The VDMA, the German plastics and rubber machinery manufacturers’ association, has reported that it remains optimistic about business with Iran despite a challenging first half of 2018.
Last year, the export balance for German plastics and rubber machinery manufacturers was positive. Whether this trend will continue remains to be seen. Declining deliveries in the first six months of 2018 give reason for cautious hope for the second half of the year.
IRAN
Germany has gained ground in spite of decreasing export deliveries worldwide. In 2017, global export deliveries of plastics and rubber machinery to Iran had a total value of €206 million. China held the largest share with €99 million, while Germany came in second with €38 million in exports to Iran. In the previous-year comparison, however, worldwide exports, above all from China, dropped distinctly, while exports from Germany increased. This caused the German market share in Iran to rise, standing at nearly 20 per cent at present. By contrast, the Chinese share of all deliveries decreased considerably, falling to below 50 per cent.
In the first half of 2018, the German plastics and rubber machinery industry exported to Iran machines valued at €22 million - a downturn of 11 per cent compared to the first six months of 2017. Consequently, in the ranking of major export destinations for Germany, Iran falls from 25th to 28th place.
"With growth rates of annually almost 6 per cent for the consumption of plastics, Iran is still considered a high-potential market for the plastics sector," explained Thorsten Kühmann, Managing Director of VDMA Plastics and Rubber Machinery. "The increasingly difficult political framework conditions accompanied by still insufficient financing options are showing their effects. We counteract this with continuity by nailing our colours to the mast also in difficult times."
IRAN
Since 2015, the VDMA Plastics and Rubber Machinery has been organising a Management Meeting for its members in Iran. This year, almost 20 VDMA member companies met in the run-up to the Iranplast fair, to discuss current issues of association work. Apart from standardisation of digital interfaces for Industry 4.0, Circular Economy in the plastics industry was a further item on the agenda. At K 2019, the concept of a circular economy will play a central part for the communication of the VDMA and its members.
Decreasing export figures for 2018 also have an impact on the size of the German Pavilion at the international trade fair for plastics and rubber Iranplast. This year, 17 German enterprises will present their innovative products and services at the fair, less than half the German representation on the show floor compared to the last outing.
