Foundry market in Europe: falling production volumes and Turkey on the rise

The latest statistical update on the foundry sector in Europe, contained in the publication "The EuropeanFoundry Industry 2023" produced by the EuropeanFoundry Federation (EFF, formerly CAEF) and relating to 2023, reports that, as a whole, the European foundry industry has 3,847 plants and employs over 233,600 direct workers. Total production amounts to 14 million tonnes of ferrous and non-ferrous castings, with a turnover of almost 44 billion euros.

Non-ferrous foundries are the majority in terms of number, representing 57% of the total, while ferrous foundries constitute 43%. However, in terms of workforce, ferrous foundries employ a higher percentage of workers, equal to 53%, compared to 47% of non-ferrous foundries.

Despite the lower number of foundries, the ferrous foundry sector is dominant in terms of production and turnover. The production of ferrous metals covers 73% of total production, while non-ferrous production stands at 27%. Even in turnover, ferrous foundries prevail with a share of 60%, compared to 40% of non-ferrous foundries.

The trend of European casting production between 2006 and 2023: between crisis, recovery and stabilization

In the long term (2006-2023), the overall volume of castings production in Europe has undergone an average annual reduction of about 0.4%, which suggests a moderate decline and with significant annual fluctuations influenced by impactful macroeconomic events such as the 2009 global financial crisis and the 2020 COVID-19 pandemic.

Although the final value in 2023 (14,423 tonnes) is lower than the initial value (17,147) in 2006, the decline is relatively limited, with a decrease of about 16% in the period considered (almost 3,000 tonnes). The overall trend therefore shows a slight reduction, but not a drastic collapse. Peaks, such as in 2007 (17,613 tonnes) and 2018 (16,705), were followed by declines, but the general trend was to stabilize at lower values ​​after 2010.

In recent years, production volumes of European foundries have stabilized around 14 million tonnes of castings, suggesting a possible post-pandemic consolidation phase, but without returning to pre-crisis peaks.

Long-term production dynamics of the top five European producers

On the overall long-term decline trend of European production, individual countries had a very different impact: Turkey was the positive element, but significant declines in Germany, Italy, and France prevailed, leading to an average annual decrease for Europe over the period considered.

• With a CAGR of +7.8%, Turkey demonstrated a strong positive contribution, partially offsetting the declines of the other major countries. Its robust growth acted as a "strong point" for the European total.
• Germany, Italy, and France recorded negative CAGRs (Germany: -2.1%, Italy: -2.3%, France: -2.5%), contributing significantly to the overall decline. In particular, France showed the largest negative contribution, with a more marked decline than the others.
• With a negative but more moderate CAGR (-0.5%), Spain had a less significant impact, but still contributed to the overall negative result.

Overall, in the period 2006-2023, the European foundry market recorded a decline in terms of percentage changes between the two years of -16%, negatively affected by Germany, Italy, France and Spain, but offset by the exceptional growth of Turkey. In general, we can observe a significant divergence between the latter and the other countries.

• Turkey emerges as a case of sustained growth in the period considered with a development of +152% (+1.8 million tonnes).
• Germany and Italy saw a significant decline, with negative variations of -29% (-1.6 million tonnes) and -30% (-779,000 tonnes) respectively.
• France had the strongest decline in terms of percentage changes among the countries, with a decrease of -37% (-884,000 tonnes).
• Spain had a more moderate decrease -5% (-61,000 tonnes), suggesting a relatively better performance than the others.

Country ranking based on 2023 data, in terms of production

The top five countries (Germany, Turkey, Italy, France and Spain) account for 80% of the total European casting production in 2023.

Germany, despite a significant overall reduction, remains the leader in the sector in Europe. Turkey has seen significant expansion, gaining market share, while countries such as Italy and France have seen significant fluctuations that have penalized them in maintaining the second and third positions in the ranking.

Turkey's growth is an interesting aspect, with a rapid expansion since 2009, which has led it to now position itself in second place in the top 5.

• Germany: 3,911,700 tonnes (27% of total production)
• Turkey: 3,050,329 tonnes (21% of total production)
• Italy: 1,861,720 tonnes (13% of total production)
• France: 1,523,722 tonnes (11% of total production)
• Spain: 1,181,563 tonnes (8% of total production)

With 3,912,000 tonnes, Germany confirms its position as the main producer of castings in Europe, with a significant share of 27% of total EFF production. Despite a significant contraction compared to previous years, the German foundry manages to firmly maintain its leading position in the sector with a significant distance (almost one million tonnes) compared to the second European producer.

Turkey has shown impressive growth in recent years, ranking second with 3,050,329 tonnes, or 21% of total production. This represents a significant expansion of its weight in the industry, consolidating its role as a rapidly growing player in the European foundry landscape.

Italy, with 1,860,000 tonnes (13%), ranks third. The losses suffered over the last few years have cost our country a slippage from its historic position as the second largest producer behind Germany.

With 1,524,000 tonnes (11%), France, like Italy, has lost a place in the ranking of the top five producers.

Finally, Spain follows in fifth place with 1,182,000 tonnes, or 8% of the total.

The remaining countries show a significant gap compared to the top 5 in terms of production volumes of European foundries. Among the smaller countries, the most significant production is that of Poland, with approximately 750,000 tons, which ranks sixth. All other producers, however, are below 500,000 tons.

Comparison of ferrous and non-ferrous foundry sectors in Europe

The foundry market in Europe presents a clear distinction between the ferrous and non-ferrous foundry sectors, with specific dynamics and characteristics for each sector.

While non-ferrous foundries are more numerous, representing 57% of total European plants, it is the ferrous foundry sector that dominates in terms of production volumes and turnover, generating 73% of total production and 60% of total turnover. This contrast highlights how ferrous foundries tend to be larger and more high-throughput establishments compared to non-ferrous ones, which generally operate on a smaller scale.

The distribution of the workforce also reflects this distinction, with ferrous foundries employing 53% of total workers, despite representing only 43% of plants. This suggests a higher labour intensity in the ferrous sector compared to the non-ferrous sector.

Amid a general contraction in production volumes in European foundries, both sectors have faced significant challenges, but with different impacts. International competition, particularly from Turkey, has significantly influenced market dynamics in both sectors, with the effects being more pronounced for ferrous foundries in Western European countries.

Source: M. Pisanu for In Fonderia – Il magazine dell’industria fusoria italiana