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[December 2003]
Italian Ceramic Machinery Industry Closes 2003 With Less Severe Downturn Than Expected
The Italian ceramic machinery industry has closed fiscal 2003 with a downturn. Preliminary estimates point to a fall in turnover in the region of 3% to 5%, down to b,1.38-b,1.40 billion compared to the b,1.452 billion of 2002. Nevertheless, the decline is less severe than suggested by forecasts a few months ago which predicted a likely fall in the region of 8% to 10%."Things have gone better than expected," said Franco Stefani, Chairman of Acimac (Italian Ceramic Plant & Machinery Manufacturers' Association). Commenting on the negative figure - the third annual fall in a row - he confirmed that the most substantial dip in demand for ceramic machinery has been in the European market.
"Italy and Spain, the largest European tile producers and second only to China," he explained, "already have a production capacity that is higher than the real potential of the end market, and in Spain in particular effective production is already being reduced. These markets are now saturated in terms of quantities and we will have to make product or process innovations if we are to boost sales in the future."
The fall in Europe has been partly offset by a strong sales performance in the Middle East (particularly Iran), Eastern Europe and Asia (including China). On the strength of the positive signs emerging from these areas, Franco Stefani believes that a recovery in the sector is very probable, even as early as the first half of 2004.
"We are seeing great dynamism amongst ceramic producers in countries like Vietnam, Thailand, China and Iran," he continued, "Major investments in new plants will be made during coming months for the purpose of increasing production. Russia is another market with good growth prospects."
As for the competition from China, currently limited to the Chinese domestic market, Stefani acknowledged the problem and proposed a solution for beating the new competitors: "I am far from pessimistic. The price gap between Chinese and Italian plants is gradually closing as the Chinese manufacturers realise that quality is expensive and are forced to raise their prices. However, I am convinced that the only way for the Italian companies to overcome this competition is by going beyond the current levels of technology and offering the market ever more innovative and cutting-edge solutions, thereby forcing competitors to enter a technological race."
ENDS