Italian machinery segment prepares for negative results

Milan, Italy – Sales figures for Italian rubber & plastics processing machinery for the first three quarters of 2019 suggest a negative year-result, according to trade association Amaplast.

Citing foreign trade data released by the Italian National Statistical Institute (ISTAT), the trade body said imports of plastics & rubber machinery plunged 13.1% year-on-year to €645 million during the nine months to end of September.
 
Exports fell 8.5% to just below €2.16 billion, the trade association added in its 8 Jan statement.
 
While the balance of trade remains positive, posting a surplus of  over €1.5 billion, that figure dropped by six percentage points, Amaplast added.
 
The trade association cited the current world economic climate as well as “the announced but as yet poorly defined” legislative and fiscal measures aimed at reducing the use of plastics as the reasons  for the slowdown.
 
For the full year, Amaplast expects the Italian market for plastics & rubber machinery, equipment and moulds to remain depressed “across the board”.
 
In total, the trade body expects declines in production by 9%, exports by 8% and imports by 15%.
 
Breaking down the 9-month results, Amaplast noted a 20% decline in exports to Germany.

Nonetheless, the country held on to its position as the top destination for Italian machinery, with imports of over €270 million.
 
The US also maintained its second position, with a 15% rise in imports valued at €223 million.
 
Spain moved up three spots to take over the third position with €112 million of machinery imports, followed by China and Poland. 
 
With a 30% decline, Turkey lost its spot among the top 10 importers of Italian machinery, having been replaced by India.
 
“[The decline] for Turkey is not particularly surprising, given the country’s uncertain economic situation and the poor performance of the local converting industry,” said Amaplast.

In addition, the devaluation of the Turkish lira since August 2018 contributed to the fall.

Looking further down in the rankings, neighbours Austria and Switzerland registered declines of 24% and 28%, respectively
 
Russia recorded a further 19% slide in imports, while Brazil showed a weak 1% improvement.
In Asia, encouraging sales trends were witnessed in the two major markets of Thailand and Indonesia, which reported growths of 24% and 39% respectively.
 
At the same time, sales to the key Asian market of South Korea fell 31%, Amaplast added.
 
In Africa, Tunisia showed a 57% improvement in imports, while Morocco and Algeria registered declines of 11% and 38%. South Africa recorded a modest 2% growth.
 
In the Middle East, demand for Italian machinery rose 33% in Saudi Arabia and 86% in the United Arab Emirates (UAE), but declined significantly by 64% in Iran. 
 
In terms of machinery imports into Italy, European partners generally registered a downward trend, with Germany, Austria, France and Switzerland posting declines of 30%, 13%, 30% and 35% respectively.
 
China and Japan, on the other hand, grew their exports to Italy by 14% and 33%.
 
“Speaking with my colleagues in the machinery manufacturing industry… I note a certain amount of concern deriving from the less-than-encouraging prospects for both the domestic and foreign markets,” said Amaplast President Dario Previero.
 
On an upbeat note, Previero said the slump had followed seven years of strong growth, during which companies were able to invest in R&D and focus on the development of  advanced solutions.
 
The industry veteran said he could not comment on whether the slowdown was a result of a cyclical recession or a structural weakening of the sector.
 
“It is mainly the diffuse uncertainty – economic, political, commercial – that induces an increasingly marked tendency in our customers to reduce or defer investment,” he went on to add.