Demand boosts mining and processing technology
The mining and processing technology sector is well positioned within the mechanical and plant engineering industry in Germany as a production location, not least due to its low dependence on the German economy and high export ratio. The issue of securing raw materials has been recognised by politicians, and the continuing demand for metallic raw materials due to the energy transition is keeping raw material prices high and with them the demand for mining and processing technology. Nevertheless, the industry is sceptical about the coming six months. According to an internal VDMA survey, 40 % of the member companies surveyed expect the situation to deteriorate. Trade barriers are expected from the USA, the most important market for mechanical and plant engineering.
In 2023, manufacturers of technology for the extraction of raw materials achieved a total turnover of 3.08 bn € in Germany as a production location. From January to July 2024, turnover fell by 11.7 % compared to the same period in the previous year. In the first three quarters of 2024, incoming orders also declined by 6 % compared to January to September 2023. VDMA Mining & Minerals, Frankfurt/M./Germany, estimates that the industry will end the current year with 2.72 bn € in turnover from German production.
According to feedback from the membership, poor location conditions are causing medium-sized and larger companies in particular to fulfil certain orders at foreign locations.
“We can only keep urging politicians to improve the location conditions in Germany,” emphasised Marcus Wirtz, the newly elected Chairman of the Executive Board of the trade association (Figure 1), at the VDMA Mining & Minerals industry get-together in Essen/Germany on 21st November 2024. “We are a highly innovative industry with attractive jobs and prospects that we want to preserve and not lose!”
In view of the energy transition, the demand for lithium is growing steadily. The VDMA is therefore establishing contacts with important raw material suppliers, e. g. in Chile or Argentina, with delegation and business initiation trips and is promoting the technology from Germany with presentations at renowned specialist conferences. On 25th November 2024, a 20-strong delegation from the trade association travelled to Serbia for three days, where talks with various departments of Rio Tinto and a tour of the world’s largest known lithium deposit in the Jadar Valley were on the agenda. (VDMA/Si.)
