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German machine tool manufacturers firmly committed to the Chinese market

Large German contingent at the CCMT in Shanghai

Frankfurt am Main, 20 April 2016. – A few days ago, the Chinese trade fair CCMT (China CNC Machine Tool Fair) in Shanghai came to a successful end, having hosted 59,000 visitors (up by five per cent on 2014). “Our 110 German firms can look back on a definitely gratifying experience at the fair. On more than 4,300 square metres of net exhibition space, they showcased products and services “Made in Germany” and were thus the biggest national contingent of foreign exhibitors,” explains Gerhard Hein, Senior Economist and CCMT Project Executive at the VDW (German Machine Tool Builders’ Association) in Frankfurt am Main. The joint participation in the CCMT was for the first time supported by the German Federal Ministry of Economics and Technology, and thus underlines the great importance of the Chinese market for Germany’s machine tool manufacturers.

China remains the world’s most important market for machine tools

With machine tool consumption of more than 21 billion euros (more than three times the figure for Germany and the USA), the Middle Kingdom was last year the world’s largest market. In 2015, China’s market volume, following three successive years of decline, rose again, by four per cent. For the ongoing year, the British economic research institute Oxford Economics, the VDW’s forecasting partner, sees an incipient uptrend in the Chinese economy: “All the important indicators, from general economic performance to industrial production output and capital investment levels, point to moderate growth by Chinese standards,” explains Gerhard Hein. Machine tool consumption in particular, an important indicator for the development of bilateral business, is predicted by Oxford Economics to return to a modest growth trajectory following sizable declines in the years 2013 to 2015.

German manufacturers are well placed to cope with this uptrend. Jo Santens, Managing Director of United Grinding in Shanghai, comments: “The market is waking up from its hibernation now. There are definite signs of rising potential for high-tech products.”

Gerhard Hein adds: “The strong German presence at the CCMT fair is a compelling signal, demonstrating firstly that we are dependable partners for Chinese customers even when times are less than easy. Secondly, we are thus positioning ourselves against the expanding presence on the market of Asian competitors.”

German manufacturers remain committed to China’s strong market

German exports to China, since their all-time high in 2012, fell by a good fifth last year to 2.1 billion euros. Although China’s industrial sector is now growing less dynamically, the nation nonetheless remains the most important sales market for the German manufacturers concerned. For the modernisation of China’s industrial sector, a thrust that ranks high on the government’s priorities, high-tech machines from Germany are indispensable. “A look at the order bookings shows quite clearly that the transformation process in China’s industrial sector is far from complete, and demand was running at a reduced level over the entire course of the year,” comments Gerhard Hein. At present, more than a quarter of the machines exported to China come from Germany. Imports of Chinese machines to Germany totalled 138 million euros in 2015, up by two per cent. This means they have exhibited a continuous uptrend over the past seven years, with the exception of 2013.

Dr. Ming Zhang, Managing Director of the Emag subsidiary in Taicang, can also only confirm this trend, and continues to discern substantial opportunities in the Chinese market. “Our high-profile presence in Shanghai shows that we are confident of an upbeat future for this market, in which demand for our range of machinery is currently also proving gratifyingly stable, and is still rising.” And Andrew Parkin, Managing Director of Messrs. Heller Machinery in Changzhou, concurs: “Despite the cyclical slowdown in China, we are intensifying our presence on the Chinese market, and continuing to invest locally. This also, of course, includes our successful participation in the CCMT.”

Gerhard Hein sees the CCMT as well on track to establishing itself as a premium event in the market, and is gratified to note the satisfaction of the German exhibitors, who have reported good chances for closing abundant deals after the fair.

The next CCMT will be held in Shanghai from 9 to 13 April 2018.

 

Background

The German machine tool industry ranks among the five largest players in the country’s mechanical engineering sector. It supplies production technology for metalworking applications in all branches of the industrial sector, and makes a crucial contribution towards fostering innovation and progressing productivity in the industry. Due to its absolutely key role for industrial production output, its development is an important indicator for the economic dynamism of the entire industrial sector. In 2015, with a workforce of around 68,500 employees (annual average for 2015, firms with a payroll exceeding 50), the German machine tool industry produced machines and services worth around 15.1 billion euros.

 

Author:Manuel Löhmann, VDW Press and Public Relations,
Tel. +49 69 756081-83, m.loehmann@vdw.de

 

Further information: Gerhard Hein, VDW,
Tel. +49 69 756081-43, g.hein@vdw.de

 

Pictures:

(bild_CCMT1_2016-04-20.jpg)

CCMT press conference 2016: Gerhard Hein, Senior Economist and CCMT Project Executive at the VDW (2nd from right), can report a successful German trade fair participation in China as the most important market for German machine tools.

(Source: VDW)

 

(bild_CCMT2_2016-04-20.jpg)

The Chinese trade fair CCMT (China CNC Machine Tool Fair) in Shanghai came to a successful end, having hosted 59,000 visitors. On more than 4,300 square metres of net exhibition space, 110 German firms showcased products and services “Made in Germany” and were thus the biggest national contingent of foreign exhibitors.

(Source: IMAG, Internationaler Messe- und Ausstellungsdienst GmbH)

Responsible for the content of this press release: Verein Deutscher Werkzeugmaschinenfabriken e.V.

Contact

Verein Deutscher Werkzeugmaschinenfabriken e.V.
Corneliusstraße 4
60325 Frankfurt am Main
Germany
+49 69 7560810
+49 69 75608111

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