A marked inclination for exports, a two-figure growth in foreign sales for 2007, and rising investment. All in all, Italian manufacturers of steam and gas turbines had a good year, and are relatively hopeful for a good 2008 year-end result, which despite the general global economic slow-down should not record backsliding in either exports or turnover for the sector’s Italian firms.

Steam turbine manufacturers have the healthier of the two areas, which, after having closed 2007 with a relatively stable 223.4 million Euros (172.4 from foreign markets, with a 76% export impact on production value), is anticipating a recovery in 2008, with revenues of 254 million Euro (+13.7%) and exports worth 193 million (+11.9%). Anima officials (Federation of Italian Associations of Mechanical and Engineering Industries) point out how foreign sales through both direct and indirect channels continue to play an important role in this sector.

International markets particularly favour industrial turbines (below 100 megawatts), which are mainly aimed at the biomass and urban refuse markets and smaller combined cycle plants, and the larger turbines for energy generators (from 150 to 300 megawatts), used in combined cycle plants. Despite overall results a little out of line from the global market, which in the steam turbines sector recorded an increase in orders of around 85% in 2007, the share of manufactured goods export in this Made in Italy sector showed a rise of 12 points in 2007, from 65% to 77%, and is expected to remain stable (at 76%) for the end of 2008. Main outlet markets were confirmed as Spain, China, Germany, France and India.

In the gas turbine manufacturing sector, considerably larger (2007 revenues were of over 1.4 billion Euros) the 2007 rise of 45% in global orders contributed to the positive performance of Italian manufacturers, whose turnover rose to 1.409 million Euros (up 16.9%). This performance was influenced by an excellent year for export (up 31.6% to 1,351.4 million), which took up 96% of production. The impact of export on revenues rose by eleven points, from 85% to 96%, with respect to 2006. Italian production concentrated mostly on the market segment for large machines (over 250 megawatts) designed for energy generators in combined cycle 400/800-megawatt plants. “The firms in this sector – stated Anima’s research office – continue to invest in order to maintain the shares acquired, because the main activities in the oil & gas and energy production sectors continue to play a fundamental role in this area”.

Once again, the United States were confirmed as the top destination market for Made in Italy gas turbines in 2007, with a rise in sales value from 342.2 to 397.4 million Euros (+16%). The largest rise – among the markets over 100 million – was recorded by Algeria, with 134.6 million (+91%), while India (with 86.4 million, up 420%) and Egypt (72.3 million, up 669%) were the countries with the highest boom in exports.