Dr Keill spoke in front of around 70 journalists from 17 countries at the press day and focused on good news in his 2017 forecast . He said that for the first time in years , he did not expect any ‘ further market stresses below the line ’ and instead predicted an overall stabilisation . This was reflected in the group ’ s forecast total sales of around 620 million euros , just below the previous year ’ s levels . Window and door markets in Germany , Europe and the world were in an essentially unchanged situation in 2016 compared to 2015 , although there was a moderate upward trend in Europe . This applied to Germany , France , Italy , Spain and Poland although ‘ the losers ’ included Great Britain and ‘ probably significantly .’ The research network Euroconstruct expected its 19 countries ’ average housing construction to grow by 2.5 % in 2017 . In the current year , growth was primarily driven by new builds which rose by just over 5.5 %, albeit from a low base . Southern and Eastern Europe were among growth regions . Positive predictions could not hide the fact that the total European market had shrunk by a quarter to 70 million window units since 2007 ( then 93 million window units ). There was also pressure from what Dr Keill described as the ‘ Eastern European export offensive ’ which was benefiting from the ongoing trend towards PVCu windows and now included Romania as well as Poland . Individual producers in Romania exported up to 90 % of their entire production . Ireland , Hungary , Portugal and Spain were in the lead regarding European housebuilding . The midfield

included Germany and Great Britain although the Brexit effects in the United Kingdom had not yet been ‘ priced in .’ Italy and Belgium brought up the rear . On Germany , Dr Keill said : “ Construction here is not just new builds . The renovation sector which is responsible for about 70 % of the total market is stagnating , or in some cases , even falling . New apartment figures of 350,000 to 400,000 a year are currently unrealistic .” Roto ’ s chief financial officer Michael Stangier estimated total group sales as at 30th September 2016 to be just over 480 million euros – which was described as a relative success in the light of ‘ some spectacular market weaknesses .’ The Window and Door Technology division recorded a slight rise in sales revenue , including sales from this year ’ s Deventer and Peder Nielsen acquisitions . Roto ’ s Roof and Solar Technology division reported a slight , single digit drop in overall sales . The Roto positions remained stable in generally falling markets – also

based on the successful introduction of the generation ‘ Q ’ roof window . However , Michael Stangier described the 2016 earnings situation as ‘ clearly unsatisfactory .’ He blamed market-related stresses , higher raw material prices of up to 40 % ( zinc , aluminium ) and negative currency shifts .

RUSSIAN SLUMP Dr Keill referred to a ‘ continued slump ’ in window and door markets in Russia and sharp losses in China . The Russian slump , where the market had practically halved in just 20 months , was ‘ particularly painful ’ and was based primarily on political crises ( Ukraine and Syria ), economic sanctions and low oil prices . There had also been a 30 % fall in government spending on construction in both 2015 and 2016 . In China , the entire building trade was essentially stagnating and housebuilding , which accounts for two thirds of overall building construction , looked to be weakening . South America , meanwhile , ranged from moderate

market growth ( Chile ) to heavy falls ( Argentina , Brazil ). By far the best market prospects came from the USA where the modernisation and repair sector were expanding rapidly . Positive forecasts were underpinned by population growth and the ageing housing stock . Dr Keill said also of importance were general but little discussed sector problems like the continuing consolidation process which was leading to falling company numbers . Markets were constantly changing – there was a German trend towards higher-quality window and door fittings while in France the aluminium segment was ‘ surprisingly ’ gaining traction .

PLEASING ACQUISITIONS In the evening before the trade press day , journalists visited one of Roto ’ s latest acquisitions , Deventer . Deventer Group , represented by companies in Germany , the Netherlands , Poland and Russia , is a specialist in weatherseals . The Deventer Berlin-Spandau sealing profile production area is home to over 70 employees . Its 10,000-square metre premises house a manufacturing area and warehouse , and production capacity amounts to just under 240,000 metres per day . Another recent Roto acquisition is Danish hardware business Peder Nielsen . This enabled Roto to close an important gap in outward opening window hardware systems , especially in Scandinavia and Great Britain . It means Roto as sole central European provider can now deliver a complete window and door technology portfolio to Scandinavia . Expansion of the door business came about largely when Roto acquired German company Gluske-

BKV in 2008 . Roto ’ s door portfolio now includes the entire range from multi-point locking systems to door hinges and threshold solutions . Roto Group , which has around 4,500 employees , was ‘ extremely pleased ’ with the latest acquisitions and plans another at the start of 2017 .

AMBITIOUS GROWTH Roto has had a pioneering tradition ever since 1935 when company founder Wilhelm Frank heralded a new window era . Nothing has changed today and chairman and chief executive Dr Eckhard Keill still has ambitious objectives , with a customer-focussed approach .