German mining equipment manufacturers are continuing to head for growth despite a decline in demand for raw material. According to the German Engineering Federation (VDMA), total sales in the first half of 2013 rose by 1.5%. This was mainly due to positive market development in their main export countries, China and the US. The VDMA states: “German mining equipment industry has recorded an unprecedented series of successes. Since 2007 the total sales of these companies – about 130 – has risen by an annual average of 13% and has recently reached a record figure of €5.8 billion.”
Dr Paul Rheinländer, Chairman of the VDMA Mining Equipment Association, believes that this is mainly due to the companies’ high product quality, with solutions that are “specially tailored to suit a wide range of customers and the good services they provide. The companies have shown that even industries with many small and medium-sized companies can be successful in their export business.”
Development has been particularly encouraging in China and the US. During the first half of the year exports to those countries rose by 40 and 22% respectively. During the same period exports to Russia – another major sales market – went down by nearly 50%. In Latin America excellent growth figures were recorded, particularly in Brazil and Chile which, taken together, totalled 37%. In all, German mining equipment manufacturers increased their foreign sales by 1% in the first half of the year, and within Germany by nearly 7%.
Despite a downturn in orders during this timeframe, forward order books in June still covered over nine months. On the one hand, stated the Chairman of the VDMA, there is still an atmosphere of uncertainty, with a slowdown in raw material demands due to sustained problems in Europe and rather sluggish growth in Asia. Nevertheless, Rheinländer is confident that the industry can maintain and perhaps even increase its sales figures of the previous year. Moreover, there have recently been indications that numerous projects which are currently on the back burner are now being revived or at least re-considered. Rheinländer is therefore expecting further growth, especially in the medium and long term.
