Fimic expects market recovery in time for K

In the meantime, orders for German plastics and rubber machinery are expected to continue to slump until the end of the year. The association predicts a 10-15 percent drop in sales in 2024 in comparison with the previous year. That means the industry will see its third consecutive year with substantial declines in sales. In 2022, there was a 13 percent price-adjusted drop in sales in comparison with the previous year, and another 22 percent in 2023.

In 2023, the association hoped global crises would stabilize in the course of 2024 and the industry would see renewed sales growth. While such conditions have not materialized, central banks in Europe have recently started to cut interest rates, which might alleviate pressure on companies.

Lags in production are likely to postpone recovery until the middle of next year, according to the VDMA, just in time for K, taking place in Düsseldorf, Germany, between Oct. 8-15, 2025.

Fimic feels positive that the market will recover because of its long project pipeline. However, postponements keep delaying recovery.

“We are positive in the long run, because we have many realistic projects on the pipeline. The main issue is that every quarter the projects are postponed. It’s like they’re waiting for something, but I don’t know what. … But these projects are alive and kicking, so it’s just a matter of time,” Stocco said.

Another potential recovery sign is that in the past two months Fimic’s customers have been making inquiries that ask for shorter delivery times, which may indicate they are planning to invest sooner rather than later.

“I can’t be sure — I don’t have a crystal ball — but my perception is that the first quarter of next year could show some signs of recovery,” he said.

Fimic’s sales in the DACH region (Germany, Austria, Switzerland) are down in comparison with the last two years, but Stocco thinks the correct benchmark should be 2019 instead. Considered like that, sales are a “bit lower, but not so much lower.”

“Sales are not like two years ago, but we should consider that 2022 was kind of an exceptional year because it was after the pandemic and everybody was trying to get back to life. I think the right benchmark should be 2019, before the pandemic,” he said.

“And if we make this kind of ratio, yes, sales are a little bit lower, but not so much lower. And again, with the number of projects we have in the pipeline — not only in Germany, but globally — even if we get only one-third of those projects, we’re going to have a great 2025.”

A company like Fimic, whose filters are comparatively cheaper than large extrusions lines, for example, can more easily absorb the financial impact of a market downward turn, Stocco explained.

“This is not the real number, but suppose that this year we sell 10 fewer machines. The financial impact is lesser than when big companies sell 10 fewer big systems, which carry a higher price tag. But consider that in Germany, Austria and Switzerland, we have already installed more than 20 systems. We have a reputation in the region. Customers come to us when they have a critical application — we are confident that they will come back.”

While recycling companies wait for market recovery in time for K, many are postponing their machinery launches to that show.

Fimic has a new machine under research and development that it expects to launch at K.

“If you think about an extrusion line and the products that go onto extrusion lines, that’s where our product fits in. I cannot reveal more at this point but, as they say, stay tuned.”

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