1.   This is partly because little new capacity will be needed this century due to the low level of increase in electricity demand.

2.   Growth in export markets has slowed down and at the same time new malting capacity has come on stream leading to a very competitive market place.

3.   Despite a growing world market, competition remains fierce and will only intensify in the short term as new malting capacity is commissioned in numerous countries.

4.   On the demand side, firms with new capacity will tend to cut prices in an attempt to win markets from their rivals with older equipment.

5.   Although the market for electronic products has been growing for decades, manufacturers of chips and other components tend to overinvest in new capacity when sales are especially strong.

6.   And both of those are targeted at new products, new product development, new manufacturing technology, new manufacturing capacity.

7.   And building new capacity will require significant investment.

8.   And oil services companies have been scouring the world to buy used equipment and investing heavily in new capacity to build rigs.

9.   And the Asian crisis has forced Asian competitors to halt their massive investments in new capacity.

10.   As well supply is steady with little new capacity expected in the next few years and a lot of idled capacity at the moment, he said.