VDMA:
German Industrial Valves -
Significant increase in sales on the domestic and foreign markets in the
first six months of 2007
The
German manufacturers of industrial valves achieved in the first six months
of 2007 a nominal increase in sales of 16 percent compared to last
year’s results in the same period. Therefore, the industrial valves’
economic trend has become even more dynamic after the sales had already
increased by 13 percent in 2006.
The
VDMA valves manufacturers association reports that this industry’s
economic trend has been continuously on the increase since 2001.
The
first impulses of a growing demand in the first six months of 2007 came
from the domestic and foreign markets. Home sales rose by 15 percent, and
foreign sales by 17 percent compared to last year’s results in the same
period.
The
export figures of the Federal Office of Statistics confirm this trend.
According to them, German exports of industrial valves from January to May
2007 rose by 10 percent compared to the same period last year and amounted
to a total of EUR 958 million.
Export
of German Industrial Valves
Exports - 10 major importing countries
However,
the exports of industrial valves to the People’s Republic of China, the
major importing country, dropped for the first time (- 13 percent, total
of EUR 84 million). This development is not surprising. Since China became
the leading importing market in 2004, the German valve exports have been
recording a very dynamic development. Yet, the growth of exports to China
decelerated steadily. The incoming orders from China related to plant
constructions - for the most
part, industrial valves are exported indirectly through plant
constructions – dropped by seven percent in 2006 and were reduced to a
total of EUR 1.9 billion. „This downward trend on the Chinese valves
market and in German exports is likely to continue in the future“,
comments Boris Abadjieff, deputy managing director of the valves
manufacturers association.
The
German manufacturers could more than compensate on other markets the
losses suffered in the China business. Exports to the EU-27 achieved a
disproportionate 14 percent increase. Likewise, the growth of exports to
Russia (+ 70 percent; total EUR 45 million) and India (+ 74 percent, total
EUR 19 million) was very encouraging from a German perspective. On the
other hand, the German manufacturers’ foreign business with the USA
dropped by almost 10 percent in the first six months of 2007, although the
US market of industrial valves will probably increase by three to four
percent in 2007. The Euro revaluation leaves first skid marks in the
foreign business. This also applies to the currently slightly dropping
export development in the dollar zone of East and South East Asia (- 5
percent) as well as the Near and Middle East (- 7 percent).
From
January to May 2007, the imports of industrial valves rose by 21 percent
and achieved a total of EUR 409 million. The three major foreign suppliers
on the German market were Italy (+ 24 percent; total of EUR 73 million),
the USA (- 3 percent; reduction to EUR 48 million) and Switzerland (+ 26
percent; total of EUR 39 million).
Forecasts
The
incoming orders for industrial valves manufacturers continue to record a
double-digit growth in the home and foreign countries. The backlog of
orders is equivalent to 4 production months and capacity is utilized
almost to the full (92 percent). This industry’s business climate
measured by the Ifo-Institute remains at a high level. In this context and
considering the positive sales perspectives on a worldwide scale,
especially in the markets related to power station technology,
petrochemical and chemical industries, the valves manufacturers
association has to revise the sales forecasts. In 2007 home sales will
probably achieve a nominal increase of 12 percent. Foreign sales might
record a 15 percent increase. On this basis, total sales will rise by
approximately 13 percent.
For
more information: ww.vdma.org/armaturen
Posted:
Aug. 29, 2007
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