European machine tool production is expected to rebound in 2011

For the machine tool manufacturers of the European Machine Tool Cooperation Council (CECIMO), the second quarter of 2010 was very successful, and its order index increased by 63% compared with the same period of 2009, which led to an increase of 48% in the first half of the year. The increase in orders is mainly due to the growth of exports to the Asian market. In the first half of the year, overseas machine tool orders increased by more than 50% year-on-year. The growth of orders from local European users is also driven by the growth of their overseas business. Data from the third quarter initially showed that overseas machine tool orders will continue to grow strongly, while local orders will stabilize.

CECIMO Director General FilipGeerts pointed out: "In 2010, CECIMO member countries' machine tool production will be slightly lower than 2009. Machine tool production will take some time to reflect the substantial increase in orders. We expect machine tool production to rebound in 2011. It reached the level of 2009, but there is still a considerable distance from the highest record in 2008. According to our estimation, the European machine tool market will continue to grow in the next few years."

In the past few years, the Asian machine tool market has maintained rapid growth, and CECIMO has benefited from its growth. For example, in the first nine months of this year, China's imports of machine tools from Europe were almost close to those imported from Japan, which is a source of supply for China's high-end machinery tradition. Compared with Western countries, China still has a big gap in terms of ecological environment, energy efficiency and transportation, but developed countries are also changing. Geerts pointed out that Europe's growth and employment strategy will greatly stimulate the development of manufacturing, in order to create the most creative economy by 2020.

The economic crisis has led some countries to adopt trade protection measures. CECIMO strongly supports free trade and competition based on market conditions. The EU-Korea Free Trade Agreement (FTA) will enter into force in July 2011, which will not only eliminate the tariffs of both parties, but more importantly, avoid the emergence of non-tariff barriers. At present, European machine tools are subject to an 8% tariff in South Korea, while Korean machine tools have a tariff of less than 3% in Europe.

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