German machine tool shows flag in the expanding Korean market

For the first time, on 16 and 17 October this year, 18 German manufacturers presented their products, services and solutions under the aegis of a VDW symposium in Seoul, South Korea.

“The event was fully booked almost immediately”, reports Klaus-Peter Kuhnmünch, responsible at the VDW (German Machine Tool Builders’ Association) in Frankfurt am Main for organising the VDW’s symposia. “This shows the South Korean market’s high level of perceived importance for the German manufacturers, and the potential ascribed to it”, continues Kuhnmünch. Germany was represented by the following companies: Alzmetall, DMG, Grob-Werke, Hamuel, Heckert, Heller, Hermle, the Kapp Group, K?rber Schleifring, Leistritz, Liebherr Verzahntechnik, MAG IAS, Niles- Simmons-Hegenscheidt, Peiseler, Profiroll, Schw?bische Werkzeugmaschinen, Trumpf and Weisser.

The South Korean machine tool market’s total volume reached 3.7 billion euros in 2011, putting it in fifth place among the world’s largest. The current forecasts predict that machine tool consumption will show a slight decline this year, though it will resume an upward trajectory, with 3 per cent in 2013, 7 per cent in 2014, and 8 per cent in 2015. Almost a fifth of South Korea’s machine tool imports come from Germany. Reason enough for German manufacturers, for many years the second-most-important supplier of machine tools, to fly the flag. “We see major potential for us in South Korea, particularly in terms of machining centres for specialised jobs in the aerospace sector, and in producing large machines for building container ships. South Korea is now in 2nd place for us in Asia, and demand is still growing”, reports Klaus Kr?her, Sales Director at Niles-Simmons GmbH in Chemnitz.

South Korea has in recent years evolved into a growth market for the German machine tool industry. Starting from 25th place in the rankings for the most important sales markets, and 162 million euros in 2008, German exports have risen by more than 25 per cent to most recently 205 million euros, putting them in 10th place last year. The exports cover a broad spectrum of technologies, focusing principally on gear-cutting machines, machining centres, laser machines, grinding, honing, lapping and polishing machines, milling machines, lathes and presses. “The importance of the Korean market is rising steadily, since industrialisation is progressing significantly in all areas. This opens up potentials for our entire production programme”, affirms Hans-Ullrich J?ckel, Head of Sales at Kapp GmbH in Coburg.

South Korean manufacturers also competitors in Germany

As a vendor too, South Korea is in the Top Ten, ranking 8th with an import volume of 112 million euros last year, corresponding to a rise of 86 per cent. “Our impression is that the Korean coAir Max 1 Ultra Moire