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German industrial plant makers see flat or lower 2015 demand

[FRANKFURT] German manufacturers of large industrial plants expect demand to remain stable at best in 2015 due to muted growth prospects in core markets such as Brazil, China and Russia.

Order intake is expected to be flat or down from 2014's 19.6 billion euros (S$29.21 billion), the AGAB large industrial plant manufacturers' group of Germany's VDMA engineering association said on Monday.

AGAB has a worldwide market share of 16 per cent in large industrial plant manufacturing.

The group includes ThyssenKrupp, Siemens , Alstom, Linde and Mitsubishi Hitachi Power Systems .

German domestic demand fell 18 per cent in 2014 to 3.7 billion euros, mainly as a result of a collapse of the market for fossil-fuel power stations, AGAB said.

International order intake fell 5 per cent to 15.9 billion euros as orders from China, India and Brazil fell to their lowest levels in years. Bookings from Turkey, Indonesia and Mexico also fell.

In 2015, US demand will create opportunities for some, especially chemical plant suppliers, while the devaluation of the euro will increase the competitiveness of companies with costs in euros, AGAB said.