European machinery makers post gains.

Strong gains posted in Germany helped European plastics and rubber machinery manufacturers to register modest gains in 2003. EUROMAP, the European Committee of Machinery Manufacturers for the Plastics and Rubber Indus tries reported European output reached euro 15.7 billion in 2003. The committee represents the producer associations from Austria, France, Germany, Italy, Luxemburg, the Netherlands, Spain, Switzerland and the United Kingdom, and stands for about 3,850 companies with a work force total of more than 100,000.

The volume of euro 15.7 billion covers system solutions for customers' industries, with the core machinery business on the one hand (euro 9.5 billion) and peripheral equipment (euro 1.1 billion), as well as molds and dies (euro 4.6 billion) on the other hand. Flexographic printing machines for plastic films (euro 473 million) are also included. Overall results were slightly below the previous year's result of euro 15.8 billion, caused by core machinery that was off 1.7% and peripherals that were 8.8% lower than 2002, whereas molds and dies (2.7%) as well as flexographic printing machines (4.7%) grew at a satisfactory pace.

"With the exception of Eastern Europe and China and some local markets, the worldwide plastics and rubber industries have been on an economic hold in 2003, and no signs of sustained global growth were in sight. This applies especially to North and South America. Considering these circumstances, the result achieved by the European machinery industry can absolutely be considered as success," said EUROMAP president Ulrich Reifenhauser.

The global export volume (euro 9.9 billion) of EUROMAP countries in 2003 experienced a minor increase (0.8%) over 2002. Main markets for the European industry were the Middle and Eastern European countries and China.

According to their statistics, the value of core machinery produced worldwide in 2003 was about euro 17.7 billion, slightly surpassing the previous year, while the global export volume increased to euro 12.7 million (3.2%). The market share of European technology suppliers reached 54% in production and 53% in exports, and their export quota was 70.7%.

For the current year 2004, EUROMAP members are quite optimistic and expect an overall increase for their industries; the average forecast for the rise in production is 3.5%.

For the German plastics and rubber machinery industry, the year 2003 was characterized by an economic recovery. The German Plastics and Rubber Machinery Association reported new orders grew by 13%, thus making up for the loss of two preceding years. Unfilled orders remained almost unchanged at 4.6 months. At 87%, capacity utilization was within the normal range.

The core machinery business' production value increased by 4.3%, reaching euro 4,359 million.

Total value of equipment supplies for plastics and rubber processing (machines, molds and dies, auxiliary and peripheral equipment, and flexographic printing machines for plastic films) turned out at euro 6,921 million (3% gain).

Exports increased at an even higher rate during the past year at 5.6%, with an export volume of euro 3,255 million and an export quota of 74.7%.

Deliveries to customers in Europe rose by 7.5%. The growth was sustained by western European countries outside the EU (8.0%), and particularly by shipments to central and eastern Europe (32.7%). Exports to the EU 15 countries were slightly below the previous year's level and their share in total exports for the first time fell below the 30% threshold.

Following a stabilization in 2002, German deliveries to the U.S. in 2003 decreased 4.6% again, and exports to countries in Latin America encountered a 21.1% drop.

German plastics and rubber machinery in Asia displayed a rise by 9.3%, which originated from a high level. At 28.1%, their share of the total export volume surpassed the peak quota of 1996. China (including Hong Kong) has meanwhile become the most important market worldwide, outstripping the U.S., frontrunner for many years. After a couple of years with remarkable growth rates, exports to the ASEAN countries decreased by 10.6% last year. As for central and south Asia, the upswing in demand (70.6%) for German equipment continued, substantially influenced by India.

For the second time, in-line shipments to Africa experienced a growth of more than 30%.

Imports grew at a rate of 13.4% to euro 592 million, and core machinery's domestic market (production minus exports plus imports) expanded by 4.7%.

Production value of injection molding machines amounted to euro 809 million, an 11.3% increase. Manufacturers of extruders and extrusion lines closed the year 2003 exactly on 2002 results. Blow molding machinery production increased by 16.9% to a volume of euro 266 million.

In the context of global competition, the German plastics and rubber machinery industry was able to strengthen its leading position in production volume (to 24.7%) and exports (to 25.3%). The Japanese machinery manufacturers caught up earlier losses and reached their record level of 2000, whereas in the U.S. the industry remained slightly below the previous year's outcome.

Based on the previous and current years' new orders, the association assumes that production in 2004 will rise by 6%.