VDMA clarifies Tokyo statement about China

By Nina Ying Sun
Assistant Managing Editor

Published: August 21, 2014 2:57 pm ET
Updated: August 21, 2014 3:00 pm ET

Image By: VDMA VDMA President Reinhold Festge.

Related to this story

Topics Europe, China, Asia
Companies & Associations VDMA

Some remarks that VDMA President Reinhold Festge made at a recent press conference in Tokyo turned into sensational headlines in China.

VDMA (Verband Deutscher Maschinen- und Anlagenbau e.V.) is a German engineering association, which represents plastics and rubber machinery manufacturers, among others.

According to Japan’s Nikkei Technology, Festge told the audience in Tokyo that Japanese and German machinery manufacturers need to work together to fight their common competitor: China.

China aims to shift focus from increasing production volume to improving quality, the Nikkei report quoted Festge saying. In order to achieve that, he said, China will reduce its dependency on foreign technology in the midterm.

China also aims to strengthen its competitiveness in export markets, he added. He believes China will first target nearby markets in India and ASEAN countries, and in its next step will be to expand into the United States, Russia and Turkey, and eventually aim for developed markets in Europe, according to the Nikkei report.

Festge went on to state that Japanese and German machinery makers should explore how to cooperate in third-party markets, the report said. “Especially in complementary product categories, the two countries should join forces to face challenges brought by China — this would be an effective strategy.”

In response to Plastics News’ inquiry, VDMA chose not to comment on the details of the media coverage, including how the speech was interpreted and presented. Instead, the association shared the following transcript of Festge’s speech:

“In the export markets, we will pay much more attention to Chinese competition, too. Last year, the VDMA commissioned several studies that looked into the competitiveness and the strategies of local Chinese companies.

“The objective seems to be clear: Firstly, Chinese manufacturers want to conquer markets that are in close proximity, such as India or the ASEAN states. Secondly, the scope will then be extended to countries such as the USA, Russia and Turkey. The long-term objective remains, among other things, the highly developed European market. So the German and the Japanese engineering industry will have to work considerably hard themselves in order to respond appropriately to this Chinese challenge.”

Common ground?

A Chinese industry observer wondered how much common ground Japanese and German machinery makers can find, citing the trade imbalance between the two countries.

Numbers compiled by VDMA show that in 2013, Japanese machinery exports to Germany reached 400 billion yen ($3.9 billion), while German machinery exports to Japan were 285 billion yen ($2.78 billion).

VDMA also said foreign (non-German) companies have taken more than half of Germany’s domestic machinery market, while no more than 13 percent of the machinery sold in Japan is made by a non-Japanese company.


Comments

VDMA clarifies Tokyo statement about China

By Nina Ying Sun
Assistant Managing Editor

Published: August 21, 2014 2:57 pm ET
Updated: August 21, 2014 3:00 pm ET

Post Your Comments


Back to story


More stories

Image

West Coast ports dispute impacts machinery imports

February 27, 2015 5:00 pm ET

Asian machinery companies got caught in the West Coast ports labor dispute — causing some headaches to get equipment ready for NPE 2015.    More

Image

Wittmann, Illig among machinery firms boosting investments in India

February 27, 2015 1:34 pm ET

GANDHINAGAR, INDIA — Expected growth in the Indian plastics market is leading several global machinery firms to make investments there,...    More

Image

Indian masterbatch makers growing locally and thinking globally

February 27, 2015 1:30 pm ET

GANDHINAGAR, INDIA — India’s masterbatch makers are expanding their domestic capacity to meet growing demand, as some are also moving...    More

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in...    More

Image

NFM Welding Engineers opens direct office in China

February 26, 2015 2:05 pm ET

MASSILLON, OHIO — Extrusion equipment manufacturer NFM Welding Engineers Inc. has opened a sales office in Dalian, China.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events