Looking across the border to overcome the crisis

How are the manufacturers of extrusion plants reacting to the months of deep market crisis that are behind us? We asked engineer Giulia Bertoli, OMAV Sales Director, who told us about some interesting orders they have received and plans for the future.
What is the current extrusion market situation from your point of view?
«Also the global aluminium market has suffered greatly the effects of the global crisis which erupted in mid-2008 and has recorded significant declines in the entire production chain. We as suppliers of extrusion equipment have witnessed a sharp reduction in investments, especially in the European and U.S. markets. To contrast this we began working in markets in which we had not operated before the crisis, such as China. Despite a slow recovery and the increase in demand, the resources available are still limited and we find ourselves facing very low selling prices. Nonetheless OMAV has recorded an increase in turnover during the 2009-2010 period and we expect to close 2011 with further growth».
What has really changed compared to 2009?
«Due to production overcapacity and a loss of competitiveness, I believe that many industrial companies have faced restructuring and internal reorganization to improve efficiency and flexibility. Only this way can you best meet the needs of a market characterised by a sharp drop in margins, volumes and expected orders. In this regard OMAV felt the need to improve its sales policy as it began to enter new markets such as South America and Eastern Europe, and expand the network of agents».
What is causing the recovery of the market that has been seen in recent months?
«I believe that the recovery in the aluminium extrusion sector is due to the recovery, though still small, in the automotive and real estate industry, sectors that created the largest volume of induced extruded aluminium. However, some instability of the financial markets and major imbalances in international payments are still evident».
Which markets are experiencing the greatest recovery in the sector?
«Although the actual demand remains weak, there is a recovery led by developing countries such as Eastern Europe, India and China. In fact, China has never had a ‘negative’ growth rate; rather there has simply been a contraction of the growth rate. Despite all this, there is also some recovery in the Northern European and U.S markets».
Are there significant orders that OMAV has closed recently?
«Starting from 2009 OMAV began working with China and has acquired several orders for large extrusion lines. Thanks especially to these orders the company recorded increased turnover in 2009 and 2010 and sales forecasts for 2011 show further growth. Recently we were commissioned a 5000-tonne line by Western Aluminium in the U.S., a 4500-tonne and a 10000-tonne line for Nanshan Aluminium in China, and a 9500-tonne line for Jilin Midas in China. For these large lines OMAV had to engineer sophisticated and high performance cooling systems to ensure high levels of surface quality. Deliveries of these orders are scheduled for 2011 and 2012. We are also delivering a 2500-tonne line to Canada, a 2500-tonne line to Inex in New Zealand and a 2450-tonne line to Metalis Extrusions in the Arab countries».
What novelties will OMAV offer in 2011?
«In response to the slow economic recovery, we felt the need to improve our presence in countries such as Eastern Europe, strengthening the network of agents. In addition, we created OMAV North America, a unit dedicated exclusively to sales and customer service. The objective we have established for ourselves is to offer maintenance and after-sales service packages in order to increase the loyalty of our customers».