China Fastener World Magazine No.62_Global Version

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Technology Article provided by COVENTYA

Do Bolts Require Lubrication?

Millions of various screws are used to connect components every year.

Yet often it is not known, or at least not sufficiently appreciated, that bolts and lubricants are indispensably linked.

The function of a threaded connection is based on its ability to build up pretensioning force between parts to be connected. The applied tightening torque is translated via the thread pitch into the resulting preload force.

Without lubrication, the friction losses of combined head- and threadfriction reach values up to 90%. That means only 10% of the tightening torque is available to apply pretension force. A defined friction value with low variation is an absolutely mandatory product feature for all threaded connections. The mechanical elements, used fastener, and lubricant are parts of a tribological system. Pretensioning force, coefficient of friction, and tightening torque are mathematically connected. Lubrication is the system’s central element. It is important to know that there are many parameters for the tribological system of part and bolts. So while one and only lubricant for all applications is not possible, the best solution can still be found based on a set of selection criteria.

Standard Guideline No. 1: No Threaded Connection Without Lubrication Main issues regarding insufficient lubrication: 1) Pretension Load Out of Spec • This problem may result in leakages (flanges or oil pans) when the used fasteners show different pretensioning force from screw to screw.

• Too low pretensioning force (as a result of too high friction) can trigger self-loosening of screws.

2) Seizure of Threads Seizure of threads can occur during tightening of screws for materials such as austenitic steels or zinc platings this is very likely, while other material combinations show high friction values and high scatter. In the case of bolts made of high-temperature steels, thermal expansion can lead to high specific surface pressures on thread flanks: the yield point is exceeded and welding occurs.

3) Corrosion Water and/or oxidizing gases penetrate the thread area - this causes the screw to seize up due to rust - normal loosening of the connection becomes impossible. Rust formation blocks the thread and make it impossible or much more difficult to dismantle the screw as intended.

4) Cracks, Material Brittleness, Stress Corrosion Cracking, Fretting Corrosion High-strength and heat-resistant screws are susceptible to cracks or stress corrosion, cracking under certain conditions.

The presence of elements such as chlorine, fluorine, sulphur, lead, or aluminium accelerate the effects. Lubricants have to be formulated with metallurgical compatibility in mind.

Fretting corrosion is an extremely effective wear mechanism - parts must be protected with highly-effective specialty lubricants.

5) High Torsional Load During Tightening - Risk of Breakage High friction automatically generates high torsional stress, which can lead to premature screw breakage.

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• Too high pretensioning force in combination with dynamic loads could lead to the yield strength of screws being exceeded, with subsequent loss of elasticity leading to breakage.

Technology Standard Guideline No. 2: Fastener Lubrication is a Specialist Issue How to Select the Right Lubricant The following graphic shows the parameters that are crucial to selecting the right lubricant for a given threaded connection. The selection guide is based on tribological system elements, combined with practical experience and knowledge of the specific market segment.

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Summary

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Various fasteners, materials, application and service conditions, specifications etc. require specific lubricant solutions. Many world leading lubricant solutions providers (e.g., COVENTYA and microGLEIT) are capable of offering these solutions to make it work and last.

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Cover Story

3 Silver Bullets to Rise Above Heightened Market Pressure

by Dean Tseng, Fastener World Market demand is increasing around the world this year, but global container shortage just broke out last year and led to drastic throughput contraction on harbors along numerous shipping routes. Containers are left sitting all over the world and it causes a surge in container transportation cost and product price. Hisener shot 3 silver bullets at the disordered surge in demand, cost and price and walked out of this storm safely. Now it continues to supply over 4,000 types of fasteners to customers in Europe, Russia, the U.S. and Latin America. In the last two years, it has exported 87,000 tons of products, up 17%, and become one of the largest fastener suppliers.

Smart Factory; Increased Price Competitiveness The company adopted an automatic inventory and scanning system and integrated the whole production process which greatly reduces logistics costs and improves operating efficiency of the plant to make products more competitive. “We will be a futuristic smart factory and continue to increase investment in R&D, production and DIY packaging.”

Over a Hundred Select Firm Partners; Strict Quality Control The company has 150 firm partners carefully chosen to help speed up deliver y and send products to buyers faster, including Timber Screws which sell well in the European DIY market. It also offers inventory specifically for Chinese clients.

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It is certified to CE EN14592 for structural fasteners and CE EN 14566 for mechanical fasteners and its products are popular among European clients.

All the production process is certified to ISO 9001 and re-audited and adjusted every year. It has its own screw factory, a packaging line for DIY products and a warehouse. The company can pack around 50 containers of products per month. It uses heading machines, thread rolling machines, thread cutting machines, bit forming machines and other equipment purchased from Taiwan. All the production process is fully monitored and controlled via a digitalized ERP system. It has dimension measuring instruments, metallurgy analyzers, mechanical testers and surface analyzers in its laboratory for quality inspection to control product quality.

Elevated Capacity in 2021 Hisener will have its new plant completed soon this August. The new plant will be 26,000 square meters and raise the screw capacity to 1,500 tons per month. Through the smart factory, collaborative companies and increased capacity, the company has a strong base to tackle market fluctuations. “In a market backdrop where global material prices surge and shipping costs hike with the worsening pandemic, Hisener is doing its best to reassure clients’ benefits, maintain quality, capacity and punctual delivery, and get through this hardship with clients! ” Contact: General Manager Simon Liang

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E-Mail: simon@hisener.com

Editorial

Green and Exorbitant Steel

by Dean Tseng, Fastener World

Is the Fastener Industry Ready for the Change?

Steel Price Goes Through the Roof China exported 7.974 million tons of steel this April and hit a monthly record high that had never been recorded since the end of 2016. The first 4 months saw a 25% increase to 25.65 million tons in export and a 17% increase to 4.89 million tons in import .

However, people were caught unprepared as the Ministry of Finance of China announced close to the end of this April to retract the 13% VAT rebate on export of certain steel products including wire rods, effective from May 1. In a backdrop of escalating steel demand worldwide, China removed the VAT rebate on export of certain steel products and took measures to increase steel import, in order to make up for the shortage of supply resulting from decreased domestic crude steel capacity. This brings China’s steel export to a halt and signifies urgent demand for steel in the country.

In May, ShaGang Group, Yonggang Group, Liuzhou Steel Group, Guangzhou Iron and Steel as well as other steel plants in China raised their steel prices at the same time, leading to an overall steel price which is likely to surge to RMB 6,000 per ton in a later time frame. Even billet, a raw material for steel, saw its price up 3 times in a day, which is termed by the media as “mad billet price” and “skyrocketing steel price”. Some of the downstream companies couldn’t take it and said the material price had exceeded the price when they received orders. They would rather go as far as to breach or cancel contracts and compensate customers than lose money in manufacturing products, in order to avoid massive deficits. The material price surge already forced some of the Chinese companies to raise the price charged on their clients.

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2021 marks the year when the price for everything goes up, and steel is just one of the materials in a price uptick. This is once again a wake-up call of inflation. Fastener companies as a steel-consuming industry must swiftly adjust or control the cost of orders they take before being devoured by the "colossus" of price surge. The status quo gives no one a definite answer for how long the "colossus" will stay or whether it will continue to grow. Fastener companies have to tighten up their belts or go for high-unit-price, high-profit orders to minimize deficits and weather the price surge.

Carbon Credit and Green Steel Production is on the Table The new U.S. administration gives the world a boost of confidence in the scrutiny over the effort on environmental protection, putting “carbon emission” back in the spotlight during the talks among nations. Earlier, the EU already announced the target to scale up carbon reduction, which is slated to slash at least 55% of greenhouse gas by 2030. Not only a lot of mainstream carmakers in the world have declared a manifesto of zero carbon emission, but also steel plants have been on the path of green production.

For example, the U.S will have its first steel plant completely driven by wind power, at an investment scale of USD 250 million.

It is located in the State of Missouri and is owned by Nucor, the second largest steel company in the U.S. This wind-driven steel plant will use wind power to drive the electric arc furnace to melt steel scrap into recycled steel. In Colorado, the first 100% solar-driven steel plant in the U.S. utilizing photovoltaic technology is expected to be operational in 2021.

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Editorial China released “Measures for the Administration of Carbon Emissions Trading” on December 25 last year and officially launched a carbon credit exchange system that will encompass the steel industry during the 14th five-year period of the nation. Clearly, the trend of carbon credit and green steel production has extended deep into the Chinese steel industry. China Baowu Steel Group has kick-started at the end of 2019 a collaboration with a third party in developing nuclear-driven hydrogen production to replace fossil fuel used in steel making.

HBIS Group, the second largest steel company in China joined the race and announced a project at the end of 2019 to build a model plant of hydrogen-driven metallurgy at an annual capacity of around 1.2 million tons. China has taken its first step in reducing carbon emission.

Will the Era of High-Price Fasteners Ensue?

It's Time to Complete Checkup on Your Corporate Structure Whether it is driven by wind, sun, nuclear or hydrogen, the technologies for steel production require tremendous costs for development. According to sources, the cost for hydrogen-driven steel production is at least more than 5 times the cost for conventional production using furnaces.

How much out of that cost or whether it will be shifted onto the steel price remains a mystery.

The steel price is just one of the factors affecting the cost. The manufacturing industry has the impact of surging overseas shipping price to cope with. As is known, there is an issue of jam-packed por ts coupled with the problem of container shortage, and as a result, 92 shipping lines in both the U.S. and Europe were canceled during the ends of March and May. Up to May, the shipping fee per large container in Europe hiked by USD 1,000 to 1,400. The highest shipping price was up to USD 10 thousand per container.

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To tackle these costs, downstream companies including the fastener industry must do a checkup over the manufacturing process (including handling materials, inventory and shipment), financial status, operation, dist r ibution cha nnels, a nd selection of clients, in order to plan their costs a few years ahead. Furthermore, they can consider taking orders for small-batch production and diversified products to make for a highly adaptive manufacturing and order intake. The current situation leaves no room for any slip that may result in a deficit.

Any failure due to carelessness may lead to the elimination of a business.

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Special Feature

nnovat on Alley

compiled by Fastener World

Press-N-Lok™ Pin SPIROL is pleased to announce the expansion of their Solid Pin Product Line to include the new Series BP100 Press-N-Lok™ Pin. The new Press-N-Lok™ Pin was designed to permanently retain two plastic components to each other. The pin has opposing raised barbs on each end that are angled backwards opposite to the direction of insertion. As the pin is being inserted, the plastic backfills into the area around the barbs resulting in maximum resistance to axial force providing a secure, tamper resistant assembly. The Press-N-Lok™ Pin is manufactured from lightweight, lead free, corrosion resistant aluminum. One major advantage of the Press-N-Lok™ Pin is that assembly time is quicker and it requires lower assembly equipment costs as compared to screws and adhesives.

Washer Sorting Machine OSI (Japan) is a manufacturer specialized in visual inspection machines whose products have been adopted by National Machinery from the U.S. OSI successfully developed a flat washer sorting machine called "Ultra View-SLD". The code SLD represents "slide" which means by rolling the flat washers, the machine can check the front and back sides via its camera. The first generation of the machine can check flat washers in outer diameters from 10 mm to 30 mm. Supply has been launched since October 2020.

Stainless Steel Adjusting Screws for Perfect Positioning

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On production machines and mechanisms, it is often necessary to carry out repeated positioning operations as simply and reliably as possible. For precisely such secure and simple adjustments as well as for quick changing of mechanisms or tools, Winco now offers three new parts that complement each other perfectly: stainless steel adjusting screws with an adjustment scale plus matching bearing blocks and knurled nuts. The innovative stainless steel adjusting screw GN 827 from Winco, the specialist of standard parts, is intended for use with bearing blocks GN 828 and simplifies the attachment of parts to various processing and assembly mechanisms in machines, installations and jigs. This means that processes that require the repositioning and adjustment of devices can be carried out much more quickly. The mechanisms are moved into or out of position using an adjusting screw with rotating knob and hexagon socket fitted with a scale with 0.1 mm graduations.

New Clinching Stud Bolts Clinching stud bolts are commonly used in the automotive industry. Pressing clinching stud bolts into materials often causes materials to warp or develop burrs which impacts the precision and quality of products. Japan Nitto Seiko's new clinching stud bolts can reduce warping and burrs and further decrease spinning. The inside of the lobe-shaped protruding part has a concave to house the deformed material. The deformed portion will stick out towards the male threads to prevent burrs as well as spinning. The product is pending for patent. The company is set to produce 1 million pieces per month.

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Special Feature Multipurpose Strong-Drive® CSV Construction Screw Simpson Strong-Tie, the leader in engineered structural connectors and building solutions, announced the expanded availability of its popular Strong-Drive CSV Construction screw to hardware and fastener suppliers in US markets. Available in 2½” and 3" lengths and coated with yellow zinc for protection against corrosion, the CSV Construction screw is a versatile, multipurpose fastening solution for a variety of wood-to-wood and engineered wood interior applications. Featuring under-head nibs, low-torque threads and a fast-start point, the CSV Construction screw drives effortlessly and is designed for general-purpose fastening.

Additional features of the CSV Construction screw include the following: (1) Low-torque threads allow up to 35% more drives per battery charge. (2) Ribbed-head design countersinks easily and provides a clean, finished appearance. (3) High-low point provides fast starts. (4) Optimized threads are ideal for dimensional lumber. (5) T25 6-lobe driver bit included.

Self-undercutting Anchor Japan Sunco Techno's self-undercutting anchor creates and expands an undercut hole in the wall in the fastening process while skipping many steps. The anchor body as well as its dedicated fastening tool contains a color mark for visual check to confirm the installation. The anchor's tensile strength is 400N/mm2 and the yield strength is 240N/ mm2. It has a mortise-like design through which a dedicated removal tool working as a tenon can extract it from the wall. The anchor is currently used on metal stairs, tunnel light hangers, overpasses, and in machine installation. It is available in steel and stainless steel.

EMALUCE Dry Plating Technology Plating processes often involve using a liquid agent, and therefore, they are mostly termed "wet plating". The EMALUCE plating by the Japanese Emanak Group differs greatly from other plating processes in that it uses dry plating without a liquid agent. EMALUCE eliminates the risk of stress reduction caused by heat and hydrogen embrittlement, and provides a high-level anti-corrosion effect on products such as high-strength bolts that are difficult to be plated.

Benefits: 1. Capable of treating both ferrous and nonferrous materials; 2. No stress reduction thanks to dry plating at room temperature; 3. Less acid treatment and electrolytic reactions; no hydrogen embrittlement; 4. No sealing required; 5.

Mechanical properties improved from the peening effect; 6. Environment-friendly.

Prehold Washer "Prehold Washer" by Taiyo Stainless Spring (Japan) is used for temporary fixing and improves operating efficiency. It is made of stainless steel, corrosion resistant and high strength. It allows a bolt to be inserted through its either sides and provides ease of bolt installation onto the automotive or machine components. The bolt and the components are fastened through spring reaction force.

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New Rust Prevention Line for High-salinity Environment Zinc depletion is often faster than expected when using zinc-rich paint in a high-salinity environment. On the other hand, the silicon-based ZECCOAT coating tends to gradually lose effect as the zinc-based anti-corrosion layer wears off. Therefore, Roval and Hoden Seimitsu have joined forces to develop a rust prevention line which will incorporate the following features: 1. Suitable for iron and galvanized surfaces. Able to keep automated parking garages, iron stairs, pipelines and bridges from corrosion; 2. Heavy metal free, eco-friendly and highly corrosion resistant; 3. Reducing zinc depletion in high-salinity environments, inhibiting corrosion and lowering maintenance cost.

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Fastener World News

Fastener World News

Up da te

compiled by Fastener World

World Steel Association Predicts Global Steel Demand to Grow 5.8% World Steel Association (WSA) predicts that the global steel demand will increase by 5.8% to 1.874 billion tons in 2021 and go up 2.7% to 1.924 billion tons in 2022.

Vaccinations in many countries worldwide have helped slow down the pandemic. Although some economic measures imposed by certain countries have taken effect, advanced countries are still expected to spend several years to recover to the pre-pandemic level.

On China alone, its local steel demand is expected to increase by 3% to 1.024 billion tons in 2021 and go up 1% to 1.035 billion tons in 2022. The effect of local market stimulus is waning, so the growth margin is on a downward trend. On the other hand, the steel demand in advanced countries is expected to increase by 8.2% to 371 million tons in 2021 and go up 4.2% to 386 million tons in 2022.

Indonesia Seeks Collaboration with Foreign Investors to Establish Its Own EV Supply Chain

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Indonesia has been devoted to developing a complete EV supply chain these years. The country seeks to collaborate with American, Japanese, South Korean and Chinese investors and sets goals to make 20% of cars produced in Indonesia to be electric by 2025 and become a global EV and EV battery manufacturing hub. Indonesia Investment Coordinating Board announced LG Energy Solution will invest USD 9.8 billion to work with an EV battery group of 4 Indonesian companies (PLN, Pertamina, Aneka Tambang and MIND ID) to form a complete EV battery supply chain.

Battery production is the key to EV industrial development. Indonesia is rich in materials including cobalt, nickel, manganese and other rare metals that allow for establishing a price-competitive EV industry. Joko Widodo (President of Indonesia) has set goals for the nation to start producing EV in 2022, make the proportion of components used in any EV produced in Indonesia reach at least 35% by 2023, and make EV account for 20% of all Indonesian car production by 2025.

Taiwan CSC Announced Q2 Domestic Sales Prices with an Average Increase of 8.3% Taiwan CSC held a meeting on March 12th to discuss the domestic sales prices of steel products for the 2nd quarter of 2021. The meeting closed with the decision to increase the price of wire rod by NTD 2,000 per ton and increase the price of automotive materials by NTD 2,800 per ton. According to Taiwan CSC, considering the price adjustment for Q1 this year, which was not sufficient enough to cover their raw material costs, the significant difference between their prices and their competitors’, and the cost fluctuations in Q2, they have decided to increase the prices of relevant steel products for Q2 with an average price increase of 8.3%.

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Formosa (Taiwan) Plastics Group's Steel Plant In Vietnam Turns Losses into Profits The Vietnam plant (Formosa Ha Tinh Steel Corporation, FHTS) grows rapidly and has had its first turnaround with profit gains since its establishment in November 2020. With the steel price expected to steer up continuously from last December to this February, the Vietnam plant could see monthly growth during this year. The plant spans up to 30 million square meters with a third furnace to be in place and a "steel satellite city (2 million square meters)" preliminary plan in arrangement to draw dozens of companies in steel processing, fastener manufacturing, transportation, inventory and maintenance in June this year. The plan gained support from steel-related industries.

FHTS President Chen Yuan-Cheng says arranging a large industrial land for Vietnam requires compliance to environmental requirement. The demand in Vietnam is large and this country is now the most popular place in Southeast Asia drawing investments from multiple industries. The fastener industry also sees it as a critical base, especially because the said Vietnam plant provides a stable source of steel and will create a massive midstream and downstream steel-consuming industries.

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Fastener World News UKCA Effective Since 01/01/2021 The UKCA (UK Conformity Assessed) marking is a new UK product marking that is used for goods being placed on the market in Great Britain (England, Wales and Scotland). It covers most goods which previously required the CE marking. The UKCA marking alone cannot be used for goods placed on the Northern Ireland market, which require the CE marking or UKNI marking. The technical requirements (‘essential requirements’) you must meet – and the conformity assessment processes and standa rds that can be used to demonstrate conformity – are largely the same as they were for the CE marking.

According to the association, a higher than expected performance in the last quarter of 2020 helped to reduce the expected decline in the total sales for full year of 2020. On the whole, the total sales registered in 2020 were 529,434 units, a decrease of 74,847 units or 12.4% compared to 2019 with 604,281 units.

Despite a double-digit drop, it was nonetheless a good achievement for the local automotive industry given the extremely challenging environment. It was higher than what MAA had forecasted at 470,000 units. The sales tax exemption announced by the government effective from 15 June 2020 boosted sales in the second half of the year. Production of new vehicles in year 2020 also decreased 86,446 units or 15% to reach a total of 485,186 units compared to 571,632 units in 2019. The industry lost over two months of vehicles production in 2020.

The EU Backs Car Manufacturers with 2.9 Billion Euros to Enhance EV Battery Production

The CE marking is only valid in Great Britain for areas where GB and EU rules remain the same. If the EU changes its rules and you CE mark your product on the basis of those new rules you will not be able to use the CE marking to sell in Great Britain, even before 31 December 2021.

The EU announced to provide multiple corporations including Tesla and BMW with 2.9 billion euros to enhance EV battery production within the region. The EU has sta r ted public fundraising and estimates the total investment value at 12 billion euros. The fund receivers are 42 corporations including a joint venture between Fiat Chrysler and PSA, as well as the startup EV battery developer Northvolt AB.

The UKCA marking is not recognized on the EU market. Products need a CE marking for sale in the EU. You only need to use the new UKCA marking before 1 January 2022 if all of the following apply. Your product:

The EU hopes to reduce dependence on Asian companies by procuring EV batteries. The European EV battery market value will reach 250 billion euros by 2025.

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is for the market in Great Britain

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is covered by legislation which requires the UKCA marking

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requires mandatory third-party conformity assessment

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conformity assessment has been carried out by a UK conformity assessment body

This does not apply to existing stock, for example if your good was fully manufactured, CE marked and ready to place on the market before 1 January 2021.

In these cases, your good can still be sold in Great Britain with a CE marking even if covered by a certificate of conformity issued by a UK body before 1 January 2021.

Tong Ming to Achieve 10,000 Clients and All-time Shipment This Year

Chinese stainless steel fastener distributor Tong Ming Enterprise said on April 14 that its number of clients will increase by more than 25% to over 10 thousand companies. The monthly shipment is expected to keep at around 10 thousand tons and the annual shipment at an all-time 100-200 thousand tons. Despite the pandemic last year, the company benefits from increased demand in infrastructure, railway transportation, and automated equipment for intelligent manufacturing, and sees its Q1 shipment at above 10 thousand tons.

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The UKCA marking came into effect on 1 January 2021. However, to allow businesses time to adjust to the new requirements, you will still be able to use the CE marking until 1 January 2022 in most cases. In some cases, you need to apply the new UKCA marking to goods being sold in Great Britain immediately from 1 January 2021.

Malaysia Automotive Association Releases Production & Sales Results for 2020

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Tong Ming's clients increased from 5,000 to 8,000 companies and could continue this growth to breach 10 thousand companies. The company does not have enough capacity now as a result of a growing number of clients and stainless steel fastener applications. It expects to add 100 thousand tons to its capacity in 3 to 5 years.

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Fastener World News Taiwanese NAFCO Expects an Upturn in H2 as the Pandemic Slows Taiwanese aerospace fastener manufacturer NAFCO took a big blow from the Covid pandemic and lost 80% of its profits last year.

Looking ahead, NAFCO says as its aerospace clients still have some inventory and the demand for automotive fasteners continues to rise.

The company is still working on laying foundation. However, the company expects vaccine passport and travel bubble will be gradually in place to rejuvenate sales in the second quarter. NAFCO's net profit last year was NTD 60 million, down 82.9% with EPS at NTD1.14. As countries embark on massive vaccination and are pushing for vaccine passport and travel bubble, the market is on the lookout for aerospace recovery.

NAFCO mainly supplies engine fasteners and other machined parts to primary clients such as GE and Rolls-Royce. The company says it doesn't sense an apparent upturn in purchase orders. The market situation may not be certain until mid-2021.

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Despite a far cry from aerospace recovery, it is worth noting that NAFCO's industrial business segment sees an increase in demand. The company supplies fasteners mainly for the American and European automakers, but it also taps into lightweight fasteners for new energy vehicles. Thanks to the upturn in the American and European car markets and increased demand, the business segment's revenue proportion has risen to 20%-30% from the pre-pandemic 10%.

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Super Cheng to Invest NTD 0.7 bn in Setting up a New Plant and R&D Center in Kaohsiung Focusing its product sales mainly in the N. American market, Taiwan’s leading lock nuts and high-strength bolts manufacturing giant, Super Cheng Industrial Co., Ltd., plans to invest NTD 0.7 billion in setting up a brand new “low-carbon-emission and energy-saving” plant and R&D center in the Gangshan District of Kaohsiung (Taiwan), in response to the increasing market demand for customized products and automotive fasteners, as well as reinforce the manufacturing capacity for special fasteners and diversify its existing product range. The new plant will be completed with the introduction of Smart Manufacturing and Fully Automated Warehouse to improve capacity and efficiency. In addition, Super Cheng will also hire more product R&D staff to develop more suitable products according to various customers’ demands at the new products R&D center. Established in 1982, Super Cheng’s main products include: all metal lock nuts, nylon insert lock nuts, flange nylon insert nuts, flange bolts, socket head cap screws, OEM parts, and auto parts.

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Fastener World News KPF Acquires the Ministry of Land, Infrastructure and Transport's Ministerial Certification of Japan KPF announced on February 23rd, 2021 that it has completed the final acquisition of the ministerial certification for its high-power bolts from the Ministry of Land, Infrastructure, and Transport of Japan. KPF has proven expertise for fasteners and parts for construction, heavy equipment, and petrochemical plant since 1963. With advanced technology and experiences for forging, KPF entered the automotive part market. KPF also operates global affiliates in Vietnam and China.

Airbus and Malaysia Airlines Extend Widebody FHS Contract Airbus and Malaysia Airlines have signed an extension of their Flight Hour Services Components (FHS-C) contract for the carrier's A330 and A350 fleets, as an outcome from Malaysia Airlines which recently completed restructuring exercise.

The agreement was signed in Kuala Lumpur

by Malaysia Airlines Chief Operations Of f icer A h mad Luqma n Mohd Azm i and Airbus President Asia-Pacific Anand Stanley.

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T h e mu lt i-ye a r ext e nsion cove r s t e ch n ica l suppor t by A i r bus for t he airline’s existing widebody fleet of A350s, A330s, as well as A330-200Fs operated by MASKargo. FHS-C provides component services including spare pool access, onsite-stock at the main base as well as components engineer ing a nd repa irs.

Through FHS-C, Airbus guarantees parts availability and secure aircraft technical p er for m a nce t ha n k s to h ig h qua l it y standards and component engineering. “ We a r e p l e a s e d t o e x t e n d o u r partnership with Airbus and trust the brand to provide the vital technical support for our widebody fleet. As we move forward as an airline and share our Malaysian Hospitality worldwide, the Airbus aircraft we f ly will become a symbol of reliability and consistency,” said Malaysia Airlines Chief Operations Officer Ahmad Luqman Mohd Azmi.

“We are pleased to continue our close relationship with Malaysia Airlines with the extension of this FHS agreement. Especially in these challenging times, Airbus strives to provide the highest quality, value-adding and tailor-made solutions to our airline partners to support them and enhance the daily operations of their fleet,” added Anand Stanley, President Airbus AsiaPacific.

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SOUTHCO Expands India Operations Footprint SOUTHCO® is pleased to announce the official opening of its expanded facility in Ranjangoan, Pune, India. The 20,000 square foot expansion, which commenced in 2019, has tripled available office space and doubled the manufacturing space and distribution footprint, positioning Southco for future growth in the fastest growing market in the world.

After a decade of phenomenal performance in the Indian market, Southco India’s increased production capacity, coupled with continued investment in sales, engineering and marketing resources will allow Southco to better serve its local customers. Southco will continue to bring new manufacturing technologies to India and produce more parts locally to support the “Make in India” initiative of the Indian Government.

“The expansion of our operations footprint in India contributes to Southco’s strategy of driving global business growth” said Prakash T. John, General Manager of Southco India. ”This is not only an opportunity to bring more jobs to the area, but it is a long-term commitment of Southco to deliver more value to our customers and meet the growing needs of the Indian market.”

The LISI Group Achieved Sales of € 309.4 Million in Q1 2021 Sales for Q1 2021 are down 22.2 % compared to the same period of the previous fiscal year.

The global COVID-19 pandemic has further weighed on the Group's activity in varying proportions depending on the divisions: •

LISI AEROSPACE : - 38.5 %, the "Fasteners" business, which had benefited from a good level of sales in Q1 2020, is the most severely affected.

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LISI AUTOMOTIVE : + 2.9 %, in line with the positive trend observed since the second half of 2020.

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LISI MEDICAL : - 15.1 %, although sales are down, the outlook benefited from well oriented business.

Italian Growermetal Receives Quality Certification EN 9100 Italian Growermetal is very pleased to announce that it has also achieved quality system certification according to the EN 9100:2018 standard for the aerospace industry. EN 9100 has been developed by the International Aerospace Quality Group (IAQG), which established a quality management system controlled directly by the aerospace industry itself.

Growermetal, thanks to the achievement of this certification has the great opportunity to be included in the Online Aerospace Supplier Information System (OASIS) database, from which the most important players of this industry can select their suppliers.

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Fastener World News

Grainger Announces Appointments of Chief Financial Officer and President of Grainger Business Unit Grainger, the leading broad line supplier of maintenance, repair and operating (MRO) products serving businesses and institutions, announced executive leadership appointments.

Deidra (Dee) Merriwether, currently Senior Vice President (SVP) and President, North American Sales and Services, has been named Chief Financial Officer. Paige Robbins, currently SVP, Chief Technology, Merchandising, Marketing and Strategy Officer, has been named SVP and President of the Grainger Business Unit, comprised of Grainger businesses in the United States, Canada, Mexico and Puerto Rico.

The Grainger Business Unit will merge all commercial functions for the Grainger brand in North America into a single organization. This new structure will help drive profitable share gain and exceptional customer solutions across geographies. Merriwether and Robbins will assume their new roles effective immediately.

Simpson Strong-Tie Announces Mike Olosky to be New Chief Operating Officer Simpson Strong-Tie, the leader in engineered structural connectors and building solutions, recently announced the appointment of Mike Olosky to Simpson Manufacturing Co., Inc.’s executive leadership team as Chief Operating Officer (COO).

A senior executive with more than a decade of global management experience in Asia and Europe, Olosky was most recently President of Henkel North America and Head of the company’s Industrial and Electronics division. Previously Olosky was Head of Innovation for Henkel’s Adhesive Technologies business and President of Henkel Asia Pacific.

Olosky holds degrees in mechanical engineering from Michigan Technological University and Oakland University and received his MBA from Michigan State University’s Eli Broad School of Business. Simpson Strong-Tie is the primary subsidiary of Simpson Manufacturing, Co., Inc.

Jay-Cee Sales and Rivet Inc. Achieves Coveted ISO 9001:2015

China Fastener World no.62/2021

Optimas Completes Global IATF Certification Optimas Solutions, a global industrial manufacturer/ distributor and service provider, announced it has completed IATF Certification for its worldwide operations by adding its center of excellence in Pune, India, and new distribution sites in Mexicali, Mexico, and Lockbourne, OH, placing it at a level of quality assurance certification unmatched in the fastener industry. IATF Certification comes from the International Automotive Task Force and represents the highest level of quality assurance in the automotive industry and beyond. This coupled with the company's annual achievement of ISO 9001 certification is a high-water mark for Optimas as the first time all its global operations have achieved these levels of certification.

According to Optimas CEO Marc Strandquist, this achievement opens more doors for securing new business and working at new levels with existing customers. "We are one of very few fastener suppliers and manufacturers that have IATF registration, which is well recognized outside of the automotive industry as a premiere level of quality assurance in the business world," he said. "Our Manufacturing Solutions strategy announced last August is once again paying off for our customers and suppliers alike."

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Jay-Cee Sales and Rivet Inc., a Master Distributor of Rivets and other threaded fasteners, announced that it has been approved for and issued a Certificate of Registration for ISO 9001:2015.

The International Organization for Standardization (ISO) maintains the ISO 9001:2015 certification for qua l it y ma nagement a nd quality assurance. To achieve the certification, an organization needs to demonstrate its ability to consistently provide products and services that meet customer and applicable statutory and regulatory requirements.

The certification aims to enhance customer satisfaction through the effective application of the system, including processes for improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements.

“We are very proud of this achievement,” says Greg Weitzman, Vice President of Jay-Cee Sales & Rivet, Inc. “The certification verifies the quality of our products and shows our dedication and commitment to our customers.” Jay-Cee Sales and Rivet Inc. a family owned business since 1948 is a Master Distributor of Rivets and other threaded fasteners to many different industries including automotive, medical, and aerospace just to name a few.

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Fastener World News Master Automatic Merges into the MFCS Engineered Solutions Group

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MacLean-Fogg Component Solutions (MFCS), Mundelein, IL, and Master Automatic, Plymouth, MI, announce the merger of Master Automatic into the MFCS Engineered Solutions Group. The new division will be known as MacLean Master LLC with locations in Plymouth and Livonia, MI.

MacLean-Fogg President, Duncan MacLean, said, "We are thrilled. Master Automatic is a terrific, family-owned business with a culture similar to ours. This merger enables us both to further diversify and expand our customer base, and increase our capabilities, technology, and products in precision machining. We are able to better support our customers with an expanded portfolio of high-quality products and services."

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Founded in 1942, Master Automatic, an Evasic family business, is a premier supplier of precision machined components and assemblies, and a market leader for critical automotive propulsion and steering components, providing a broad range of manufacturing capabilities, engineering, customer focus and commitment to quality to leading automotive OEM and Tier 1 companies.

Novaria Group Announces Acquisition of the Young Engineers, Inc. Novaria is pleased to announce the acquisition of The Young Engineers, Inc. (TYE). TYE is an expert in the design and manufacturing of aircraft and aerospace hardware, with a primary focus on fasteners and inserts.

The terms of the deal were not disclosed. This acquisition continues Novaria’s expansion into aerospace fasteners. “We have made several acquisitions since April 2020, all of which are unique contributors to our evolving business model,” said Novaria CEO Bryan Perkins. “The acquisition of TYE is an integral part of our strategy to expand our portfolio of proprietary and qualified products we offer customers.” TYE operations will continue at its Southern California facility with its tenured, skilled employees, including former owner and president Pat Wells.

George Hunt III Elected as New MWFA President

China Fastener World no.62/2021

As

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George Hunt III, Regional Manager of Brighton-Best International has been nominated and elected as President of the 2021 Mid-West Fastener Association (MWFA). The new Board of Directors of MWFA include Matt Delawder of SWD Inc. as Vice President, Bob Baer of Abbott Interfast Inc. as Treasurer, Jake Davis of BTM as Secretary. Directors are Glen Brin of Innovative Components Inc., Rich Cavoto of Metric & Multistandard Components, Paula Evitts of Avante Imports, David Gawlik of Stanley Engineered Fastening, and Bobby Wegner of Beacon Fasteners and Components.

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by Dean Tseng, Fastener World

Company Focus

Haiyan Weishi Fastener Co., Ltd.

Expands Manufacturing Area & Rolls out New Nuts Contact: Andy Huang, General Manager E-mail: andy.huang@wsfastener.com

Haiyan Weishi is a manufacturing expert in nuts. In the past 25 years since 1995, the company has continued manufacturing GB/DIN/ ANSI/BS-compliant standard nuts as well as supplying non-standard fasteners. Just recently, it announced the rollout of M30-M36 DIN934 nuts and 1-1/8, 1-1/4 nuts as an addition to the product line so that clients can purchase a complete range of nuts from small to large sizes straight from Haiyan Weishi. This enables the company to provide M5-M36 fasteners and other hardware parts in materials such as Q195, 35K, 45K, 10B33, and 40CR, raising its monthly capacity to 1,200 tons. Large nuts that could only be purchased elsewhere in the past are now available from Haiyan Weishi.

The company has been expanding and refurnishing the manufacturing area lately to create technologically top-notch manufacturing space. With the domestic and imported advanced cold forging and stamping equipment, the company can offer fasteners to the construction, highway/railway, automotive components, and furniture industries. Its strengths include punctual delivery, high quality, great service, and high credibility. The company saves time and trouble for clients from Southeast Asia, Italy, the U.S., South America, France, the Middle East, and North America. It will continue to expand business to other countries and markets in the future.

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It was one of the companies in China to resume production immediately after the pandemic started last year, and was able to keep the livelihood of its employees and clients intact from the impact. "Haiyan Weishi is the right choice for your fastener purchase. We set a high bar for ourselves and don't take matters lightly in order to provide you with excellent products!" said General Manager Andy Huang. He hopes to increase the capacity, manufacturing efficiency and client satisfaction in the second half of 2021 for Haiyan Weishi to continue sprouting abroad.

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Industry Focus

Analysis of

Motorbike Production and Sales in Indonesia in 2020

by Shervin Shahidi Hamedani

Introduction The Indonesian motorbikes industry has been the third-largest in the world for about twenty years, demonstrating the main private transportation sector for people and goods with the size six times bigger than the automotive industry.

In 2019, the Indonesian two-wheeler market stood at around 6.49 million units and in terms of volume, which made the country again the third largest two-wheeler market in the world after India and China. The rise in disposable personal income, increasing demand for more affordable private transportation together with the growth of female riders, enhancement and construction of road infrastructure, as well as the emerging popularity of credit and loan facilities, are the main reasons for the growth of two-wheelers market in Indonesia.

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There has always been a strong correlation between average income levels and motorcycle demand up to a certain point in the country and the region. In emerging economies like Indonesia, motorbikes are an attractive alternative to walking, riding a bike, or utilizing public transportation. The market is dominated by Japanese brands, all producing for both local markets and for exporting largely into ASEAN, and other regions like Latin America.

The two-wheeler market in Indonesia is categorized by the type of vehicle, the capacity of the engine, and the region. In terms of vehicle type, the market consists of three segments which are scooters, motorbikes, and mopeds. Scooters accounted for the largest market share in the Indonesian market and it is expected to hold its dominance at least in the next 5 years.

In terms of engine capacity, vehicles are categorized into 3 segments. Engines with less than 150 CC capacity, engines with a capacity between 150 CC and 250 CC, and the 3rd category, which are those with a capacity more than 250 CC. As mentioned, the lightweight scooters are the most popular amongst Indonesian people, with the engines below 150 cc and are anticipated to maintain their market power in the future.

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Covid-19 and the Motorbike Industry in Indonesia Despite twenty years of growth, the outbreak of Coronavirus disease (COVID-19) acted as an enormous hinder to the motorcycle market in 2020. Supply chains were damaged because of trade restraints and market demands drastically dropped as a result of lockdowns and movement controls imposed by the Indonesian government.

Like many other industries, motorbike manufacturers rely heavily on the supply of raw materials, parts, and components from different countries globally. Since the government controlled the movement of goods across the country, as did many other countries, manufacturers had no choice but to pause or even shut down their productions caused by the shortage of all those materials, parts, and components. Similar limitations are faced by exporters and importers in the market.

Additionally, sales of new motorbikes reduced considerably due to a decline in consumer demand as the country imposed lockdowns. The outbreak is expected to continue to hurt businesses this year. However, in this year, the market has recovered to some extent and some growth has been registered, thanks to the recovery from the COVID-19 impact as companies reorganize their operations and adapt progressively to the new normal.

Statistics show that the global market lost was US$24.6 billion in revenue in 2020. Although there have been some recoveries in this year, the strong destructive trend is expected to remain in the next two years. By 2023, global motorcycle sales are expected to generate around US$106 billion in revenue, but still about 20% less than what the market made in 2019.

Global sales in 2020 were 56.5 million units, down 14% from the previous year, the 5th highest level ever. In volumes, the industry lost over 9 million units, mainly because of the significant decline in India by 5 million, Indonesia by 2.9 million, Philippines by 0.7 million, and Vietnam by 0.5 million units compared with 2019.

Industry Focus

That made the Indonesian motorcycles industr y the worst in the world in 2020, h it by econom ic recession a nd Covid-19 simultaneously, losing sharply in any quarter even in the 4th quarter, whereas in other countries the markets have partially recovered during the second half of the year. In Indonesia, the negative trend went downhill in the last quarter about 50% from the same period in 2019. The total sales in 2020 were about 3.7 million units, with a 43.7% extreme fall, the lowest level in the last 30 years, affecting hugely Japanese producers’ global profit and volumes.

Indonesia is recognized as the first market in the world for all Japanese manufacturers, but the market falls had extreme consequences on the global revenues, sales, and profit for the Japanese brands.

Conclusion Beginning from the second quarter, the measures taken by the Indonesian Government to safeguard from Covid19 have hugely impacted the industry with a delay compared with the rest of the world, in terms of virus spread and market fall, with the negative impacts on the economy and on consumer goods demand.

The new normal which has been created by the spread of the current pandemic has affected the motorcycles industry in Indonesia with short term negative impacts last year. The destructive trend is expected to continue this year. However, eventually, the benefits of the new normal will overcome the damages supported with two new trends in place globally.

Soon, there will be a huge demand for individual mobility, as people will be continuing to practice social distancing and this is going to be perfectly matched with the two-wheeler vehicles. The second trend is related to environmental issues which have recently become one of the major concerns among governments, institutions, and people. The introduction of policies, incentives, and subsidies for electric two-wheelers will support the market evolution in the rest of this decade and it’s going to be a new path for the Indonesian market, the path that China and Taiwan have already been on.

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That’s why we can predict that Indonesia and other key players in the motorbike markets like Vietnam, the Philippines, and Thailand will follow the Chinese and Taiwanese markets, where electric vehicles (EVs) manufacturers and traders are going to shake the global competition.

Sources

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01

McD, Motorcycles Data, ASEAN, 2021

02

ReportLinker, Motorcycle and Bicycle Global Market Report 2021

Russian News

Russian News

compiled by Fastener World

The Salvation of the Automotive Industry is by the Work of the Automotive Industry Itself

In theory, requirements for the level of localization are constantly increasing in Russia. But no real incentives have emerged to create new component industries on the scale the industry needs. Experts estimate the losses from the loss of the auto component industry by the country, expressed in the cost of purchasing components abroad, at 1 trillion rubles a year.

“In most developed countries, the automotive industry is one of the main locomotives of the economy.

Because the production of vehicles is an excellent generator of both budget revenues and jobs. But this is only if the national auto industry is an unified complex of assembly plants and factories for the production of components. In this case, the industry is confidently standing on two legs", - comments on the situation the Deputy General Director of “ASM-Holding”, and Honored Economist of Russia, Alexander Kovrigin.

Car manufacturers and, in particular, “GAZ”, concerned about the fate of the industry, have developed their own plan not only to support, but to create a new industrial model that is sustainable in the face of global disasters and based on the creation of value chains within the country. The plan envisages, in particular, investing 240 billion r ubles in auto component production for five years, while half of these funds are producers' own investments, and the other half is financed by the state, which then receives powerful returns in the form of increased tax revenues and the creation of new jobs.

Many countries have followed a similar path. At the same time, experts suggest giving an advantage to projects for creating critical components, and making targeted programs for creating such ones as a priority.

Largest Marketplaces Doubled DIY Sales Leaders of the Russian online retail are becoming active players in the DIY & Household market. “Wildberries” and “AliExpress Russia” marketplaces reported more than two-fold growth in sales of household goods and repairs. New formats of interaction with suppliers helped them to attract new buyers to their sites.

"This winter the most popular categories of tools for repair and gardening on the local marketplace were sets of working tools, power tools for the garden, welding machines, electric drills and electric saws”, - clarified in "AliExpress Russia".

In the fall of 2020, “AliExpress” launched a new format of superstores, the first of which being “Big Home” - a hypermarket of local household goods.

The new sales scheme was also tested in “Wildberries” last year. The company began working on the FBS model, in which the seller is directly involved in storing, processing and packing orders. Fasteners of the Oryol Steel Rolling Plant were used in the construction of a railway bridge in the Astrakhan Region.

Fasteners from the Oryol Steel Rolling Plant (part of Severstal-Metiz, the Severstal Hardware Group) were used in the construction of a new railway bridge across the Akhtuba River in the Astrakhan Region. Oil, sulfur, salt, metal, timber, building materials, grain and vegetables are transported along this section of the route. The new engineering structure will become an international transport corridor and will connect Siberia and Moscow with the ports of the Caspian, Azov and Black Seas.

The old bridge was built 85 years ago and was single-track. Up to 20 million tons of cargo will be transported over the new bridge per year.

159 New Products from Severstal-metiz Companies Severstal-metiz, Oryol Steel Rolling Plant and Volgograd Plant Severstal Kanatov mastered 159 new types of products in 2020. This process involved almost all product areas: wire, calibrated and hot-rolled steel, and fasteners.

All new products are developed in cooperation with customers. The product portfolio of the Severstal-metiz in 2020 was replenished with 39 new types of products. One of the significant projects was the launch of a chopped wire shot production. Compared with traditional shots, high-tensile wire shot offers lower consumption, higher abrasion resistance and lower operating costs for customers. Orel Steel Rolling Plant mastered 114 new products in 2020. These are mainly fasteners - up to 85%. Among them are new standard sizes of bolts, nuts, washers, fasteners for the automotive industry and construction.

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China Fastener World no.62/2021

The Russian automotive industry needs to restore the domestic production of components, in fact - to revive the whole industry of auto components.

Russian News Investment in Oryol This year the company will make a record investment of one billion rubles to the development of the Oryol Steel Rolling Plant (part of Severstal-Metiz, the Severstal Hardware Group), which is 11 times more than last year.

The company will modernize production. Cold heading and thread rolling machines, drawing lines and load-lifting cranes - more than 20 units of main equipment will be renewed to the maximum. All units will be equipped with modern electronic equipment: numerical software, LCD displays and control joysticks. At the same time, the workspaces will be organized according to the highest international safety standards. Thanks to the investment program, 56 new jobs will be created.

The company's investment plans confirm the stable development of Oryol hardware production. Despite the pandemic, Oryol Steel Rolling Plant ended the year with growth. Shipments of finished goods rose 4 per cent to nearly 69,000 tonnes, breaking a five-year record. “This is the first time we have received such a significant investment. All projects are quite large-scale, but we plan to complete most of them this year. The modernization of production is planned both for current tasks and for the implementation of projects for the development of new products”, comments Alexey Erenichev, director of the Oryol Steel Rolling Plant.

Europartner Offers Multi-fastening Solutions One of the notable novelties of the past 2020 by Europartner Group is a fundamentally new packaging for fasteners. It is multifunctional. Among its advantages are visual presentation of the product, vandal resistance, technical information on the product, Torx bit included, neat storage, ease of reusability.

Last December, the nylon fastener plant significantly expanded its production. In 2020, on the basis of the Europartner plant a training center was established. It invites Russian plastic processors by injection molding to attend training courses. The courses are conducted by leading experts in plastic processing, materials science, representatives of suppliers of injection molding machines and peripheral equipment, mold designers.

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NLMK-Ural to Increase Production of Highcarbon Wire Rod N L M K-Ur a l ( Russia n d iv ision of NLMK Group) has expanded its product line. After the modernization of steel-making and rolling facilities, the plant mastered the production of continuously cast steel billets with a cross section of 150x150 mm.

Previously, the capabilities of the electric steel-making shop were limited to the production of billets with a cross section of 125x125 mm.

This will allow to expand the assortment of metal products (wire rods, wires, fasteners), as well as improve the quality of existing ones. Thus, the production of one of the most demanded products - high-carbon wire rod - will be increased by 40% per year with a simultaneous improvement in physical and mechanical characteristics.

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The Fixing Union Develops a Standard for Calculation of Anchoring in Masonry Calculation and design of anchors in masonry is an urgent task that occurs, for example, in the design of facade systems of buildings, where the system brackets are attached with anchors to the building base. This leads to the need to develop an appropriate regulatory document that would regulate the procedure for calculating anchors in masonry, and, similarly to the method for calculating anchors in a concrete base, would take into account both the strength and geometric characteristics of the base, as well as the characteristics of anchor fasteners, and also the nature of the effect of the load on this fastener. The development of such a standard is carried out by Association of Manufacturers and Distributors of Fixing Systems (Fixing Union) with the participation of the Moscow State University of Civil Engineering (NRU MGSU), tak ing into account the provisions of the Russian standards (including SP 15.13330 "Stone and reinforced stone structures").

BSW Increased Exports to 13 EU Countries By the end of 2020, BSW exported more than 925 thousand tons of steel products to the European Union market.

The greatest growth in consumption last year was demonstrated by Spain, Slovenia and France, where the volume of shipments doubled or more. Countries such as Austria, Ireland, Romania, Poland and Finland provided more than 30% of export growth.

The market share of the European Union in the total volume of BSW exports in 2020 exceeded 45 percent.

Wire rod, steel wire and structural steel intended for the automotive industry were in great demand. The shipments of the latter have increased significantly compared to the previous year. So, in 2020, the growth rate of exports of structural steel with a diameter of 20 to 80 mm to the EU amounted to more than 150 percent. These products were sold to the EU market for $ 34.5 million.

In total, in 2020, BSW exported 2 million tons of steel products to 53 countries. It is worth noting that last spring, due to the coronavirus pandemic, the enterprise faced a decrease in demand, primarily for the products of steel wire workshops. However, since last June, its consumption began to recover and reached its usual level. In general, as of 01.01.2021, stocks of finished products at BSW were equivalent to two days of production.

Alexander Ostashov, editor of “Fasteners, Adhesives, Tools and...” Magazine Mariya Valiakhmetova, editor of “Metiz” Magazine

Company Focus

The Manufacturer with Ingenuity Worldwide Admired Fasteners with High Performance/Price Ratios

by Gang Hao Chang, Vice Editor-in-Chief of Fastener World

Established in 2006, Yuyao Alfirste Hardware Co., Ltd. is a manufacturer specialized in timber screws, roofing screws, drywall screws, chipboard screws, and many other fasteners made of carbon steel and stainless steel. It is capable of manufacturing products as per customer’s required specification from M3.0 to M10 and from 9.5mm (min.) to 400mm (max.). With the current 15,000 sqm of plant and more than 100 skilled employees in place, Alfirste has been able to achieve the monthly fastener capacity of 1,500 tons. In terms of manufacturing capabilities or capacities, Alfirste has been also considered by many overseas fastener distributors and end-users one of the irreplaceable partnered suppliers for years. In critical fastener markets such as Russia, Germany, Italy, and Poland, high-quality fasteners from Alfirste are even admired by users every year.

Well-coordinated Manufacturing Procedures & Excellence in “Long Screws” Processing Apart from outstanding manufacturing technique, Alfirste also maintains close collaboration with associate factories in heat treatment and galvanizing of products, which is the reason that the quality of its products could be continuously kept above the level over the past decade. Especially in manufacturing long screws with higher difficulties and more requirements for details, Alfirste can also complete the tasks with ease and turn them into its own strength.

Speaking of the milestone Alfirste has reached over the past few years, General Manager Danny Wei said, “Selfinnovation and technical training both are very pivotal factors that have supported us to go thus far. For enhancing the technique and R&D abilities of our team members, we arrange internal employee trainings every year and send our technicians to other external units for exchange and learning. All these investments proved to be quite effective. For example, the drilling mold we developed on our own could help users achieve stable quality, high production volumes, short lead times, and competitive prices, winning us a leading position in the industry.”

Alfirste received its ISO 9001 and CE certificates a few years ago. Last year it took a leap forward and received the ETA 20-0316 certificate, which is more difficult to get, for 3 types of its new construction screws featuring faster tapping speed, more stable quality, and a wider selection of sizes. Such an achievement is not only a recognition to the significant performance of these products used to fasten wood constructions, but also helps widen the gate for Alfirste’s business expansion in Europe or even in more advanced markets.

General Manager Wei added, “The continuous and stable supply of products with the best performance/price ratios and in-time improvements and responses to customers’ inquiries are undoubtedly the biggest advantages of our company. As a result, we can continue to win us praises from customers. What’s more important is that we also see those companies and factories working with us gaining their own leading position and increasing their market share significantly in Europe and America.”

Considering the positive and growing development momentum in future Chinese and global markets, Alfirste plans to continue the expansion of its current plant, including a bigger workshop and introduction of heat treatment and galvanizing lines. With the adherence to “Original Spirit & Manufacture With Heart ,” Alfirste hopes to establish collaboration with more customers and strengthen its presence on the market.

Alfirste contact: General Manager Danny Wei

Email: 760@chinanchor.com

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The Firm Presence in Europe with ISO, CE, and ETA Certification

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European News compiled by Fastener World

Expander Evolves from Supplier to Global Expert Nord-Lock Group has made a large investment in its pivot business, Expander, to better serve the needs of its global customer base. The newly expanded facility in Åtvidaberg, Sweden, has increased by 130 percent to 3,500m² - making room for modern manufacturing, a premium technical centre, as well as high-volume order handling. Expander is the original solution for expanding pivot axles – supplying the aftermarket.

The innovative pivot solutions are installed directly into the existing machine mounting without the need for welding or line boring, providing a permanent solution to lug wear. The company’s production flow is completely digitised, enabling high quantities of customer-unique orders to leave the factory within 48 hours. Expander System has over 35 years of knowledge and experience as the original inventor of pivot pins with expanded sleeves. These pivot pioneers have now delivered over 1.5 million Expander Systems worldwide. The factory expansion will allow Expander to increase its order volume by eight and the new Pivot Performance Technical Centre will further accelerate product development and support customer needs. The site will also become more sustainable due to the factory’s reduced energy consumption, improved worker environment and lower carbon footprint.

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In-house Wood Construction Screws

by Eurotec Eu rot e c GmbH is able to supply a wide range of wood construction screws that can be used for a number of different applications including load-bearing timber frame joints, timber engineering, multiple hall constructions or renovation of ceilings.

The company points out its range of wood construction screws feature high corrosion resistance; applicability in service classes 1 to 3; as well as a good resistance to mechanical loading. The screws can also be utilised for carpentry work. Eurotec’s range of wood construction screws includes the Paneltwistec range, which Eurotec mentions is known for being an ‘all rounder’ among screws. It is available in different steel grades, head shapes, and screw tips, and each screw has special properties that are suitable and necessary according to the application. In load-bearing timber constructions, for connecting timber wood or steel wood joints, Eurotec offers its KonstruX screws. They are characterised by a full thread that increases thread extraction resistance in the components.

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Snap Instead of Screw The patented DIRAK-SNAP-Technology (DST) creates high strength connections that are absolutely equal to screw-based solutions, but achieved with no tools at all, with installation in just seconds. The idea behind DIRAK-SNAP-Technology is incredibly simple. It uses the operating principle of a slam-latch, which is commonly found in doors for houses or rooms. It is based on a guide with tapered clamping jaws and a spring positioned in a window inside the guide. If this fastener is then pressed through a cutout, the angled insert of the clamping jaws pushes the SNAP element back like a latch bolt in the guide channel and the spring is tensioned. As soon as the height of the clamping jaws is surpassed during the insertion process, the tensioned spring presses the SNAP elements back out of the guide channel. A distinctive SNAP sound can be heard as this happens. The result is a fastener now wedged in the cutout and holds the elements to be joined together with great strength. DST withstands high strains and guarantees high strength and pull forces equal to screw connections in every regard.

In addition, DST products are rattle, vibration and shock-proof.

Numerous DST solutions have been tested for vibration and shock (DIN EN 61373) as well as earthquakes (GR-63-CORE, Issue 4).

Howmet’s Huck® Range Force™ Battery Tool How met Fa st en i ng Syst em s ha s developed the Huck® Range Force™ battery Tool, which it states is a portable powerhouse for multiple applications and industries including aerospace, solar, transportation, and construction.

The Huck ® Range Force™ battery tool has an electronically adjustable pull force and a long stroke of 1.18 inch (30mm) to enable installation of structural and non-structural blind rivets, as well as two-piece lockbolts up to ¼ inch (6.4mm) in diameter.

With a quick nosepiece change and a simple one finger pull force adjustment, the tool is ready for the next style of fastener. Using a 18V lithium-ion 5.0Ah battery, the Huck Range Force industrial strength tool is highly portable, reliable and versatile. The tool is also lightweight weighing between 4.8lbs - 5.5lbs depending on battery used, as well as being ergonomic. Battery recharge time is approximately 45 minutes.

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European News

China Fastener World no.62/2021

SFS Shows a Distinct Recovery in the Second Half Year

Container Shortages Impact UK Fastener Supply Chain

SFS Group achieved orga n ic g row t h of 3 .7% i n t h e s e c o n d half of 2020, driven by a distinct recovery in demand and seasonal effects. Sales for the 2020 financial year amounted to CHF 1.705 billion (€1.57 billion). SFS reports that higher production capacity utilisation and strict cost management as well as mixed effects supported profitability in the second half of the year. For the 2020 financial year an operating profit of approximately CHF 227 million was realised, which corresponds to an EBIT margin of 13.3%.

A shortage of shipping containers at major global export ports has been seriously impacting fastener availability in the UK and Ireland, the British & Irish Association of Fastener Distributors warns. The crisis is also forcing up container freight costs three-fold and exacerbating other cost drivers to fuel sharp product inflation. Container shortages were the biggest disrupter according to specialist supply chain media The Loadstar on 1st December 2020. That was an assessment echoed by BIAFD importer members, who say they now have major backlogs at factories, which cannot be shipped to the UK and Ireland due to the lack of containers. The CAx, an index of container availability, was at record low levels at the end of 2020. A reading below 0.5 indicates a deficit of containers. For week 49 the reading for Shanghai Port was just 0.03 – compared with 0.53 ten weeks previously, and 0.66 in Week 6 of 2020. The indices for other global – and also European ports – also showed plunging container availability over recent weeks.

While demand in the first half of the year fell sharply in some areas due to the Covid-19 pandemic, there was a clear and sustained recovery in demand in various end markets and regions from the summer months onward.

For instance, the automotive-related business areas, which had been heavily impacted by the collapse in demand and factory shutdowns at key customers during the first half of the year, showed a strong recovery. In the second half of the year, sales momentum also profited from successful product launches with customers from the electronics industry. Sales grew organically by 3.7% in the second half of the year compared to the previous year period. In the first half of the year, sales showed a decline of –10.4% in organic terms. For the full year, organic sales growth was -3.2%. Gross sales for the 2020 financial year amounted to CHF 1.7 billion. Sales in the Fastening Systems segment for the period under review amounted to CHF 489.7 million, which corresponds to a decline of -1.7% compared to 2019.

The container shortages are an indirect consequence of the Coronavirus pandemic. Emerging early from the pandemic, Chinese factories recovered production and recommenced exports to global markets. Export shipments increased ahead of the Chinese National Day holiday in October, further ratcheting during the peak season run-up to Christmas.

Despite signs of a recovery, Hilti Group’s 2020 sales of CHF 5.3 billion were 9.6% below the level of the previous year. In local currencies the decline amounted to 4.3%. CEO Christoph Loos commented: “The signs of recovery further solidified over the last four months of 2020 and our sales figures have stabilised. Total sales are below the previous year's level, to the extent expected, which means that the downturn has been less severe than initially feared.” Developments in the regions varied greatly, strongly influenced by the duration and extent of local lockdowns. In local currencies this resulted in only a slight overall decline in sales of 2.7% in Europe.

There was a clear north-south divide, with growth in Scandinavia and Central Europe and upper single-digit declines in Southern Europe. North America was also pleasingly robust, with a local decrease of only 4.3%.

Significant reductions were recorded in the Eastern Europe / Middle East / Africa region (-8.2%), Latin America (-8.1%) and Asia/Pacific (-7%), with major differences from country to country. For example, while encouraging growth was achieved in China and Russia, there was a larger slump in Southeast Asia and the Gulf States in particular. The Hilti Group expects a moderate economic recovery for the current year which will vary from region to region and depend heavily on the course of the coronavirus pandemic in the coming months.

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Containers are collected from port and road or rail freighted to companies. However, return times to ports in all import markets have significantly increased, due to coronavirus-related shortages of vehicles and drivers. Container shortages were also exacerbated by the volumes of personal protection equipment being imported. In November, the UK’s main container port at Felixstowe was said to be storing some 11,000 containers of PPE ordered by the British Government. Many of these containers have now been moved to inland storage points but the containers are unlikely to be released for many months and potentially longer.

With finances hit hard by the collapse of global trade, resulting from the pandemic, shipping lines radically tightened capacity on most routes. Lack of capacity and low backhaul profitability has meant containers returning to export markets far more slowly.

More luc r at ive t r a nspa ci f ic routes to A mer ica n ma rkets have also taken priority for both container ships and containers over European routes.

While container manufacturers are reported to have stepped up production, output lags well behind demand, and the knowledge that the container market will eventually rebalance is a disincentive to further ramping up output. All the indications are that it will be several months before equilibrium is restored.

UK and Irish importers have faced additional challenges, due to persistent delays at Felixstowe Port, which have knocked onto other UK ports. Some carriers have applied substantial port congestion surcharges, further adding to importers’ costs. More problematically, some shipping lines are by-passing UK ports to avoid delays, dropping containers at Northern European ports – which typically adds a further two weeks to lead times, placing further pressure on availability.

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European News

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In addition to creating availability challenges, all of these factors are driving major increases in freight costs for impor ters.

BIAFD importers report container f reight costs t r ipl i ng, wit hout factoring in port surcharges or costs of rerouted shipments. This means an effective on-cost to products often well in excess of ten percent.

O t h e r i n f l a t io n a r y p r e s s u r e s on fastener costs were already becom ing evident. Asian steel prices have also increased sharply, with further increases predicted, as supply tightness is compounded by a serious accident in a major Korean steel plant. European steel lead times have also extended sha r ply, for some wi re g rades tripling to more than twenty weeks, and steel producers are expected to introduce substantial cost increases early in 2021. The British & Irish Association of Fastener Distributors represents the interests of more than 85 United Kingdom and Ireland fastener importers, wholesalers and distributors.

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Lederer Takes over NORMTEC Lederer GmbH has announced that it has taken over all shares in NORMTEC Montage- und Befestigungstechnik GmbH from Theo Förch GmbH & Co. KG. Based in Wuppertal, Germany, NORMTEC has eleven employees and has been successfully selling stainless steel fasteners for seven years. From now on, NORMTEC will join Lederer in pursuing the goal of sustainably strengthening and further developing their position in the market for stainless fasteners.

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The long-standing employee, and authorised signatory, Sebastian Ovenhausen will take over the management of NORMTEC. NORMTEC will continue to exist as an independent company at its previous location and will continue to operate as part of Lederer GmbH.

VVG to Become Honsel

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As of 1st January 2021, VVG Befestingungstechnik is now known under the new name HONSEL Distribution GmbH & Co – having fully merged with the Honsel Group.

VVG and Honsel have been closely linked for a number of years – working together and sharing many resources. Alexander Siefert, managing director at VVG Befestigungstechnik, explained: “We have experienced very unusual times in the last few months, which has resulted in us changing our focus to what is important for our company’s future. With VVG and Honsel already working closely together, the natural decision was to merge VVG with Honsel so they both operate under the same brand.”

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European News Alexander added: “For the customers’ perspective there will be no real changes. The company type and company number will stay the same, as will the VAT and registration numbers.

Cont r a ct s a nd /or ag re ement s wi l l remain the same and customers will still contact the same person. By merging the companies we will simply become an even stronger partner for customers when it comes to fastening technology.”

Honsel Group has more than 90 years of experience in the development, production and sale of high-quality fasteners and processing solutions.

Fastener Fair Stuttgart 2021 Postponed

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M a ck- Br o o k s E x h ib it io n s h a s announced the postponement of Fastener Fair Stuttgart, which was scheduled to take place from 18th to 20th May 2021.

The 9th edition of the show will now take place from 9th – 11th November 2 0 21. M a c k B r o o k s E x h i b i t i o n s explains the decision was taken in light of the ongoing Covid-19 pandem ic and following conversations with all

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exhibitors and visitors that have taken place over the past weeks and months. Uncertainties around continued travel restrictions were also a contributing factor to this decision due to the truly international character of the Fastener Fair Stuttgart show.

New Improvements for RIV949 The RIV949, a hydropneumatic riveter for rivet nuts from Rivit Srl, has been designed for those sectors where work automation has become necessary, as well as fixed workstations with vertical applications. To increase the fastening possibilities and the mobility of the tool, Rivit has developed solutions that provide the riveter with the necessary support to ensure easy and precise balancing and tool handling. The triple articulated joint arm was already available in the Rivit range, but the new upgrade added supports that allow its use with the riveting tools RIV503, RIV504 and RIV506, both horizontally and vertically.

The chrome hardened steel cartesian arm with balancer for RIV949, has been projected with a new modern concept. Thanks to the movement on recirculating ball bearings, it allows a fast and precise alignment on the holes and high smoothness. Its main advantages include a multidirectional head that allows riveting in any position; great flexibility in extension and rotation; as well as a fluidity of movement and reduction of operator fatigue.

The supports for the new arm, both horizontal and vertical, have also been designed to allow its use with RIV503, RIV504 and RIV506 riveting tools. It also has a minimum – maximum radius of 500mm – 850mm, a load range of 2kg – 7kg, as well as a working height range of 200mm – 1,000mm. To ensure maximum mobility, Rivit also proposes a housing workbench for the arms and riveting tools, complete with wheels and lower shelf.

News provided by: Fastener + Fixing Magazine www.fastenerandfixing.com

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Brazilian News

compiled by Fastener World

Brazilian Automotive Production Dropped by 32% Originally expected to reach the production mark of over 3 million units in 2020, Brazil actually finished the year of 2020 with the 3rd worst decline margin on the top 20 global automotive producers list.

World Automotive Production - Top 20 2019

2020

After the recession in 2015-2016, an economic recovery in Brazil appeared and lasted for 3 years. Unfortunately, the Covid came later.

However, the pandemic did not just affect Brazil.

1° China

25,720,665

25,225,242

-2.00%

2° USA

10,880,019

8,822,399

-19.00%

3° Japan

9,684,298

8,067,557

-17.00%

To analyze the automotive sector, one of the main boosters for fastener manufacture, Brazil once had a better economic era in 2019. During the year of 2019, the production of Brazil reached 2,984,988 units of motor vehicles, a rise of 2.2% from 2018. To view by percentage, its result was the biggest among the top 20 countries, while the other 17 countries respectively produced more than one million units in 2019.

4° Germany

4,661,328

3,742,454

-24.00%

5° India

4,516,017

3,394,446

-25.00%

6° S. Korea

3,950,617

3,506,774

-11.00%

To Brazilians, all perspectives were to finally break the “3 million units” barrier and get closer or break the 2014 result (which recorded the production of 3,146,386 units of vehicles).

Last year, China (top 1 among the top 20) also got a negative result in automotive production, but just down 2% to 25,225,242 units, while Iran (top 18) showed the highest growth of 7% to 880,997 units.

However, Brazil (top 9) showed a decline of -32%, one of the worst.

Also, Indonesia showed a fall of -46% to 691,286 units.

At the writing of this article, the local automotive production of Brazil in Q1 2021 closed at 597,700 units, up 1.99% compared to Q1 2020 (585,900 units) but down 13.35% compared to Q1 2019 (697,800 units) and down 14.64% compared to Q1 2018 (700,200 units).

Countries

Variation

7° Mexico

3,986,794

3,176,600

-21.00%

8° Spain

2,822,355

2,268,185

-20.00%

9° Brazil

2,944,988

2,014,055

-32.00%

10° Russia

1,719,784

1,435,335

-17.00%

11° Thailand

2,013,710

1,427,074

-29.00%

12° Canada

1,916,585

1,376,623

-28.00%

13° France

2,202,460

1,316,371

-39.00%

14° Turkey

1,461,244

1,297,878

-11.00%

15° Czech

1,433,963

1,159,151

-19.00%

16° UK

1,381,405

987,044

-29.00%

17° Slovakia

1,100,000

985,000

-11.00%

18° Iran

821,060

880,997

7.00%

19° Italy

915,305

777,165

-15.00%

1,286,848

691,286

-46.00%

20° Indonesia

Sources: www.oica.net / www.anfavea.com.br

Eduardo Lopes, in front of InoxPar Company

Inox-Par Reported 11% Average Growth and is Searching for Partners Outside Brazil With more than 35 years of activities, the company has become a stainless steel fasteners expert.

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In Portuguese, “stainless steel” means “aço inoxidável”, however, it is quite common to hear Brazilians pronouncing these two words simply as "inox". Normally, when someone refers to fasteners, it is quite common for Brazilians to use the word “parafuso”.

Combining some of these words, in 1986 Inox-Par Industry and Commerce Ltd. was founded. Currently, InoxPar hires more than 70 direct employees and 30 indirect ones.

Its operation (incl. industrial and storage units) measures more than 5,000 m² in total and is only a 10-minute drive from the International Airport São Paulo, Brazil.

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Brazilian News Co-founder and Commercial Operations Director Inox-Par, Eduardo Lopes told that the company handles a mix of activities and is acting as a manufacturer and importer of fasteners, mainly made in stainless steel.

Inox-Par executives participated in many most important fastener shows around the world to search for good supply partners for increasing the distribution of its operation through the InoxPar efficient system on the big and diversified markets in Brazil, mainly energy, window frames, food & beverage, and pharmaceutical sectors. Solar energy, in particular, has recently represented the share of more than 35% in all Inox-Par businesses.

Fastener Press Machines Now Subject to 0% Import Taxes in Brazil According to the news of Brazilian Official Diary (Diário Oficial da União) published on 02/17/2021, the press machines for manufacturing fasteners and special parts are also included in the most recent import tax reduction of Brazilian Government.

The current Brazilian economy officials have been more willing to lift barriers against certain product imports, such as machinery used by local fastener industries, mainly because of almost non-existence of similar machines directly manufactured in Brazil.

Yih Tieng Machinery, model from Spirafix show room, Brazil

"We’ve got an average growth of 11% since last year. However, as the Inox-Par can still go further, we can get some international companies from Asia, Europe, or North America to form alliances to let us achieve a rise in operations and good results, not just in Brazil, but also in our South American neighbours,” told Lopes.

Fastener Export & Import of Brazil in Q1 2020 and Q1 2021 Brazilian Fastener Trade - 2020 in Summary In 2020 the fastener export and import of Brazil generated US$ 636.13 million in value and 130,989.11 tons in volume respectively.

This result was 22.01% less than the US$ 815.58 million and 14.67% less than the 153,499.58 tons recorded in 2019. No surprise about the drop due to the pandemic.

It is also not surprising that the fastener import is predominant over the fastener export in Brazil. In 2020, the share of imported fasteners was 78.50% of the total value (US$ 499.27 million) and 79.43% of the total volume (104,052.1 tons). In 2019 it was 76.22% of the total value (US$ 621.65 million) and 80.74% of the total volume (123,923 tons).

The share of Brazilian fastener export in 2020 was 21.50% of the total value (US$ 136.86 million) and 20.57% of the total volume (26,937.01 tons). In 2019 the result was 23.78% of the total value (US$ 193.93 million) and 23.86% of the total volume (29,576.18 tons).

2020

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2019

Export

Export Share

Import

Import Share

Export + Import

Value (US$ million)

136.86

21.50%

499.27

78.50%

636.13

Volume (ton)

26.937,01

20.57%

104,052.10

79.43%

130,989.11

Value (US$ million)

193.93

23.78%

621.65

76.22%

815.58

Volume (ton)

29,576.18

19.26%

123,923.40

80.74%

153,499.58

One of the sources, the Ministry of Industry, Foreign Trade and Services (MDIC) of Brazil does not provide data on volume by country, both in import and export.

Last year China maintained its leadership, taking up 25% of Brazilian fastener import (US$ 127 million). The USA followed at 16% (US$ 77.5 million); Japan, 10% (US$ 51.9 million); Germany, 10% (US$ 51.6 million) and Taiwan, 5.6% (US$ 27.7 million).

Among the top five export destinations for Brazilian fasteners were the USA taking up 36% (US$ 49.9 million); Argentina, 17% (US $ 23.7 million); Paraguay, 11% (US$ 11 million); France, 4.5% (US$ 6.21 million) and Germany, 3.5% (US$ 4.76 million).

Regarding the average price per kilogram, among the fasteners exported in 2020, the price was US$ 5.08 (US$ 6.55 in 2019), higher than the US$ 4.79 (US$ 5.01 in 2019) of imports.

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Brazilian News Top 5 Partners Involved in Brazilian Fastener Trade (Unit: US$ Million)

Export Destinations Share in 2020 1. USA: 49.3 36%

Import Origins in 2020 1. China: 127.0

Share 25%

2. Argentina: 23.7

17%

2. USA: 77.5

16%

3. Paraguay: 11.0

8.0%

3. Japan: 51.9

10%

4. France: 6.21

4.5%

4. Germany: 51.6

10%

5. Germany: 4.76 Total Export Value: 136.86 Export Destinations in 2019 1. USA: 79.7

3.5%

5. Taiwan: 27.7 5.6% Total Import Value: ----499.27 Import Origins in Share Share 2019 41% 1. China: 130.0 21%

2. Argentina: 22.6

12%

2. USA: 95.5

15%

3. Paraguay: 13.0

6.7%

3. Germany: 72.9

12%

4. France: 7.86

4.1%

4. Japan: 72.0

12%

5. Germany: 6.07 Total Export Value: 193.93

3.1%

The total import in Q1 2021 reached US$ 227.86 million (53.81% higher than the US$ 148.14 million record in the same period of 2020) and 50,556.48 tons, 60.66% higher than the 31,467.34 tons of import last year.

The fastener export of Brazil in January 2021 was US$ 8.74 million, with the total volume at 2,258.77 tons; the fastener export in February was US$ 9.19 million, with the total volume at 2,202.12 tons; the fastener export in March was US$ 4.4 million, with the total volume at 1,491.42 tons.

The total export in Q1 2021 reached US$ 31.07 million (4.5% less than the US$ 32.54 million export recorded in Q1 2020) and 8,211.08 tons (56% higher than the 5,267.47 tons of export recorded in Q1 2020), which both resulted from the severe depreciation of ‘real’, the Brazilian currency.

IMPORT

Value (million)

Volume (tons)

Q1 2020

148.14

31,467.34

Q1 2021

227.86

50,556.48

Source: www.mdic.gov.br

Variation

53.81%

60.66%

Status in Q1 2021

EXPORT

Value (million)

Volume (tons)

The Brazilian currency depreciation could have been the cause for the export rise in volume and a drop in revenue; however, the import was also on the rise.

Q1 2020

32.54

5,267.47

Q1 2021

31.07

8,211.08

Variation

-4.7%

55.88%

---

5. Taiwan: 33.4 Total Import Value: 621.65

5.4% ---

In the first month of 2021, Brazilian fastener import reached US$52.27 million in value or 12,293.09 tons in volume. In February,

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the figure was US$ 54.31 million or 12,638.75 tons. Closing the Q1, the import in March reached US$ 121.28 million or 25,624.64 tons.

Belenus factory (Vinhedo Town, SP, Brazil)

Belenus Becomes the Top Fastener Manufacturer in Brazil The company substantially increased its capacity after acquiring several machines in 2020 Founded in 2002 and led by the businessman João Marcos Lucas, Belenus Ltd substantially expanded its capacity after acquiring several used machines in 2020, especially a lot of cold forming machines, including 13 Sacma and 5 National Machinery models that are able to produce fasteners from M6 to M20.

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Brazilian News Sergio Lucas and João Marcos Lucas (Belenus directors)

With around 1,400 employees, the company raised its capacity to 8,000 tons/month, which is 2,000 tons more than its former capacity, including the production of fasteners such as bolts, screws, and nuts, standard and special, making Belenus the top fastener manufacturer in brazil.

Belenus also has a big trade division dedicated to distribution of more than 15,000 items for the construction industry and other relevant products, such as hardware, tools, various parts and equipment, including its own brands, such as BelEnergy (photovoltaic products), BelFit (hydraulic hoses and terminals), BelLift (cargo handling products) and Beltools (tools and hardware).

Walsywa: Heating the Solar Energy Market Founded in 1964 as a leader in supplying fastening products especially for civil construction, Walsywa has been expanding its portfolio since the second half of 2020, by including items for use in solar energy capturing systems, an emerging and promising business.

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Made of stainless steel, 100% passivated, the Walsywa solar energy lines include terminal clamps, flat and rubber washers, flanged hexagonal nuts, screws, rods and rod sets, anchor bolts, as well as specialty fasteners.

"More than ever, the emerging solar energy system needs the best fastening options, which is a know-how that Walsywa has for more than half a century of history.

We i ntend, t hen, to di f ferentiate ourselves in this market, because we make fasteners for civil construction.

Supported by a highly trained team, we have be en providi ng t he best service and efficient logistics running 24 hours in most regions of Brazil. In addition, we have our own laboratory for product development that meets stringent demands," said João Pedro Schrott, Walsywa president.

João Pedro Schrott (the Walsywa president)

by Sergio Milatias, Editor Revista do Parafuso (The Fastener Brazil Magazine) milatias@revistadoparafuso.com.br www.revistadoparafuso.com

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Exhibition

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Exhibition

The 21st

Fastener Trade Show Suzhou

to Continue Strong Momentum in 2021

As a grand festival for global fastener suppliers and buyers, the 21st Fastener Trade Show Suzhou will open its doors from 27-29 October 2021 at Suzhou International Expo Center (SIEC), Jiangsu Province, China.

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This year’s show will occupy halls D1 and E1, with a total exhibition area of 12,000 square meters, featuring more than 400 participating companies (expected).

Some 12,000 buyers and visitors from China and the rest of the world are expected to come to the exhibition for annual procurement and negotiation.

Online visitor registration is now open. Register now for FREE Admission, FREE Show Catalog and Souvenir! Scan the QR code below to complete the application form.

The exhibit profile in 2021 will cover 6 product ranges of the entire fastener supply chain, including: fasteners, tools, equipment, molds, surface treatment and raw materials.

“Fastener Application Conference”, including a series of insightful topics by leaders and experts from fastener application fields, will shed light on advanced technology applications, providing a unique opportunity for attendees to acquire knowledge and share information.

The previous edition had created an unprecedented record of 551 booths, with a total of 11,028 visitors from around 30 countries and regions.

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To learn more about the 21st Fastener Trade Show Suzhou, please visit www.fastenertradeshow.net

American News

compiled by Fastener World

REPORT: Industrial Fastener Demand to Grow 4% CAGR The global industrial fasteners market is predicted to expand at over 4% CAGR through 2031, while the demand graph for threaded and plastic industrial fasteners is set to climb among diverse end-use sectors, according to a new report by Fact.MR.

FINdex Maintains Growth Despite Supply Disruptions Supply chain disruptions did not derail the FIN Fastener Stock Index in the opening quarter of 2021.

The FINdex maintained its brisk pace during the quarter, climbing 9.6% compared to a 6.5% gain by an index of related industrial stocks.

Tree Island Steel achieved the highest stock gain during Q1, rising 72.4%. During 2020, Tree Island revenues increased 7.7% to $215.9 million due to higher shipped volumes. Gross profit increased to $25.9 million, and gross margin climbed to 12% from 8.9% in 2019.

Other fastener companies with rising share value during Q1 included Carpenter Technology (up 41.3%); Chicago Rivet (up 11.5%); Dorman Products (up 18.2%); Fastenal (up 2.9%); ITW (up 8.6%); Howmet Aerospace (up 12.6%); Lawson Products (up 1.9%); MSC Industrial (up 6.9%); Nucor (up 50%); Park Ohio (up 1.9%); Simpson Mfg. (up 11%); and Stanley Black & Decker (up 11.8%).

Fastener stocks losing value during the first quarter: EACO - Bisco Industries (down 4.5%); Grainger (down 1.8%); and TriMas (down 4.2%).

During 2020, the FINdex increased 10% during the year, lower than the 12.8% rise in stock value by an index of related industrial stocks.

“While the outbreak of COVID-19 affected industry growth temporarily in 2020, with the commencement of vaccinations and adoption of t he new nor ma l, t he a u t o m o t ive , b u i l d i n g & c o n s t r u c t io n , a n d o t h e r key end-user sectors have started getting back on their feet since the last quarter of the year,” the report found.

“As such, overall industry outlook has remained positive during the last 5 years from 2016 to 2020.” With manufacturers of industrial fasteners incorporating advanced technologies and making heavy investments in various research & development (R&D) activities, the industry is projected to expand further over the coming years.

Fast and steady recovery of the automotive industry and growing adoption of industrial fasteners in commercial & residential construction projects are anticipated to increase supplier revenue in the U.S. Germany’s advanced automotive sector and rise in the number of construction & building projects after overcoming hurdles due to the pandemic position that country for strong growth as well, according to the report. Likewise, China is expected to register substantial growth in the coming years, with demand from the construction, automotive, and home appliance sectors boosting sales of industrial fasteners in that Asian country. As the world’s largest vehicle market, China expects automobile output will reach 35 million by 2025. India has emerged as a lucrative country in terms of demand, sales, and production of industrial fasteners, and is expected to grow further through 2031. Abundance of raw materials and labor, and high demand from the construction sector are fueling sales in India.

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Presently, plastic is gaining traction in terms of material for industrial fasteners. According to Fact.MR, this segment will gain further popularity owing to such advantages as: • Lightweight

• Cost-effective

• Flexible in terms of usage

• Free from the drawbacks due to rusting Non-threaded and aerospace grade industrial fasteners are expected to further fuel the sales of suppliers through 2031. The automotive and construction industries have high demand for industrial fasteners. Other key end-use segments are aerospace and home appliances.

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American News The Changing Face of Fastener Plating and Coating WINA Forms Würth Additive Group Würth Industry North America (WINA) formed Wü r t h A d d it ive G r o u p, a n ew U. S . c o m p a ny incorporated in Delaware and based in Indianapolis to provide expanded 3D printing products and services, including financing and rental options on equipment.

WINA began providing additive products and services in 2017 with rapid prototyping and printing production tools. It now offers full digital Kanban solutions by integrating 3D printing technology in its existing vendor managed inventory programs.

“We are thrilled to bring innovative digital supply chain solutions to our customers,” stated WINA CEO Dan Hill. “By integrating industrial 3D printing technology with our existing inventory programs, we can offer faster time to market, lower inventory costs, and improved environmental sustainability practices.

We’re able to cut out the sourcing, purchasing, and transportation costs and deliver the value directly to the customer.”

“We’re excited to offer rental and financing options and provide additive manufacturing solutions to a wider market,” said AJ Strandquist, newly appointed CEO of Würth Additive Group. said Würth can now provide additive manufacturing solutions to a wider market.

“Our mission is to enable, implement, and support a digital supply chain solution that is dependable a nd b e n ef ic ia l fo r ou r cu st om e r s t o op e r a t e,” Strandquist explained. “We do this by offering a clear implementation process, cost-saving options, on-going support, a strategic supplier portfolio, and financial services for instant return on investment.”

Strandquist joined Würth in 2014 and most recently served as director of 3D product solutions for WINA before his promotion.

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He is the son of Optimas Solutions CEO Marc Strandquist.

WINA signed a global distribution agreement with industrial metal and carbon fiber 3D printer provider Markforged in March 2020. Würth has added several strategic suppliers to its portfolio of additive solutions, offering a wide range of printers and materials for industrial applications. Its digital supply chain strategy includes additive manufacturing/3D printing, digital part files, and inventory assessment software that help customers cut costs and reduce operational risk.

WINA is a US$1 billion division of the Würth Group, with 110 locations providing 420,000 fasteners and C-parts plus services.

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It’s easy to assume that plating and coating options for fasteners are “set in stone.” But changes in regulations and standards require ongoing attention, according to Laurence Claus, founder of NNi Training and Consulting.

“You need to make sure that something doesn’t get dropped in on you that causes surprise,” stated Claus, who has almost 25 years of experience working in the fastener and automotive part supplier industries.

For example, cadmium has been gone for 30 years and it’s never coming back, but cadmium replacement remains a hot topic, especially in the Defense industry.

Likewise, hex chrome was severely limited 15 years ago.

“It’s been proven to be dangerous to people and the environment,” Claus explained.

EU efforts to ban hex chrome in cars forced the U.S. to follow suit. And it’s possible that a future initiative will ban hex chrome use altogether, he explained.

“We continue to see improvements in chromates and other plating alternatives to address the loss.”

In general, no regulatory changes are imminent, Claus noted.

“Nothing really new to report, but none of these regulations are going away. They evolve over time.”

For example, RoHS - the Restriction of Hazardous Substances Directive 2002/95/EC - has had several revisions since it was adopted in 2003.

“Keep these topics on your radar because things change. Every finish being applied to fasteners is a result of some standard, which can get revised.”

By design, industry standards are reviewed and often updated at least every five years. Examples include ASTM F1941/F1941M and ISO 4002, which have undergone significant changes in recent years.

“We will see a rebirth of the discussion about updating hydrogen embrittlement requirements,” Claus predicted.

There are also customer requirements that change, including accelerated corrosion testing, elimination of chrome products and the addition of new plating and coating standards or options.

“It’s really important that we chose platings and coatings based on solutions to the customer’s needs.”

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American News Fastener Companies Face Supply Challenges Shipping logistics and other supply chain challenges are dominating the focus of fastener distributors and manufacturers, panelists of a National Fastener Distributor Association presentation stated.

Product availability is affected by raw material demand in Taiwan, which is causing delays as long as six weeks, according to Melissa Patel, supply chain director at Field Fastener.

Likewise, lack of shipping availability, coupled with domestic rail delays, have added weeks to deliveries, Patel noted.

And exchange rates have compounded the problems fastener companies face.

“I don’t recall another time when exchange rates have been so prominent in management discussions,” explained Patel, who has worked for Field for 18 years.

Optimas Solutions CEO Marc Strandquist echoed those concerns.

“Covid is an issue that makes it so difficult to run a business, both in terms of supply side and internally,” Strandquist stated.

“Import orders are big right now. Everybody is ordering extra, creating a false demand.”

One manufacturer told Strandquist that one customer who generally orders 100,000 pieces just ordered 15 million.

“Some manufacturers domestically are in heaven.”

In response, steel prices are rising and there is speculation about allocations.

In addition to rising costs, there are quality issues as an uptick in business has led to less experienced workers producing questionable products, Patel said. Factoring in 301 tariffs that the Trump administration placed on Chinese fasteners and other products, Field constantly evaluates reshoring products, Patel noted.

“We are always looking to make sure we have the best total cost for any item we produce.”

While Optimas Solutions has a strong percentage of domestic products, global supply side issues have placed added pressure on reshoring.

“Customers are challenging us to reshore more because they’re worried about the length and financial stability of the supply chain,” Strandquist said.

There are two components of steel price: base price and surcharge, Strandquist pointed out.

“The surcharge is going up and down right now,” he said.

China Fastener World no.62/2021

Despite all the uncertainty in the supply chain, OEM planning is not getting more accurate.

“I don’t anticipate that changing or improving,” Patel explained.

“They’re paying us to manage this for them.”

Strandquist echoed that sentiment.

“There’s no appreciation. As far as customers are concerned, it’s just a bolt. You can go down to K-Mart for that.”

In response, fastener suppliers have been forced to use air freight to meet customer demands, Strandquist said. But that option is “cost prohibitive” because fasteners are lower value and quite heavy compared to computer chips.

“There is madness in the supply chain. Everybody is killing themselves to keep up with it.”

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Semblex Announces Changes to Senior Management Semblex Corporation, Elmhurst, IL, USA, and parent company, Jinhap Company, Ltd., announce the following management changes effective on May 1, 2021. Jinsoo Kim, current President, has been promoted to lead the international businesses of Jinhap and oversee operations outside of Korea, which include Jinhap firms in China and Semblex in the USA. He will be relocating to Korea later this year. Kim has been at Semblex since it was acquired by Jinhap in 2014 and has served Semblex as Chief Operating Officer and, most recently, as CEO and company president since March 2019. Gene Simpson, former Semblex’s Chief Operating Officer, has been promoted to replace Kim as CEO and company President. Prior to his COO role, Simpson served in several key management positions at Semblex over the last 29 years including Vice President of Quality & Engineering and Director of Engineering Services.

Semblex Corporation, which was established in 1968, is a premier supplier of innovative cold-formed product solutions to the world’s leading manufacturers. These manufacturers look to significantly reduce their assembly-related costs or are challenged to find the best way to fasten new materials which are emerging in their industries. Semblex Corporation provides its customers with the latest fastening products and technologies, along with precision cold-formed and machined components, and special assemblies.

Optimas Adds Larger Diameters to Existing Fastener Production Optimas Solutions, Glenview, I L , USA, a globa l indust r ia l manufacturer/distributor and service provider, announced it has added larger diameter (M12-M18) fastener production of the industry standard MATHread® and Taptite 2000® licensed products.

The larger M12-M18 MATHread and Taptite 2000 diameters en ha nce Optimas’ licensed products ma nufact ur ing capabilities that already included smaller diameters of MATHread, Mortorq®, Phillips Square-Driv®, Remform® and Taptite 2000® brands. These enhanced, larger diameter capabilities complement existing smaller diameter offerings, and further support Optimas’ continued quest to deliver industry leading manufacturing solutions to distributors and OEMs directly. “We’ve been manufacturing licensed fasteners for smaller diameters for a number of years,” said Marc Strandquist, CEO of Optimas. “Now with technological upgrades made at our Wood Dale, IL, USA and Droitwich, UK manufacturing facilities, we can produce larger diameters of licensed products to make us more competitive in a variety of industries that require larger fasteners, such as automotive, heavy duty trucks, construction machinery and agricultural equipment.” By adding these larger diameter capabilities,

American News Optimas can build on partnerships with reputable OEM brands wanting to onshore more manufacturing with licenses especially beneficial to industrial applications. These licenses allow Optimas to supply its customers next generation fastening solutions which guarantee measurable advantages, including improved performance, reduced installation times, and weight savings and cost savings. Optimas offers cold-forming manufacturing for a variety of fasteners at its Wood Dale and Droitwich facilities including selfthreading designs for metals and a roll-forming design for plastics. “We continue to improve our manufacturing capabilities by working with highquality, well-respected fastener licensers, such as MATHread, Phillips and Taptite,” said Strandquist. “As we continue to roll out our Manufacturing Solutions strategy that we announced in the third-quarter of 2020, it was a natural progression to add larger diameter licensed product capabilities for existing and new customer applications.”

Greenkote Sees More AntiCorrosion Coating Orders for Metal Fasteners

Tanner Bolt & Nut & Parker Fasteners Distribution Agreement

China Fastener World no.62/2021

Tanner Bolt & Nut Inc., Brooklyn, NY, USA is pleased to announce an agreement has been reached with Parker Fasteners, Buckeye, AZ, USA, to become the exclusive master distributor in the United States for its Lock-Out® maximum security screw. Lock-Out is a new and innovative security fastener featuring a unique patented drive that is engineered to perform in high torque applications. The distinctive oval center pin and multiple drive/key combinations give customers the option to select higher levels of security in a tamper-proof fastener. Installation bits are not sold commercially. Installation bits will only be sold through Tanner. LockOut is available in a multitude of head styles, threads, diameters, lengths, materials and finishes. Diameters range from 1/4" to 5/8", M1.4 to M16, and #0 to #10, with lengths up to 12" for certain diameters. Materials available include carbon steel, stainless steel 302HQ, 304, 316, A286 and brass alloy steel 4037, 8740. For absolute maximum protection of the customer’s property or product, Lock-Out can be manufactured with a one-of-a-kind, drive pattern that is exclusive to the customer’s company. Tanner received its initial stock order in early March 2021 and will continue to bolster its inventory throughout the year. Made-to-order product typically will ship in eight to ten weeks. Tanner Bolt & Nut Inc. is a nationwide distributor of premium industrial and security fasteners, code compliant anchors, safety, and products as well as power tool accessories. For more than 40 years, Tanner’s knowledgeable sales and support staff has committed to a customer first approach, delivering innovative quality products. Tanner partners with over 50 well known quality brands that provide customers with industry leading experience, innovation, and quality control. Parker Fasteners is a premier ISO & AS9100 Rev D-registered cold heading manufacturer, which sources all raw materials from American sources including DFARS compliance. Parker Fasteners takes great pride in manufacturing quality fasteners, engineered to meet customer product specifications and delivering on or before the promised due dates.

086

Greenkote, a global provider of advanced anticorrosion metal coatings, has announced a major expansion of production capacity at its headquarters facility in Brook Park, OH, USA. The expansion comes in response to an upsurge in demand for corrosion protection on environmentally exposed metal fasteners and hardware in several different industries. “I don’t know if climate change may be a part of it, but we’re seeing notable increases in anticorrosion coating orders for all kinds of different metal parts that are exposed to the elements,” said Greenkote CEO, Mark Gore. “The orders are coming from a range of sectors, including automotive, rail, electric power distribution, wind power generation and others. These are all applications that have fasteners, fixtures and other metal hardware exposed to longterm outdoor atmospheric cor rosion.” “It’s also possible that we’re getting more than our share of this business because of a couple of other factors,” added Gore. “Number one, G re en kote coat i ngs a re act ua l ly d i f f use d into the metal surface, making them damage resistant, longer-lasting and better-performing than older treatments such as galvanizing and paints. Another factor is eco-friendliness. Many other coating processes involve acids and other polluting chemicals, so their use is increasingly restricted by environmental regulation. But, as the name implies, Greenkote is uniquely benign to the environment.” Gore stated that installation of the additional Greenkote coating equipment in Brook Park has been completed and the facility is now fully operational with significantly expanded capacity. Greenkote provides anticorrosion coating services for construction, automotive,

American News rail, utilities and many other industries in which parts are exposed to weather or harsh and corrosive environments. Greenkote can be applied to a broad range of metal parts, from threaded fasteners to stamped and cast pieces, in sizes from 0.2" to 78".

Proprietary Greenkote coatings have been replacing several older anticorrosion processes such as galvanizing, hot-dip, sherardizing and metal flake. In addition to increased corrosion protection, Greenkote technology provides superior adhesion, longer wear and more conformal coverage, which allows its use on complex geometries such as small threaded parts. Greenkote also eliminates metal failures that are caused by hydrogen embrittlement, an intrinsic problem with many traditional coatings. Greenkote is applied by a patented zinc-based dry thermal diffusion process that requires no hazardous chemicals and produces no toxic byproducts. Consequently, it is uniquely friendly to humans and to the environment.

Tariffs On Chinese Fasteners To Continue

China is bearing the costs of the tariffs, every major study has shown that it’s American customers who are paying the price,” MarketWatch reports. While the 301 tariffs will remain in place for now, a Biden administration could “reduce or suspend import tariffs on steel and aluminum that Trump imposed on a number of countries aside from China on national-security grounds,” according to MarketWatch.

Those 232 tariffs hiked costs on industrial products and consumer goods such as autos and appliances.

During a 2019 International Fastener Expo conference, attorney Richard Wortman said 301 tariffs were likely to linger even if a new president was elected in the U.S. The tariffs have become federal government income without being called a “tax,” he noted. “It is going to take a while for tariffs to go away.”

The Office of the U.S. Trade Representative (USTR) list includes: 7318.11.00 - Iron or steel, coach screws 7318.12.00 - Iron or steel, wood screws (o/than coach screws) 7318.13.00 - Iron or steel, screw hooks and screw rings 7318.14.10 - Iron or steel, self-tapping screws, w/ shanks or threads less than 6 mm in diameter 7318.14.50 - Iron or steel, self-tapping screws, w/ shank s or thr e ads 6 mm or m or e in diameter 7318.15.20 - Iron or steel, bolts and bolts & their nuts or washers, imported in the same shipment

Analysts say that by teaming up with Europe and keeping the Trump tariffs in place, Biden will retain leverage over China, mute Congressional criticism and bolster public support. Trump began imposing import tariffs on Chinese products in 2018, leading to double-digit tariffs on $370 billion in Chinese goods that set off the biggest U.S. trade war in decades. The tariffs include 25% duties on bolts, screws and other fasteners (HTS subheadings 7318.11.00 to 7318.29.00) manufactured in China and 15% on all Chinese iron and steel nuts (HTS subheading 7318.16.00). The tariffs were issued under Section 301 of the Trade Act of 1974, which allows the White House to fight foreign trade policy it deems “unreasonable or discriminatory and burdens or restricts United States commerce.”

In September, the World Trade Organization (WTO) ruled that Trump’s tariffs on more than $400 billion in Chinese goods violate international trade regulations. “While Trump insists

7318.15.40 - Iron or steel, machine screws (o/than cap screws), 9.5 mm or more in length and 3.2 mm in diameter 7318.15.50 - Iron or steel, threaded studs 7318.15.60 - Iron or steel, screws and bolts, nesoi, having shanks or threads less than 6 mm in diameter 7318.15.80 - Iron or steel, screws and bolts, nesoi, having shanks or threads 6 mm or more in diameter 7318.19.00 - Iron or steel, threaded articles similar to screws, bolts, nuts, coach screws & screw hooks, nesoi 7318.21.00 - Iron or steel, spring washers and other lock washers 7318.22.00 - Iron or steel, w asher s (o/than spring washers and other lock washers) 7318.23.00 - Iron or steel, rivets 7318.24.00 - Iron or steel, cotters and cotter pins 7318.29.00 - Iron or steel, nonthreaded articles similar to rivets, cotters, cotter pins, washers and spring washers

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China Fastener World no.62/2021

U.S. President Joe Biden intends to keep import tariffs on China in place early in his presidency, saying the U.S. needs more leverage against “abusive” trade practices, MarketWatch reports. “I’m not going to make any immediate moves, and the same applies to the tariffs,” Biden told New York Times columnist Thomas Friedman.

“I’m not going to prejudice my options.” Biden said he will try to build an allied front against China’s unfair trade practices, while also trying to improve diplomatic ties with China by toning down the harsh rhetoric used by former President Donald Trump.

American News when shipping costs will stabilize,” Sachs explained. “There are so many factors created by the Pandemic. These are very unusual times with many unanswered questions.” “In the past, shortage of container space and large increases in shipping costs typically come and go pretty quickly,” Sachs has found. “I am afraid to say...not this time due to the uncertainty of the Pandemic and the trade war with China. You just need to come up to the plate and keep swinging.”

Acquisitions Boost SWK Fastening Sales

Sachs: ‘Perfect Storm’ Creates Container Shortage in the US “ T he cost of t he cont a i ners have i ncreased dramatically over the past 12 months,” Bob Sachs of XL Screw said. The shortage is due to a “perfect storm” created by a list of reasons for container shortage.

“The steamship lines are really taking advantage of the situation and they are reportedly making record profits,” Sachs said. “They are very happy.” Reasons for the container shortage include “empty containers sitting all over the world waiting to be shipped back to the Far East. Not enough cargo to be shipped back to the Far East,” Sachs explained. “This creates a lack of container availability to ship back to the USA.” The pandemic also contributes to the container sho r t a ge: “ Be c a u s e b u si n e s s slowe d d ow n s o dramatically last year, I heard that the companies that make new shipping containers cut way back on their new production,” Sachs noted. “Now they can't keep up with the demand.” Demand for container space had increased toward the end of 2019 with the economies of the world doing well, Sachs pointed out.

“Companies needed to replenish their inventories due to improvement of the demand for product worldwide.”

St a n ley Bla ck & D e cker rep or t e d Engineered Fastening organic revenues dropped by 2% in the final quarter of 2020 “as strong automotive fastener growth was offset by an improved, but still declining, general industrial market.” Those results were offset by an 11% revenue increase from the US$1.5 billion acquisition of Consolidated Aerospace Manufacturing LLC (CAM).

Brea, CA-based CAM, which manufactures aerospace fasteners and components, was launched by Tinicum in 2012 as a holding company for eight manufacturing firms active in aerospace component sector.

Among CAM’s holdings are Bristol Industries, E.A. Patten, Aerofit, Voss Industries, 3V Fasteners, QRP and Moeller.

Q4 Industrial segment revenue, including fasteners, grew 10% to $658 million, with profit rising 14.4% to $88.9 million at a rate of 13.5%. Fullyear Industrial segment revenue, including fasteners, declined 3.4% to $2.35 billion, while profit fell 32.5% to $225.6 million at a rate of 9.6%.

Consolidated Black & Decker revenue rose 1% to $14.53 billion. Full-year net earnings gained 29% to $1.23 billion.

Dyson Opens New Manufacturing & Distribution Location in Texas Dyson Corporation, Painesville, OH, USA, is proud to announce the opening of its newest location in Houston, TX, USA, as of January 2021. This modern facility is the manufacturing location for foundation anchoring products to support the growing wind energy market in the southwest.

China Fastener World no.62/2021

PPE products are especially in demand now and “governments are paying a hefty price to the steamship lines to move the PPE cargo.” Sachs termed giving PPE cargo priority “understandable.”

Sachs’ fourth reason for the container shortage is steamship lines “cutting way back on their vessel sailings to create a demand on container space thus taking advantage of the situation and being able to raise their prices.” “Shipping costs change daily,” Sachs finds. Also the Chinese New Year “always creates a push for available container space,” Sachs added.

Sachs observed “there are so many ships sitting outside the USA West Coast Ports waiting to unload their cargo. This is creating long delays.”

All of those reasons combined have “created the Perfect Storm!” Sachs declared.

When will the container situation ease? “I have no idea when container availability will improve and

088

John Wolz, Editor of FIN (globalfastenernews.com) Mike McNulty, FTI VP & Editor (www.fastenertech.com)

090 China Fastener World no.62/2021

Industry Focus

U.S. Market Development of

Electric Vehicles and Fastener Demand

Data note: The data for this article is derived from Descartes™ Datamyne's US Census trade statistics. US Import and Export Census trade statistics is based on all modes of transportation. That value is calculated in USD by CIF (imports).

In this article fasteners are defined as any product under HS Code 7318 (screws, bolts, nuts, coach screws, rivets, cotters, cotter pins, washers and similar articles or iron or steel), as well as the subcategories of 7318.

Chances are the word ‘Tesla’ will ring a bell for many in 2021, not just for being a successful electric vehicle manufacturer, but also for the modern innovation of a concept that auto manufacturers across the globe have contemplated for centuries.

Versions of electric cars have been introduced since the 1880s, all with limited speeds and miles per hour, not to mention limited features. The U.S. Department of Energy has time capsuled the history of electric cars and identified the electric wagon of 1889 the first of its kind. It was a step up from the gas and steam fueled cars that emitted harsh pollutants into the environment. Fast forward to 2006 and Tesla introduces its first 200-mile range electric car, including all the bells and whistles of a modern-day car.

Other electric vehicles have entered the U.S. market including the Chevy Volt

by GM and the Nissan Leaf. With the increase in electric cars comes the demand for accessible charging stations. The U.S. Department of Energy installed over 18,000 residential and commercial charging stations around the country between 2009 and 2013. Undoubtedly one of the main factors of electric vehicles are the batteries which originally came with a high cost. Lower cost batteries ultimately made electric vehicles more affordable to the end consumer, making the switch to an electric car extremely attractive.

For the most part, U.S. auto manufacturers import most auto parts and raw materials from their overseas trading partners. One of the most sought-after commodities for auto manufacturing is fasteners, which are by and large imported from Taiwan, China, and Japan. Considering the current U.S. administration, we may begin to see more efforts to create clean energy, one of which could be incentives for electric car consumers. In the U.S., about 91% of all households have access to at least one car. That should not come as a surprise considering the lack of public transportation in the vast majority of the country, which leads to the need for access to a vehicle.

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China Fastener World no.62/2021

by Sabrina Rodriguez

Auto manufacturers are quickly introducing electric vehicle models.

Have the recent years of electric vehicle production ramped up fastener demand in the U.S.? Will the demand continue to grow as auto manufacturers continue to increase production?

Industry Focus Table 1. U.S. Fastener Imports 01/01/2020 - 02/29/2020 Product HS (4)

General Total Value CIF (USD)

%

7318 - Screws, Bolts, Nuts, Coach Screws, Screw Hooks, Rivets, 890,047,378 Cotters, Cotter Pins, Washers and Similar Articles, of Iron or Steel

100

General Quantity (kg)

01/01/2021 - 02/28/2021

Volume Change

General Total Value CIF (USD)

%

General Quantity (kg)

%

General Total Value CIF (USD)

%

General Quantity (kg)

%

247,614,300 100 880,164,670

100

250,633,955

100

-9,882,708

-1.12

3,019,655

1.22

%

Table 2. U.S. Fastener Imports (Subcategories) 01/01/2020 - 02/29/2020 Product HS (6) 731815 - Threaded Screws and Bolts Others, With or Without Their Nuts or Washers, of Iron or Steel 731816 - Nuts, Threaded, of Iron or Steel 731814 - Self-Tapping Screws, Threaded, of Iron or Steel 731829 - Nonthreaded Articles (Fasteners) Others, of Iron or Steel 731822 - Washers, Other Than Lock Washers, of Iron or Steel 731819 - Threaded Articles of Iron or Steel Others 731821 - Spring Washers and Other Lock Washers, of Iron or Steel 731823 - Rivets of Iron or Steel 731824 - Cotters and Cotter Pins, of Iron or Steel 731812 - Wood Screws Other than Coach Screws, Threaded, of Iron or Steel

Totals

General Total Value CIF (USD)

%

General Quantity (kg)

01/01/2021 - 02/28/2021 %

General Total Value CIF (USD)

General Quantity (kg)

%

Volume Change General Total Value CIF (USD)

%

%

General Quantity (kg)

%

388,445,288 43.65 118,875,422

48.01 356,207,730 40.48 107,821,050 43.02 -32,237,558 -8.30 -11,054,372 -9.30

195,781,748 22.00 46,229,519

18.67 180,908,862 20.56

41,200,079 16.44 -14,872,886 -7.60 -5,029,440 -10.88

145,889,895 16.40 52,275,222

21.12 182,988,870 20.80

68,531,141 27.35 37,098,975 25.43 16,255,919 31.10

57,112,999

6.42

6,776,943

2.74 55,999,277

6.37

6,755,701

2.70 -1,113,722 -1.96

-21,242 -0.32

43,234,485

4.86 13,296,432

5.37 42,776,162

4.87

13,266,091

5.30

-458,323 -1.07

-30,341 -0.23

19,981,982

2.25

2,587,746

1.05 15,972,513

1.82

2,313,566

0.93 -4,009,469 -20.07

-274,180 -10.60

10,963,777

1.24

1,169,951

0.48 10,861,293

1.24

1,309,899

0.53

10,774,848

1.22

1,936,646

0.79 11,776,797

1.34

1,987,031

0.80

1,001,949

9.30

8,399,785

0.95

861,526

0.35

9,147,780

1.04

1,015,327

0.41

747,995

8.91

153,801 17.86

4,922,163

0.56

1,390,950

0.57

6,102,902

0.70

2,383,546

0.96

1,180,739 23.99

992,596 71.37

-102,484 -0.94

890,047,378 100.00 247,614,300 100.00 880,164,670 100.00 250,633,955 100.00 -9,882,708 -1.12

139,948 11.97 50,385

2.61

3,019,655

1.22

Table 3. U.S. Fastener Imports (Main Country of Origin)

China Fastener World no.62/2021

Country of Origin

01/01/2020 - 02/29/2020 General General Total Value % Quantity CIF (USD) (kg)

%

01/01/2021 - 02/28/2021 General General Total Value % Quantity CIF (USD) (kg)

%

Volume Change General General Total Value % Quantity CIF (USD) (kg)

Taiwan

303,753,023

34.13

96,188,546

38.85 329,754,798

37.47

101,425,131

40.47

26,001,775

China

164,272,934

18.46

73,058,391

29.51 155,138,347

17.63

66,589,913

26.57

-9,134,587

8.57

%

5,236,585

5.45

-5.57 -6,468,478

-8.86

5.57 -13,833,335 -13.53 -1,301,422

-8.54

Japan

102,282,495

11.50

15,243,747

6.16

88,449,160

10.05

13,942,325

Germany

64,990,844

7.31

8,040,892

3.25

51,635,800

5.87

6,489,052

Canada

53,521,900

6.02

12,461,641

5.04

51,993,301

5.91

11,394,014

4.55

S. Korea

31,947,366

3.59

7,503,691

3.04

35,564,734

4.05

12,548,892

5.01

3,617,368

11.33

Italy

23,123,186

2.60

2,422,965

0.98

26,768,255

3.05

3,031,405

1.21

3,645,069

15.77

608,440

25.12

India

21,320,848

2.40

10,256,088

4.15

24,903,128

2.83

12,243,627

4.89

3,582,280

16.81

1,987,539

19.38

Mexico

21,300,534

2.40

2,142,053

0.87

21,458,951

2.44

2,524,351

1.01

158,417

0.75

382,298

17.85

16,080,607

1.81

1,201,109

0.49

12,000,238

1.37

609,988

0.25

U.K. Totals

092

890,047,378 100.00 247,614,300 100.00 880,164,670 100.00

2.59 -13,355,044 -20.55 -1,551,840 -19.30

250,633,955 100.00

-1,528,599

-2.86 -1,067,627

-4,080,369 -25.38 -9,882,708

-1.12

-8.57

5,045,201 67.24

-591,121 -49.22 3,019,655

1.22

Industry Focus What Trends Can Already be Seen When It Comes to Fastener Imports into the U.S.?

According to U.S. Census trade statistics, January - February 2021 have shown a slight 1.2% increase when it comes to the quantity of fasteners being imported when compared to the same time frame in 2020.

Trade at the beginning of 2020 was already beginning to be impacted due to the start of the pandemic. Fasteners within subcategory 731814 increased by 25% in value and 31% in quantity in 2021, while 731819 decreased by 20% in value and 10.6% in quantity. Subcategory 731812 increased by 24% in value and a staggering 71% in quantity.

Table 4. U.S. Fastener Imports Between 2010-2020

7318 - Screws, Bolts, Nuts, Coach Screws, Screw Hooks, Rivets, Cotters, Cotter Pins, Washers and Similar Articles, of Iron or Steel

General Total Value CIF (USD) 2010

General Quantity (kg)

General Total Value CIF (USD) 2011

General Quantity (kg)

General Total Value CIF (USD)

General Quantity (kg)

2012

General Total Value CIF (USD)

General Quantity (kg)

2013

3,652,755,043 1,184,441,689 4,413,558,966 1,354,071,671 4,887,887,114 1,437,079,831 4,778,944,402 1,459,946,322 2014

2015

2016

2017

5,152,781,842 1,539,876,990 5,291,482,711 1,597,974,818 4,785,685,901 1,512,964,397 5,168,791,299 1,546,678,148 2018

2019

2020

6,029,489,521 1,782,518,912 5,841,885,221 1,638,796,650 5,073,308,249 1,491,564,174

China Fastener World no.62/2021

Product HS (4)

093

Industry Focus Company Focus Fastener imports from Taiwan accounted for over 37% of the total value imported during the first two months of 2021, while China accounted for 17.6% and Japan for 10%. South Korea increased their fastener exports to the U.S. during the first two months of 2021 by over 67% by comparison to the same period in 2020. Similiarly, Italy increased their fastener exports by 25% and India by 19%.

Based on quantity, fastener imports were on a steady rise between 2010 and 2012, and then proceeded to slightly plateau in 2013. There was another increase in 2014/2015, followed by an unexpected dip in 2016 and a very dramatic increase in 2018. Coincidental with the 2018 increase, Tesla had begun production of the widely anticipated Model 3 which generated thousands of pre-orders. In 2020, the quantity of fastener imports into the U.S. was 1,491,564,174 kilograms which is nearly 26% higher than the total quantity imported in 2010. Judging from this increase over a 10-year time span, we can expect the demand for fasteners to have increased by about 20 – 25% in 2030.

What Should Auto Manufacturers and Fastener Suppliers Expect to Happen in the Future?

Major auto makers have been prototyping their version of electric cars and hybrid cars for decades. In the next few years, U.S. companies like Ford, General Motors and Chrysler will be introducing electric vehicles into the market. Outside of the U.S., Audi, BWM, and Hyundai, many of which will also enter the U.S. market through international trade. This increase in production will either maintain the existing demand for fasteners, or it will increase it as more vehicles will be manufactured. Bearing in mind the competitive landscape of most of the auto manufactures, it would be beneficial for oversea vendors to maintain healthy supply of fasteners to meet the market demand when production begins to ramp up.

Interesting enough, ride share apps do not seem to have driven down the demand for vehicles. The same can be said about the increasingly large population of workers that have transitioned into working from home, reducing (or eliminating) their need for a vehicle to use for daily commutes. Most major metropolitan cities offer public transportation, however, not every city offers reliable and adequate public transportation like New York City and Boston. For those outside of major cities and for all those in less suburban cities, having access to a car creates convenience, and in many cases saves public commuting time.

One thing is certain: we are witnessing the beginning shifts into cleaner energy.

Perhaps with the right incentives, environmental awareness and lowered costs, more consumers will opt for an electric vehicle over the gas-fueled comparable. For many, opting to commit to public transportation is for environmental concerns. Not owning a gas-fueled vehicle reduces their overall carbon footprint and the overall contribution to the emissions released by cars. Considering affordability and the reduction in environmental hazards, electric vehicles are predicted to become the favored option for consumers.

Specialist Supplier in Commercial Construction Applications

Triangle Fastener Corporation

by Dean Tseng, Fastener World

Triangle Fastener was founded in 1977 in Pittsburgh Pennsylvania. From the very beginning, it focused on distributing various standard and specialty fasteners to the commercial construction industry. Purchased by SFS in 2019 and now a member of the SFS group while operating under the Triangle Fastener Corporation (TFC) brand, the company now provides customers with even more value.

China Fastener World no.62/2021

Purchase Assorted Construction Fasteners in One Place The company provides fasteners used to attach various framing systems, steel decking, and cladding materials, as well as those for interior construction like steel framing, sheet metal, and drywall attachment. These are available in all types of head styles, drive systems, materials, and finishes including painted heads. Also available are custom types for specific applications.

Locally-tailored Services & Engineering Support The company strives to differ itself by developing fasteners that exceed industry standards. Each of its branches focuses on a local market to provide the best services that meet a customer’s individual needs like inventory management programs, product training and job site assistance. Customers and specifiers also have free access to the TFC TECH CENTER which provides engineering assistance, application testing and support, product development, and which can be used for training.

Light at the End of the Tunnel On the pandemic last year, “We were very for t u na t e b e ca use ou r t e a m m em b e r s d id a tremendous job in implementing procedures that allowed us to stay open in a safe manner,” said Vice President Joe Stager. Some regions in the USA were more affected by shutdowns, but overall the construction industry was able to continue to operate by using safe COVID-19 protocols. “Our suppliers in the USA and Taiwan also did a wonderful job in supporting our needs during these challenging times.

We expect business will continue to improve this year and into 2022. The real challenges will be meeting the demand as a result of import shipping delays.”

Now with 23 locations in 13 States, Triangle Fastener will continue to invest in new and better ways to fasten various cladding materials and position itself as the industry leader. Look no further and give TFC a try!

Contact: Vice President Joe Stager

094

E-mail: jstager@trianglefastener.com

Industry Focus

Global Automotive Market in 2020

Promising Yet Chaotic

by Dean Tseng, Fastener World

2020 Saw a Tug-of-War in Sales of Global Fossil Fuel Vehicles & Electric Vehicles The factors leading to the slump in the global automotive market last year are actually more complicated than we could imagine.

Electric vehicles as a competitor with growing sales went popular with the pandemic last year and grappled for market share with the top 10 carmakers who were not ready for complete EV transition.

The mile range of current EV batteries is almost as long as that by the engines of fossil fuel vehicles. Batteries are the most expensive component on electric vehicles. An annual survey by BNEF found

Table 1. Top 10 Global Carmaker Sales in 2020 Ranking 2019 2020 1 1 2 2 3

3

5 4 7 6 8 9 10

4 5 6 7 8 9 10

Carmaker Volkswagen Toyota Renault-NissanMitsubishi Alliance Hyundai GM Honda Ford F.C.A P.S.A Mercedes- Daimler

Sales (Unit: Million Vehicles) 2019 2020 Growth (%) 10.33 9.31 -9.9 9.69 8.90 -8.2 9.22

7.95

-13.8

7.20 7.74 4.82 4.90 4.36 3.17 2.62

6.52 6.26 4.50 4.15 3.90 2.91 2.55

-9.4 -19.1 -6.6 -15.3 -10.6 -8.2 -2.7

095

China Fastener World no.62/2021

The world’s headlines were all about the U.S./China trade war back in 2019 when the automotive industry became the scapegoat for the retaliation between both countries.

Most of the primary carmakers at the time faced a decline in sales. The lockdowns and factory closures in the first half of 2020 took a punch at carmakers and more than half of their vitality. It was no surprise when the top 10 chart of global carmakers in 2020 came out with each one of them failing to keep sale numbers and continuing to drop. Their drop margins mostly varied by around 10%.

General Motors went as far as to minus 20%.

Continuing from 2019, Volkswagen took the championship in the 2020 automotive market sales chart, but even this champion was not spared from a sales drop close to 10%.

Industry Focus that the battery price in 2020 was already 89% down from a decade ago! BNEF forecast electric vehicles would be priced the same as fossil fuel vehicles within 3 years at the earliest. Morgan Stanley predicted electric vehicle prices would come down to a range of USD 3,000 to USD 5,000 within the next decade. This affordability will be spine-chilling for the fossil fuel vehicle leader Toyota and other carmakers, and no wonder they're now going full throttle in EV development. Like this isn’t complicated enough, even companies that had done nothing related to EVs before have stepped up to the plate of the EV industry. As a vivid example, word has it that the first EV prototype by Foxtron Vehicle Technologies, a joint venture between Yulon Motor and and Foxconn, would be announced this June.

Car Sales in China: Resilient but Could be in for an Electric Vehicle Bubble?

China Fastener World no.62/2021

The Covid dealt a heavy blow on the global automotive market, but didn’t take down China’s domestic car sales. China quickly put domestic car sales back on its feet by March last year, after which the sales were on a steady recovery track. Of the top 50 Chinese carmakers in the 2020 sales chart, we found that nearly half of them still had a mild and positive growth of up to 10%, which tells that the Chinese automotive market was able to maintain resilience of slow growth. The eye-catcher was Great Wall Motor with a 500% sales growth. Other carmakers with declining sales exhibited a drop margin ranging up to 20%, which indicated the pandemic still posed a certain threat to the Chinese automotive market.

Chinese new energy electric vehicle manufacturers are drawing the public's curiosity. If we extend the spectrum of the chart to top 150, we'd be surprised by the utter abundance of Chinese EV carmakers.

These EV carmakers are ranked on and after the 75th place in the chart given their sales numbers. Obviously EVs remain an emerging industry in China, and they are believed to have the potential to rise to top 10. According to Ministry of Industry and Information Technology (China), the country has at least 76 government-approved new energy car manufacturers. The EV car sales should have risen against the tide during the pandemic as far as the logic goes, but the numbers in the chart tell that sales plummeted across over half of the Chinese EV carmakers. The worst drop was down to minus 90%. Only Nio (up

096

Industry Focus 2019 2020

Carmaker

indicates EV markers)

Sales (Unit: Vehicle) 2019

2020

Market Share (%)

Growth (%)

2019

2020

1

1

SAIC Volkswagen

1,726,364 1,368,089

-20.8

+8.02

7.01

2

2

FAW-Volkswagen

1,423,394 1,248,704

-12.3

+6.61

6.39

3

3

Geely Automobile

1,178,009 1,115,289

-5.3

+5.47

5.71

4

4

Dongfeng Nissan

1,171,181 1,093,091

-6.7

+5.44

5.6

5

5

SAIC GM Buick

876,946

874,143

-0.3

+4.07

4.48

6

6

Dongfeng Honda

800,582

843,728

5.4

+3.72

4.32

8

7

Guangqi Honda

767,340

792,200

3.2

+3.56

4.06

12

8

Changan Automobile

647,012

789,183

22.0

+3.00

4.04

9

9

FAW Toyota

703,112

768,597

9.3

+3.27

3.94

11

10

GAC Toyota

697,674

761,364

9.1

+3.24

3.9

13

11

SAIC-GM-Wuling

637,940

667,295

4.6

+2.96

3.42

7

12

Great Wall Motor

99,984

644,965

545.1

+0.46

3.3

14

13

FAW-Volkswagen Audi

619,211

633,182

2.3

+2.88

3.24

15

14

BMW Brilliance

572,937

609,161

6.3

+2.66

3.12

16

15

Beijing Benz

565,644

589,128

4.2

+2.63

3.02

21

17

Chery Automobile

399,798

448,327

12.1

+1.86

2.3

19

18

SAIC

449,899

435,550

-3.2

+2.09

2.23

10

19

Beijing Hyundai

701,541

433,848

-38.2

+3.26

2.22 2.07

20

20

BYD

441,807

404,279

-8.5

+2.05

22

22

GAC Passenger Car

369,759

300,681

-18.7

+1.72

1.54

23

23

Dongfeng Yueda Kia

291,176

252,516

-13.3

+1.35

1.29

25

24

SAIC MG

236,149

241,664

2.3

+1.1

1.24

27

25

Changan Ford

186,361

210,963

13.2

+0.87

1.08

41

34

JAC

106,046

95,756

-9.7

+0.49

0.49

76

47

Nio

20,139

44,493

120.9

+0.09

0.23

---

55

Tesla China

---

37,555

---

---

0.19

---

60

Li Auto

---

29,728

---

---

0.15

---

65

Weltmeister

20,901

---

---

0.11

35

67

BAIC New Energy

122,889

19,180

-84.4

+0.57

0.1

82

69

Xpeng Motors

16,609

18,114

9.1

+0.08

0.09

---

61

70

Great Wall New Energy

38,865

17,294

-55.5

+0.18

0.09

56

72

Geely New Energy

45,856

16,110

-64.9

+0.21

0.08

74

76

SAIC-GM-Wuling New Energy

22,797

12,997

-43.0

+0.11

0.07

88

80

Geometry Auto

12,662

9,553

-24.6

+0.06

0.05

116

86

GAC Toyota New Energy

2,043

6,828

234.2

+0.01

0.03

94

91

Haima

8,456

5,894

-30.3

+0.04

0.03

106

92

Linktour Motors

3,338

5,148

54.2

+0.02

0.03

110

94

Yundu New Energy

2,566

4,470

74.2

+0.01

0.02

70

97

Changan Automobile New Energy

26,261

3,653

-86.1

+0.12

0.02

105

98

Jiangling Group New Energy

3,445

3,483

1.1

+0.02

0.02

---

101

Leap Motor

---

0.02

66

102

JAC New Energy

113

103

Denza

---

3,024

---

31,557

2,474

-92.2

+0.15

0.01

2,089

2,437

16.7

+0.01

0.01

39,125

1,166

-97.0

+0.18

---

---

60

113

Chery New Energy

---

116

AIWAYS

-----

---

117

Jimai New Energy

107

119

Zotye New Energy

---

120

GAC Nio

130

127

GAC Mitsubishi New Energy

112

128

SITECH

132

131

Zhengzhou Nissan New Energy

---

133

Letin

128

134

BAIC Changhe New Energy

---

136

GAC Honda New Energy

881

3,117 ---

829

---

---

---

730

-76.6

+0.01

---

659

---

---

---

89.3

---

---

2,192

138

-93.7

+0.01

---

20

37

85.0

---

---

29

---

---

---

21

-88.4

---

---

1

---

---

---

---

Although market demand could register a significant rebound as the world embark on vaccination in 2021, the world remains turbulent as far as the automotive industry is concerned. The most hurtful problem to the carmakers is the global chip crunch. They won’t even be able to manufacture cars without this core component, much less selling cars.

Every carmaker will have to do all they can to grapple for market share while simultaneously keeping an eye sharp for the U.S./China clash 2.0 under Biden’s regime. This could mean the automotive tariff retaliation between the U.S. and China could go on. In a market expected to recover in 2021, global carmakers will have to walk on thin ice in a world of chaos.

0.01

195

181

Automotive Chip Crunch & U.S./China Clash 2.0; Everyone on Their Own in a Chaotic World

---

103

---

120%) and Guangzhou Toyota Motor (up 234%) had multi-fold growths. This is because many of these new energy car manufacturers were new entrants with little history. Some of them, like Byton, Bordin, Qiantu Motor, and Saleen went bankrupt. Carmakers like Changjiang Automobile, Henan Suda, and YUDO New-Energy are either in financial distress or in frequent loss of funds.

Chinese electric vehicles are indeed sprouting but on the flip side, churning with worries about a bubble burst.

China Fastener World no.62/2021

Table 2. Car Sales in China in 2020 ( Ranking

097

Industry Focus

Latest Update on the

EU’s Fastener Trade

by Gang Hao Chang, Vice Editor-in-Chief of Fastener World (Table data shown in descending order according to figures of 2020)

Import From 2017 to 2020, the EU imported around EUR 4.5-5.8 billion worth of fasteners from the world per year. If calculated by volume, the yearly fastener import roughly landed at 1.5-1.9 million tons. The unit price per Kg was about EUR 3.

During these four years, 2018 demonstrated the best result in fastener import with the import value reaching EUR 5.705 billion and the import volume being 1.911 million tons. However, the import appeared a consecutive drop in 2019-2020. In 2020, the import value was already down to EUR 4.4 billion and the import volume slipped to around 1.52 million tons as well, a clear sign of market demand shrinkage.

To view from import values, the EU’s main fastener import partners were China, Taiwan, USA, Switzerland, Turkey, Vietnam, India, Japan, and S. Korea. The combined import from China and Taiwan almost represented nearly 50% of the EU’s total fastener import. The imports from USA and Switzerland also represented around 10%, respectively.

To view from import volumes, the EU’s main fastener import partners were China, Taiwan, Vietnam, Turkey, India, Thailand, Malaysia, and S. Korea. The combined import from China and Taiwan almost represented around 67.5% of the EU’s total fastener import.

Vietnam, at the 3rd place, only represented 6.6%. The EU showed very high dependence upon fastener imports from China and Taiwan.

Top 20 Fastener Import Partners for the EU (Incl. UK) in 2017-2020 (by EURO) Product(s): 7318 Partners

Years

2017

2018

2019

2020

5,219,684,443

5,705,327,956

5,667,901,496

4,417,636,823

China

920,115,184

1,203,637,682

1,309,979,402

1,140,659,006

Taiwan

1,320,527,177

1,418,785,716

1,343,686,383

1,028,746,155

China Fastener World no.62/2021

Total non-EU

098

USA

802,330,632

746,228,648

797,751,311

487,182,311

Switzerland

485,183,597

464,056,476

421,370,384

363,000,880

Turkey

260,031,233

302,429,331

296,199,006

251,388,345

Vietnam

224,788,138

270,278,019

239,828,207

195,983,044

India

250,779,928

278,726,784

284,069,336

191,719,708

Japan

228,218,388

222,068,587

220,926,397

153,687,302

S. Korea

160,864,368

177,489,884

176,181,683

146,768,348

Liechtenstein

95,317,680

85,939,275

86,529,945

89,922,252

Thailand

109,370,292

125,429,022

101,855,810

70,336,474

Malaysia

88,128,507

96,013,273

87,371,382

65,362,079

Bosnia and Herzegovina

34,594,095

36,531,685

39,479,227

32,683,962

Indonesia

37,738,193

36,367,212

32,676,079

32,510,458

Norway

30,496,543

37,609,334

40,246,641

29,720,992

Canada

33,972,713

34,229,015

32,881,549

20,385,389

Serbia

15,994,919

22,625,295

17,036,625

13,286,762

Philippines

21,558,437

27,874,791

19,828,250

13,220,318

Russia

8,427,812

12,761,498

15,742,530

11,419,184

Brazil

17,000,815

18,494,238

13,523,993

11,113,802

Industry Focus Top 20 Fastener Import Partners for the EU (Incl. UK) in 2017-2020 (by Ton) Years

2017

2018

2019

2020

Total non-EU

1,725,371

1,911,158

1,831,023

1,523,211

China

548,746

654,335

699,272

651,213

Taiwan

524,818

546,729

487,988

378,180

Vietnam

124,747

144,530

121,073

100,542

Turkey

79,639

92,705

91,321

78,998

India

107,052

112,905

109,580

69,940

Thailand

68,079

75,155

59,189

43,500

Malaysia

48,743

47,562

41,398

32,422

S. Korea

38,169

43,792

41,427

31,184

Switzerland

32,721

32,586

31,002

25,218

Japan

33,136

31,306

29,192

18,927

USA

35,014

32,201

28,020

14,807

Bosnia and Herzegovina

14,498

14,331

15,713

12,773

Liechtenstein

13,085

12,294

12,048

12,632

Norway

9,023

12,327

12,104

8,782

Indonesia

10,222

9,254

8,211

8,422

Serbia

7,950

12,107

10,065

7,966

Ukraine

5,487

5,274

4,277

6,665

Belarus

4,114

5,821

3,594

4,568

Russia

2,382

3,757

6,472

4,119

Philippines

5,833

8,082

5,354

3,702

China Fastener World no.62/2021

Partners

099

Industry Focus Top 20 Fastener Export Partners for the EU (Incl. UK) in 2017-2020 (EURO) Partners

Years

2017

2018

2019

2020

Total non-EU

4,247,031,753

4,481,999,683

4,616,451,798

3,888,110,553

China

882,446,226

895,332,219

820,271,204

859,608,759

USA

726,173,946

827,916,158

958,790,319

742,843,667

Switzerland

308,152,479

321,415,607

307,042,385

276,668,747

Russia

197,604,639

212,220,126

217,823,967

202,738,936

Mexico

201,743,697

225,688,871

237,542,196

192,583,424

Turkey

239,501,577

231,394,968

220,399,740

191,252,235

Brazil

166,889,282

178,752,656

177,305,792

146,113,163

Norway

121,455,190

138,755,966

159,305,607

124,506,350

India

153,307,520

176,574,478

157,120,028

102,170,892

Morocco

74,183,931

75,263,890

92,948,958

78,499,486

Liechtenstein

76,306,754

68,276,508

65,203,869

63,211,337

S. Korea

56,102,825

57,104,863

61,795,870

59,782,127

South Africa

84,182,546

77,363,201

81,993,936

54,501,777

Australia

54,839,371

57,272,390

55,328,583

51,049,571

Japan

55,254,667

58,157,447

63,546,768

47,443,198

Canada

71,032,894

68,690,834

77,211,260

47,142,169

Singapore

67,199,825

69,932,276

74,451,686

44,163,637

Ukraine

22,650,793

30,185,743

38,726,800

41,270,824

UAE

52,365,326

48,340,892

56,515,569

37,821,739

Serbia

34,153,601

34,354,969

33,177,165

33,995,715

Top 20 Fastener Export Partners for the EU (Incl. UK) in 2017-2020 (Ton)

China Fastener World no.62/2021

Partners

100

Years

2017

2018

2019

2020

Total non-EU

550,946

568,314

549,717

494,018

China

112,089

106,479

90,320

96,395

USA

77,894

85,603

92,090

79,614

Switzerland

42,064

42,923

38,902

36,593

Russia

36,147

37,264

37,440

34,982

Turkey

40,417

37,377

36,097

29,942

Mexico

27,718

30,877

32,043

27,574

Brazil

28,828

31,265

28,467

22,482

Norway

20,196

23,425

25,280

21,294

India

23,447

25,639

19,656

13,423

Ukraine

4,790

7,305

9,472

11,792

Liechtenstein

12,548

12,587

12,034

11,406

Morocco

10,596

9,527

9,991

9,792

South Africa

11,844

12,581

13,545

8,493

Serbia

6,751

6,343

6,109

6,278

Australia

5,461

5,779

5,008

4,775

UAE

5,916

4,663

4,745

4,667

S. Korea

3,454

3,438

3,269

4,344

Egypt

3,466

3,931

3,716

4,122

Thailand

5,955

6,033

5,021

3,554

Belarus

2,872

3,308

3,332

3,389

Industry Focus

From 2017 to 2020, the EU exported around EUR 3.8-4.6 billion worth of fasteners to the world per year. If calculated by volume, the EU exported 0.50.57 million tons of fasteners to the world. The EU’s fastener export volume was around 1/3 of its fastener import volume, but its fastener export value was very close to its fastener import value, which clearly showed the fact that fasteners the EU exported to the world were mostly high value-added products. The unit price per Kg was close to EUR 8.

During these four years, the EU’s fastener export to the world showed the best result in 2018-2019. Its export value reached the highest point in 2019 at around EUR 4.616 billion and the export volume also reached the highest point in 2018 at 0.568 million tons.

In 2020, its export value dropped to the lowest level at EUR 3.888 billion and the export volume also dropped to around 0.494 million tons.

To view from export values, the EU’s main fastener export partners were China, USA, Switzerland, Russia, Mexico, Turkey, Brazil, Norway, and India.

The combined export to China, USA, and Switzerland represented almost nearly 50% of the EU’s total fastener export. The exports to Russia, Mexico, Turkey, Brazil, Norway, and India also represented around

2.5-5.0%, respectively. What’s worth mentioning is, compared to fastener exports to the other main fastener export partners, the EU’s fastener export to China in 2020 was still on a rise. To view from export volumes, the EU’s main fastener export partners were almost the same as those viewed from fastener export values. The EU’s total export to China, USA, and Switzerland represented the lion’s share of around 43%. China was also the only one that showed an increase in 2020 among the EU’s top 5 fastener export partners.

Recap To view the EU’s fastener trade data and the analyses in previous paragraphs, one could roughly know that besides importing a great deal of fasteners from Asia at comparatively low unit prices, the EU (benefited by the vibrant fastener manufacturing, distribution, and supply chains in many EU countries, such as Germany, France, Italy, Switzerland, Spain, etc.) is also equipped with sufficient capacities and capabilities to meet the global market demand for high-end fasteners at high unit prices. The unit price of the EU’s fastener export was about 2.6 times the unit price of its fastener import.

During 2017-2020, the EU’s fastener trade data appeared fluctuations, but the fluctuations were comparatively mild. However, considering some unfavorable factors still in place, such as the shortage of labor and materials, hiking transport and manufacturing costs, resurgence of reported Covid-19 cases, and the slow vaccine rollout, I expect the developing trend in 2021 may appear a comparatively flat downward curve, but the whole situation may not become so worse, as the global supply and demand still remain and the slow recovery in many industries continues, as a result, the possibility of a drastic slump is quite low.

China Fastener World no.62/2021

Export

101

102 China Fastener World no.62/2021

103 China Fastener World no.62/2021