Van Leeuwen
Van Leeuwen Pipe and Tube Group maintains market position in 2015

Van Leeuwen Pipe and Tube Group maintains market position in 2015

  • Difficult market conditions caused by decreased demand
  • Positive result in spite of decreased prices
  • Tonnage sold stable and market share increased

ZWIJNDRECHT, the Netherlands, 13 April 2016 – Despite difficult market conditions, the Van Leeuwen Pipe and Tube Group maintained its global market position in 2015. Sales and gross margin on sales declined due to the overall decrease in prices. The tonnage sold, however, remained stable and the market share was increased. The company realized a € 4 million positive net result.

Van Leeuwen’s sales amounted to € 623 million, a slight decrease compared to 2014. The operating result (€ 4.5 million) and the net profit (€ 4.0 million) decreased in comparison to 2014. Solvency further improved to 46.0%.

In 2015, market conditions deteriorated globally. Global overcapacity in steel production resulted in a decline in the price of pipe products by an average of 10% to 15%. Demand in many market segments stagnated. In the energy segment, the reduced price of oil caused investments to be postponed and cancelled, and the demand for pipe products to strongly decrease.

Deliveries from stock increased slightly at Van Leeuwen. Distribution from stock is becoming more important for customers who increasingly need to control the cost of their production processes. Van Leeuwen was able to effectively respond to this with its stocks, and storage and treatment facilities.

In 2015, Van Leeuwen supplied various large energy projects in Belgium, the Middle East, Asia, Australia and South America. Many of these projects were initiated in 2014 and involved investments in petrochemical plants. Van Leeuwen primarily focused on new projects in the downstream segment, in which relatively large investments are made. The decrease in demand at projects in the upstream segment in countries such as Canada and Brazil was significant.

Peter Rietberg, Chairman of the Management Board: “Van Leeuwen’s strategy of spreading its operations across regions and markets also proved to be useful in 2015. Despite significant price decreases in almost all sectors, there were regions where we were able to respond to the demand with our global stock-keeping network. Even in times of challenging market conditions we continue to develop initiatives to further expand our network, product portfolio and our services. ”

Photos are available via this link.

Annual report online:

Van Leeuwen Pipe and Tube Group, Manager Corporate Communications, Ingrid den Hartog

e-mail, telephone +31 78 625 23 32, cell phone +31 6 23 14 71 18




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