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Annual Report: No. 16 Sweden- Keeping on a growth path

July 8th, 2006

Aircraft parts and antibiotics led a dramatic jump in exports from the Peach State.

Georgia pushed its exports to Sweden up an impressive 63 percent in 2005 as it edged toward the $1.2 billion mark in bilateral trade.

Four of the state’s five most important exports, led by regional jet parts, saw triple-digit growth last year. The other – the antibiotics group known as sulfonamides – became a significant export for the first time in 2005. Overall, Georgia exported $285 million in goods to the European nation.

On the other side of the trade exchange Georgia’s imports from Sweden fell 5 percent last year, although the category of electric equipment for line telephony saw a dramatic 85 percent jump in value when compared with 2004. The total import tally closed the year at $903 million.

The state’s relationship with Sweden should be bolstered by the debut in Savannah of a 1.7-million-square-foot distribution center for Swedish home furnishing company IKEA. The first phase of the project, which is situated on 115 acres at the Savannah River International Trade Park, should be completed by summer 2007. The distribution facility will provide inventory for IKEA stores in Georgia and elsewhere in the South.

Keith Keller, president of IKEA’s North American distribution services, has called Savannah one of the fastest-growing ports in the country. He said it offers the long-term capacity and infrastructure that his company needs in the United States.

For 2005, it was the aviation industry that stole the export show. Georgia shipped more than $34-million worth of regional jet parts – a 164 percent jump from a year earlier – and an additional $30 million in airplane engines. Georgia also sold $18.5 million in aircraft parts. That was up almost 171 percent from a year earlier.

Swedish-bound shipments of harvesting machines and grass mowers were also up. And nearly $18 million in sulfonamide antibiotics were sent from Georgia to the European nation last year. The Savannah Customs District did not register any exports of sulfonamides in 2004.

But shipments kaolin clays, an important export commodity for the state, were off by 3 percent to close the year valued under $17 million. Georgia ranks second only to Virginia in kaolin clay exports from the United States. The Thiele Kaolin company in Sandersville in central Georgia ships to Europe.

Swedish-bound exports of U.S.-made passengers vehicles fell by 36 percent in 2005, to close the year at $7.4 million. Georgia’s imports of Swedish passenger vehicles, the state’s largest import commodity from the European nation, were also down, falling 6 percent to 48 million.

According to the Swedish Trade Council in Chicago, the majority of imports are Volvo passenger cars manufactured in Gothenburg and buses made by Scania, which has a plant in Sodertalje. Volvo, which is now owned by General Motors, also supplies the North American market from U.S. automotive plants.

Georgia also imported cargo trucks and construction equipment from Sweden. A major importer of Swedish construction machinery is KCI Konecranes in Norcross.

While Georgia brought in Swedish vehicles, it also imported Swedish vehicles parts. Those shipments rose 2.5 percent in value last year to total $16 million.

Among the Top 5 import commodities, the biggest growth came in the telecommunications sector. Imports of electric equipment for line telephony rose nearly 85 percent to rank as the No. 2 import from Sweden.

Cell phone transmission apparatus moved into third place falling nearly 63 percent in value compared with 2004.

Despite the increase in exports in 2005, Georgia’s trade imbalance with the Scandinavian country topped $618

million.