Exports by German mining equipment manufacturers continued to grow, despite a drop in demand for commodities. According to figures from the German Engineering Federation (VDMA), total sales in the first half of 2013 rose by 1.5%, mainly on the back of strong demand from China and the US.
Mining equipment sales: good in China and the US
Since 2007, the total sales by German mining equipment makers has grown by an average of 13%/year and has recently reached a record figure of EUR 5.8 billion. The development has been particularly encouraging in China and the US: during the first half of the year exports to those countries rose by 40% and 22% respectively.
It was not all good news, however: during the same period exports to Russia – another major sales market – dropped by nearly 50%.
Growing despite cut in mining CAPEX
In all, German mining equipment manufacturers increased their foreign sales by 1% in the first half of the year and, within Germany, by nearly 7%. This despite a drop in global demand for commodities that has seen major mining companies cut back CAPEX spending. Rio Tinto recently said it had reduced CAPEX spending by 20% this year compared to last.
Edited from various sources by Jonathan Rowland