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Booming World Trade Gives Boost to the Market

RESALE 2007 / 13th International Trade Fair for Used Machinery and Equipment Karlsruhe, Germany -18 to 20 April 2007

(PresseBox) (Weingarten , ) .

- No. 1 for the used machinery market
- More than 500 exhibitors from 28 countries
- Once again 10 000 visitors from over 100 countries
- International fringe programme
- Synergies with Hannover Fair and bauma

The 13th edition of RESALE will take place in Karlsruhe from 18 - 20 April 2007. Once again more than 500 exhibitors and approx. 10 000 visitors from over 100 countries are expected to attend the world's largest trade fair for used machinery and equipment. "Demand for used machinery and equipment is rocketing in the wake of booming world trade," reports Jens Nagel, Managing Director of the Federation of the German Export Trade (BDEx), Berlin - one of RESALE's partner organisations. "And this especially applies to industrialising countries," he continues. Nagel points to the ASEAN countries, which are enjoying an economic rejuvenation. "Nations from the Near and Middle East and the CIS, especially the countries of Central Asia, are leading the enormous demand for used machinery from Germany." BDEx is also receiving an increased number of enquiries from Latin America for used machinery and equipment for mining and food processing.

Expectancy and optimism

Experts estimate that the annual trade volume of the global used machinery market is over 100 billion Euros. And because of the excellent state of the economy, another RESALE partner, the European Association of Machine Tool Merchants (EAMTM) with its headquarters in Brussels, is also very optimistic. "We are looking forward to being represented at the trade fair," emphasises Hans-Jürgen Geiger, exhibitor and Member of the Board of the EAMTM. "RESALE is something special because visitors can touch and experience the machines for themselves at the event." Like his entrepreneur colleagues, Geiger, a supplier of metal working machines, has done good business world-wide in recent months: "A whole bus filled with interested buyers from Russia were guests at our headquarters - and one customer from Brazil immediately ordered a container full of machinery," he says recounting one of his recent lucrative deals.

RESALE also enjoys great support from the Association of German Wholesale Dealers in Machinery and Tools (Fachverband des Maschinen- und Werkzeug-Großhandels - FDM) in Bonn. "There is exceptionally strong demand for used machine tools at the moment, especially from abroad," agrees Kurt Radermacher, Managing Director of the FDM. "Eastern European countries, and also India, Russia, China and many other Asian countries are constantly growing in importance." This again makes RESALE an ideal platform for building international contacts for members of the association. "The specialist dealers in used machinery organised within the FDM will be well-prepared and fully represented in Karlsruhe," says Radermacher. The FDM and a large number of its member companies will be raising their flag over their own stand at RESALE.

The EAMTM and most of its member companies will also be represented as exhibitors at RESALE 2007. Both associations operate internet portals, which - according to their own information - list 20 000 machine tools available for immediate delivery.

70 percent of visitors from abroad

The experience of RESALE's organisers matches the observations of the various associations. There is strong interest from every corner of the world. The proportion of foreign buyers at the trade fair is again likely to top 70 percent. "A large part of the demand continues to come from Eastern European and Asian countries. The Ukraine and India are again the most strongly represented," confirms Florian Hess, the organiser of RESALE. There is also strong demand from Iran, Turkey, China, Sri Lanka, Pakistan, Egypt and Algeria. The same applies to Russia, Poland, Belarus, Serbia and the African countries of Nigeria, Zambia, Benin and the Democratic Republic of Congo. There is even growing interest in the crisis-ridden countries of Afghanistan and Iraq.

The greatest interest from Latin America is from Ecuador, Peru and, most importantly, Paraguay. The advertising campaigns by the German-Paraguay Chamber of Industry and Commerce Abroad (AHK) in Asunción were particularly successful. "Over 19 companies enquired about very specific used machines," reports Marcelo Martinez, head of the trade fair department at the AHK. For example, there were people looking for packaging machines for fresh yeast, equipment for manufacturing ethanol from sugar cane and a Roland Favorit 48 x 66 offset machine. More visitors than ever before are expected to attend from Albania. The Tirana branch of the GTZ - German Association for Technical Co-operation (Gesellschaft für Technische Zusammenarbeit) - attracted 110 participants to a joint information event co-organised by RESALE and the visa department of the German Embassy.

Leveraging new sales

In Georgia, the branch of the GTZ in Tiflis, in particular, has done extensive advertising for RESALE 2007. Georgia is an up-and-coming market in any case. "The goverment is investing a great deal in the country's infrastructure," says Detlef Tandetzki, Sales Manager of Remarketing Europa at manufacturer CNH, Case New Holland, "and they will need a lot of construction machinery." He adds that over 160 used machines have been delivered to Georgia during the past two and a half years. For CNH and Orenstein & Koppel, the manufacturer of construction machinery they acquired, used machinery has become a way of leveraging their sales of new machines. They hope that this strategy will work in Georgia as well as it already has in Hungary, among other places. "At first we sold eight-year-old machines there, then four-year-old machines," recalls Tandetzki, "now we sell new machines there." However, that strategy only works if you deliver top quality used machines. And that is not always as easy as it sounds because a lot of buyers just want low prices. "We have to work hard to convince them that buying cheap products can be far more expensive in the long-term."

And CNH has spotted even more connections between used and new sectors: The demand for new machines has grown so ever more used machines are being sold all over the world. "To some extent, there is simply not the capacity to be able to deliver new products quickly," is the analysis of Detlef Tandetzki. Companies are bridging the waiting times with used machinery. Another phenomenon bringing ever more and ever newer machines onto the market is the availability of so-called "rental fleets". New machines are provided for very specific projects using leasing models, usually running for 12 - 18 months. "Depending on the actual duration the machines are used for, we accept the machines back at a remaining value of plus/minus 70 percent of the new price," says Tandetzki. This fleet of machines is then available for the used machinery market. CNH will be represented during RESALE on a 320 m² area of the open-air site: Tandetzki adds that Karlsruhe is an excellent location, in particular because of its proximity to the Alsace region.

Over 100 percent growth

Another RESALE exhibitor, MBM Maschinenservice und Gebrauchtmaschinen, is also experiencing the rapidly rising demand for second-hand machines with its special milling machines. "Many manufacturers have barely invested in their companies in recent years," says Josef Mayle, Managing Director of MBM. "They were surprised by the boom and are working to full capacity, so they are desperately looking for machinery." New machines often come with long waiting times of up to a year so companies are quick to take advantage of used machines. MBM, from Ellwangen in Germany, primarily operates in the German-speaking world and has seen demand for its milling machines grow by over 100 percent. The company expects that this development will have a very positive effect on the visitor numbers at the upcoming RESALE.

Euro Auctions, an auction house from Northern Ireland, has set its sights on the Eastern European market at RESALE. A year ago it opened a branch in Dormagen, where it holds one-day auctions four times a year. "At our events several hundred machines get driven up the ramp one after another," explains Sven Becker, Managing Director. Every single machine is auctioned off within one minute with no reserve price. Construction machinery, commercial vehicles, agricultural machines and accessories all come under the hammer. Most buyers travel from Germany, Western Europe, Poland and the Baltic States. "The enormous supply of machines mean that buyers can even choose the year of construction," says Becker underlining the point.

Global

Just as in previous years, the RESALE team has received large numbers of enquiries for used machinery from all over the world - these have been forwarded to the appropriate exhibitors. "We are looking for cement production lines for one of our customers," says Magdy Abdel Aziz from EGT in Cairo. "Other customers want to stay longer in Germany after the trade fair viewing machines and factories." Further to the south-west on the African continent, in Togo, a company is looking for a clay brick press. One company from Mongolia would like to find a bone separator and is also looking for a machine for preserving meat including a labelling unit. Valeriy Petsgold, visiting RESALE from Simferopol in the Crimea, hopes to find equipment for processing renewable resources: "Together with an investor, I want to manufacture biodiesel from rapeseed."

Local Day

For the first time, companies from the local region who are interested in buying used machinery will have the opportunity to visit RESALE at the discount price of 5 EUR under the motto "Local meets Global". They can visit the trade fair from 16:00 - 20:00 on Thursday 19th April 2007 as part of the "RESALE Local Day". The many used machines on display for all sorts of companies include not just CNC machining centres or forklift trucks, but also "takeaway" products such as laptops or small machines. This event is especially interesting for the many small- and medium-sized companies for whom used equipment makes a good value alternative to more expensive new machines.

From every sector

The focus of demand mostly matches the range of products on offer from RESALE exhibitors. Metal working machines are the most strongly represented category accounting for over 50 percent of the available machines. "Nearly one fifth of the participating companies are offering plastic processing machines," says Florian Hess listing the various sectors. "Wood-working machines, packaging machinery and motive power engineering are each being offered by ten percent of the exhibitors." Other well-represented sectors include food processing machines, construction machinery, agricultural machines, commercial vehicles as well as printing and paper processing machinery. "We also have stands for robotics and automation, measurement and testing equipment and machinery for waste disposal and recycling," adds Hess. "Other product groups on offer include textile machines, telecommunication and IT equipment, medical-technical systems as well as power plant equipment and machinery and equipment for the chemical and pharmaceutical sector."

Well over one third of all exhibitors come from abroad. The leading source of foreign exhibitors is France with 36 participating companies, followed by Italy with 34, Switzerland with 31 and the United Kingdom with 22 exhibitors. Other strongly represented countries include the Netherlands, Austria, Denmark, Spain and Belgium. A total of 28 countries will be providing exhibitors at RESALE 2007. Foreign exhibitors also come from the Ukraine, Russia, Slovakia, Iran, Israel, Canada, Taiwan, the Czech Republic and the USA. 65 percent of RESALE exhibitors are dealers and nearly 20 percent are manufacturers.

RESALE's comprehensive internet service in 18 languages allows exhibitors and visitors to make the best possible preparations for their visit to the trade fair. As well as German and English, information is available in 16 other languages: Albanian, Arabic, Chinese, Farsi (Persian), French, Italian, Croatian, Dutch, Polish, Romanian, Russian, Serbian, Spanish, Czech, Turkish and Hungarian. Visitors and exhibitors often make their first contacts through enquiries about machinery well before the trade fair. These are sent direct to RESALE exhibitors from interested buyers via www.resale-germany.com.

Strong partners

As well as BDEx, FDM and EAMTM, there are many more associations, organisations and institutions who provide valuable support to the trade fair. They do public relations work and run advertising campaigns for RESALE - and exhibit in Karlsruhe. DUMA, the Dutch Used Machinery Association based in Nieuwegein, is represented by six companies. For the first time, the U.S. association MDNA will also be exhibiting at RESALE. It represents around 400 members from the USA and Canada with its main focus on the metal working sector. Its members are also active in the plastic processing, wood working and process technology sectors.

The following associations are also represented through information stands at RESALE :

- bfai, Bundesagentur für Außenwirtschaft, Köln German Office for Foreign Trade, Cologne
(German Office for Foreign Trade, Cologne) with 45 correspondents abroad
- H.A.G., Hauptarbeitsgemeinschaft des Landmaschinen-Handels und -Handwerks, Essen (Umbrella Organisation for the Agricultural Machinery Trade and Manufacturing Industry)
- WTC, World Trade Center Ruhrgebiet, Gelsenkirchen, representing 320 World Trade Centers in 97 countries

Fringe events

The varied fringe programme also reflects the international importance of RESALE. The SES (Senior Expert Service) from Bonn will be holding an information event from 15:00 on Wednesday 18th April 2007. The topics are: "SES, a foundation run by German business, provides voluntary help for self-help", "Assignments in developing and industrialising countries" and "An important sphere of activity, also for companies transferring used machines to foreign countries."

The "Russian Business Forum" will also be taking place on 18th April 2007 in the conference area of Messe Karlsruhe. It is being run by Alexander Kaul from Intex, a company based in Engelskirchen. The event lasts for 3 hours and starts at 14:00. Presentations include lectures on: "Foreign Trade" with Anton Zhuraviev from Bonn and "German-Russian Co-operation in Politics and Business" with Genadi Golub from the Russian Consulate in Leipzig. Ekaterina Boger will speak about "Investing in Kazakhstan". This is a presentation by the "German-Kazakh Association of Entrepreneurs". Alexander Kaul will be discussing "Project Developments by German Companies in Russia".

On Thursday 19th April 2007 from 10:00 - 16:00, Schindler Boltze, a law firm based in Karlsruhe and Krakow will be presenting five lectures on "Risks, Financing and Management in the International Used Machinery Business". These will include presentations by speakers from Gerling Vertrieb Deutschland GmbH and the Baden-Württembergische Bank, among others.

On Friday 20th April 2007 from 10:00 - 12:00, Christoph Schmitt, Managing Director of the Iberian-American Association (Ibero-Amerikaverein) in Hamburg will be presenting a lecture entitled "Latin America - A Market for Used Machinery". Most events will take place in the Forum in Hall 1 and are therefore at the heart of the action at the trade fair.

Triple pack with Hannover and Munich The dates for RESALE 2007 will be welcomed - it starts two days after the start of the Hannover Fair. After two or three days visiting the Hannover Fair, foreign visitors can travel directly to RESALE - without having to bridge empty days in between. Customers interested in construction machinery even have the opportunity to combine their stay in Germany with two trade fairs. After visiting RESALE, they can travel to bauma in Munich to find out about new machinery available in the sector. RESALE 2007 takes place from Wednesday 18th to Friday 20th April 2007 at Messe Karlsruhe and is open daily from 9:00 - 17:00, on Thursday until 20:00.