Machine tool production in Europe on the rise, but free trade issue continues

He delivered his message by video link to the CECIMO Spring General Assembly, which took place on 6 - 7 June 2011 and underlined that the EU's international negotiations are poised to open up new emerging markets for a major exporting sector such as machine tools. During the General Assembly, CECIMO's Economic Committee confirmed: • The European machine tool industry - the engine for all manufacturing activities – is expected to increase production by 22% against 2010 to 20.2 bn € • Order bookings in 2011 are on the rise, following a 66% increase in 2010 • The trade surplus in 2011 will reach €9 billion, a 25% growth on the all-time-high recorded in 2010 • A resolute trade policy is required to safeguard Europe's position on the international markets Following the strong inflow of new orders throughout 2010, this year CECIMO will enjoy a significant 22% growth in shipments to €20 billion. This will be the strongest rebound in CECIMO sales for many years, it is said. Nevertheless, this result will still be about one fifth lower that in the record year of 2008. Strong exports, along with still fragile market conditions in Europe, drove the CECIMO trade surplus to a record level of €7.1 billion in 2010. Export-driven growth in 2011 is expected to bring about another record, with the forecast put at €9 billion. The recovery in European machine tool production is mostly attributed to the foreign order inflows and, more precisely, from continental Asia. "We are trying to tap Asian growth, though we are facing fierce competition from the local and partially state-backed companies in these markets," explained Frank Brinken, chairman of CECIMO's economic committee. CECIMO said it welcomed the European Union's agenda for trade and growth. It provides a thorough foundation for growth in Europe. "We urge, though, to focus the implementation of the plan purely on the business issues. Asian countries intensified economic ties with each other signing free trade agreements. Europe is at a disadvantaged position, not only because of the geographic and cultural distance to growing markets, but also because of a lack of any trade facilitating measures," Michael Hauser, president of CECIMO stressed. CECIMO called for international free trade, based on a level playing field for all market participants. Europe has an open economy, based on fair competition, providing the best available condition for private, healthy and innovative companies. And CECIMO, the world's biggest machine tool producer, proves it with its financial results, the organisation added. "Europe needs to safeguard competition by applying the same rules to everyone. Only then can we all move forward according to our real strengths," Mr Hauser said.. • EMO, the world's premier fair in metalworking technologies, takes place later this year, see link below