A Conversation with
Bernard Thiers
President, Flooring ROW

How would you prioritize the top three growth opportunities within the
ROW segment?

The number one opportunity, by far, is the growing popularity of Luxury Vinyl Tile (LVT). This is followed by the sheet vinyl business in Russia. And the third opportunity is carpet tile, which is enabling us to expand our position significantly in commercial channels throughout Europe. We’ve made significant manufacturing investments in each of these areas and look forward to seeing these plants reach their full operating potential.

Are the growth dynamics of LVT in Europe similar to
those in North America?

I would describe LVT growth in Europe as an evolution compared to the U.S., where it is more of a revolution. LVT is growing rapidly in Europe, but in a somewhat more controlled manner. Our capabilities are well aligned with that current growth. We have three LVT production lines operating in Belgium, with two already at full capacity. Our newest line can also produce rigid LVT. We are just starting sales of rigid products, which offers us an opportunity to grow aggressively with this new category. Our total LVT capacity makes us the largest vertically integrated player in the European market.

Why are carpet tile and sheet vinyl attractive opportunities?

Our current penetration of the market in Western Europe is largely skewed toward residential channels. With the addition of carpet tile and LVT, we now have a comprehensive portfolio of products that we can offer commercial customers and will push aggressively to grow share in that channel. Our new sheet vinyl expansion is focused on Russia where the market is huge because of its value and affordability to consumers with limited purchasing power. By manufacturing product in market, we can avoid logistics expense, import fees and currency exchange risks — all of which better positions us for profitable growth.

What are your plans for Godfrey Hirst in Australia and New Zealand?

We plan to build on Godfrey Hirst’s leading position in the Oceania soft surface market through two significant opportunities. First, we’re extending our soft surface expertise in North America to improve the efficiency of Godfrey Hirst’s manufacturing operations and to share new products and innovative technologies. And second, we’ll position them to go after the growing hard surface market in Oceania by making our broad portfolio of laminate, LVT and hardwood products available in the market.

Your segment also includes non-flooring products. What are the growth dynamics in the European board and insulation markets?

In the board business, our goal is to increase margins by expanding our offering of decorative wood-based panels and growing share in commercial channels. Insulation is a growing business due to strong interest in increasing the energy efficiency of buildings. We are operating five insulation plants in Western Europe, and we have the capacity to grow our sales in this attractive market.