Asia and, in particular, China are the main hope for the major machine tool makers and manufacturers of components and accessories. Almost all the production in the sector is concentrated in Hego Euskal Herria, mainly in Gipuzkoa, Álava and Bizkaia. The crisis has affected the sector, although to a lesser extent than other sectors in the Basque Country. After being reinvented before the current crisis, year after year the crisis has sometimes been outperforming better than on other occasions.

Those in charge of the Machine Tool sector explained that the 2011 financial year was very positive, and that they would be satisfied if similar results were achieved in 2012. Thus, the data for the first quarter of 2012 heralds a similar exercise to last year. According to official data for 2011, the sector’s turnover reached 1.250 million euros, 22.7% more than the previous year. But the year was quite bad, with numerous fluctuations between companies, and billing is still 25% lower than in 2008. In 2009 the sector collapsed and only in the second half of 2010 showed signs of improvement.

In 2011, machine tool companies billed EUR 771 million (22.1% more than in 2010), ancillary tool-producing companies billed EUR 320.4 million (10.8% more) and other technology producers billed EUR 180.3 million (56% more). According to experts, the most positive figure for the previous year has been exports, which have grown by 37.8% - 80% of the overall figure in the sector is exports. China was the main export hub, leaving Germany behind. Other major export centres are Mexico, India and France.
In any event, despite the good results, this 2012 exercise could prove more complicated. José Ignacio Torrecilla, new president of the Association of Machine Tool Manufacturers, Accessories, Components and Tools, has said this: “We anticipate a more complicated situation by 2012, with a widespread drop in demand, at least in the first half of the year. We hope that in the second part of the year the situation will turn and the national market will recover soon.”

From 28 May to 2 June, the Machine Tool Biennial is held at the BEC of Barakaldo, an opportunity to get to know the sector and buyers, and to confirm the interest of Asia, especially China, with the presence of representatives of Asian countries at the fair.

China, the current key market

Why is Asia the hope for the Basque machine tool industry? China is an essential market for this sector, but India must also be taken into account, because there is a bilateral interest in developing relations, not forgetting Germany and the United States. However, the main cornerstone for the current market for the Basque machine tool is China, according to several entrepreneurs or managers in the sector.

China has become the main buyer of Basque machine tool. And it must not be forgotten that the gigantic country, with 1.5 billion inhabitants, offers ample possibilities. Half of the machine tools that will be purchased in the world in the coming years will be purchased by China. Therefore, the Machine Tool Manufacturers Association already has a commercial office in the country, besides being able to benefit from the Spanish-Chinese Institute. The association is also promoting the establishment of Basque companies in the sector in China, both for sale and for the provision of technical support services. In fact, several associations in the Basque Country and the Spanish State have created a unified technical support service to offer their services in the Asian country.

Fusion to be stronger

In this context, on December 16, two associations, the AMT (Spanish Association of Manufacturers of Components, Tools and Accessories) and the AFM (Spanish Association of Machine Tool Manufacturers) decided to join together to form a single, stronger association that will better represent the sector. The President of the Association, José Ignacio Torrecilla (Azkoitia, 1954), has been appointed new general adviser to the Maherholding Group, to which, among others, the Goratu and Shuton Tooling Machines belong.

The new company consists of 138 partner companies, all of which have a billing power of around EUR 1.5 billion. They directly employ 7,000 people and indirectly as many others. AMT has brought 60 companies to the partnership with a turnover of EUR 330 million. The AFM, for its part, has contributed 80 companies and is expected to account for EUR 1 billion in 2011 among them. Most of these companies are located in Hego Euskal Herria. Thanks to these Machine Tool manufacturers, the Spanish State is the third European producer and exporter in the sector and the ninth in the world.