reduce the costs of buildings maintenance makes improving their energy efficiency particularly important. One of the best ways to achieve it is to design modern joinery solutions that improve the thermal efficiency of buildings.
Further, the safety of public buildings occupants and property makes the development of fire protection systems a key factor. The systems have been constantly modernised and upgraded with a focus on improving fire resistance, extending structural strength, and streamlining engineering process to reduce labour intensity of production.
An important element affecting the fire safety of buildings are aluminium and glass partitions. They are the ones that, in many cases, must meet the requirements of fire safety regulations regarding the prevention of the spread of fire and enabling safe evacuation of building occupants.
Meeting the requirements often involves the use of fire-resistant glass. Therefore, the Segment has expanded its offer and introduced Glassprof brand fire-rated glass in its broad range fire-proof partitions and doors.
Very important in the achievement of the goal has been the Segment’s Research and Innovation Centre located in Ogrodzona (CBiI). The Centre operates based on the implemented ISO 17025 management system as well as a certificate issued by the Polish Centre for Accreditation, which confirms the high level of independence, impartiality and competence of personnel. The CBiI possesses, among other things, the largest test chamber in Central and Eastern Europe for testing the physical properties of curtain walls, as well as carrying tests in compliance with the American ASTM and AAMA standards, including seismic and thermal tests. The CBiI also performs mechanical tests of windows and doors as well as fire protection systems. The test furnace is capable of accommodating structures measuring 4.5 x 5 m.
The main development projects in 2023 included:
- offer extension for the new MB-MT50 façade system designed by Aluprof engineers based on Cradle to Cradle certification guidelines and meeting the requirements of sustainable development and circular economy idea, which at the same time enables the assemblers to significantly reduce the costs of installation;
- production implementation of another variant of the Opensky 120 garden pergola system, together with the Openslide all-glass pergola walls;
- production implementation of an innovative system in the shielding segment – SKYTWIN, which is a combined roller shutter and sun screen;
- offer extension for the new type of external MB-86N Pivot Door with an offset pivot, which is very popular among architects;
- modernisation and development work for a series of window-and-door systems, to improve their utility characteristics, which includes significant thermal performance and aesthetics;
- development work on Skyline Type R sliding door;
- production implementation of new curtain wall systems, intended, for example, for prestigious buildings in the Silesian region, the UK and the USA;
- construction works for the integration of façade and window systems with sun protection systems, roller-shutter systems and screens;
- construction and research work on safety-enhancing solutions for bullet-proof, explosion-proof and burglar-proof window and door systems and façade systems.
The main investment projects of the Segment carried out in 2023 include:
- extension of aluminium systems production plant in Złotów, which will finally enable increase of the Segment production capacity in the area of architectural systems by 20-25%;
- purchase of two coating lines for the plant in Bielsko-Biała, enabling production capacity extension for about 30%;
- machinery facilities extension in Opole, which contribute to the Segment production capacity increase by 15-20% depending on the assortment.