Oschadbank customer success stories: how Ukrainian furniture from K'Len is conquering Europe

Ukrainian wooden furniture, recognized in Europe, is manufactured by the K'Len company from the Zakarpattia region. The business has been operating on the market for more than twenty-five years, having gone from a small carpentry workshop to modern automated production. Today, the company's furniture is purchased in Germany, Poland, Sweden, Denmark, Slovakia, Belgium, Austria, Romania, Slovenia, Bulgaria, the United Kingdom, and other European countries.

Oschadbank has become a reliable partner on the company's path to success, helping the business with loans and support in financial matters. As part of the special project “Success Stories of Oschadbank Customers,” we are telling the story of K'Len.

From manual labor to full-scale production

The woodworking enterprise was born in one of the largest villages in the Zakarpattia region—Ilnytsia, the Khust district. In 1997, two entrepreneurial brothers, the Lendels, set up a small production workshop, where they initially worked themselves. But after six years of hard work, this modest business turned into a full-fledged woodworking enterprise. The name “K'Len” was not chosen by chance—although it sounds like the Ukrainian name of a tree,“klen” (maple), it is actually an abbreviation of “Lendel Company.”

"We thought long and hard about which direction to take our business. We chose woodworking because there are many forests in our region, and wood is a tremendous renewable resource. We wanted to create something of our own, to see how wood is turned into a product that brings comfort to people. Furthermore, we started in a small workshop with simple equipment that we made ourselves, and we produced rough blanks for parquet flooring. Every day was a challenge and, at the same time, a step forward. Today, I look back and realize that it was this path from simple to great that taught us to value work, people, and quality in everything," says Mykhailo Lendel, co-founder of K'Len.

Today, the business is a modern European manufacturer that works with wood throughout the entire production cycle: from raw material procurement to painting and varnishing of finished products. Here, they produce furniture made of beech, oak, and ash: beds, tables, chairs, dressers, nightstands, wardrobes, stairs, etc. “Today, approximately 28% of our product range consists of children's beds, 60% is living room furniture, and the rest is bedroom furniture, tables, etc.,” says Mykhailo Lendel.

The company cares about the rational use of waste, so wood residues are used to make briquettes for heating private, social, or industrial facilities. The company values naturalness and environmental friendliness, combining age-old traditions of working with wood, the latest technologies, and professionalism, controlling quality at every stage.

Production in Ilnytsia is partially automated. The company also plans further automation, particularly in the fourth cycle of wood processing, to increase productivity and reduce the proportion of manual labor. The technological process in this workshop includes several stages: unloading and stabilizing raw materials, further processing on multi-blade saws and four-sided equipment, and optimization lines. About 170-180 people work here in two shifts.

The company pays special attention to energy independence and the use of alternative energy sources. K'Len covers up to 70% of its energy needs with its own solutions. The company has a solar power plant, which on a sunny day fully covers the daily consumption of the enterprise and allows it to optimize operating costs.

In addition, there is a fully automated wood chip boiler room with boilers with a capacity of 1500 kW and 800 kW, as well as two Caterpillar cogeneration units with a capacity of 750 kW each. Additionally, there are plans to install equipment for obtaining pyrolysis gas, which will further strengthen the environmental component of production.

Export and support from Oschadbank

The furniture produced by the factory has garnered significant praise from foreigners. Presently, approximately 95% of K'Len's products are exported, and sales are distributed across several European countries. The largest markets are Germany, Poland, Sweden, and Denmark.

The quality of the products meets the requirements of the European Union, which has been confirmed by numerous inspections by companies that sell Ukrainian furniture on foreign markets. Last year, the company's sales amounted to UAH 480 million, and this year the company plans to increase this figure by another 10-15% by expanding its product range, optimizing production, and implementing active marketing strategies.

The company takes into account the differences between demand in the European and domestic markets. For example, for European buyers, furniture is treated with oil, which preserves the natural structure of the wood and requires careful maintenance. For the domestic market, lacquer protection is used for a more resistant coating, which is in demand among Ukrainians.

K'Len has both wholesale and retail sales channels. In addition to partner deliveries to export markets, the company has its own online store, as well as brand stores in Irshava, Uzhhorod, Lviv, Kyiv, and at its production site in Ilnytsia.

Cooperation with Oschadbank plays an important role in the development of the enterprise. K'Len has a current account with the bank, uses a credit line of UAH 40 million, and implements a payroll project for 370 employees through the bank.

“We are delighted to see how our financing helps companies grow and create jobs. This is very important to us, as Oschadbank's current strategy is to be a reliable financial hub for Ukrainian businesses,” said Sergii Naumov, Chairman of the Board of Oschadbank.

Despite the full-scale war, K’len continues to operate and grow, maintaining its focus on European quality standards, exports, environmental friendliness, and responsible use of resources. The company's history is a vivid example of how investments in technology, thoughtful work with sales markets, and cooperation with the bank enable Ukrainian manufacturing to defend its position in the international market even in difficult conditions.