Low investments weighing down branch results
Against the backdrop of the relatively high level of turnover in 2014 the German metallurgical plant and rolling mill equipper branch experienced a two-digit decline of 31 percent in 2015. Worldwide surplus capacities in steel and aluminium – particularly the very high production volume in China – are lowering the demand for metallurgical plant and rolling mill equipping. Order volumes have been on the decline since autumn 2014.
Across all regions, manufacturers of machinery and plants related to metallurgy booked an average of 26 percent fewer orders. Other factors keeping investments in metal production at such a low level are the ongoing price pressure in raw materials markets and the continuing existence of geopolitical risks. "A decline in orders in the two-digit range is again evident in the current year. A minus of 25 percent cannot be ruled out, because the majority of new orders would only become evident in turnover in subsequent years. Currently the most likely potential we see is in the NAFTA region or even in some south-eastern Asian markets," explains Dr. Timo Würz, Managing Director of VDMA Metallurgical Plants and Rolling Mills.
Export volume of German equippers of metallurgical plants and rolling mills declined by about 6 percent in 2015. With an export volume of 740 million euros, Germany held its position as the world's third-largest exporter after China and Italy. "As the export figures demonstrate, the opportunities for German manufacturers of metallurgical plant and rolling mill equipment to retain a strong position with innovative technologies and services on world markets remain favourable. German metallurgy machinery manufacturers are also in demand for modernisation work or retrofitting for environmental purposes. Major projects in metal production, however, continue to be a rarity. In view of the continuing existence of geopolitical risks, volatile raw materials prices and the challenging global steel and aluminium economy, however, no turnaround of the trend is in sight in 2016," comments Würz, with regards to the situation in the industry.