VDMA Outlook For 2013 And Beyond Russian Growth For German Firm

Russia is the fourth biggest consumer of German capital equipment, with potential for more growth.

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VDMA Verband Deutscher Maschinen- und Anlagenbau e.V.

Pörner Ingenieurgesellschaft mbH

22% of all imported machinery in Russia comes from Germany, with China far behind on 13% and Italy on 11%, Hannes Hesse, Executive Director of VDMA told a press conference on Monday. “With deliveries to Russia reaching a volume of about 8 bn Euros in 2012, the country ranked 4th as trading partner after China, USA and France.” This accounts for about 5% of Germany's total machinery exports.

A recent VDMA survey of member companies shows that business with Russia is still mostly run from Germany. “But we see strong tendencies to transfer both marketing as well as services to Russia,” Hesse said. So far, only 8% among the 165 respondents have local production or assembly. By 2015, 19% of the firms are planning to set up assembly or production plants in Russia.

Hesse identifies three areas in Russia that need to be improved to fuel further foreign investment: Reliable framework conditions, the quality of staff training and the quality of domestic suppliers. “We hope that this Hannover Messe will send the right signals.” Overall for 2013, VDMA predicts 2% growth in German production.

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