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SMS Group Sees Upswing for Metallurgical Plants and Machinery
06/10/2011 - The SMS group of metallurgical plant and machinery construction companies attracted an order intake in business year 2010 totaling EUR 2.931 billion compared to EUR 2.341 billion in 2009, and generated sales of EUR 3.036 billion vs. EUR 3.891 billion the previous year.
The SMS group of metallurgical plant and machinery construction companies attracted an order intake in business year 2010 totaling EUR 2.931 billion compared to EUR 2.341 billion in 2009, and generated sales of EUR 3.036 billion vs. EUR 3.891 billion in 2009.
The net result for the group, at EUR 262 million, was EUR 39 million higher than the figure in the previous year. The two business areas SMS Siemag and SMS Meer profited equally from the upswing in their markets. Specifically, order intake at SMS Siemag was up by 28% to EUR 1.892 billion, and at SMS Meer by 20.6% to EUR 1.039 billion.
The market for metallurgical plants and rolling mill technology bounced back noticeably in 2010, according to SMS group, with the number of projects open for bidding having increased. Capacity utilization in the SMS group companies is essentially ensured until early 2012.
While customers in the industrialized countries are mainly focusing on revamps and business with new plants is still slow, SMS group says the situation in emerging economies is different; these countries have resumed their industrialization drive and investment in new plants is on the rise again.
There is a strong demand for metallurgical plants in India, China, Brazil, and smaller Asian and South American countries, according to SMS.
The group expects further growth in India, China, South America, and the Middle East since the per-capita steel consumption in these regions is still relatively low. However, the unresolved debt crisis in Europe and the U.S., political instability in the Middle East, and the high volatility of prices for raw materials all create uncertainty about further growth on these markets.
The SMS group is, under the roof of the holding SMS GmbH, a group of global players in plant construction and mechanical engineering for the steel and nonferrous metals industry. It consists of the two business areas, SMS Siemag and SMS Meer. In 2010, about 9200 employees globally generated sales of EUR 3 billion.
