Opportunities for apparatus manufacture and plant construction in Europe

Abstract

Proceeding from the present unfavourable world economy, an attempt is made to examine the overall economic conditions. If they still were the same as in recent decades, it would be easy to predict the next upward trend following the economic cycles of the past. But the reasons preventing a simple continuation of the hitherto existing development are many: drastically raised energy costs, uncertainty of oil supply, increased wages, reduced working hours, shortage of funds due to considerable state debts and unfavourable currency balances, as well as high investments for environmental protection. The future position of the apparatus industry largely depends on the business course of its major clients. The European chemical industry will not increase its output decisively and no new mass products are to be expected. However, investments for rationalization are gaining more and more significance; this applies to raw materials, energy and manpower. The chemical industry in Europe suffers from a lack of raw materials of its own, so is trying to maintain its competitive position by concentrating on products that require a high amount of know-how. The European refineries presently are restructuring. New capacities will not be implemented; the market situation demands a reshaping of their product range instead. The construction of conversion plants leads to an increase of the naphtha and gasoline output at the cost of the heavy fuel oil. The constantly growing requirements of environmental protection towards industries and municipalities are creating a stable and expanding market for apparatus and plant constructors. Projects for securing the energy supply that range in the billions, are being discussed by the media. Looking at the various alternative possibilities closely, however, enormous efforts and investments are necessary to substitute just a few percent of the present oil consumption. The limited financial means would only permit the implementation of those projects that are economical already today. The European plant constructors are strongly export-oriented. Business is getting more difficult though. The opportunities for European apparatus and plant constructors vary considerably among the OPEC and developing countries and the Eastern Block. In the domestic markets, competition from Japan, and in the overseas markets, also from Korea, Taiwan, India etc. is felt. The competition imposes high demands on the apparatus in financing and personnel training during the initial phase of operation, as well as in marketing their products. At the same time, the personnel situation of engineers and craftsmen has become extremely tight. Nonetheless, the European apparatus and plant constructors are likely to maintain their position in the world market provided they meet the challenges of energy supply and environmental protection, and also adhere to their traditional virtues, namely quality, reliability, flexibility, inventiveness, as well as the readiness to assume guarantees.