Demand for steel forgings up 25%
Engabia says demand for steel forgings is 25% ahead of last year
Engabia Engineering says that demand for its forgings from heavy engineering OEMs has risen by 25% compared to last year.
At the half way point of the year in 2011, orders have increased from the 2011 budgeted figures by just over 40% in the UK and 10% for overseas products, averaging a total increase on volumes by some 25% in the year to date.
Managing director Alan Richardson said: “After the severe drop in business that we experienced back in 2008, during the banking & economic crisis, we were expecting our numbers to steadily increase during 2011 in line with our budgeted figures. However, throughout the first and second quarter of the year our weekly production schedules have increased week-on-week, now we have reached a point where we have many of the forging lines at full capacity to cope with the present demand.
“The signs of positive and sustained growth in the period from Jan to June 2011 are very encouraging for our business, we are starting to see turnover move in the direction of pre 2008 levels. Also, to witness the increase in volumes in relation to the large OEMs we work with, in the in construction, earth moving and petroleum sectors, fills us with confidence for the third and fourth quarter.
“Looking ahead now to 2012 and working with our customers and their forecasts, we are already able to predict an increase on the forging demands by a further 17% in the UK and we could expect to see an increase as high as 30% for some overseas requirements, fuelled by the forging market in India struggling to cope with present demand. Overall, based on our customers’ order books, Engabia is now forecasting for 2012 a realistic 10-15% output increase above the present surge level across the range of forging components.”
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