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ECONOMIC CHAMBER OF MACEDONIA

bsi. ISO years
9001
1922 - 2016
Quality
Management

СТОПАНСКА КОМОРА НА МАКЕДОНИЈАFS549642

Osnovana 1922

ECONOMIC CHAMBER OF MACEDONIA

Founded 1922

CASTING - METALLURGICAL INDUSTRY WITH
GOOD DEVELOPMENT PROSPECTS

Casting is a metalworking process and part of the metallurgical industry
that has excellent prospects for further development through improved
technological processes leading to increased output and exports. The
Republic of Macedonia has six large companies working in the field of
casting, alongside a number of smaller casting businesses, which hold
great potential to become a significant factor in manufacturing as part
of the Macedonian economy.

In global terms, casting is a growing industry and one of the leading
factors influencing the development of the world economy.

While the global economic crisis negatively influenced the production
of castings in the Republic of Macedonia, the casting industry has grown
significantly around the world. Over the past five years, production of
castings has gone up by about 25 %, to a total of 11 million metric tonnes.

China has a total castings output of 40 million metric tonnes, making this country the world’s largest
manufacturer of castings; it is followed by the U.S.A, India, Japan and Russia. China accounts for over 40 % of
the global castings production. In Europe, Germany is the leading manufacturer of castings, as it accounts for
one-quarter of the total output, and is followed by Russia, Italy, France and Poland. Half of the global output
of castings is used in the automotive industry, 30 % in engineering, 10 % in construction and infrastructure,
and 10 % in miscellaneous sectors. The SEE region has also seen positive developments in this metallurgical
field. In this region, castings have a good base of materials at their disposal. The installed capacities and
qualified workforce are the basic preconditions for the future development of the castings industry (Source:
“Overview of the World Casting Industry”, Prof. Dr. Sveto Cvetkovski).

The current state of affairs in this sector in the Republic of Macedonia is marked by insufficient use of
capacities and reduced output. Contrary to the positive developments in global terms, the Macedonian casting
industry has seen the production of steel castings and grey castings drop by over 20 % in 2015 relative to 2014.
The output of castings from light metals, used in manufacturing passenger vehicles, has gone up by 9.3 %.

According to the analysis of the Economic Chamber of Macedonia, the main problems of Macedonia’s casting
industry are related to market developments and the economic feasibility of manufacturing some products.

This industry, just as other industries comprising the metal sector, is strongly influenced by developments
in regional and global markets, and the volume of foreign demand; the local market is also struggling with
unfair competition coming from imported castings that bear no evidence of quality or safety, as they are
not controlled by an authorized and accredited laboratory in the Republic of Macedonia. According to the
Economic Chamber of Macedonia, imports of castings whose quality has not been confirmed have caused a
drop in outputs (in some cases by up to 100 %) in the sectors for manufacturing fittings, molded covers and
bars, aluminum radiators and iron castings.

If this serious and limiting factor is removed, alongside other challenges facing the metalworking sector,
which are mostly rooted in inadequate systemic solutions (energy costs, limited access to funding,
underdeveloped infrastructure), then businesses in this sector will enjoy better conditions, assisting the
sector as a whole to improve its market position and to grow, in accordance with local opportunities and
positive global developments.

(Zorica Meshkova, Independent Adviser at the Economic Chamber of Macedonia)

September 2016 91