Norway Industry Outlook | FASTENER EURASIA MAGAZINE
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Norway Industry Outlook

Europe’s northernmost country, the Kingdom of Norway is well known for its mountains and spectacular fjord coastline, as well as the history as a seafaring power.

Norway also enjoys one of the highest standards of living in the world, in large part due to the discovery in the late 1960s of offshore oil and gas deposits.


Capital: Oslo
Population: 5.165.802
Surface area: 385.178 km2
GDP: $ 403 billion (nominal - 2019)
Real GDP growth rate: 1.2%
Unemployement rate: 3.7%
Export (2019): $ 166 billion 
Import (2019): $ 146 billion

Main export items : Crude oil, petroleum gases and other gaseous hydrocarbons, fish, untreated aluminum. Major export partners are the UK, Germany, the Netherlands, Sweden.

Main import items: Cars, station wagons, race cars, petroleum oils, cruise ships, ferries, cargo ships, barges, electrical devices. Major import partners are Sweden, Germany, China, USA.

NORWAY ECONOMIC OUTLOOK

After experiencing two years of economic downturn, the Norwegian economy has rebounded and recovered from the oil shock. GDP growth was expected to have hit 1.2% in 2019, particularly due to non-oil sector expansion and rising housing investment. According to the updated IMF forecasts from 14th April 2020, due to the outbreak of the COVID-19, GDP growth is expected to fall to -6.3% in 2020 and pick up to 2.9% in 2021, subject to the post-pandemic global economic recovery.

Norway is a rich country, with one of the highest GDP per capita in the world. The country also scores at the top of the United Nations Development Programme’s Human Development Index ranking. Unemployment, which had reached an eleven-year high in 2016, was expected to have declined to 3.7% (3.9% according to Statistics Norway). However, the IMF expects this trend to be heavily affected by the negative economic impact of the COVID-19 pandemic, the rate being currently estimated to increase to 13% in 2020 and decrease to 7% in 2021.


MANUFACTURING AND PROCESS INDUSTRIES

The Norwegian manufacturing industries employs about 240.000 people or 9% of the total employment. There has been a rise in employment and value creation since 2005, mainly due to high investment activity in the petroleum business and more export due to favorable currency.  


Production of machinery
This is a worldwide leading sector for machinery to for ships and offshore installations, as engines, turbines, pumps, propulsion, drilling equipment, lifts and cranes. New green products as garbage sorting equipment is increasing their global market shares. Parts of advanced materials and composites are increasing their markets.  Machinery produced in Norway are installed in ocean vessels and offshore oil production all over the world. The industry are in the forefront with innovative technologies for the reduction of fossil fuel consumption, use of LNG, reduction of climate emissions as CO2, SOx and NOx, hybrid and electric propulsion, cleaning of water and sewage.

Process industry
Metallurgical industry, pulp and paper, fertilizers, chemicals and pharmaceutical industry stands for half of the export from Norway (not including oil and gas). The use of low cost hydropower as electric energy source has a more than 100 years history in Norway. World class companies, research institutions and universities are developing the industry for the future, using biocarbon and hydrogen instead of coke and coal. The industry has been in forefront in developing solar grade silicon and process equipment for the metallurgical and solar industry. Advanced high value products has been developed from the side streams of the main production, utilizing all the raw materials. Most of the process industry is today owned by global companies, and many of these have located their research and development centers in Norway.

Aluminum finished products
Due to the Norway’s position in primary aluminum production, manufacturing capacity of aluminum finished products have been developed to be in the international forefront. Aluminum parts production for automotive, extruded products for construction, and parts in consumer products are increasing their worldwide market share.

Electric mobility
Norway is leading the energy transition and electrification of transport, due to early and fertile policies enacted and sustained by Norwegian governments last 15 years. 

Norway’s ambition is to reduce greenhouse gas emissions with 40% within 2030 (compared to 1990 levels) and to be carbon neutral in 2050. This is adopted by Norwegian law in the Climate policy. Transport, including maritime transport, accounts for a large part of Norway's greenhouse gas emissions and thus plays an important role in reaching Norway’s climate goals. The Climate strategy for transport in National Transport Plan aims for a 50 % reduction of emissions from transport by 2030.  

A World Leader in Sustainable Energy
Norway´s electricity generation is 97% renewable and the Norwegian Government has set ambitious targets for even more sustainable energy use. By 2020 Norway aims to reduce emissions of greenhouses gases by 30 percent. Several measures including electrification of the transport sector will bring the renewable share of total primary energy consumption to 67.5 percent, the highest renewable share in Europe.

The Norwegian renewable energy sector comprises approx. 2 000 companies, 50 000 employees, and a revenue of 200 billion NOK (2010). Nearly all electric energy generated in Norway derives from hydroelectric power. Norway currently produces 140 TWh of electricity, and aims to increase the renewable power production by an additional 13.2 TWh by 2020.

Wind and Solar
Norway has vast wind energy resources both onshore and offshore. So far only 632 MW of wind power has been installed (2012) – almost exclusively on land. The world’s first floating wind turbine has been in operation ten kilometers off the coast since 2009, with a capacity of 2.3 MW. Norway is utilizing the knowledge and experience from offshore oilfield and maritime operations for future offshore wind power development.

The solar energy sector has seen considerable growth over the last 20 years and Norway was Solar PV pioneer. Although domestic wafer production has declied in recent years Norway is still a major producer of solar grade silicon ingots and high grade wafers.

Maritime
Norway counts for less than one per mille of the world’s population, but is a maritime superpower and a frontrunner when it comes to sustainable maritime technology.
Of the first 50 LNG propelled vessels ever built, 95 % were Norwegian. AMPER, the world’s first electrical car and passenger ferry powered by batteries entered into service in early 2015 in Sognefjorden, Norway. The ferry carries 120 cars and 360 passengers, but only uses 150 kWh per route, which corresponds to three days use of electricity in a standard Norwegian household. Both are examples of the ability and willingness in the Norwegian maritime industry and the government to innovate for a better future.

The maritime industry in Norway is a global knowledge based industry with a strong position in markets worldwide. With a total value creation close to 175 billion and more than 110,000 people employed it is among the largest and most important industries in Norway. The industry also accounts for a large share of Norwegian export. 

The export of ship's equipment from Norway is remarkably high. Almost 90 per cent of ship's equipment from Norwegian companies ends up as exports. This position is created through continuous innovation - an ability that will be crucial when the industry now faces a weaker offshore market due to low oil prices
 

AUTOMOTIVE MARKET
Electric cars accounted for a 44.3% share of Norway’s new car sales in January, rising year on year but falling short of the 50-60% range the industry forecast for 2020, data from the Norwegian Road Federation.

In January 2019 electric cars made up 37.8% of sales in the Nordic country and climbed in subsequent months to an overall 42.4% market share for the full year.
As it seeks to phase out the sale of combustion-engine cars by the middle of this decade, oil-producer Norway has exempted battery-powered vehicles from taxes imposed on those running on petrol and diesel.
As a result of the policy, Norway has the world’s highest rate of electric vehicle use, making it a valuable testing ground as car makers seek to promote new models.

In January, German auto maker Audi’s fully-electric e-tron sports utility vehicle was Norway’s top-selling car for the second time in four months, hitting a market share of 9.4%, registration data showed.
Audi delivered 902 electric SUVs, ahead of Renault’s Zoe with 533 cars and Volkswagen’s Golf with 511.

In 2019, Tesla’s mid-sized Model 3 was by far the most popular car in Norway with some 15,700 vehicles sold for the full year, racking up an 11% share of the market.

 

Supplying markets for fasteners imported by Norway
Unit: US Dollar Thousand

Exporters

Imported value in 2015

Imported value in 2016

Imported value in 2017

Imported value in 2018

Imported value in 2019

World

197,029

182,563

192,090

232,832

249,932

Taiwan

34,107

35,785

39,563

40,268

41,877

Germany

25,208

23,077

29,265

36,023

37,171

China

21,320

18,868

21,682

32,561

31,101

United Kingdom

34,739

19,771

14,945

21,470

27,406

Sweden

28,467

21,533

16,318

17,123

17,984

USA

6,532

7,963

6,809

8,532

11,236

Finland

1,350

3,618

4,365

9,700

10,665

Italy

5,134

5,175

5,595

7,839

8,064

Denmark

5,190

6,592

7,759

7,711

7,641

Vietnam

3,105

5,730

6,333

5,994

6,535

France

2,974

2,159

3,068

5,486

6,340

Malaysia

2,960

3,778

5,531

6,385

6,055

Switzerland

4,325

4,812

4,892

4,958

5,201

S.Korea

314

849

986

1,612

4,220

Netherlands

4,073

4,104

4,099

4,082

3,846

 

Importing Markets for Fasteners Exported by Norway
Unit: US Dollar Thousand

Importers

Exported value in 2015

Exported value in 2016

Exported value in 2017

Exported value in 2018

Exported value in 2019

World

89,538

68,016

71,248

73,423

85,708

Denmark

17,306

17,291

22,777

29,514

29,976

Angola

2,937

2,208

2,193

1,000

6,947

Sweden

7,479

4,552

4,928

6,584

5,936

USA

5,002

5,308

3,946

3,224

4,309

Germany

2,814

4,149

1,308

1,980

3,705

Singapore

5,402

2,921

1,426

2,917

3,634

United Kingdom

7,552

2,297

2,990

4,108

3,178

Russian Federation

324

577

3,886

1,562

2,774

Netherlands

3,811

2,961

2,436

3,458

2,393

China

4,411

2,424

3,055

4,034

1,901

Poland

2,484

1,759

1,224

1,119

1,751

Faroe Islands

200

386

418

581

1,467

India

337

1,083

1,965

105

1,250

S.Korea

10,121

3,616

5,772

1,811

1,107

Mexico

24

532

114

153

1,107