Italian machine tools will increase exports to China by 20%

“In 2011, the growth of the Italian machine tool industry and the export to China will reach a new historical level”, this is the Italian Association of Machine Tool, Robotics and Automation Manufacturers (CIIMU- at the 12th China International Machine Tool Show (CIMT2011). Mr. Gian鄄carlo Losma, Chairman of SIS鄄TEMIPERPRODURRE, and Lai Shiping, Chief Representative of the Beijing Office of the Italian Foreign Trade Commission (ICE), agreed.

Italian machine tool production recovers quickly

Losma told reporters that due to the global financial crisis, many machine tool factories were closed down in Italy in 2009, and the total sales of the year was down 30% from the previous year. But after entering 2010, production recovered quickly. Since October 2010, various economic data have become optimistic, and total sales in 2010 increased by 2.5% over the previous year.

In the first quarter of 2011, the recovery momentum is still optimistic. It is expected that the annual sales growth of the Italian machine tool industry will reach 18% this year.

In order to prove his point of view, Losma also specifically takes the own company LASMA as an example. LOSMA mainly produces environmentally friendly energy-saving equipment, such as oil mist collection equipment, coolant filtration equipment, and air purification systems. Due to the market demand, the company's business has grown rapidly in the past two years. In the first quarter of this year, the company's sales increased by 52.5% year-on-year. Although overall, the Italian machine tool industry has not reached the level of 2007 and 2008 in terms of the absolute value of sales, but for some individuals such as LOSMA, its annual total sales have returned to 2008 levels.

Strong Italian pavilion

Lai Shiping told reporters that in order to participate in CIMT2011, ICE specially organized an Italian pavilion with an exhibition area of ​​2,500 square meters and 62 exhibiting companies, involving more than 100 corporate brands. Not only is it the highest in terms of growth rate of exhibitions, but its exhibition scale has also reached the highest record in history.

Losma also told reporters that he observed the booths of various Italian exhibitors and saw many Chinese visitors stop and ask at the booth, and they are very interested in Italian companies and products. Many Italian companies are highly motivated to participate in this exhibition in China, and most of the exhibitors have business in China.

Some of the exhibitors also came to China for the first time. They thought that their equipment was expensive, and China did not need high-end equipment. However, in recent years, the experience of some domestic counterparts has made them see that China is now accepting and needing high-end equipment. So, they also brought high-end equipment to China this time. It is understood that the top machine tool companies in Italy have basically arrived in China.

The Italian side also noticed that the current Chinese customers began to pay attention to the humanization of machine tool design and improved the environmental protection requirements for products. Italy's machine tool design technology content is high, the product is more personalized, and the manufacturer has an industry tradition of communicating with customers at any time, which should be more suitable for Chinese customers.

To help Italian companies expand into the Chinese market, ICE has also increased the number and frequency of their exhibitions in China. In 2011, ICE organized Italian companies to participate in dozens of exhibitions in China. This year, only the industrial exhibitions organized by the Beijing area include machine tool exhibitions, air exhibitions, environmental protection exhibitions, motorcycle exhibitions, etc. Shanghai also has textile machinery exhibitions, woodworking exhibitions WOODMAC, mold exhibitions, and construction machinery exhibitions BAUMA. At the same time, due to the attractiveness of the Chinese market, the number of ICE members is still increasing.
China becomes Italy's largest exporter

“Since 2010, China has become Italy’s largest export destination, surpassing previous Germany,” Losma told reporters.

In the past, the top three exporters of Italian machine tools were: Germany, the United States, and France. China can only rank fourth. Since 2010, 15% of the value of Italian machine tools has been sold to China, surpassing the total volume of exports to Germany and jumping to the top of the Italian export destination. In 2010, China purchased 350 million machine tools from Italy, an increase of 14.2% year-on-year. In analyzing the reasons, Losma said that “the financial crisis has given China a chance”. Losma further explained that in the financial crisis, the purchasing power of other countries, especially European countries, declined, but China was not affected.

Losma said that he personally agrees with the analysis of the export of this year by the Italian Machine Tool Association (UCIMU). Italy's machine tools exported to China this year will definitely grow by 20%, which is related to China's current economic development. Some countries, including China, such as India, Brazil, and Russia, are becoming major exporters of Italy. He is not optimistic about European countries, although these countries used to have strong purchasing power for Italian machine tools.

On the other hand, China's demand for machine tools in Italy has increased. Italian machine tools are more personal, and these unique Italian machine tools are always able to meet the needs of Chinese customers. At the same time, Italian machine tool prices also have certain advantages in the international market. In fact, Italian companies do not want to fight price wars with their international counterparts. Italian machine tools mainly rely on technology, humanity, personalization and innovation to attract customers. In addition, many Italian companies entered the domestic market early in China's reform and opening up, leaving a good impression on Chinese customers.

Losma said that China's economy is currently in a period of transition, China's products are increasingly moving toward high-end, and the demand for equipment is also developing to the high end, which is a good opportunity for Italy. Lai Shiping also said that the export volume of China's machine tools five or six years ago is still very small, and it has only begun to increase in recent years, which puts higher requirements on the technical content and professionalism of processing equipment. At the same time, because China's export products often have to meet certain indicators before they can enter the international market, some Chinese customers have abandoned the domestically used replacement equipment they used, and instead directly purchased foreign advanced equipment, thus providing equipment for foreign equipment companies including Italy. A good opportunity for development.

It is estimated that the output value of the machine tool industry in Italy will increase by 20% in 2011, and the output value of machine tools exported to China will maintain a growth of 20%. This is the common view of Losma and Lai Shiping.

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