German Export Growth Slows - C&EN Global Enterprise (ACS


Nov 6, 2010 - Latest data on imports and exports—just published by the German National Statistics Office—show that the value of German chemical ex...
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German Export Growth Slows German chemical exports were up last year, but the rate of growth seems to be tapering off The more figures that become avail­ able on West Germany's 1961 chemi­ cal performance, the more obvious it is that last year marked a significant turning point for that country from boom to tough competition. Latest data on imports and exports—just pub­ lished by the German National Statis­ tics Office—show that the value of German chemical exports in Deutsche marks rose less than 5% last year over 1960. This compares to an almost 14% rise for 1960 over 1959 and 13.5% for 1959 over 1958. Nonetheless, chemical exports, at $1.62 billion, set a new record high for the German industry. And when the increased purchasing power of the re­ valued Deutsche mark is taken into ac­ count, the equivalent dollar value of German exports of chemicals rose 9.5%. As with total German chemical sales (C&EN, Jan. 8, page 63), though, even the effect of the currency revalua­ tion of early 1961 cannot hide the slowdown of activity. The import ledger, too, shows that

of

Titanium tubing always in stock at TMCA

the era of forced-draft growth is over. After an unprecedented rise of 34% in 1960 imports over 1959, imports in 1961 rose only 1% over 1960 in DM (6.1% in dollar value). This slow­ down is due in part to the increased productive capacity in Germany from several years of heavy investment. But it is also due to the fact that many of Germany's chemicals did not live up to the growth predictions laid out for them. Consumption of benzene, for example, was slightly lower than in 1960, although experts had figured it would go up 15 to 20%. In export trade patterns, the Euro­ pean Common Market partners of West Germany continued to become more important. They took some 6.5% more last year than the year be­ fore (in D M ) , while customers in the European Free Trade Association bought only about 2 % more. Thus, the share of German exports going to ECM countries reached about 2 6 % ; the share going to EFTA has dropped to 26.8%. In 1958, first full year of

Slower Chemical Export Growth Means Fewer Imports, Too

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EXPORTS Year

Total

Plastics

1958 1959 1960 1961

1100 1300 1480 1620

186 209 255 287

Organic

Inorganic

209 262 295 314

121 134 154 156

Organic

Inorganic

Miscellaneous

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Note:

TIMET

TITANIUM METALS CORPORATION O F AMERICA 2 3 3 Broadway, New Y o r k "7, N.Y. NEW YORK · CLEVELAND · CHICAGO · DALLAS · LOS ANGELES

114

C&EN

Millions ο dollars

IMPORTS ,.®

APRIL

16, 1 9 6 2

Year

1958 1959 1960 1961 Note: Source:

102 124 146

Total

Plastics

429 575 610

45 64 78 82

77 99 141 142

Millions of dollars Der Aussenhandel der Bundesrepublik Deutschland

30 42 65 65

Miscellaneous

..

50 65 60

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Technical service

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C & Ε Ν 115

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the ECM, these proportions were 23.4% and 27.1%. So as ECM internal tariff barriers have come down, Germany has been able to increase its exports to its partners by 56%. Its exports to EFTA in the same period have risen only 39%. Meanwhile, Germany has done well in South America and Asia. About 15% of its total chemical exports went to Asia last year, worth some $230 million. This was 6.8% up on 1960's results (in D M ) . Biggest sellers are industrial organic and inorganic chemicals destined for further processing. Chemical exports to South America rose more than 20% in 1961 to $110 million, now make up 7.3% of total export sales. Pharmaceuticals as well as industrial organics and inorganics hold the lead, with Brazil and Argentina the best customers. But according to the Association of the German Chemical Industry, Germany's chemical markets in South America are beginning to be limited by the "soft-currency" problem. The solution to some extent lies in the old adage, "He who wants to sell must also buy," the association says, adding, "Most desirable along this line would be the destruction of the tax burden which stands against an increased import of South American products. In the first rank of such burdens is the very high (German) coffee tax which damps domestic coffee consumption." Perhaps, in the light of hardening international competition, the association can be forgiven this gentle bit of lobbying for cheaper coffee breaks.

BRIEFS

can be scrubbed, scoured or honed without harming the surface

Hindustan Antibiotics, Ltd., an Indian government-owned corporation, has dedicated a streptomycin plant at Pimpri, near Bombay. Know-how came from Merck & Co., Inc. Capacity is 90,000 kilograms of streptomycin and dihydrostreptomycin per year—half of India's needs. Local production will save India $2 million a year in foreign exchange.

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116

C&EN

APRIL

16,

1962

S.A. of Geneva, Switzerland, has bought a majority interest in a French paint manufacturing company, Peintures Corona. The French company has manufacturing operations at Valenciennes, research facilities in Paris, and distributing units at Paris, Lyon, Nice, and the plant location.