In 2019 OrganoWood signed an agreement with a German distributor. It was the result of a solid and persistent work together with Business Sweden.
“Business Sweden provided us with a thorough market check, mapping of the standards and the certifications we would need to comply with on the German market, and finally supported us in finding the best sales and distribution partner in the country", says Jens Hamlin, CEO at OrganoWood.
From market check to partner search
In 2019, Business Sweden also helped OrganoWood with a market check in France, Canada, and Japan. The purpose was to provide the company with an overview of trends and market preconditions, to serve as input for the strategic decision to enter one or more markets. Furthermore, Business Sweden conducted a partner search in France and Canada. The scope was to define a suitable distributor profile through analysis of the distribution value chain and competitor landscape. Business Sweden also identified top partner candidates, initiated contacts, and arranged meetings with potential partners.
“We are very happy with the outcome. Three potential partner companies are now up for collaboration in both France and Canada. In France, Cecilia Hedlund from the Business Sweden office in Paris even participated in a meeting with a French distributor. It was invaluable, not only for Cecilia's business expertise and language skills, but for her knowledge of the culture. To summarise: Business Sweden was with us all the way”, says Jens Hamlin.
Environmentally friendly technology
OrganoWood bases its activities on its core patented technology where silicon substances are bound to the fibres in the wood via organic catalysis. Based on this environmentally friendly technology the treated wood material is given both an effective flame and rot protection.Business Sweden provided us with a thorough market check, mapping of the standards and the certifications we would need to comply with on the German market, and finally supported us in finding the best sales and distribution partner in the country
“Our motto is that an environmental company such as ours should protect the wood and not kill any organisms. You could say that we hide the food from the wood destroying organisms so that they go elsewhere”, says Jens Hamlin.
Even though there is a general trend especially in Europe that environmental issues in construction have gained attention and become more attractive, OrganoWood’s lessons learned when it comes to exports is that it takes time to enter a new market. In addition, the construction industry is very conservative.
“We do not work with fast-moving consumer goods. Most people only buy one deck twice in their lives. However, as we already have entered a market, such as Germany – a country with a great focus on the environment looking for alternatives to pressure-impregnated wood, the demand for our products is increasing. In 2020 we delivered 300 cubic metres of wood and in 2021 1 000 cubic metres. It has become clear that we stand for something new – a change of technology”, says Henrik Edlund, Export Sales Manager at OrganoWood.
There is also an environmental awakening in Japan according to Henrik Edlund. The country imports to a large extent tropical wood, with long export routes and where traceability is low (may for example involve rainforest devastation). Also there is a great demand for wood in Japan, as it is lighter than steel and concrete and has intrinsic flexibility, making it more resilient to earthquake loading. Japan may therefore be OrganoWood’s next target market.
“We hope that OrganoWood consider us their growth partner and that we will get the chance to continue to support them in entering more markets, says Cecilia Hedlund, Consultant at Business Sweden in Paris.
OrganoWood AB sells and markets environmentally friendly wood products and is the sole global supplier of environmentally classified pressure impregnation for cladding, decking timber and construction timber. The surface treatments can be used on all types of wood.
The company is currently active on the Swedish, Norwegian, Finish, Danish and German markets, whereof Sweden represents 85 % of turnover. The objective is to increase export to existing and new markets, as well as to introduce new products.