ISMR June 2023 | Page 12

INDUSTRY NEWS

German machine tool sales revive in Q1 2023

According to the VDW ( German machine-
“ Overall , we are seeing a decline in the
“ We are expecting orders to stabilise in the
tool builders ’ association ), orders received by
difficulties with which our industry has had
second half of the year ,” confirmed Schäfer .
the German machine tool industry in the first
to contend ,” Schäfer explained . China has
A major advantage is the ongoing and sizeable
quarter of 2023 were 11 per cent down in
ended its zero-COVID policy and supply chain
backlog of orders stretching ahead almost
nominal terms on the same period last year .
tensions are now beginning to ease . This is
twelve months , he added . According to the
Orders from Germany declined by 18 per cent
allowing key customer sectors , such as the
latest forecast , this will enable production to
whereas those from overseas fell by eight per-
automotive industry , to produce more again ( it
grow by the same amount in 2023 as in the
cent . Overall , this represents a decline of
has suffered from a lack of microchips ). As a
previous year i . e . a 10 per cent increase to
17 per cent in real terms .
result , sales picked up again in the first quarter .
15.5 billion euros .
“ However , given the many financial burdens
The 20 per cent increase , or 11 per cent in real
The German machine tool industry ranks
( such as the energy crisis , high inflation ,
terms , reflects these factors .
among the five largest specialist groupings
increased interest rates and the overall
Numerous developments , outlined the
in the mechanical engineering sector . It
weakness of the economy ) it is encouraging
VDW , are also leading to raised levels of
provides production technology for
to note that the latest figures from March
investment : the ongoing trend towards
metalworking applications in all
show a halt in the downward trend in orders ,”
automation ; increasing digitalisation levels ;
branches of industry . In 2022 , with an
commented Dr . Wilfried Schäfer , Executive
booming electromobility ; the build-up of
average of 64,100 employees ( firms
Director , VDW . Orders from overseas , he
capacity in the critical infrastructure triad
with more than 50 staff ), the sector
added , are proving much more stable than
( e . g . chips , batteries ); extensive investment
produced machines and services
those from the domestic market . Impetus
in climate protection ( e . g . heat pumps ); the
worth around 14.1 billion euros . n
is coming , in particular , from the non-euro
expansion of renewable energy sources and
countries , where large-scale orders are playing an important role .
rising defence spending .
Right : Dr . Wilfried Schäfer , Executive Director , VDW .
www . vdw . de

Don ’ t miss Subcon 2023

The UK ’ s largest subcontract
include optimising the supply chain ; AI and
manufacturing supply chain show , Subcon ,
automation ; agility and resilience ; additive
returns for its 46th year to Hall 12 of the
manufacturing ; cybersecurity ; sustainability ;
NEC , Birmingham , in the UK from 7-8 June
digitalisation and more .
2023 . Visitors can source , subcontract ,
“ With the industry facing a multitude of
benchmark and learn all under one roof .
challenges , from soaring costs to supply
“ Over 200 exhibitors will be displaying
chain shortages , there has never been a
their products and latest innovations . There
more critical time for suppliers and visitors
will also be plenty of dedicated networking
to meet ,” added the show organiser .
areas at the show , including a VIP zone .
Industry sectors covered by Subcon
The exhibition will cover everything from
include automotive ; electronics ; aerospace ;
assembly work ; CNC machining ; metal
materials ; energy ; rail ; oil and gas and
fabrication ; electronics ; component parts
defence / security . Last year , Subcon
and more ,” explained the show organiser ,
attracted over 4000 visitors . This year ,
MA Exhibitions .
Subcon is co-sponsored by the OMNIDEX
Alongside the exhibition , two conference
Group and Turkish Machinery ( Machinery
theatres will provide topical content on the
Exporters ’ Association ).
challenges , pain points and opportunities
ISMR is a media partner at the event and
for the manufacturing industry . Topics
its June issue will be distributed at Subcon . n

Steel pipe titan in North America

Established in 1958 by Borusan Group as its first industrial venture , Borusan Mannesmann recently finalised an acquisition in the United States , scaling up its presence in the global market . Through a transaction of US $ 162 million , the company has acquired 100 % of Berg Pipe ( one of the leading manufacturers of large-diameter line pipe in the United States ).
Berg Pipe has been operating in the U . S . for the past 44 years with two facilities in Florida , where longitudinal seam-welded pipes are manufactured , and Alabama ( where spiral seamwelded , large-diameter pipes are manufactured ). With this acquisition , Borusan Mannesmann now strengthens its presence as a player in the North American energy pipe industry .
Borusan Mannesmann has been operating steadily in the United States since 2014 , with a facility in Baytown , Texas . With this acquisition and a second facility being constructed in Baytown , where production will start in 2023 , the company will own four manufacturing plants in the United States . The company ’ s total manufacturing capacity in the U . S . will reach one million tons , and around one US $ 1 billion in turnover .
With its latest acquisition of Berg Pipe , Borusan Mannesmann will have a total of 11 facilities in Turkey , Italy , Romania and the United States , as well as a production capacity of nearly two million tons and 2,800 staff members by the end of 2023 .
“ By acquiring Berg Pipe , a company with a total manufacturing capacity of 550 thousand tons , we have secured a strategic position in the largediameter pipe sector ,” Borusan Mannesmann told ISMR . n
12 | ismr . net | ISMR June 2023