003 China Fastener World no.65/2022
004 China Fastener World no.65/2022
008 China Fastener World no.65/2022
010 China Fastener World no.65/2022
China Fastener World no.65/2022
011
012 China Fastener World no.65/2022
China Fastener World no.65/2022
013
014 China Fastener World no.65/2022
015 China Fastener World no.65/2022
016 China Fastener World no.65/2022
China Fastener World no.65/2022
017
Company Focus
麥德美樂思工業 解決方案
China Fastener World no.65/2022
成立100周年！ MacDermid Enthone Industrial Solutions（簡稱：麥德美樂思）成立於1922年，屬於Element Solutions集團 （簡稱：ESI）業務單元之一，擁有5000多名員工，分佈在5大洲，遍佈60多個國家和地區。 麥德美樂思在中國擁有多家先進工廠，分別位於廣州、上海和蘇州。產品範圍包括防腐蝕電鍍、裝飾性電 鍍、塑膠電鍍、化學鎳、硬鉻、鋁材表面處理和塑膠回收等等。 為了滿足日益增長的市場需求，應對行業挑戰，我們一直在研究如何改善產品和工藝可持續性，減少生產原 料浪費，提高生產效率，為此我們建立了高效品質保證體系，包括ZinKlad和DecoKlad，能有效地幫助應用商獲 得全球性能一致的高品質產品。2021年，我們的母公司ESI收購的科文特亞環保電鍍公司和2022年收購的赫世歐 化工科技公司相繼被併入到麥德美樂思工業解決方案業務中，為麥德美樂思發展增添助力。 今年麥德美樂思剛好成立100周年！百年積澱，我們的技術深受行業認可；周到的服務，始終將客戶的需求 放在首位，成長的腳步從未停止！未來，我們也會不斷創新，為客戶帶來更優質的產品與服務。
018
China Fastener World no.65/2022
019
Construction/Special Screw Suppliers
One-Stop Fastener Source for
Trading/Packaging/Manufacturing Hangzhou Grand Imp. & Exp. by Dean Tseng, Fastener World
Targeting on North America/Europe/ Australia and Having Exported to 35 Countries Founded in 2004, Grand focuses on the selling, packaging, producing and exploring of fasteners and hardware. It has been focusing on the market of North America, Europe and Australia in the past years, and has been exported to 35 countries. Grand achieved the export volume of about 120 containers per month in 2021, which equals to 2400 tons, and reached the export value of USD 46 millions. Grand attaches the importance to the growth of technique. There is perfect production equipment, skilled production technology and professional inspection machines to ensure the quality of products.
Taking a Different Path Compared with industry peers, general manager Will Wang said: People always said from a manufacturer to a trader, and became both, but we chose an opposite path. That is starting from trading, then into packaging and finally manufacturing. This is because there is a wide variety of fasteners, and it’s hard to meet clients’ demand only through one factory. Grand initially served clients through trading, that is arranging cargoes for clients. Until 2014, it registered a packaging and inventory plant to meet clients’ differentiated and personalized requests on packaging and shipment. Also, this plant makes it possible for Grand to reserve stock to meet the demand of customers who require a quick delivery time. Furthermore, Grand set up its own laboratory to control the quality of products. And it can also control the product quality in the last phase which is packaging.
“TO BE SIMPLE, TO BE BETTER” “Our slogan is: TO BE SIMPLE, TO BE BETTER” said Will, “We want to keep it simple while doing business with clients. They just need to place the order, and we will handle the left things for them, including product quality, packaging, inventory and delivery. If they have requirements on mechanical properties, our technicians can make drawings and lab staff can apply the experiments. If they require the demand of design of packaging and labels, our designers can propose solutions. The same applies to their requirement on inventory and shipment. Letting them have nothing to worry about is our best service guideline.” Besides, Will always encourages employees to improve their own ability and fortifies his team moral to promote development of company. » Contact: General Manager Will Wang
Email: willwang@grandind.com
021
China Fastener World no.65/2022
In 2019, Grand registered a screw manufacturing plant which greatly enhances the competitiveness in the field of screws, and also guarantees the on-time delivery. By combining trading, packaging and manufacturing, Grand had a great jump on product price, quality control, delivery time and packaging satisfaction.
Construction/Special Screw Suppliers
High-Strength Drilling Screw Leading Brand- BOITO
by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
With the advantages of the leading fastener technology from Taiwan and a strong foothold in China’s market for 16 years, Guangdong Boito Building Technology Co., Ltd. (“Boito”) becomes a leading brand of drilling screws in China. The company founder and General Manager Ken Yan, who once worked in a drilling screw factory in Taiwan for 9 years, continued to introduce advanced manufacturing technique/facilities/QC systems and spearheaded the company to specialize in the production and R&D of high-strength carbon steel fasteners and non-standard parts. Waterproof drilling screws, stainless steel bi-metal self-drilling screws, and coating selfdrilling screws are the major products which win high opinions in the market recently.
Special Use in Construction and Engineering Structures Annual Productive Capacity Reaching 8,000 Tons Boito’s self-drilling screws, drilling screws, precision screws, bolts, nuts, and related fasteners and stamped parts are mainly made of stainless steel, carbon steel, along with bi-metal materials (SUS304/316+SCM435) mostly applied to engineering curtain walls, livestock industry, light/ heavy steel structures, solar photovoltaics power generation system, telecommunication, ships, and electricity plants. With the installations of more than 120 sets of cold-forging, threading,
It demonstrates the highest pull-out strength, is applicable to various wall material installations, and can achieve the least load and the fastest tapping speed in steel structure engineering. While used in very high places or limited space where users may feel difficulty in installation, it is more significant. Coating Self-Drilling Screws: Treated with the environmentallyfriendly, long-wearing, and solidified high quality rustproof coating (Base layer: galvanized, middle layer: highly corrosion resistant chemical film, top layer: solidified protective sealing; baking temperature: 220-250℃). It won’t be blackened after friction, features high tenacity, and is less susceptible to fracture. It has passed 1,500+ hrs of salt spray test and conforms to the Australian AS3566 standard.
National-level Certified High-Tech and Innovative Company Offering Customers’ Full Guarantee
China Fastener World no.65/2022
drilling, washing, and packaging machinery, Boito is capable of producing standard/nonstandard parts within the diameter of ST2.9-M10 and the length below 300mm. Moreover, it can also generate heat treatment and corrosion-resistant coatings in its own plant. Its current annual capacity has reached the scale of 8,000 tons which has been successfully sold to the U.S., Germany, Italy, Australia, Indonesia, Malaysia, Netherlands, U.A.E., Vietnam, Philippines, Thailand, South Korea, Japan, Denmark, Bulgaria, India, etc.
3 Products Beyond Expectation Waterproof Drilling Screw: With a beam-tail drilling point and reverse self-tapping threads to increase the pull-out force and get the waterproof result. Wavy or stainless steel rubber attached washers can prevent rainwater from flowing into cracks which may cause rust and corrosion, for getting the rain & mold proof, well-sealed, and typhoon resisting result. Stainless Steel Bi-metal Self-drilling Screw: The fastening part and the head are made of 304/316 Austenite Steel, while the tapping and drilling parts are made of SCM435 alloy steel or high carbon steel. The surface of the screw is specially treated to achieve excellent and longlasting rustproof and corrosion resistant results. After tapping into a steel plate, the stainless steel part can be successfully led into the metallic object without a deadlock caused by worn-out threads. » Boito contact: Victoria Hu (Manager)
024
Email: lori@boitoscrew.com
Boito values innovation. It currently owns the patents for waterproof screws, staples, class coated screws, and screws for light/ heavy steel constructions a nd photovoltaics applications. It has also certified the ISO9001:2015 quality management system and has a professional laboratory to conduct strict quality control from the very beginning to the final delivery. In addition, in response to the global growing concern about environmental protection, it continues to develop screws with green coatings in order to enhance its market competitiveness and seek for corporate sustainability from all aspects. Boito promised, “Ou r products feature short lead times, advanced technology, high quality, competitive prices, and good after-sales service. With facilities in all-aspect production & i nspection, t he tea m i n rich experience in R&D and manufacturing technology, systems in strict quality control, and operation in years, we can offer customers the whole guarantee.”
Cover Story
Rolls out
Multifunctional Wood Screws 嘉興銘承精工 新推出多功能木螺釘 by Dean Tseng, Fastener World
One-stop Product Supply Linkfast uses 10B21 and C1022 materials to manufacture multifunctional wood screws, timber fixing screws, and cap screws, supplying products to global industries from the headquarters in Haiyan, China. Currently it produces 1,200 tons per month which derive from a 30,000 square meters of plant with more than a hundred people specialized in relevant technology and QC. Additionally, it features a professional team making small packages for Do-It-Yourself hardware stores, as well as a well-equipped lab for QC. These strengths create a one-stop service spanning from production to Do-It-Yourself product packaging. It is highly trusted and recognized by clients for stable supply and high quality.
All-new Multifunctional Wood Screws Especially Developed for Clients Linkfast once stuck it out for 8 months continuing to refine drawings and product samples for a client from British Commonwealth of Nations. Eventually, the company succeeded in developing the one and only product that could replace wood screws, timber fixing screws and cap screws. The product was able to boost the client’s sales by one fold. “This year we developed a multifunctional wood screw that successfully passed the salt spray test up to 1,200 hours, which confirmed its higher anti-corrosion performance. The dual-slot design increases convenience in operation for users, and it can replace timber fixing screws and common square wood screws, thus featuring more advantages in design and performance than ordinary screws do,” said General Manager George Yu.
speed tests, salt spray test machines, projectors and other advanced equipment to control good quality for clients. The company has acquired CE and ISO certificates for its manufacturing process and acquired multiple patents on product applicability and visual appearance. Currently it is applying for ETA which is critical in the construction field.
Yu said, “Patents and certificates are the ticket into international market development. They are the proof of our specialty, reputation, quality and service that continue to gain clients’ trust and allow us to sell products to the world. We expect ourselves not only to be a supplier for purchase but also a smart warehouse in China for clients.” At a time of surging material prices and freight costs, the company continues to steadily fulfill every clients’ orders.
Looking ahead, Linkfast will go deeper in Europe, USA and British Commonwealth of Nations to continue providing one-stop service for clients and make contribution to promote the growth of the global fastener industry.
The company’s main target markets are Europe, N. America, Australia, and Japan. The past record of developing new screws for clients has gained Linkfast a strong foothold in the European and American high end markets for years. Therefore, Linkfast is able to supply products to the industrial, construction, home improvement and furniture industries, creating more possibilities for clients to develop their own markets and brands.
Smart Warehouse with Stable Supply Over the years Linkfast Technical has invested a lot in lab equipment and introduced cutting machines, bending machines, embedding machines, torsion testers, coating testers, tapping
026
» Contact person: George Yu, General Manager Email: info@linkfast.cc
China Fastener World no.65/2022
027
Association Chinese National Hardware Association: The U.S. Announced the New List of Tariff-Free Products Imported from China Including Many Hardware Categories United States Trade Representative (USTR) has recently announced that 352 items of products imported from China will be exempted from the taxation list and the period for exemption is from Oct/12/2021 to Dec/31/2022. Products exempted from the taxation list this time also include construction hardware, tool hardware, etc.
Ningbo Fastener Industry Association: China’s Customs Announced that Q1 2022 Fastener Export of China Reached 1.18 Million Tons
Chinese Fastener Association News Compiled by Fastener World
According to the latest info released by China’s Customs, in March 2022, China exported 0.37 million tons of fasteners to the world (up 14.7% from the same period last year); in January-March, the cumulative export reached 1.18 million tons (up 14.9% from the same period last year). In March, China exported 0.16 million tons of steel wire to the world (down 14.3% from the same period last year); In January-March the cumulative export reached 0.46 million tons (down 9.3% from the same period last year).
China Die & Mould Industry Association (CDMIA): 8 Association Members were Presented with the "Chinese Patent Award” The “Chinese Patent Award” set up by China National Intellectual Property Administration (CNIPA) and WIPO is a national-level award designed to recognize and encourage patent owners and inventors for their technical innovations and significant contributions to the economies and the society. In 2022, the winner list of the 23rd Chinese Patent Award has been announced. 8 CDMIA members including Giansun Mold and GDXL have been all awarded the “Chinese Patent Award.”
China Fastener World no.65/2022
China General Machinery Industry Association and China Machinery Industry Information Research Institute Signed Strategic Cooperation Framework Agreement On April 13, 2022, China General Machinery Industry Association (CGMA) and China Machinery Industry Information Research Institute signed a strategic cooperation framework agreement and gave a symposium. Chairman of CGMA and Secretary of Communist Party Committee on behalf of their units signed the agreement together. According to the agreement, both sides will adhere to the principles of cooperation facilitation and serve the industry to establish a complete and deep cooperation in the field of general machinery industrial information and consultation. In addition, CGMA will take advantage of the rich resources and the think tank of China Machinery Industry Information Research Institute to begin strategic cooperation in decision making consultation.
028
China Fastener World no.65/2022
029
Special Feature
compiled by Fastener World
Fastener Innovation Alley
1
扣件新品大道
T-SLB Fasteners for Wood-steel Hybrid Buildings T-LSB (Lug Screw Bolt) manufactured by Japanese Toneji is a fastener for fastening steel plates and cross-laminated timber (CLT). It is designed to simplify construction process and reduce costs, delivering great performance on wood-steel hybrid buildings. The features of T-LSB are: Unlike the previous LSB fastener, T-LSB doesn't include a hexagonal head and doesn't require counterboring the wood. • Without counterboring, there is no need to fill in epoxy resin. • The operator can use designated bolts to drive in with ease. • Simplified construction process, shortened work time.
1
2
RIVKLE® Solutions for Electric Vehicle Battery Packs
T-SLB Fasteners for Wood-steel Hybrid Buildings
3
A Range of Compression Limiters
2
China Fastener World no.65/2022
RIVKLE® Solutions for Electric Vehicle Battery Packs B ö l l h o f f h a s d e ve l o p e d t h e RIVKLE® Seal Ring range of blind rivet nuts and studs with integrated and captive sealing f unction for ba t t e r y pa ck a p pl ica t ion s. T he resulting assembly is robust and fluid tight; the entire range meets the most stringent sealing quality requirements (ISO 20653 IPX7) and automotive quality requirements. In combination with Böllhoff 's automatic setting tools, t he R IVK LE® solution is optimised in terms of cost and speed of installation, with an unprecedented level of validation of the quality of the implemented product (process control). This global approach also allows optimal machine availability, thanks to both a high autonomy of the machines (automatic function "2nd try" with replacement of the RIVKLE®) and reduced frequencies a nd periods of maintena nce (optimized TCO).
030
3
A Range of Compression Limiters
As the speed of technology and trends in consumer behaviour accelerates, companies around the world are evolving quickly and TR Fastenings is no exception. TR’s latest product launch of Compression Limiters has been developed to meet the growing global demand from multi-sector manufacturers developing products using plastics, particularly in the EV space. Compression Limiters reduce the stress that’s generated by traditional threaded fasteners. Demand has mainly been driven by the automotive sector, and applications in the energy and general industrial sectors where high load bearing plastic components are used and have also contributed to the surge in worldwide demand. Compression Limiters are used extensively in composites and plastic mouldings as through holes help reduce the stress generated by conventional fasteners. These non-threaded inserts are commonly used in applications where a compressive load is applied to a plastic assembly to prevent the integrity of the plastic being compromised. These products are used extensively in electric vehicles and the battery housings. As technological advances continue, so does the need to continually develop the primary components that make up an electric vehicle. Newly created giga factories and battery housings manufacturers in Europe, Asia and North America will be looking to include these products in many upcoming automotive research and development projects and with a global presence, TR Fastenings is ideally positioned to meet this demand, whilst also providing technical and design assistance. TR’s experience over the last few years is that many of these are designed in specials and required in high volume. There are a number of different types and as a guide the TR’s Compression Limiter range consists of symmetrical, flanged, split seam and oval manufactured from steel, stainless, brass and aluminium.
Special Feature
4
FGW 90F Gas-actuated Fastening Tool
The new fischer FGW 90F fastening tool allows nails to be processed quickly, safely and easily in wood. The gas-actuated fastening tool can set up to three fastenings per second, more than 1,100 fastenings per fuel cell and 8,000 fastenings per battery charge. The FGW 90F thereby makes working in wood economical and efficient.
Be it roofing battens, wood frame construction or facade cladding – wood is a highly popular building material, including in multi-story residential and commercial construction, not to mention in classic applications such as floor surfacing, decking boards or ceiling cladding. With various types of wood and wood materials, users require a reliable tool that allows them to cover every kind of application while creating quick and safe fastenings.
4 FGW 90F Gas-actuated Fastening Tool
The fischer FGW 90F gas-actuated fastening tool fulfils these requirements. With a weight of 3.8 kilogrammes and compact dimensions (390 mm length x 108 mm width x 381 mm height), the tool is comfortable to grip. Users can quickly commence any fastening tasks, as the pressure loaded magazine can be quickly and easily loaded with up to 60 nails. A safety clip prevents nails from falling out, making it safe to reinsert them. Thanks to the high-grip nose and a setting energy of 90 joules, nails can be set at precisely the right location and in every direction, which also makes overhead installation easy to do.
After Sanko Techno launched sales of its expansion anchors back in October 2020, customers had hoped for an expansion anchor that can be used in tunnel construction. Therefore, the company developed "Smart Expansion Anchor". With a shorter embedding length, the new anchor expands and cuts the wall as it is drilled into the hole with a small hammer drill, so the operator can quickly complete the work even when the anchor is drilled upwards. Using anti-loosening nuts with the anchor can prevent deterioration in the gap between the anchor and the hole. "Smart Expansion Anchor" is available in 3 sizes including M8, M10 and M12, and in two material types including steel and stainless steel. It launched sales on March 1, and is expected to bring a total revenue of JPY 15 million this year.
6
5 Smart Expansion Anchor
CAMO® Offers New Stainless Steel Fastening Solutions for Deck Building and Exterior Projects
National Nail’s CAMO® brand of tools and fasteners has introduced new CAMO Stainless Steel fasteners to help contractors, remodelers and DIYers build better in every environment. Now, the CAMO brand can add fastening efficiency and strength to exterior projects across the country, no matter the environment. Designed to protect connections against the elements, CAMO’s 316 Marine Grade Stainless Steel fasteners are ideal for use in highly corrosive coastal and agricultural environments and applications that face abrasive agents. CAMO 305 Stainless Steel fasteners provide excellent corrosion resistance and long-lasting aesthetics for a variety of inland exterior projects. “CAMO is excited to offer a full line of Stainless Steel screws and nails for contractors to add value and performance to their upcoming projects,” said Doug Hutchings, Vice President of Product Development at National Nail. “The variety of Stainless Steel fasteners deliver superior corrosion resistance and holding power on any jobsite, even in the harshest coastal conditions.” Hutchings added that the unique Stainless Steel Fastener pails with metallic lids is the first in a series of visually bold, new CAMO packaging that will ultimately be rolling out to all CAMO products. Other brand colors like CAMO’s distinct orange is designed with the end-consumer in mind for easier selection. Perfect for building wood or composite decks and other exterior projects, CAMO’s new line of Stainless Steel fasteners includes hand drive deck, composite and trim screws that come with a 2 in. (50.8mm) power bit for jobsite convenience. They also offer 316 Stainless Steel Marine Grade Edge Screws for use with CAMO MARKSMAN Pro® tools and
6
CAMO® Stainless Steel Fastening Solutions for Deck Building and Exterior Projects
collated screws for use with the CAMO DRIVE™ stand-up tool. New to the CAMO brand are ring shank deck nails and joist hanger nails as well as collated ring shank framing nails and collated metal hanger nails that are compatible with a wide array of pneumatic nailers. Ju st l i ke ot he r CA MO t o ols a n d fasteners, CAMO backs up their line of Stainless Steel screws and nails with a warranty to resist rust and corrosion.
031
China Fastener World no.65/2022
5
Smart Expansion Anchor
China Fastener World no.65/2022
033
034 China Fastener World no.65/2022
China Fastener World no.65/2022
037
Industry Focus
EU Anti-Dumping Tariffs Imposed on Steel Fasteners from China 歐盟反傾銷對中國扣件影響 by Sabrina Rodriguez
Data note: The data for this article is derived from Descartes™ Datamyne’s EU Census trade statistics. EU (Eurostat) Import and Export data 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.
China Fastener World no.65/2022
In recent months, the European Union has decided to impose anti-dumping tariffs on steel fastener imports that originated in China. According to the EU official journal and Reuters, the tariffs on steel fastener importers were due to Chinese fasteners being sold at extremely low prices. According to Reuters, the tariffs will be between 22.1% and 86.5% and will be applied to fastener imports of steel products ranging from standard screws to high end fasteners used within the automotive, electrical and aviation industries. Several years ago, the U.S. also experienced a period when steel imports from China were being dumped into the country at lower-than-average market prices.
040
The reality remains very clear: China is the world’s largest producer of steel and steel related commodities such as fasteners. Many of the largest Chinese steel manufacturers have faced challenges when it comes to overcapacity which leads them to resort to unfair trade such as dumping. Fortunate for countries like the U.S. and formed unions like the EU, anti-dumping duties were created to prevent damages caused by low priced commodities in the market. According to the World Trade Organization, dumping is defined by any commodity or product being exported into a foreign country at less than its normal value.
Industry Focus EU’s Fastener Trade with China EU’s Major Imported Fastener Categories from China in 2021 2021
Product HS (6)
CIF Value (USD)
%
Net Weight (Kg)
%
731815 - Threaded Screws And Bolts Others, With or Without Their Nuts
751,292,591.47
37.84
344,058,133.00
43.74
731816 - Nuts, Threaded, of Iron or Steel
398,551,883.42
20.07
156,855,996.00
19.94
731819 - Threaded Articles of Iron or Steel Others
225,033,991.51
11.34
71,033,319.00
9.03
731812 - Wood Screws Other Than Coach Screws, Threaded, of Iron or Steel
130,718,040.93
6.59
56,472,688.00
7.18
731822 - Washers, Other Than Lock Washers, of Iron or Steel
123,440,766.59
6.22
50,229,190.00
6.39
731814 - Self-Tapping Screws, Threaded, of Iron or Steel
111,795,844.41
5.63
43,708,078.00
5.56
731829 - Nonthreaded Articles (Fasteners) Others, of Iron or Steel
100,803,371.75
5.08
18,296,103.00
2.33
731813 - Screw Hooks And Screw Rings, Threaded, of Iron or Steel
41,790,412.92
2.11
13,555,184.00
1.73
731811 - Coach Screws, Threaded, of Iron or Steel
33,008,035.12
1.67
18,257,774.00
2.33
731824 - Cotters And Cotter Pins, of Iron or Steel
29,665,416.98
1.50
4,886,059.00
0.63
Total
1,985,912,291.29 100.00
786,692,974.00 100.00
EU’s Major Imported Fastener Categories from China in Q1 2022
731815 - Threaded Screws and Bolts Others, With or Without Their Nuts 731816 - Nuts, Threaded, of Iron or Steel 731819 - Threaded Articles of Iron or Steel Others 731822 - Washers, Other Than Lock Washers, of Iron or Steel 731812 - Wood Screws Other Than Coach Screws, Threaded, of Iron or Steel 731814 - SelfTapping Screws, Threaded, of Iron or Steel 731829 Nonthreaded Articles (Fasteners) Others, of Iron or Steel 731813 - Screw Hooks And Screw Rings, Threaded, of Iron or Steel 731811 - Coach Screws, Threaded, of Iron or Steel 731824 - Cotters And Cotter Pins, of Iron or Steel Total
CIF Value (USD)
2021 - Q1 Net Weight % (Kg)
%
CIF Value (USD)
2022 - Q1 Net Weight % (Kg)
%
CIF Value (USD)
Volume Change Net Weight % (Kg)
%
155,175,255.33 36.83 83,542,408.00 44.81 263,638,746.67 38.50 102,567,894.00 43.70 108,463,491.34 69.90 19,025,486.00 22.78
75,537,381.26 17.93
32,177,048.00 17.26 131,701,265.60 19.23
46,366,029.00 19.76
56,163,884.35 74.36 14,188,981.00 44.10
52,526,134.23 12.47
16,239,955.00
8.72
69,258,201.50 10.12
19,959,849.00
8.51
16,732,067.27 31.86
3,719,894.00 22.91
28,647,825.68
6.80
12,577,630.00
6.75
44,697,094.08
6.53
15,655,488.00
6.67
16,049,268.40 56.03
3,077,858.00 24.48
28,013,582.05
6.65
13,941,831.00
7.48
46,874,071.56
6.85
15,501,139.00
6.61
18,860,489.52 67.33
1,559,308.00 11.19
25,939,921.41
6.16
11,945,260.00
6.41
44,087,032.71
6.44
14,286,689.00
6.09
18,147,111.31 69.96
2,341,429.00 19.61
23,110,698.33
5.49
4,446,747.00
2.39
34,460,723.20
5.04
5,861,934.00
2.50
11,350,024.87 49.12
1,415,187.00 31.83
9,506,447.09
2.26
3,395,748.00
1.83
14,875,807.39
2.18
4,297,680.00
1.84
5,369,360.30 56.49
901,932.00 26.57
6,898,658.48
1.64
4,425,661.00
2.38
11,476,307.69
1.68
5,490,145.00
2.34
4,577,649.21 66.36
1,064,484.00 24.06
6,247,681.02
1.49
996,545.00
0.54
10,174,793.02
1.49
1,748,487.00
0.75
3,927,112.00 62.86
751,942.00 75.46
421,436,581.03 100.00 186,439,605.00 100.00 684,886,295.07 100.00 234,760,348.00 100.00 263,449,714.05 62.52 48,320,743.00 25.92
041
China Fastener World no.65/2022
Product HS (6)
Industry Focus EU fastener imports from China made up nearly 17% of the total market during the first quarter of 2022 compared to nearly 10% of the total market during the same period in 2021, resulting in a 62.5% increase. The volume of fastener imports from China increased by 26% during the first quarter of 2022 compared to the first quarter of 2021. China exported a total of 234,760,348 kilograms during the first quarter of 2022, compared to 186,439,605 kilograms during the first quarter of 2021. EU’s top supplying partner of fasteners during the first quarter of 2022 was Germany with a total of 19% of the entire market; however, China remains the top supplier based on total volume.
Amongst the countries within the EU that imported the highest volume of fasteners during the first quarter of 2022 from China were Germany, Italy, and Poland. Germany imported a total of 25.7% and Italy imported a total of 15.7% likely due to their auto manufacturing industry and the overwhelming demand for fasteners within that industry. On the other hand, Poland’s demand for fasteners is likely due to their manufacturing and energy industries. Of these 3 countries, Italy experienced the most staggering increase in both volume and value. During this first quarter of 2022, Italy imported 36,971,882 kilograms compared to 24,115,077 kilograms during the first quarter of 2021 which represents a 53% increase. The total value of fastener imports in Italy increased by 102% during the first quarter of 2022, and Germany’s increased by nearly 83%. Germany also increased the total volumes of fasteners imported from China by 40% during the first quarter of 2022, and Belgium increased their total volumes by nearly 70%. Much like Poland, Belgium’s demand for fasteners can be a result of their engineering and metal producing industries.
Amongst the fastener subsets that were imported from China in the largest volumes during the first quarter of 2022 were 73181588 (11%), 73181900 (8.5%), and 73181692 (7.7%). In terms of value, subsets 73182200, 73181595 and 73181699 were a few of the highest, but resulted in a smaller total volume. 73181290, 73181548 and 73181499 had the smallest total volume and value during this specific quarter of 2022. Subsets such as 731815 and 731816 increased by 70 – 75% during the first quarter of 2022 when compared to the first quarter of 2021. For the most part, these were the same subsets of fasteners that dominated in terms of volume throughout 2021 as well.
EU’s Global Suppliers of Fasteners EU’s Fastener Import Origins in 2018-2021 Country of Origin
CIF Value (USD)
%
2019
Net Weight (Kg)
%
CIF Value (USD)
%
Net Weight (Kg)
%
GERMANY
4,127,986,275.69
23.38
786,394,669.00
18.28
3,913,097,857.60
23.43
821,747,238.00
18.57
TAIWAN
1,675,066,668.84
9.49
546,749,388.00
12.71
1,504,839,484.54
9.01
488,241,672.00
11.03
ITALY
1,560,052,163.10
8.84
370,934,212.00
8.63
1,488,148,886.61
8.91
374,809,354.00
8.47
CHINA
1,413,436,837.67
8.01
653,850,495.00
15.20
1,466,093,001.94
8.78
700,000,007.00
15.82
FRANCE
894,722,838.42
5.07
185,701,953.00
4.32
812,724,556.10
4.87
419,416,223.00
9.48
USA
855,302,186.80
4.85
32,668,350.00
0.76
874,363,589.81
5.24
28,248,442.00
0.64
NETHERLANDS
667,826,265.63
3.79
203,663,988.00
4.74
651,724,096.91
3.91
190,490,832.00
4.31
SWITZERLAND
547,706,022.61
3.11
32,720,506.00
0.77
471,132,118.28
2.83
31,190,816.00
0.71
U. K.
506,843,425.35
2.88
55,629,463.00
1.30
457,356,518.61
2.74
61,124,284.00
1.39
CZECH REP.
505,872,810.69
2.87
116,992,126.00
2.72
497,275,548.73
2.98
118,022,361.00
2.67
17,657,202,376.89 100.00 4,303,108,068.00 100.00 16,705,200,580.35 100.00 4,427,472,257.00
100.00
Total Country of Origin
China Fastener World no.65/2022
2018
2020 CIF Value (USD)
%
2021 %
CIF Value (USD)
GERMANY
3,492,887,522.44
24.88
Net Weight (Kg) 691,147,990.00
17.22
4,267,681,336.22
24.20
%
Net Weight (Kg) 783,624,812.00
18.39
%
TAIWAN
1,170,828,687.20
8.34
378,320,818.00
9.43
1,539,807,009.24
8.73
432,541,396.00
10.15
ITALY
1,223,248,058.74
8.72
305,071,835.00
7.60
1,577,128,294.26
8.94
373,496,770.00
8.77
CHINA
1,303,309,330.52
9.29
651,376,519.00
16.23
1,985,912,291.29
11.26
786,692,974.00
18.46
FRANCE
651,979,630.24
4.65
694,750,315.00
17.31
683,118,960.37
3.88
357,960,793.00
8.40
USA
552,766,404.77
3.94
15,132,114.00
0.38
572,770,694.10
3.25
17,357,579.00
0.41
NETHERLANDS
518,910,709.99
3.70
153,517,748.00
3.83
670,560,224.55
3.81
217,251,496.00
5.10
SWITZERLAND
415,072,561.41
2.96
25,403,874.00
0.64
490,883,679.46
2.79
29,822,196.00
0.70
U. K.
393,352,528.13
2.81
53,809,709.00
1.35
357,736,128.92
2.03
36,003,672.00
0.85
CZECH REP.
428,127,061.68
3.05
102,116,622.00
2.55
521,801,051.11
2.96
109,451,987.00
2.57
14,042,779,376.63 100.00 4,014,991,939.00 100.00 17,642,137,273.36 100.00 4,262,321,752.00
100.00
Total
042
China Fastener World no.65/2022
043
Industry Focus EU’s Fastener Import Origins in Q1 2021 and Q1 2022 2021 - Q1
2022 - Q1
Country of Origin
CIF Value (USD)
GERMANY
1,122,786,737.36
25.95
208,005,722.00
20.27
773,672,091.84
18.95
201,390,594.00
17.86
CHINA
421,436,581.03
9.74
186,439,605.00
18.17
684,886,295.07
16.77
234,760,348.00
20.82
ITALY
407,427,396.19
9.42
104,793,880.00
10.21
269,055,545.22
6.59
65,205,654.00
5.79
%
Net Weight (Kg)
%
CIF Value (USD)
%
Net Weight (Kg)
%
TAIWAN
332,692,104.81
7.69
99,217,266.00
9.67
471,127,816.86
11.54
118,218,642.00
10.49
FRANCE
182,872,615.78
4.23
52,721,873.00
5.14
134,443,541.51
3.30
121,257,411.00
10.76
NETHERLANDS
178,306,178.26
4.12
51,780,279.00
5.05
127,403,337.28
3.12
83,386,277.00
7.40
USA
136,204,456.36
3.15
4,723,470.00
0.47
156,893,950.05
3.85
3,780,298.00
0.34
CZECH REP.
134,665,486.12
3.12
30,278,779.00
2.95
95,357,946.86
2.34
18,089,001.00
1.61
SWITZERLAND
127,558,458.43
2.95
7,767,090.00
0.76
127,168,151.73
3.12
8,257,706.00
0.74
25,866,834.00
2.52
97,253,379.36
2.39
19,403,750.00
1.73
1,026,550,366.00 100.00
4,084,300,077.37
100.00 1,127,942,316.00
100.00
POLAND Total
121,599,161.28
2.81
4,327,979,275.82
100.00
Country of
Volume Change
During the first three months of 2022, EU Origin CIF Value (USD) % Net Weight (Kg) % fastener imports from around the globe were GERMANY -349,114,645.52 -31.10 -6,615,128.00 -3.19 valued over 4 billion USD resulting in a total volume of over 1.1 billion kilograms. In terms CHINA 263,449,714.05 62.52 48,320,743.00 25.92 of volume during the first quarter of 2022, there ITALY -138,371,850.98 -33.97 -39,588,226.00 -37.78 was an increase of nearly 10% and a decrease in TAIWAN 138,435,712.06 41.62 19,001,376.00 19.16 value of 5.6% when compared to the first quarter of 2021. Throughout the entirety of 2021, the EU FRANCE -48,429,074.28 -26.49 68,535,538.00 130.00 import market of fasteners had a total value of NETHERLANDS -50,902,840.98 -28.55 31,605,998.00 61.04 17.6 billion USD, compared to 14 billion in 2020. USA 20,689,493.69 15.20 -943,172.00 -19.97 While the total value of fastener imports increased by 25.6% in 2021, the total volume increased by a CZECH REP. -39,307,539.27 -29.19 -12,189,778.00 -40.26 mere 6%. Overall trends throughout the recent years SWITZERLAND -390,306.71 -0.31 490,616.00 6.32 have shown a steady growth of fastener imports, POLAND -24,345,781.92 -20.03 -6,463,084.00 -24.99 specifically between 2018 and 2019. In 2020 there was a slight decrease which is likely a result of the Total -243,679,198.46 -5.64 101,391,950.00 9.88 global supply chain disruptions due to the pandemic. Historical trends prove Germany has always been the EU’s primary fastener supplier with a yearly share between 18 – 19% of the total market. In terms of volume, Taiwan, Italy, and France are also considered a few of the EU’s largest trading partners each accounting for upwards of 8-12% of the yearly market of imported fasteners.
China Fastener World no.65/2022
Because the EU has such a wide range of global trading partners from which they can source fasteners, companies in the EU can find alternative sourcing partners that are practicing and following ethical trade laws. Countries within the EU such as Germany, France and Italy are all potential sourcing partners and are within the Union, potentially saving extensive freight and shipping costs. Outside the EU and China, but also major suppliers of fasteners are Taiwan, USA and Switzerland which can be seen as other viable partners to fill fastener demands.
044
China Fastener World no.65/2022
045
Industry Focus
D AI
主要車廠銷售分析
YU N
Vo lk sw ag en
TO
YO
TA
Major Automaker Sales Analysis for 2021
S
G
M
H
by Dean Tseng, Fastener World
H
O
N
S
D A
TE
LL AN
TI
2021 drew a critical dividing line between ever y country's automotive market status before and after recovery. The sales figures from global automakers reveal the demand for automotive fasteners. F&I Tools disclosed the top 15 automaker sales in 2019 - 2022. This numeric data comparing the past three years happen to unveil the sales transition of global automaker s going from the COV ID outbreak to coexisting with the virus.
Global Top 15 Automaker Sales Automakers
Toyota
Volkswagen
Hyundai General Motors
China Fastener World no.65/2022
Stellantis
Honda
Nissan
Ford
046
Year
Sales in Vehicles
Change
2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019
9,562,483 9,528,753 10,741,556 8,882,346 9,305,427 10,975,352 6,668,037 6,353,514 7,189,893 6,294,385 6,833,592 7,724,163 6,142,200 6,205,996 8,091,825 4,456,728 4,790,438 5,323,319 4,064,999 4,029,174 5,176,211 3,942,755 4,231,549 5,385,972
↑ 1% ↓ 11% ↑ 2% ↓ 5% ↓ 15% ↑ 1% ↑ 5% ↓ 12% ↓ 3% ↓ 8% ↓ 11% ↓ 12% ↓ 1% ↓ 23% ↓ 10% ↓ 7% ↓ 10% ↑ 1% ↑ 1% ↓ 22% ↓ 8% ↓ 7% ↓ 22% ↓ 10%
Global Ranking
1 1 2 2 2 1 3 4 5 4 3 4 5 5 3 6 6 7 7 8 8 8 7 6
〔
〕
Sales Yet to Recover to Pre-Pandemic Level
The top 5 best-selling automakers last year were Toyota, Volkswagen, Hyundai, General Motors and Stellantis. The world sold 82,684,788 vehicles last year, among which the top 15 automakers’ sales totaled 63,688,675 vehicles, sharing 77% of the global sales. Looking at the 3-year sales numbers of the 15 automakers comes to a conclusion that up to last year most of them on the chart haven’t had their sales recovered nor surpassing the pre-pandemic level back in 2019. They haven’t recovered their full strength. Only three automakers were the exception. BMW from Germany bounced back from the pre-pandemic 2.520 million vehicles to last year’s 2.521 million, up 0.05%. Changan Automobile from China sold 1.75 million vehicles before the pandemic and grew 32% (2.31 million vehicles) last year. Maruti Suzuki grew 5.7% from 1.56 million to 1.65 million vehicles. Although Geely Auto from China in 2021 didn’t sell as many as it did in 2019, it remained on a gradual growth track. There is a stronger growth momentum and larger growth margin for sales in the Chinese automotive market. In 2020 when the pandemic peaked, the 15 automakers mostly shared a two-digit sales drop and the average drop margin was 13.4%. The COVID outbreak brought the annual sales of the two automotive giants Toyota and Volkswagen down from the 10 million vehicles mark. The top 3 automakers with the largest sales drop in 2020 were Stellantis (down 23%), Nissan and Ford (both down 22%), and Renault (down 21%).
China Fastener World no.65/2022
047
Industry Focus
〔
〕
Weak Foundation Amid Less Desirable Prospect
Moving on to the year 2021 of market recovery, the ones with the largest sales regain were Changan Automobile (up 15%), Maruti Suzuki (up 13%) and BMW (up 8%). In that year, only 7 out of the 15 automakers were back to positive growth. We can roughly estimate that about half the automakers will increase sales and others otherwise this year. The foundation for the automotive industry is still weak and could anytime be subject to sudden impacts from the macro-environment. In fact, there are still many hidden concerns with the automotive industry going forward: there is still the ongoing semiconductor shortage that constricts a part of the automakers’ capacity; steel price remains on the rise and cost pressure encroaches on automakers. After the Russia-Ukraine war broke out, Ukraine has been unable to supply automotive wires to automakers. A research institute forecast that it led to Mercedes-Benz, Volkswagen and BMW announcing to reduce production this March. The war has resulted in a loss of 70 thousand new vehicles for Europe and this is not a small number.
China Fastener World no.65/2022
On the other hand, EVs have a better prospect. Given that EV sales were supported by a large number of purchase in the last two years, if most of the automakers succeed in transitioning from gasoline-powered vehicles to EVs, it is believed that EV sales will no doubt have an explosive growth after the supply of semiconductors and special materials stabilizes.
048
Global Top 15 Automaker Sales Automakers
Renault
BMW
Changan
Mercedes
Maruti Suzuki
Geely
Mazda
Year
Sales in Vehicles
Change
Global Ranking
2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020
2,689,454 2,949,871 3,749,815 2,521,596 2,324,778 2,520,146 2,314,547 2,003,663 1,759,971 2,093,476 2,164,275 2,339,024 1,652,653 1,457,861 1,563,297 1,328,029 1,320,471 1,361,556 1,074,987 1,243,039
↓ 5% ↓ 21% ↓ 3% ↑ 8% ↓ 8% ↑ 1% ↑ 15% ↑ 14% ↓ 15% ↓ 3% ↓ 8% ↑ 1% ↑ 13% ↓ 7% ↓ 16% ↑ 1% ↓ 1% ↓ 9% ↓ 11% ↓ 17%
9 9 9 10 10 10 11 12 12 12 11 11 13 13 13 14 14 15 15 15
2019
1,454,112
↓ 9%
14
China Fastener World no.65/2022
049
Industry Focus
Fasteners are related to all sorts of manufacturing fields. Besides automobile, construction and other major industries that gain our focus, another major industr y frequently using fasteners is motorcycle. Through this ar ticle, we w ill be looking at the motorcycle market scale. On another note, we’ ve all known that 2021 saw severe problems of material shortage and transportation barriers. Will these impact the motorcycle market as well? We will walk through the available data on several overseas regions and countries.
Global Production & Sales Statistics of Motorcycle in 2021 全球摩托車產銷統計
by Dean Tseng, Fastener World
Asia & Southeast Asia There are 7 countries that have joined in the Federation of Asian Motorcycle Industries, including Indonesia, Japan, Malaysia, Philippines, Thailand, Taiwan and Vietnam. This federation has updated motorcycle production and sales figures from the 7 countries to 2021. From the sales numbers in Figure 2, Indonesia reached 3.66 million units in 2020 and continued to top the chart with its total domestic sales up to 5.05 million units, becoming a major motorcycle purchasing country in Southeast Asia. Following Indonesia is Vietnam at 2.49 million units (down from 2.71 million units in 2020), Thailand at 1.6 million units (down from 1.51 million units in 2020), Philippines at 1.43 million units (up from 1.2 million in 2020), Taiwan at 710 thousand units (down from 840 thousand units in 2020) and Japan at 370 thousand units (up from 320 thousand in 2020.) Out of these 7 countries, only Indonesia, Philippines and Japan had sales growth. From the graph, we can tell that Vietnam has more than two times the demand for motorcycles than other countries do, while Indonesia even doubles from Vietnam. Excluding Indonesia, the other 6 countries’ domestic demand roughly echoes with their domestic production (refer to Fig. 1). As motorcycle production and sales would also drive the consumption of fasteners, Indonesia and Vietnam are the big markets for motorcycles in Asia and Southeast Asia. Additionally, we found that among these 7 countries, Indonesia and Vietnam have the most volatile and apparent sales fluctuation. There was a 105% gap between the peak (March) and bottom (May) of Indonesia’s sales last year, which is larger than 96% recorded in 2020 and equates to over 100% sales drop. Likewise, the gap between Vietnam’s peak (Q4) and bottom (Q3) was up to 106%.
Unit: Vehicle
China Fastener World no.65/2022
2021 Motorcycle Produc�on Sta�s�cs by 6 Associa�ons (Excluding Indonesia) 4,000,000 3,000,000 2,000,000 1,000,000 0 Total Fig. 1
050
JAMA (Japan)
MASAAM (Malaysia)
MDPPA (Philippines)
TAIA (Thailand)
TTVMA (Taiwan)
VAMM (Vietnam)
646,911
496,136
867,453
1,780,654
1,076,396
2,981,332
Industry Focus
Unit: Vehicle
2021 Local Motorcycle Sales Sta�s�cs by 7 Associa�ons (Including Indonesia) 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0
AISI JAMA (Indonesia) (Japan)
Total 5,057,516
MASAAM MDPPA TAIA (Malaysia) (Philippines) (Thailand)
378,720
497,172
TTVMA (Taiwan)
VAMM (Vietnam, quaterly)
712,635
2,492,372
1,435,677 1,606,481
Fig. 2
Europe Fig. 3
Annual Motorcycle Registra�ons in 5 Countries 300,000
Unit: Vehicle
For t he Eu rope region, we ne ed to reference the data collected by The Motorcycle Industry in Europe on motorcycle registration from 5 countries, namely France, Germany, Italy, Spain, and UK (Fig. 3). A total of 949 thousand units were registered within the 5 countries in 2021, up 7.8% from 880 thousand units in 2020. What’s worth noting is that the sales in 2020 grew 0.9% over 2019. By 2021, the growth margin climbed to 7.8%, meaning that European motorcycle growth momentum was obviously increasing from 2020 to 2021. Among the European countries, Italy grew 236%, UK grew 10.1%, France grew 8.4% and Germany declined 9.6%. Only Germany had a negative growth.
250,000
200,000 150,000 100,000 50,000 0
France
Germany
Italy
Spain
UK
2020
190,742
220,426
218,091
154,158
97,346
2021
206,955
199,132
269,600
166,513
107,270
Total in 2020: 880,763
Total in 2021: 949,470
(up 7.8%)
China 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Produc�on
2016
2017
2018
2019
2020
2021
1,682
1,715
1,558
1,737
1,702
2,020
Sales
1,680
1,713
1,557
1,713
1,707
2,019
Export
1,590
1,989
2,185
2,301
2,830
3,501
Motorcycle Market Expected to Continue Growing This Year Asia, Europe and China’s motorcycle industry slowly picked up its growth momentum last year, among which China has the strongest growth both in sales and export volume. Indonesia and Vietnam's demand has high fluctuations and remains as the largest motorcycle market in Southeast Asia. Beside Germany, other 4 European countries had growth in car registration last year. Overall, these regions had a stable growth momentum last year. While we can expect a positive outlook for this year, shortages in metals and semiconductor chips linger. Plus, the foreign press reports port congestion is worsen than last year; therefore, there are quite some challenges to tackle in the motorcycle market demand.
051
China Fastener World no.65/2022
Fig. 4
China's Motorcycle Produc�on & Sales (2016-2021) Unit: 10,000 vehicles
There is only a minor gap between Chinese motorcycle production and sales. The sales market scales between 16 and 20 million units. Looking at sales alone, we find sales were alternatingly increasing and decreasing in the past 6 years, down 11% in 2016, up 2% in 2017, down 7% in 2018, up 8% in 2019, and down 2% in 2020. 2021 saw a growth of 18.2%, breaching the 20 million mark. In other words, the Chinese motorcycle sales were vertically swaying in the past 6 years. Judging from the rebound and vibrancy of post-pandemic Chinese mar ket, we c an reasonably assume more apparent growth during 2021. It is worth noting that the export volume increased gradually in the past 6 years where 2021 grew 23.7%, slightly higher than 22.9% in 2020.
052 China Fastener World no.65/2022
058 China Fastener World no.65/2022
China Fastener World no.65/2022
059
Industry Focus
Analysis of
Motorcycle Production and Sales in China in 2021
２０２１中國機車產銷分析
by Behrooz Lotfian
Production and Sales (Comparing 2020 and 2021)
China Fastener World no.65/2022
In December 2021, the production and sales of the whole motorcycle industry in China were 1.7 million and 1.75 million, the production ratio decreased 0.88% month on month, the sales ratio increased 5.33% month on month and the ration decreased 2.9% and 0.05% year on year. Among them, the production and sales of two-wheeled motorcycles were 1,514,200 and 1,562,500, the production ratio decreased 0.18% month on month, the sales ratio increased 6.42% month on month. The production decreased 2.16% year on year and the sales increased 1.26% year on year; The production and sales of tricycle were 187,200 and 187,600 which decreased 6.23% and 2.93% month on month and 8.51% and 9.78% year on year; The production and sales of fuel motorcycles were 1,398,500 and 1,448,000. The production ratio decreased 1.15% month on month and 2.84% year on year and the sales ratio increased 6.52% month on month and 1.19% year on year; The production and sales of electric motorcycles were 303,000 and 302,100. The production ratio increased 0.38% month on month and decreased 3.17% year on year, the sales ratio decreased 0.01% month on month and decreased 5.6% year on year.
2.3477 million and 2.3401 million three-wheeled motorcycles were produced and sold, an increase of 5.76% and 5.21% year-on-year. The production and sales of fuel motorcycles were 16.2363 million and 16.252 million, an increase of 15.52% and 15.21% year-on-year ; the production and sales of electric motorcycles were 3.9589 million and 3.9428 million, an increase of 3.65% and 3.43% year-on-year. Domestic sales of 11.1221 million motorcycles, an increase of 3.62% year-on-year. In December, from the perspective of model details, among the three major models, the production and sales of straddle were 790,900 and 845,700 with a monthon-month decrease of 1.58% in production and sales volume increased 7.71% month-on-month, production decreased by 6.43% year-on-year, and sales increased by 1.13% year-on-year. The production and sales of scooters were 536,400 and 532,600 with a month-on-month decrease of 0.35% in production and sales increased by 5.53% month-onmonth, an increase of 13.04% and 9.21% year-on-year. The production and sales of cub were 187,000 and 184,200 with a month-on-month increase of 6.58% and 3.24% in production and sales, a year-on-year decrease of 17.94% and 15.93%. From January to December, the production and sales of straddle were 9,090,900 and 9,097,400 with an increase of 18.76% and 18.68% year-on-year. The production and sales of scooter were 6,471,000 and 6,478,400 with an increase of 9.58% year-on-year ; and the production and sales of cub were 2,278,500 and 2,227,700 with an increase of 9% and 8.42% year-on-year. Judging the proportion of the sales volume of each model in the total sales volume of two-wheeled vehicles, the proportion of straddle, scooter and cub models were 50.95 %, 36.28% and 12.48% respectively.
From January to December the whole industry completed the production and sales of 20,195,200 and 20,194,800 with a year-on-year increase of 12.98% and 12.7%. Of these, 17.8475 million and 17.8547 million two-wheeled motorcycles were produced and sold, an increase of 14.01% and 13.76% year-on-year ;
060
Industry Focus The motorcycles market is in great shape in China, while deeply involved in the electrification transition which is creating huge space for EVs specialists and narrowing roads for combustion engines specialists. Although in the last two quarters of 2021 the Chinese economy growth was below expectations, reducing demands for consumer goods, the two-wheeled market continued to perform well, after a roaring first half of the year. The transition to the electrification is very fast and while government subsidies to producers are declining, the huge volumes achieved by segment leaders have already allowed strong economy of scale and the electric scooters are already competitive in terms of pricing and performance. The market is rapidly changing after the proportion of the electric vehicles became more than 50% of the total market last year. New brands are booming, with Yadea being the market leader not only in the EVs segment but also in the entire market, after having scored a milestone reporting over 5 million sales in 2020 and further growth in 2021.
Xinri Sunra, Niu, Luyuan and other brands are fast growing although limited by short supply, while the traditional brands are working to transform the local production for domestic market. The demand for motorcycles is fast growing, with almost all premium brands (BMW, Triumph, Ducati, KTM, Piaggio, Peugeot and others) reporting record sales in China.
Said this, looking at the mar ket figures, in 2021 the total domestic motorcycles sales (including moped, scooter, underbone, motorcycles tricycles and AT Vs) reached 19.5 million, an impressive 9.2% increase. Looking at the manufacturer ranking, Yadea has taken the lead for 3 consecutive years with 6.2 million sales (+15.4%). The Hong Kong based firm had almost tripled sales in China in the last 5 years, while expanding production in ASEAN.
Honda in the 2nd place, which holds several local companies (the leader until three years ago) is now struggling to enter the EVs segment. Last year its sales were 1.35 million (+2.1%). Haojue in the 3rd place, a “traditional” manufacturer sold near 1.3 million vehicles in the domestic market (+27.1%) last year. Haojue is the top exporter with over 1 million vehicles. In fourth place the fastest growing manufacturer, the EVs specialist Niu Tech reached the sales of 988.000 sales (+72.7%).
China Fastener World no.65/2022
Motorcycles Market Trend 2021
061
Industry Focus by Sharareh Shahidi Hamedani
Analysis of
Motorcycle Production and Sales in EU Region in 2021 歐盟機車產銷分析
EU Market Size In the first nine months of 2021, motorcycle registrations in five of the largest European markets (i.e. France, Germany, Italy, Spain and UK) rose by 10.6% compared to the same period of 2020, totalling 792,819 units. As expected, due to the different impact of COVID-19 disruptions in spring 2020, almost all the main national markets registered volume gains in 2021 compared to the same period in 2020, with Italy showing the biggest increase (+27.9%). UK, Spain and France also performed well, seeing a 13.5%, 8.7% and 8.5% increase, respectively, while in Germany new registrations decreased slightly (-4.9%). The moped segment remained overall steady in the six European moped markets (i.e. Belgium, France, Germany, Italy, the Netherlands and Spain) compared to last year’s figures, reaching a total of 206,751 units in the first nine months of 2021 (-0.2% compared to the same period in 2020). For better comparison, considering pre-pandemic registration data, nine months into 2021 the European motorcycle market is showing signs of growth (792,819 units for January-September 2021 against 732,594 units for January-September 2019, representing a 8.2% increase). The moped market follows a similar trend: over the same period of time, with 206,751 units registered, representing a 6.8% increase on a year-on-year basis. 1
Main Brands and Their Numbers2 BMW Motorrad BMW Motorrad broke its all-time sales record with 194,261 motorcycles delivered last year. "The fact that we still managed to finish 2021 with this fantastic result for BMW Motorrad not only makes me happy, but also incredibly proud,” said Markus Schramm, Head of BMW Motorrad. “It’s precisely in times of crisis where you can see how well a team sticks together.” Sales were up in Europe and Asia and increased 32 percent in the United States. Unsurprisingly, boxer models like the R 1250 GS and GS Adventure were the major “driving force” once again.
China Fastener World no.65/2022
Pierer Mobility: KTM, Husqvarna, and GasGas Pierer Mobility, the parent company of KTM, Husqvarna, and GasGas, reported an astonishing 332,881 motorcycle sales in 2021, marking the 11th consecutive year of sales records. European and North American buyers accounted for the majority of the uptick. Another factor driving this performance was the explosion in demand for off-road and dualsport motorcycles during the pandemic, which Pierer’s three motorcycle brands were more than happy to supply. More details on Pierer Mobility’s performance have been released in early February, but there’s no doubt that 2021 was their biggest sales year so far. Sources: 1. 2. 3.
062
https://www.acem.eu/registrations-of-motorcycles-in-largest-european-markets-continue-increasing-in-the-first-nine-months-2021-exceeding-pre-pandemic-levels https://www.revzilla.com/common-tread/european-motorcycle-manufacturers-set-sales-records-in-2021 https://www.rideapart.com /news/582696/european-motorcycle-market-q1-2022/#:~:text=Overall%2C%20the%20Euro%20 market%20finished ,at%20 waning%20 interest%20among%20consumers.
Industry Focus
Ducati Ducati also broke its global sales record in 2021 with a final count of 59,447 motorcycles delivered. For reference, Ducati sold 48,042 motorcycles in 2020, and 53,183 in 2019. “2021 was a magical year for Ducati,” said CEO Claudio Domenicali in a press release. “We delivered over 59,000 motorcycles, a number never achieved before in 95 years of the company’s history. We also won the title of MotoGP Constructors’ World Champion for the second consecutive year, and we started the electric era of our company with the V21L prototype, which foresees the bike will race in the MotoE championship from 2023.” Unsurprisingly, the United States led global sales with some 9,000 units, followed closely by Ducati’s home market of Italy. Ducati claims the Multistrada V4 was their best-seller. Global sales were additionally boosted by the release of an all-new Monster and an updated Panigale V4. The recently announced DesertX adventure motorcycle arrived late in the year, so it will be interesting to see if it can boost numbers further in 2022.
Piaggio Group: Piaggio, Vespa, Aprilia, and Moto Guzzi Piaggio hasn’t released 2021 performance figures yet, although a report on the first nine months of the year indicates 430,600 vehicles shipped worldwide, up by 21.7 percent from the same nine-month period in 2020. Aprilia's new 660 twins and Moto Guzzi's V85TT contributed to this success.
Triumph 2021 was a milestone year for Triumph. Hinckley recently trotted out a special Tiger 900 Rally Pro to celebrate their one millionth motorcycle built since Triumph’s revival in 1990. This comes at the end of “the most successful year in the brand’s entire 120-year history,” according to CEO Nick Bloor. Over 75,000 Triumph motorcycles were registered in 2021. ‘’Furthermore, we are committed to taking the brand to even greater heights, and with the forthcoming launch of our brand new Tiger 1200, new competition MX and Enduro motorcycles, plus our strategic partnership with Bajaj to create smaller capacity bikes, I am delighted to say that the future for Triumph and its fans across the world will be just as exciting and rich as the last 30 years has been,” Bloor added.
By January, 2022, the region experienced a 22-percent spike in two-wheeler sales compared to the same month in 2021. Unfortunately, the buying frenzy fizzled out shortly after, with March, 2022, only improving on March, 2021, numbers by 2.5 percent. Overall, the Euro market finished Q1 2022 with 341,869 units sold, an eight-percent increase over the first three months of 2021. However, the shrinking sales figures could hint at waning interest among consumers. Due to months of high demand and reduced COVID-19 regulations, many manufacturers expected to carry the 2021 momentum into the new year but production remains inconsistent as a result of supply chain shortages and resource challenges. The ongoing conflict between Russia and Ukraine also poses problems for the industry. Many anticipated that economic expansion and electric vehicles replacing petrol-powered counterparts would drive the market in 2022, but Russia’s invasion of Ukraine threw a spanner in the works. Energy prices have spiked in Europe following the conflict, but electric alternatives aren’t yet available on a mass scale. In addition to fuel and energy price increases, fast-growing inflation will also impact consumers’ purchasing power. Separately, brands like BMW and Ducati have already posted positive Q1 2022 sales figures, but most analysts and forecasters believe that the European market will continue to slide until the Russian and Ukrainian conflict is resolved.
063
China Fastener World no.65/2022
Motor Bike Key Points for Growth3
Industry Focus
美國機車銷量及貿易統計
by Shervin Shahidi Hamedani
Analysis of
Motorcycle Sales and Trade Statistics in the USA in 2021
Introduction The growth in motorcycles’ adoption as an economical private vehicle has been widespread over the past decade. The global motorcycle market size was valued at USD 119.33 billion in 2021. The market is expected to grow from USD 127.44 billion this year to USD 223.50 billion by 2029, showing a CAGR of 8.4%. While developments in the automotive sector have boosted sales, macro-economic factors such as growth in disposable income and increasing urban population are fuelling the sales of motorcycle across regions significantly. With the incorporation of cutting-edge technologies, motorcycles have become more sophisticated in terms of safety, luxury, and comfort.
China Fastener World no.65/2022
Asia Pacific is the largest market for motorcycles, with its focus in India, holding over half of the regional market share. Europe is to appear as the second-largest market for motorcycles, with Germany holding more than 21% of the market share. The United States is to hold more than 90% of market value for the world’s third-largest market for motorcycles - North America. High demand for a wide variety of motorcycle types such as cruisers, standard, touring, and others is driving growth in the United States.
The US Market United States Motorcycles Industry is in good shape. In 2021 the total motorcycle and scooter sales were 550,000 vehicles, increasing by 9.0% compared with 2020 (521,100), reaching the highest level over the past 15 years. Revenue in the Motorcycles market is projected to reach USD 5.51 billion in 2022. Last year, while motorcycle sales in the U.S. continued their rise across all segments, the market's largest segment, On-road Motorcycles, is projected to reach the value of USD 4.71 billion in 2022. The volume weighted average price of motorcycles market in 2022 is expected to amount to USD 11.94k.
064
China Fastener World no.65/2022
065
Industry Focus Fig. 1
Industry demand characteristically changes together with the overall economy. This is because motorcycles, the industry's main product segment, are mainly expensive optional (good to have) items that are more in demand during times of economic success. Therefore, as consumer confidence has declined and unemployment has risen, demand for motorcycles has collapsed.
The Trade Statistics
U.S. Motorcycle Imports vs Exports 4,000,000
(USD thousand)
In terms of the sales value, reported by the Motorcycle Industry Council (based on sales data that the organization compiled from 14 major OEMs and distributors across America) overall sales rose 14.2 percent over 2020, and 21.8 percent over 2019 figures, across all segments. That includes scooters, which by themselves rose 19.6 percent over 2020, and 31.4 percent over 2019 numbers. On-road bike sales rose 12.9 percent over 2020. In 2020, dual-sport and off-road bikes faced a big increase in sales, by 46.2 percent compared with 2019. However, last year, dualsport motorcycle sales still managed to grow an additional 18.6 percent over the figures on 2020.
3,500,000
3,000,000 2,500,000
2,000,000 1,500,000
1,000,000 500,000 -
2018
2019
2020
2021
Imports Value
2,258,200
2,743,486
2,572,472
2,768,415
3,638,630
Exports Value
1,273,483
1,275,007
1,158,128
604,356
856,215
Fig. 2 1,200,000 1,000,000
800,000
In terms of the imports, the US is the largest imports market followed by Germany. In 2021, more than USD 3.6 billion worth of motorcycles including mopeds, and cycles fitted with an auxiliary motor were shipped to the US market (Figure 1). This is a value of 4,171,688 units of motorcycles imported by the US.
2017
Top 10 Motorcycle Import Sources for U.S. 984,982
676,828
600,000 448,084 400,000
411,909 278,002
226,620
200,000
0 In return, the US manufacturers exported more than China Japan Thiland Taiwan Austria Germany USD 856 million to the global market. The quantity of their exports was 117,521 units in 2021. Figure 1 exhibits the last five years’ trade statistics for motorcycle in the US.
181,574
Italy
116,846
76,818
46,003
Canada Mexico
India
The major destinations for US productions are Canada, Japan, Australia, Belgium and the Netherlands. In 2021, in terms of value, more than 60% of American motorcycles were shipped to these 5 markets. On the other hand, China, Japan, Thailand, Taiwan, Austria were major exporters of motorcycles to the US market in 2021 with the total value of about USD 2.8 billion. Figure 2 below illustrates the value of imports (in USD thousand) from top 10 motorcycle exporters to the US market. 1% 1% Fig. 3 Main Subcategories The right statistics extracted from the imports and exports value of products with the China Exported 4% HS Code of 8711. As mentioned above, China is the top exporter of motorcycles to the US to the U.S. market, with slightly lower than 1 USD billion value of exports in 2021. If we zoom into this HSC871160 category of products exported by Chinese manufacturers to the US market, the following 21% four subcategories will be derived from the main category (Figure 3). HSC871120
China Fastener World no.65/2022
The highest demand for the imports goes to the motorcycles with electric motor for propulsion (HS Code 871160). Other than being eco-friendly and cost effective motorcycles, the electric motor reduces noise and even vibration to a minimum as electric motors do not require an exhaust that produces sound that is synonymous with gasoline-powered motorcycles. The second largest group of motorcycles imported from China in 2021, was motorcycles with reciprocating internal combustion piston engine of a cylinder capacity > 50 cm³ but <= 250 cm³. The big difference between the first and the second group in terms of the value of imports shows us the clear path of motorcycles demand towards electric motorcycles.
HSC871110 HSC871190 73%
Others
In summary, the figures of the sales and trade statistics show the potential demand and growth for motorcycles in the coming years in the US. Growing economic standards, changing lifestyle and increasing rates of petroleum are shifting the customer preference towards motorcycles which offer greater fuel efficiency in comparison to cars. Motorcycles are an effective and affordable way of transport because the working class and the younger generation of the society are more attracted towards these products. Growing urbanization is also a significant factor driving the growth of the market in the country. Operators in the motorcycle, bikes and parts manufacturing industries are expected to continue to focus on new demographics to enhance sales. Favourably, as the economy is expected to improve following the COVID-19 (coronavirus) pandemic, industry revenue will also likely rebound. Furthermore, historically low interest rates and a stable return to work may further increase disposable income, which is required to purchase industry-relevant goods due to the expense nature of industry products. Sources: • • • •
066
Motorcycle Market, Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2021 to 2031 Motorcycles, The United States, Statista United States 2021, Motorcycles Market Hits The Top Out 15 Years – MotorCycles data ITC TradeMap, Trade statistics for international business development
Zhongda United Holding Group Co., Ltd. was established in 1964. It is an IS09001, IS014001 and OHSAS18001 qualified enterprise with more than 3,000 employees and a total area of 478,000 square meters. In 2021, the company's total sales amount was $1.02 billion. Due to the company's business segmentation, our fastener business has been operating under the name ZDI SUPPLIES (HAIYAN) CO., LTD. since Sep. 2020. We consider ourselves as a solution provider of fasteners, especially when it comes to project supply. We can supply Chipboard Screws & Construction Screws (capacity: 1000 tons per month), Drywall Screws (capacity: 1000 tons per month), as well as other screws, bolts, nuts, threaded rods and stamped parts. We can also provide a full range of DIY assortment and professional packaging design solutions for retailer display purpose. We have good experiences in cooperating with European and America retailers (TCHIBO, LIDI, ALDI, HORNBACH, LOWE'S, HOMEDEPOT, etc.) We have our own lab, which is CNAS approved, as we treat product quality as top priority. We can carry out tensile and impact test, corrosion resistance test, metallographic test and more according to customers' requirements. With our passion for fasteners, you will find our team a trustworthy partner and we are eager to hear from you.
RUSSIA
Small Packages
Industry Focus
by Dean Tseng, Fastener World
Global Bike Production & Sales Statistics 全球自行車產銷統計
CAGR at 73.6%
30% of the world’ s bike sales go to the Asia Pacific. Japan, Singapore and China invest a lot in commuting infrastructure for bikes. Furthermore, shared bike is common in Asia Pacific and health awareness is increasing among the public. These factors give Asia Pacific a high chance to dominate global bike use rate.
Fig 1. Global Bike Market Scale 2021-2030 Market Value (Unit: USD 1 Billion)
Precedence Research indicates the world’s bike economic scale reached USD 95 billion in 2021 (Figure 1 ), and that the growth will continue in the future. By 2022 the number will reach USD 101.19 billion, and USD 109.5 billion by 2023, USD 117.5 billion by 2024, and USD 126.2 billion by 2025. Up till 2030, the scale is estimated to reach USD 180 billion at a CAGR of 7.36%. Bikes have a large market potential and it pulls up the demand for their fasteners.
200 180 160 140 120 100 80 60 40 20 0
101.99
95
2021
2022
109.5
2023
117.55
2024
126.21
2025
135.49
2026
145.46
2027
156.17
2028
167.66
2029
180
2030
Year
China Fastener World no.65/2022
Europe & U.S. Have a Stronger Electric Bike Market The most intriguing part of Europe is that its bike market is in an exponential growth. Figure 2 shows little apparent growth in Asia Pacific between 2019 to 2028. While the North America has a small amount of steady growth and takes a smaller share, Europe has faster growth and an increasing share that is expected to tie with China by 2026. This shows that Asia Pacific (especially China) has the largest market share for now but could be overtaken by Europe in 5 years. By 2025, Europe’ s electric bike sales could surpass car (EVs and gasoline-powered vehicles) sales. The electric bike market potential is impressive. Although North America’s growth is slower than Europe's, European Light Electric Vehicle Association’s report shows that the U.S. imported 790 thousand electric bikes last year, much higher than 450 thousand in 2020 and 250 thousand in 2019. We can tell that the U.S. and Europe have a growing electric bike market.
068
Fig 2. Global Electric Bike Market Scale (Unit: USD Million) Data from Sta�sta
21,228.8
2019
25,037.4
2020
24,947.4
2021
48,461.1 43,871.7 39,778.3
36,122.5 27,302.5
2022
Asia Pacific
29,926.5
2023
32,853.4
2024
Europe
2025
2026
North America
2027
2028
Industry Focus Asia Pacific: Heartland of Bikes
Japan, Australia, etc. 475,940 24%
Including electric and manned bikes, the world’ s bike production mainly converges in China and Southeast Asia, but globally known brands are mostly in the U.S. and Europe. In other words, the heartland of production is in Asia Pacific which mostly supplies to the U.S. and Europe in the forms of OEM and ODM.
Others 45,213 2%
NAFTA 875,295 44%
EFTA 42,856 2%
According to People’s Daily (China press), China produced 117 million bikes in 2020, up 15.3%, and breached 120 million bikes in 2021, becoming the world’s largest bike manufacturing and purchasing country. Additionally, the number of electric bikes owned by holders in China is already close to 300 million units. China is also the world’s largest electric bike purchasing country. In 2020 China produced 44.36 million electric bikes, up 14.3%, and exported 2.01 million electric bikes, up 38.9%. By 2021 the production reached 48.27 million units, up 8.7%.
EU 547,633 28%
Fig 3. Taiwan's Bicycle Export Volume to the World in 2021 (Unit: Vehicle)
Lastly, we will look at Japan (Figure 4). The country’s bike production continued to drop slightly in the past 6 years. While domestic sales remained flat, the export and import volume continued to decline. In other words, Japan’s domestic bike sales were flat and the demand for import decreased. The same was also true for export. Japan’s bike market has been decreasing over the years and its share is taken by Taiwan and China.
Unit: Per Bike
As for Taiwan, it is a bike exporting country, so we are going to look at the figures from Taiwan Bicycle Association. In 2021 Taiwan exported 1,986,937 bikes, up 16.9%. The export value was USD 1.31 billion, up 19.6%. Both the export volume and value accelerated and remained at a double-digit growth. North America is the largest bike export partner for Taiwan (Figure 3), followed by Europe, Japan and Australia. Although the bike industry is facing material shortages, Taiwanese bike companies have a handful of orders up to 2023, particularly orders for electric bikes and and high-end bikes. They have Fig 4. Japan's Bike Produciton & Sales 2016-2021 hit revenue records for 3 consecutive years. It shows a vast demand for 8,000,000 Taiwan’s bike capacity. 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0
Produc�on
2016 939,025
2017
2018
2019
890,850
859,850
884,078
2020 868,589
2021 842,888
Domes�c Sales
1,619,165
1,619,326
1,544,624
1,627,322
1,626,347
1,629,357
Export Volume
3,160,819
3,162,452
3,068,426
3,109,929
2,931,865
2,750,578
Import Volume
6,849,387
6,777,799
6,182,082
6,239,721
6,308,969
6,049,883
We Could See Stronger Bike Sales in the Future Global bike statistics tell us that market momentum will become stronger. The U.S. and Europe not only have an unceasing purchase momentum, their electric bike sales can be described as having an exponential growth. This is especially true for France. According to French Cycling Federation, France only sold 56 thousand electric bikes in 2013 but increased sales to 514 thousand in 2020 (19% of the total bike sales reaching 2.7 million units), up 33% from 388 thousand units in 2019, a growth exceeding 800% in just 7 years.
China Fastener World no.65/2022
Taiwan and China in Asia Pacific both had excellent bike production and export records. Despite a sign of dwindling in the Japanese bike market, overall the bike manufacturing momentum in Asia Pacific remains robust. The world’s bike demand is expected to grow for at least the next 5 years which will lift the world’s demand for bike fasteners.
070
071 China Fastener World no.65/2022
American News
美洲新聞
American News Compiled by Fastener World
White House Unveils Freight Data Platform for Supply Chain The U.S. Department of Transportation launched a new data sharing initiative to speed up delivery times in the supply chain, reduce delays and lower costs for consumers, GCaptain reports. “Called Freight Logistics Optimization Works (FLOW), the information sharing initiative will pilot a key freight information exchange—a sort of national freight data platform—between various participants in the ‘ship to shelf’ supply chain,” writes GCaptain’s Mike Schuler. “The initiative is being launched with eighteen initial participants including public entities, like the ports of Los Angeles, Long Beach and Georpia Ports Authority, and leading private businesses in trucking, warehousing, logistics, and ocean shipping.” Participants will work with the Biden Administration to develop an information exchange that eases supply chain congestion and speeds up the movement of goods, according to the Transportation Department. “Participants acknowledged the current system is underperforming and needs greater investment and more collaboration in creating ship to shelf visibility into the primarily private-sector owned supply chain,” the White House said in a statement. “A more reliable, predictable, and accurate information exchange about goods movement is the hallmark of a globally competitive 21st century goods movement chain and is especially important for small- and medium-sized businesses who lack visibility into the current system. Participants highlighted that this type of digital infrastructure was more important than ever in the face of supply chain disruptions caused by global events like the pandemic and Russia’s invasion of Ukraine. Port of Los Angeles Executive Director Gene Seroka said the nationwide supply chain data visibility effort “will support system resiliency, improve our trade competitiveness and empower American businesses to get products to market with greater consistency and reduced cost.”
China Fastener World no.65/2022
MSC Mediterranean Shipping Company, the world’s top container shipping line, is one of two ocean carriers represented in the initial set of participants, along with CMA CGM. The initiative is expected to
propose recommendations for common data standards used by international shipping companies, as well as access policies and protocols that would streamline information sharing across the ocean supply chain. Initial findings from the initiative are expected to be presented at a Maritime Data Summit in June 2022.
Pac-West Panelists: KPI Can Lead to Answers Humberto Avilo of ND Industries described KPI to the Pacific-West Fastener Association as “a metric which measures process performance,” and most importantly, can “trigger changes and improvements.” KPI – Key Performance Indicators – using SMAART can provide answers to questions such as machine downtime or employee absenteeism, Avilo explained. It can provide answers to customers. SMAART stands for S (specific), M (measurable), A (actionable), A (aligned with goals), R (relevant) and T (time-bound). Pac-West panelist Dustin Ca rd of Industrial Threaded Products said KPI provides measurements without which “you are not going to know how to pivot.” Card recalled the March 13, 2020, official start of the Covid-19 pandemic as “the perfect time to pivot.” The pandemic changed the supply chain. KPI told users where to start making changes made necessary by the pandemic. KPIs already in use gave companies a starting point. A KPI system can show “where we started,” Card said. It also can lead to “excitement in the team.” At Hayes Bolt & Supply, Kelly Cole monitors figures everyday and at least once a year are reviewed by management. “Set objectives, monitor every month,” Cole said. Find the problems: Did employees not know which product? Knowing the
072
American News
Avilo emphasized that KPI measuring needs to be adequate, but can’t get “too easy.” Card noted that goals may need to be changed. “If you need to pivot, then pivot,” he said, noting Industrial Threaded found they could reduce 40 KPI to 15. Cole said that goals must be “realistic” to help employees “get on board.” In handling results, “let the numbers be the numbers,” Cole advised. When something is short, it creates “something to strive for.” “Share the scorecard. The scorecard is important.” In the case of numbers showing a problem, “go back into why,” Cole said. When KPI shows a problem to those involved, take any “friction back down to the human level,” Cole advise. “We’re human” and want the entire company working together. Card said take charge of problems. Card suggested an example know the fasteners a customer has ordered are on a vessel in the harbor, but there are 118 vessels in the port each with eight to 10 thousand containers. Call the customer and tell them, Card advised. “We pass along that information,” Card said in reference to the recent Covid surge in China slowing ports there. “Bad news is bad news, but surprise is worse,” Cole added.
Donnell Tells Pac-West: July Longshoreman Strike Could Cripple Los Angeles Port A July 1st labor strike at the Los Angeles shipping port “could cripple Los Angeles,” Chris Donnell of Scanwell Logistics told the Pacific-West Fastener Association. A one-week strike by the International Longshore & Warehouse Union could take three months to catch up, Donnell warned. It would lead to a “stalemate.” Jun Xu of Brighton-Best International, Tim Roberto of Star Stainless Screw and Donnell were panelists at the 2022 Pac-West spring conference. Even without a potential longshoremen strike the Los Angeles port “is not getting better” after congestion for months. Donnell said 100+ vessels with thousands of containers are awaiting while there is a worker shortage. Fastener distributors with warehouse space have “a luxury,” Donnell said. “Transportation has been bad for several years,” Donnell predicted there will be a “slight dip” in container costs about mid-2022, but companies with contracts expiring will find rates shoot up. “Talk with them on options” such as using alternative ports, Donnell advised. It isn’t just the Los Angeles port with problems. Covid-19 “is really hitting China, including the Shanghai port,” Donnell noted. More than 18 million containers go through the Shanghai port monthly. Beyond offloading containers from ships, it can be three-to-five day wait for a container to reach rail, Donnell pointed out.
China Fastener World no.65/2022
problem can lead to a solution such as scanners and bar coding. That has led to Hayes Bolt reducing pickers from five to two. It is important for employees to have the goals, Cole added. It tells them when they are “meeting expectations” and “it keeps them engaged,” Cole said. It can lead to confirming Hayes got the P.O. and show if “this is on time.” From a work culture standpoint, KPI encourages employees to “rally around the mission” and “makes them proud of work,” Cole finds.
073
American News It is estimated the U.S. is short 80,000 over-the-road truckers. But to get licensed, a trucker must be 21 years old and take eight weeks of training. And the cost of diesel has skyrocketed 35% to 47%, Donnell added. With shipping, rail and trucking backlog, there has been a “tremendous volume increase the past two years in air freight. Cargo has been loaded on seats in otherwise passenger planes.” Expect air freight to increase another 5% in the next threeto-five years, Donnell stated. There are no quick fixes, Donnell noted. Florida is welcoming shipping, “but establishing freight ports is not that easy,” Donnell pointed out. Xu finds prices are volatile and changing “literally every day,” creating “almost whiplash.” “Don’t react to panic. Try not to oscillate with the daily news.” He expects 2022 will be a “challenging year mentally and emotionally, just because the world has some crazies doesn’t mean we need to go crazy,” he observed. Some factors such as carbon steel prices have remained “relatively stable,” he pointed out, and attributed inflation to Section 301 tariffs, stimulus checks and the “supply chain bottleneck.” The #1 factor in the supply chain is ocean freight. “It is easier to give out money than build a ship.” However, he finds ocean freight has “stabilized.” “Inflation is not going away. The only cure for inflation is recession.” “Russian invasion doesn’t affect us that much.” Xu expressed confidence in the fastener industry’s future: “Believe in the future. In every challenge there’s an opportunity.”
China Fastener World no.65/2022
Roberto of Star Stainless Screw pointed to the 41.5% increase in the price of nickel leading up to Russia’s invasion of Ukraine, following a 17.9% drop after the lunar New Year. Nickel is the key factor in the price of stainless steel and Russia is the third largest producer of nickel, Roberto noted. Within 24 hours of the invasion, nickel prices leaped 250%. Roberto expects continued
074
“short term price bursts with long term increases.” And it will be difficult to quote stainless steel prices, he said. “There will be continued tightening of supply until we see new supply sources,” Roberto warned. His advice: “Watch your inventory” and use “inventory hedging.” The price increases reflect a “tightening of supply with strong demand,” Roberto said.
Fastener Stocks Outperform Industrial Indexes in 2021 The FIN Fastener Stock Index increased 25.1% in 2021, besting a 19.2% gain by an index of related industrial stocks during a tumultuous year that saw international shipping rates skyrocket. Nucor Corp. topped the FINdex in 2021, capitalizing on its position as a domestic steel manufacturer amid U.S. tariffs on steel imports. The steelmaker, which manufactures industrial fasteners through its Nucor Fastener division, saw its publicly-traded shares more than double during 2021, with its share value increasing 115% during the year. In late 2021, Nucor Fastener acquired “an existing state-of-the-art coil processing facility” in Shelbyville,
American News IN. The facility includes an automated clean and coat line, 2 STC furnaces and wire drawing capabilities. In addition to coil processing, Nucor Fastener will also be expanding its fastener manufacturing capabilities by installing bolt making equipment at the facility. Earlier in the year, Nucor agreed to acquire Hannibal Industries, Inc. for $370 million. Hannibal utilizes sheet and bar steel, as well as steel decking, wire deck and fasteners to produce warehouse racks, providing potential supply chain efficiencies with other Nucor businesses, including Nucor Fastener. Other FINdex companies that gained 20% or more in share value during 2021 include Dorman Products (up 30.2%), Fastenal (up 31.2%), Grainger (up 27%), ITW (up 21%), Simpson Mfg. (up 34%) and Tree Island Steel (up 80%). Fastener companies losing share value during the year include MSC Industrial (down 0.3%) and Park Ohio (down 31.5%). During the final quarter of 2021, Grainger shares achieved the largest increase, rising 32.2%. Other FINdex companies that gained 20% or more in share value during the last three months of the year include Fastenal (up 24.7%), ITW (up 20%) and Simpson Mfg. (up 30.3%).
mufflers, plumbing, fabricators, stampers, shims, machine shops and springs.
Stainless Steel Shortage: No Change Until More Production “Don’t hold out hope for the U.S.’s stainless steel shortage to get better until you know of new supply coming online,” guest columnists wrote in MetalMiner. “There appear to be no plans in the works to increase domestic production,” C.J. Nord of Supply Chains for Good, and Harry Moser of the Reshoring Initiative wrote. “Supply may tighten even more than we have seen. This is similar to the chip shortage.” Nord and Moser said the shortage “became a national concern in January 2021, when ATI Metals took 304 stainless offline and shifted production to 316 grade.” ATI’s change took away about 30% of the U.S. supply offline. Even if a mill decides to bring 304 online, it could take as much as a year for supply to reach the distributor level,” they estimated. “This is a long-term, painful shortage,” Nord and Moser concluded.
China Fastener World no.65/2022
One fastener manufacturer said that their wire supplier would no longer be a source for 430 grade CHQ. The MetalMiner guest columnists wrote that projects are being canceled due to lack of stainless steel and/or a price increase “that puts it out of budget. The shortage appears to be hitting mom-and-pop manufacturers much harder than the large OEMs.” “Engineers are well respected for developing solutions to material shortages,” Nord and Moser wrote. “3D and additive manufacturing has created new solutions.” There may be other changes a company can make internally, they suggested. “A team investigating the shortage — including a broad range of manufacturing trade associations, steel distributors and manufacturing companies — concluded that the broader economic impact is potentially severe,” Nord and Moser wrote. “Reshoring is booming due to supply chain disruption,” but companies will be less likely to reshore if 304 is not available, Moser said. Impacted industries include construction, infrastructure, defense, aerospace, medical devices and food equipment. OEMs impacted include HVAC,
076
WesternMetalRoofing noted steel prices hit record highs in 2021 due to increased demand “and a supply shortage throughout the global steel market that left everyone scrambling to find raw material.” Steel supply began to improve in the fourth quarter of 2021, but there is “still a very large demand for steel, especially from the automotive industry that needs steel for its computer chip shortage,” WesternMetalRoofing reported. Customers are “under allocation,” and it can take four-to-six months for delivery. “As of October 2021, steel supply is just beginning to improve,” WesternMetalRoofing observed. “While it’s nowhere near where it was prior to the start of the Covid 19 pandemic, there is better availability today. However, we have to emphasize that while things are starting to look up, we are still in a steel shortage.” High steel prices “have started to level off” and steel buyers aren’t going to find the “month-overmonth volatile price increases that occurred earlier in 2021. “We expect the price of steel overall to remain flat into the 2nd quarter of 2022 based on the state of the steel market today. As imported steel is starting to come into the US more, it will help with the overall steel shortage. We should see the supply being less tight by the end of the 2nd quarter of 2022.” “However, do not expect prices to drastically fall in 2022.” In addition to more demand and inflation, China is cutting back power for production to reduce carbon emissions by working fewer hours. S&P Global Platts reported steel imports into the U.S. “are expected to rise enough in 2022 to keep pressure on domestic prices that reached record levels in 2021, but these shipments will not necessarily represent an import surge.” John Anton, director of pricing and purchasing at IHS Markit, said the steel imports this May appear as a spike, but this is mainly because imports since 2018 have been abnormally low due to tariffs,
American News
UK-based Meps International Ltd, which monitors worldwide steel market data, noted steelmakers are reported record profits. The Meps European average 304 cold rolled coil basis value now equals the January 2007 all-time high and the U.S. figure is at its highest in 14 years.” Stainless prices are “expected to decline more slowly than they increased in the past 12 months,” MEP forecasts. North American prices “are expected to be constrained by reduced purchasing activity” in the first half of 2022. Buyers already have significant quantities of material already on order, with both domestic and overseas suppliers. “However, supply from domestic stainless steel producers is expected to remain restricted. This will help to keep prices at elevated levels, in the near term,” MEP reported. European prices are forecast to move upwards early in 2022. “However, inventories are increasing for most grades and sizes. This, plus a softening in demand, is expected to restrict the level of price rises that stainless steel buyers will be prepared to accept during this period.” SMM News, which covers the metal market of China, predicted that for the trend of stainless steel prices in 2022, "the center of gravity moves down, the price rises first and then suppresses, the performance is strong in the second and
third quarters, and the overall fluctuation decreases." SMM noted Ferro nickel production in Indonesia has accelerated, but will remain tight in the first half of 2022. Ferrochromium supply “tension is eased,” but overseas capacity expansion is “relatively slow” while demand for stainless steel is strong. Stainless steel production capacity in Indonesia is up and “we are cautiously optimistic about demand, and the overall supply and demand of stainless steel is loose.” The Global 304 Stainless Steel Market study projects that over the next five years the 304 Stainless Steel Market will register “a magnificent spike in CAGR in terms of revenue.” The Covid-19 pandemic led to lockdown regulations in multiple nations “resulting in disruptions in import and export activities of 304 Stainless Steel.” TradingEconomics reported Shanghai steel futures were close to levels of late October “amid limited supply, rising iron ore and nickel prices and prospects of a demand boom.” Production in China is likely to be constrained due to factories maintenance in the first quarter, the Lunar New Year holidays and the desire to limit pollution over the Beijing Winter Olympics. Prices of nickel and iron ore for steel “remain elevated, with possible supply disruptions in top iron ore exporter Australia due to a surge in coronavirus cases.” Second quarter demand in China will increase “as the construction and infrastructure sectors pick up and the Chinese authorities adopt stimulus measures to shore up the economy.” Reuters reported Chinese stainless steel futures surged more than 5% earlier this month, “boosted by tight supply concerns as
China Fastener World no.65/2022
the coronavirus pandemic and logistics issues. "I would see imports maybe getting back to 2015-2017 levels but do not see them surging," Anton said in a recent interview with S&P Global Platts.
shuangjin@double-gold.cn
077
American News producers cut production, while strong raw material prices also offered support.” “Domestic stainless steel firms are stepping up maintenance in the first quarter, while affected by the Spring Festival holidays and Beijing Winter Olympics; overall production is expected to be limited,” Reuters quoted analysts with Jinrui Futures. Nickel prices keep stainless steel prices up cue, Huatai Futures told Reuters. The China Iron & Steel Association projected China's 2021 crude steel output would fall to 1.03 billion tons from a record 1.065 billion tons to reach a "supply and demand balance.” Andindya Barman of Zacks described the steel industry as coming “roaring back in 2021 after bearing the brunt of the pandemic in 2020, taking succor from a strong revival in end-market demand and an upswing in steel prices.” “The pandemic put most commodities on slippery ground last year and steel was no exception. A slowdown in demand across major end-use industries put a dent on the steel industry for much of the first half of 2020,” Barman wrote. “In particular, the pandemic dealt a fresh blow to the U.S. steel industry, which reeled under the effects of the U.S.-China tariff war.” Demand for steel picked up on the resumption of operations across major steel-consuming sectors such as automotive, construction and machinery, following the easing of lockdowns and restrictions globally. Steel prices have also witnessed an unprecedented surge in 2021 on the back of an upturn in demand across key markets, tight supply conditions and low steel inventory throughout the supply chain. Stocks of several steel companies “popped this year driven by the positive momentum of the industry.” Barman cited Commercial Metals Company, EVRAZ plc and U.S. Steel Corp. as notable. “The rebound across major end-use industries such as construction and automotive represents a tailwind for the steel industry,” Barman wrote. “However, the rapid spread of the Omicron variant of coronavirus may disrupt economic activities and impact steel demand over the near term. The $1 trillion bipartisan infrastructure bill President Joe Biden signed “is expected to be a significant catalyst for the American steel industry and U.S. HRC prices in 2022”. The bill includes about $550 billion in new spending on roads, bridges, tunnels and the electric grid, as well as airports, broadband and other infrastructure improvements.
Volt Expanding Arkansas Plant Volt Industrial Plastics broke ground on a 36,000 sq ft expansion of its Arkansas plastic fastener manufacturing plant. The expansion will bring the plant to 100,000 sq ft for production and inventory of 100 million parts. Volt ships domestically and internationally and builds tooling and parts in house. “I want to say thank you to each and every one of you that work here every day and work so hard,” COO and marketing president Heidi Volltrauer told 100 employees at the groundbreaking ceremony. “I hope you’re all as excited as I am of where we’re going this next year and the years to come.”
China Fastener World no.65/2022
Joe Volltrauer used tool & die experience to start JV Tool in 1973 and then Volt in 1992. Volt now manufactures plastic screws and nuts, license plate screws, Christmas tree clips, rivets, wire & cable routing clips, printed circuit board hardware, dowels, washers and other hardware.
Mid-States’ Employees Pack Backpacks for Ukraine “Together with our amazing employees we supplied Ukrainians with over 300 backpacks filled with emergency supplies such as medicine, feminine products, socks/underwear and granola bars.” When a major supplier for Mid-States Bolt & Screw Co. asked if the fastener distributor would help the Ukrainian people, employees “jumped at the chance.” Glen Glaskill of Glenco asked Mid-States president Scott Somers if he would be interested in funding backpacks filled with emergency supplies for the people of Ukraine. “When you look at the situation over in Ukraine, a lot of people want to help out but they don't have an avenue to be able to do that,” MidState’s HR manager Tami Compton said. So when Scott Somers and Compton asked employees they “enthusiastically agreed to help.” “We got our employees together, and they were all on board.” “The outpouring of our employees was tremendous and heartwarming,” Compton said. “Together with our amazing employees we supplied Ukrainians with over 300 backpacks filled with emergency supplies such as medicine, feminine products, socks/underwear and granola bars” to create
078
American News “Backpacks for Ukraine,” said Sandi Andreski of Mid-States. The backpacks were sent to Old St. Mary's Church in Detroit to coordinate transport to Poland and then on to the people in need in Ukraine. “So many people want to help but don't know how,” Compton noted. “This gave everybody the opportunity in the company to be able to get on board with it." Founded by Herb Somers in 1972, Mid-States is now headed by his three sons – Scott, Matt and Marc. Mid-States Bolt has nine locations in three states.
“We want the aftermarket consumers to know that when they buy a Threadstrong wheel fastener, they can trust it was made in the U.S.A. to all of the needed safety specifications,” MFCS fastener division president Rob Whitey said. Director of wheel fastener engineering Mark Raves explained “a lot goes into steel fasteners that the general consumer probably doesn’t think about.” Material strength, corrosion resistance and durability require engineering and quality control for the friction of the fastener’s load bearing surface against the wheel, Raves said. Founded in 1925 by John MacLean Sr and Jack Fogg in Illinois to manufacture lock nuts for railroads, the company today has 3,000 employees and $1 billion in annual sales. MacLean-Fogg has 28 manufacturing plants in Europe, Asia and both North and South America.
MFC Launches Wheel Fastener Brand MacLean-Fogg Component Solutions launched the Threadstrong brand and website to market wheel fasteners to the aftermarket.
Agrisolutions Acquires Chicago Fastener Manufacturing Agrisolutions, the global leader in wear parts, components and accessories, has acquired Chicago Fastener Manufacturing
China Fastener World no.65/2022
“We are well known as the leading OEM supplier in North America for high performance, decorative wheel fasteners,” sales VP Brad Southwood said. “It’s always been frustrating to us to see the aftermarket flooded with inferior, low quality and potentially dangerous replacement wheel fasteners of unknown origin. So we decided to do something about it.”
079
American News (CFM), University Park, IL, USA. The acquisition closed on February 3, 2022. Chicago Fastener Manufacturing is a USA manufacturer of cold headed metal fasteners for on and off-highway applications. Product families include structural bolts, hex heads, carriage bolts, square head machine bolts, wheel bolts and plow bolts as well as various per-print specials. CFM products are a part of applications in agriculture planting, harvesting and soil management as well as construction, mining and railroad equipment. Materials include medium carbon, boron and alloy steels. “We are excited to welcome Chicago Fastener Manufacturing into the Agrisolutions family. CFM’s capabilities and talented group of employees will add manufacturing capacity to help us better serve our customers in the USA,” said Agrisolutions Global President, Blair Cook.
Semblex® “Solutions At Work” Videos
USA-based companies join teams with a combined 74 years of experience in serving contractors, departments of transportation, and OEMs. Threadline strives to help you meet customers’ expectations and offers one day shipping to over 10 states along with exceptional turn-around.
Wiechen New Continental-Aero CEO Kelly Wiechen is now CEO of Continental-Aero as Bill Giddins has retired after 50 years in the fastener industry. Wiechen joined Continental-Aero in 2004, became head of operations in 2008 and was promoted to COO in 2010. Giddins started with Continental-Aero in 1999 in a consulting role and in 2010 became CEO. “I have been blessed with the ability to work with many outstanding people and some really talented business people, form friendships and to create jobs and to train and to learn,” Giddins said.
China Fastener World no.65/2022
Aero Stop Nut was founded in 1948 in New Jersey as a division of Fastener City Co. to supply locknuts. Continental-Fasteners started in 1982 in Illinois. Continental acquired Aero in 1987 and in 1999 the companies were renamed Continental-Aero and acquired in 2012 by Tramec LLC. Today C-A distributes all-metal and nylon locknuts, including its Purple Nylon Tork LokNuts brand, plus finished Hex nuts.
Elmhurst, IL, USA-based Semblex ® Corporation is pleased to present a new mini-video series, titled, “Semblex Solutions at Work”. This series will focus on the latest fastening technologies available from Semblex, many of which are less than two years old. Each video will showcase a solution to an existing fastening problem that the company’s customers have faced and how a Semblex product corrected the problem. The videos for 2022 will focus on fastening in high-strength materials, improvements to flow drilling fastener designs and new self-extruding fastener designs that increase usable thread engagement without capital intensive installation equipment. The first video in the series is focused on difficulties using traditional thread rolling fastener in high-strength steel applications (980XG3 steel), and how the use of Rolok® HS® could eliminate these problems.
Threadline Acquires Atlantic Bolt Threadline Products, a fastener fabrication company serving the industrial and construction industries as well as OEMs, has announced the acquisition of fastener fabricator, Atlantic Bolt, Inc. The merger of the two Charlotte, NC,
080
Neuberger Heads United Performance Metals United Performance Metals named Peter Neuberger CEO. Neuberger has been president of another O’Neal Industries company, G&L Tube, for three years. Tom Kennard was promoted from UPM CEO to executive VP at O’Neal. UPM was formed in 2008 from AIM International and Ferguson Metals to supply a variety of steel products. In 2011 UPM acquired Plus Ten Stainless, in 2013 brought the procurement of Vulcanium Metals, a titanium and medical grade stainless distributor. In 2015, UPM, Vulcanium Metals International and Aerodyne Alloys partnered to distribute titanium and hi-temperature specialty alloys. Vulcanium and Aerodyne were integrated into UPM in 2017. Headquartered in Cincinnati, UPM has facilities in four states and four countries.
American News S.W. Anderson Acquires 2 Distributors S.W. Anderson Company acquired two distributors: Jet Fitting & Supply Corp. of Santa Ana, CA, and M.E. Martin Company of Cleveland. Jim Degnan, president of S.W. Anderson said the two distributors’ “ability to work on applications with customers will pair well with S.W. Anderson's technical sales model. We look forward to supporting our newly acquired customers with more products, services, and technical resources to help grow their businesses.” Dana Garlock of Jet Fitting said S.W. Anderson’s “support will be huge for Jet Fitting customers. S.W. Anderson goes so much further than just selling products; their application and engineering knowledge are invaluable and, when combined with their diverse product offering, Jet Fitting customers have a powerhouse of a distributor to work with.” Dave Nyikes of M.E. Martin said his customers “have a new, powerful partner — one with high-caliber, specialized products from international manufacturers and decades of application knowledge to fall back on.” Jet Fitting & Supply Corp was started in 1946 as a family business and distributor of aircraft hardware/fittings and standard hardware, fasteners and tooling. Jet Fitting provides spot-buy, inventory services and tool repairs. The M.E. Martin Company was started in 1977 as a family business and distributor of standard hardware and fasteners. M.E. Martin provides spot-buy and inventory services. Founded in 1926, the S.W. Anderson Company supplies specialty and standard fasteners, hardware, slides, and manufacturing components for tier manufacturers and OEMs, including automotive, commercial vehicles, consumer goods, aerospace and food & beverage industries. S.W. has seven sales offices/distribution centers with 37 technical sales professionals in six states.
Ramco Breaks Ground for Manufacturing Expansion Ramco Specialties, Inc. conducted a groundbreaking ceremony at its Hudson, OH, USA-based headquarters for the construction of a 50,000 ft 2 expansion. The addition will be exclusively for manufacturing, adding over 210,000 ft2 in manufacturing, engineering and office space. This Ramco Specialties, Inc. expansion project is an investment in the company’s domestic manufacturing space along with new equipment, which will expand the company’s manufacturing capabilities and speed. Recent issues with international transportation delays and raw material shortages have created problems in USA-based manufacturing and supply chain. Ramco Specialties’ response to this situation is a direct solution to the many industries, which have suffered from delays such as the automotive, agriculture and aerospace industries. Once the new manufacturing space has been completed, Ramco reports that three new part formers and one nut former are scheduled to be installed. The part forming machine additions will allow for the production of 9" long parts with diameters up to 3". The nut formers will be able to produce 32 mm nuts, which will be Ramco’s largest capability for nut production. Additionally, Ramco Specialities is making an immediate and long-term investment in the local economy. The company has contracted with Streetsboro, OH, USA-based Geis Companies to build out the facility expansion. Geis Companies also built Ramco’s state-of-the-art facility when it opened in 2015. Ramco Specialties is a Tier 1 supplier to the North American automotive market. Ramco specializes in engineered solutions, coldformed components, assemblies and stampings. Ramco Specialties, Inc. is a privately held company, and has been headquartered in Hudson, OH, USA, since 1977.
Mike McNulty, FTI VP & Editor (www.fastenertech.com) China Fastener World no.65/2022
John Wolz, Editor of FIN (globalfastenernews.com)
081
082 China Fastener World no.65/2022
European News
歐洲新聞
European News Compiled by Fastener World
Set Historic Records in 2021 According to the preliminary annual financial statements, Würth Group generated sales of €17.1 billion (2020: €14.4 billion) corresponding to an increase of 18.5%. In Germany, Würth Group’s sales grew by 14.1% to €6.9 billion (2020: €6.1 billion). With €10.2 billion (2020: €8.3 billion), the Würth companies abroad achieved even more successful results. In southern and western Europe, the Group companies reported above-average growth rates, which were partly due to the very high sales slumps in 2020 in countries like Spain, Italy and France caused by the Covid-19 pandemic. Würth Elektronik eiSos Group (+ 36.8%) and the Electrical Wholesale unit (+ 28.8%) were particularly successful. Adolf Würth GmbH & Co. KG, the parent company and the largest individual company in the Würth Group, generated external sales of €2.1 billion (+ 11.3%). According to preliminary annual financial statements, the operating result of the Würth Group is clearly up on the previous year with €1.2 billion (2020: €775 million). Strong sales growth and higher productivity contributed significantly to the positive result. In addition, due to the pandemic, costs for travel, trade fairs and conferences did not incur in 2021. Robert Friedmann, chairman of the central managing board of the Würth Group, commented: “We are in the middle of the 4th wave of the pandemic, and the development of supply chains is challenging us all. Achieving results like this under such conditions shows that we have tailor-made products and services for our customers. It is also important to convey calmness and security in a crisis. In a family business like ours, Prof. Reinhold Würth and Bettina Würth play a decisive role in such a situation.”
China Fastener World no.65/2022
Outlook on 2022 Würth Group believes that the situation on the procurement market will remain tense in 2022. The decision of the German government to make vaccination compulsory will have a significant impact on the development of the pandemic and thus on the economic activity. “Despite these uncertainties, we assume that we will achieve new record sales in the coming business year and achieve adequate operating result growth, as our multi-channel strategy, far-reaching digitalisation and large number of own production facilities mean that we are in an independent position now and will continue to be so in the future,” explained Robert Friedmann.
084
Reports Continued Growth in Q4 Bufab has delivered its highest ever sales, operating profit and earnings per share for 2021. The Group completed three strategic acquisitions with combined annual sales of more than SEK 500 million and continued to invest in its own operations to ensure future sustainable and profitable growth. As expected, the strong demand continued in the fourth quarter. Bufab delivered a strong organic growth of 19% explained by solid underlying demand in all segments, price increases and increased market shares. “We also reported a strong gross margin, driven by higher volumes and efforts to pass on increased raw materials and freight prices to customers. The high level of demand, together with the continued challenging situation in the supply chain, places high pressure on our organisation, but our assessment is that the situation improved somewhat during the fourth quarter,” comments Johan Lindqvist, president and CEO at Bufab Group. The share of operating expenses increased during the quarter, but adjusted for acquisitions and remeasured additional purchase considerations, the share of operating expenses is at a stable and continued low level, which contributed to the strong result. This was primarily due to effective cost control, but also due to continued low level of activity in terms of travel, customer events, training, and trade fairs as a result of the pandemic. The challenge going forward will be to meet the normalisation of the cost level by further increasing productivity. Overall, operating profit increased by 40% and the margin by 0.8 percentage points. Adjusted for acquisitions and remeasured additional purchase considerations the operating profit increased by 44% and the margin by 2.2 percentage points. “Our strong results the last quarters are partly due to the investments in processes and digital tools that we made in recent years. This has increased Bufab’s productivity. Moving forward, we will continue our investments in these areas, but also in areas such as sustainability. We also see the need to strengthen the organisation, particularly in sales, to continue creating profitable growth and increase our market share,” explains Johan Lindqvist.
European News “If we look ahead, we see that the strong demand we noted during the fourth quarter continued into January. Together with stable order intake, this indicates a continued positive trend in demand during the first quarter of 2022. The challenges continue to be the handling of the strained supply chain and to offset the increased inflationary pressure through higher productivity.”
Fabory has announced that it has reached an agreement to acquire the fastener division of Importinox. The acquisition further strengthens Fabory’s position as fastener specialist in Portugal and the broader Iberia region. The strong strategic fit between both companies enables a stronger and more relevant proposition, building further on the deep and relevant range of specialist fasteners, quality and engineering and differentiating supply chain solutions. Francisco Terol, CEO at Fabory, comments: “We are proud to welcome the Importinox fastener specialists to Fabory. We are highly impressed by Importinox’s longstanding client relationships and solid value adding services. Finalizing this deal will make Fabory the market leader in the Portuguese fasteners market and we are looking to further build our positioning across Iberia.”
Importinox was founded by Antonio Cerejeira in Maia, in the North of Portugal, in 1988. Current co-owner and general manager Joaquim Polónia has developed the business which has a dual specialism in fasteners and perforated plating. Importinox offers a wide and broad assortment of specialised fasteners and perforated plates in combination with value added services, including product customization capabilities, and digital and logistics solutions.
Achieves Doubledigit Sales Growth Hilti Group has achieved total sales of nearly CHF 6 billion in 2021, 12.1% above the previous year’s level. In local currencies the increase in sales amounted to 12.2%.
China Fastener World no.65/2022
Solidifies Position in Portuguese Fastener Market
“Fabory is well positioned to further grow the fasteners division starting from our solid base of over 1,000 accounts in amongst others mechanical engineering and construction market. Our market focus is highly accretive and we are convinced that joining forces will open up many new opportunities,” adds Joaquim Polónia, general manager at Importinox.
085
European News CEO Christoph Loos explained: “The recovery trend in the construction industry continued during the last four months of 2021. We were able to maintain double-digit growth in a relatively stable currency environment and fully compensate for the coronavirus-related decline in sales of the previous year. This has allowed us to close the year well above the pre-crisis level in local currencies.” In Europe, sales increased by 13.8% in local currencies. The Mediterranean countries, in particular, experienced a strongly improved environment. The Americas also generated doubledigit growth of 10.5%, with Latin America posting disproportionately high gains. In Asia/Pacific, sales increased by 8.9%. Southeast Asia, in particular, still had to contend with severe Covid-19 related restrictions. The eastern European countries primarily contributed to the significant increase of 12.3% in the eastern Europe/Middle East/Africa region. Due to ongoing challenges, the Gulf States unsurprisingly fell short of expectations, while Turkey’s currency devaluation had a negative impact.
China Fastener World no.65/2022
Despite Covid-19, ongoing challenges in the global supply chain and current political tensions, the Hilti Group expects a positive development in the construction industry in 2022 and is once again targeting double-digit sales growth.
086
H.I.G. Capital Acquires Majority Stake of Berardi Bullonerie Srl H.I.G. Capital, a leading global alternative investment firm with over US$47 billion of equity capital under management, has announced that one of its affiliates has acquired a majority stake in Berardi Bullonerie Srl, a leading operator in the Italian market for the distribution of fasteners and the supply of integrated logistics services. Since it was founded in 1919, Berardi has become a reference partner for Italian industrial companies for the just-in-time supply of standard and custom fasteners, and, more recently, for the design and implementation of integrated logistics programs using a Kanban system. Berardi benefits from a broad geographical presence, with 14 warehouses located throughout the country and commercial offices in Italy, Croatia and Morocco. In the last decade, the company has successfully embarked on an ambitious path to expand its product range in adjacent segments, in the C-Parts sector, and has been a pioneer in Italy in the introduction of advanced integrated logistics solutions through its own Kanban platform, becoming the reference point in the market in terms of quality, service levels and breadth of offering.
European News Giovanni Berardi, CEO and current shareholder of Berardi who will re-invest, along with other family members, alongside H.I.G., commented: "The entry of an international alternative investment fund such as H.I.G. in Berardi represents a recognition of the work carried out over the years and of the great growth potential of our company, which has a leading position in the sector and a growing share of high value-added services. With the support of H.I.G., Berardi will be able to develop faster, thanks to a combination of organic growth and targeted acquisitions". Raffaele Legnani, Managing Director, head of the H.I.G.’s office in Italy, added: "Berardi has a position of undisputed leadership in Italy, proven by a growth rate in the last ten years well above the market and by an impressive track-record as a partner of choice for topnotch industrial companies, thanks to its value-added service offering and a best-in-class management team. We are excited to support the management in the next phase of the Company’s development and we believe that we can provide an important boost to the growth, primarily by supporting an aggressive acquisition strategy, taking advantage of the high fragmentation of the market".
Aims to Become Carbon Neutral With an ambitious multiyear project, Brugola OEB has joined the Forever Zero CO2 project, to eliminate the environmental impact of its 11 plants in Italy by reducing its CO2 emissions and becoming carbon neutral. Forever Zero CO2 is a project by Forever Bambù that allows companies and professionals to reduce or eliminate their impact environmental and become carbon neutral – thanks to the absorption of CO2 from Forever Bambù’s seven bamboo forests in Italy (covering a total of 200 hectares).
China Fastener World no.65/2022
Over the next three years, Brugola will acquire the compensation rights of six hectares of Forever Bambù forests, for a total CO2 sequestration of 1,566 tons per year. “The desire to join the Forever Zero CO2 project is a step consistent with our green commitment, both in small gestures and in the great efficiency actions of a mechanical company,” explains Jody Brugola, president and CEO of Brugola OEB. “Joining the Forever Zero CO2 project will allow us, by 2023, to offset the CO2 emissions from our plants in Italy and underlines our commitment that we also undertake as a role model for other companies in our sector.”
How Forever Zero CO2 Works As certified by independent studies, giant bamboo – which lives on average for 100 years – is able to sequester
088
up to 229kg of CO2 per year, 36 times more than any other plant over one hectare. This means that one hectre of giant bamboo is the equivalent to 36 hectares of mixed forest in terms of carbon uptake. With Forever Zero CO2 project the aim is to transfer the CO2 absorption capacity of the Forever Bambù bamboo groves to the production companies that instead emit it. "We are happy that a world-renowned company such as Brugola OEB has chosen the Forever Zero CO2 project to offset its emissions,” comments Emanuele Rissone, president and founder of Forever Bambù. “Like Brugola OEB, we at Forever Bambù also place importance on safeguarding and protecting the environment. We are sure that the collaboration with Brugola will be extremely positive and profitable on both sides, as well as for the environment.”
Aware of Environmental Impact Brugola OEB has been aware of the environmental impact of its production for several years and has been improving the efficiency of its plants and looking to reduce the environmental impact of production processes. For instance, the company has replaced 25 tonnes of paper reels with eco-sustainable and reusable technical cloths – reducing the use of paper by 80%. Other examples including the business recovering litres of emulsion composed of oil and water, necessary and derived from the screw production process, which helped reduce the use of oils by 15%. It also introduced at its OEB1 plant new inverter compressors, which ensures the efficient use of compressed air – leading to a 40% reduction in the consumption of compressed air. Alongside the interventions related to the production activity, Brugola OEB has also undertaken important actions for environmental sustainability. This includes the reduction of the use of plastic, from a consumption of 207 tonnes a day to about 50 tonnes – two thirds of which are made of recycled plastic. The company also renewed the lighting with LED bulbs to lower electricity consumption and reduce CO2 emissions.
Records Record Breaking Year Thanks to further market share gains in a strong economic environment, Bossard Group recorded sales of CHF 995.1 million in 2021 (around €950.37 million) – the previous year was CHF 812.8 million. This corresponds to growth of 21.1%. All regions performed well in the fourth quarter. Bossard Group’s fourth quarter sales increased by 17.9% to CHF 250.8 million (2020: CHF 212.8 million). The growth of Bossard Group that began with the economic upturn in the fourth quarter of 2020 continued into the fourth quarter of 2021. At the same time, Europe and Asia recorded impressive double-digit growth rates. The rising Covid-19 infection rates in various market regions continued to foster uncertainty. Simultaneously strong global demand continued to strain the situation on the procurement market, resulting in further price increases and longer delivery times. In addition to Bossard’s sustained delivery capability, the Group also benefited from further expansion of its market position.
European News In Europe, Bossard recorded fourth quarter sales growth of 19.7% to CHF 140.1 million (in local currency: +21%), accounting for a significant share of the improved results. The acquisition of the Dutch company Jeveka B.V contributed to the gratifying sales performance. Fourth quarter sales in America increased by 4.7% to CHF 55.9 million (in local currency: +3.2%). The completion of several exciting projects helped Bossard solidify new long-term customer relationships. In Asia, sales grew by 29.2% to CHF 54.8 million in the fourth quarter (in local currency: +26.0%), making it the fifth quarter in a row of double-digit growth rates in local currency. The growth initiatives in the robotics and electronics segments spurred welcome growth in the project pipeline and gains in market share. The EBIT margin for the financial year will likely fall within the upper range of the anticipated 10% to 13%.
Simpson Acquires Etanco Group Simpson Manufacturing Co Inc has announced it has submitted a binding offer with exclusivity to acquire the Etanco Group for approximately €725 million. Etanco is a designer, manufacturer and distributor of fixing and fastening solutions for the building construction market throughout Europe, which includes innovative fasteners, connectors, anchors and safety solutions for roofing, cladding, façade, waterproofing and solar applications. For the twelve months ended September 30, 2021, Etanco's net sales and operating income margin were approximately €258 million and 19.7%, respectively. The acquisition is expected to close near the end of the first quarter of 2022 and is anticipated to be accretive to Simpson's earnings within the first full fiscal year after closing. "The acquisition of Etanco fortifies our footprint and expands our geographical reach in Europe, deepens Simpson's portfolio of solutions with new and existing customers, and allows us to enter into new commercial building markets and grow our direct sales activity across the region," said Karen Colonias, president and chief executive officer of Simpson Manufacturing Co Inc.
China Fastener World no.65/2022
"Etanco fits within Simpson's acquisition strategy of strengthening our business by expanding our product lines, developing complete solutions, growing our market share and improving both our manufacturing capabilities and efficiencies. In addition, our ability to leverage Etanco's commercial building business further balances Simpson's product portfolio and directly aligns with our key
089
European News
growth initiatives. We believe the acquisition of Etanco will materially contribute to both net sales and operating income margin growth in Europe, and in turn, create value for all key Simpson stakeholders." "Etanco and Simpson share the same core values of providing high-quality products and customer service, and we view this partnership as a great opportunity to broaden our product lines and further our customer and market reach," said Ronan Lebraut, chief executive officer of Etanco Group.
Establishes Presence in Quality Tools The addition of Hoffmann SE gives SFS Group a strong international position in the quality tools. The two companies have been collaborating successfully for many years and share a similar value proposition and corporate values. Both are positioned as leading providers in their respective industries. Their decision to join forces marks a milestone and opens up major development opportunities. The Board of Directors and Group Executive Board of the SFS Group will be strengthened with key individuals from Hoffmann. Headquartered in Munich, Germany, Hoffmann is on-site in over 50 countries, with a workforce of approximately 3,000 employees. Hoffman generated approximately €1 billion in sales in 2021. Hoffmann is a specialist for quality tools that is well-known on European markets and serves more than 100,000 customers with a product range comprising around 500,000 items.
Fieldwire Joins Hilti to Establish Jobsite Management Platform The Hilti Group has entered into an agreement to acquire Fieldwire, a San Francisco-based construction technology company for an approximate US$300 million (approximately €263.94 million) to help drive productivity at contractors and on construction sites. Fieldwire provides a leading platform for jobsite management that powers more than a million jobsites worldwide. Founded in 2013, Fieldwire has built a strong presence in North America and managed to expand internationally into Europe and Asia Pacific. The company is presently supporting thousands of clients to better manage their jobsites digitally by offering a software solution that is reliable, easy to use, has a wide range of features and is also device-agnostic. “The acquisition of Fieldwire will accelerate Hilti’s capability to deliver productivity to our customers through software solutions. Since digitalisation has become a major driver of productivity in construction, Hilti has been investing in digital solutions for construction professionals. We intend to continue investing in the platform to create the next market leader in construction project management software,” said Christoph Loos, CEO of the Hilti Group. With Hilti’s support, the team at Fieldwire will expedite the work on building the preferred digital solution for construction professionals in the market. All current Fieldwire team members will be invited to stay with Hilti Fieldwire under the continued leadership of the two founders, Yves Frinault and Javed Singha.
Diversifies Into New Areas of Expertise China Fastener World no.65/2022
ARaymond has announced the acquisition of CGA Technologies, an Italian manufacturer of high performing thermal cooling plates. Antoine Raymond, CEO at ARaymond comments: “The acquisition is not just about broadening the ARaymond product offering but about scaling up complete and tailor-made plug-and-play solutions. The goal is to design and deliver optimised thermal management systems within the mobility and selected industrial sectors.” “As a leader of fastening and assembly solutions for more than 155 years, we continuously strive to reinvent ourselves and stay ahead in the fast moving markets that we operate in. The automotive industry is shifting to electric and autonomous vehicles and we want to actively contribute to this extraordinary transition. To meet our customers' evolving demands, we have a clear vision that agility and time to market are critical and that our customers are expecting complete solutions. For all these reasons, the acquisitions of CGA Technologies and Castello Italia SpA, are an ideal fit,” explains Antoine Raymond, CEO at ARaymond.
090
European News
to Double UK Site
Formed in 2006 from the merger of the German company Rasmussen and the Swedish ABA Group, NORMA Group is celebrating its 15th anniversary. Relying on a global network of 26 production sites and numerous sales locations, the company now serves more than 10,000 customers from various sectors and industries. NORMA Group's products are used in a wide range of industries and end products, including irrigation and drainage systems, vehicles with conventional and alternative drive systems, ships and trains as well as household appliances. NORMA Group's products help to use water more efficiently and reduce environmentally harmful emissions.
UK manufacturer HellermannTyton has broken ground on phase II of a major expansion of its factory at the International Medical and Technology Park in Plymouth. The multi-millionpound investment will see the site double in size to support market growth and increase its capacity, with HellermannTyton anticipating the project will generate many new job opportunities on completion. Scheduled to finish in late 2022, the investment includes the installation of state of the art machinery along with a training academy and R&D facilities. The Plymouth site is one of two manufacturing facilities HellermannTyton operates in the UK, alongside its sister site in Manchester. Already, over four million components are manufactured at Plymouth every year; the expansion will see capacity increase even further. Key manufacturing processes at the new facility will concentrate on solutions for manufacturing, industrial, earthmoving, defense and rail applications.
News provided by: Fastener + Fixing Magazine
www.fastenerandfixing.com
China Fastener World no.65/2022
Celebrates 15th Anniversary
091
European News
news provided by Marco A. Guerritore, Editor in Chief of Italian Fasteners Magazine
News from Italy
China Fastener World no.65/2022
“The Traffic Jam of the Recovery” The general belief was that the COVID-19 pandemic would develop according to a well-defined pattern: pandemic phase, research and definition of a viable vaccine, slow resumption of economic activities in a climate that had begun to return to normal. After the worsening of the infection, the long-awaited vaccine finally arrived, the result of intensive studies and frenetic research in the field; unfortunately, this reality is – inevitably – contested by the anti-vaxxers. In any case, in just under three years, the COVID-19 phenomenon has completely influenced and compromised various balances, such as the socialhealth and especially, the economic-production balances. In particular, the pandemic has left a clear mark on the labour sector, especially at its most acute moment. Companies have had to reshape their activities and revise their operational methods, rethinking their work plans. On the management front, uncertainty has become more and more threatening. The questions asked by operational managers were: “What do we do?” “How do we deal with the issues imposed by the pandemic?” Fortunately, however, the worst of the situation was mitigated by the arrival of the vaccine, which instilled confidence in a future that appeared very uncertain. But what was supposed to be a normal economic recovery is actually proving to be a nervous, chaotic, disorderly awakening. The crossroads of the general malaise is attributable to a container shipping traffic jam: a piece of the Pacific Ocean has been transformed into a gigantic parking lot. On average, 70 to 100 ships float offshore for days or weeks because there are no vacant docks to berth and unload containers. Not to mention the problem of the giants of the sea, the mega-containers, which are oversized and have difficulty in finding the right dock. All this cabotage clogs the seas, pollutes the environment and causes other major inconveniences. Supermarkets with no goods, companies waiting for parts, many dissatisfied end consumers. Numerous economic sectors are therefore suffering: from semiconductors, to cars, water heaters and household appliances, to tyres and electrical-medical equipment. But the “Mother of all traffic jams” was not long in making her evil effects felt throughout the economic and social sector. On average, shipping rates have recently increased by 450%. Global congestion of the seas is one of the many factors contributing to inflation. In America, consumer prices have risen by 6.2% and wholesale prices by 8.6%. The US Central Bank has so far tried to reassure everyone. Its favourite insurance company attributes inflation to a “funnel effect” created by pandemics and therefore surmountable. We are all inclined to believe and hope that these are indeed anomalous and transitory situations. But the doubt that the funnel could suddenly become clogged, perhaps with a surge of Covid, possibly called Omicron, greatly disrupts our sleep. In conclusion, the great hope is that the postCovid recovery will not be reduced to a great big bubble.
092
Bilanci d’acciaio: First Awards Presented in Lecco, ANCCEM was Awarded for Springs, Eure Inox for Drawn Wire and Specialinsert Srl for Screws LECCO (Lc) – The lakeside appointment with “Bilanci d’Acciaio” obviously coincides with the presentation of awards to specific wire drawing, springs and screw companies. Eure Inox of Peschiera Borromeo (Milan) won for wire drawing and the award was collected by the CEO Renato Nemfardi. Founded in 1997, the company occupies over 40 thousand square metres and employs more than 70 people. It produces around 15,000 tonnes per year and about 50% of the turnover is generated abroad. The award for springs went to the trade association ANCCEM and was collected by past president Angelo Cortesi. Founded in 1972, the association is based in Brescia and represents 67% of Italian spring manufacturers and 82% of coil spring manufacturers. It promotes studies and research on production costs and organises annual workshops, where development strategies and models for spring factories are studied. Lastly, in the screws sector, the President Piero Arduini collected the award that went to the Turin-based company, Specialinsert Srl. The company, founded in 1974, has over 60 employees and two production sites: one in Turin, 3,000 square metres, and one in Maerne di Martellago (Venice, 5,500 square metres). It produces over 100 million fastening systems annually and exports to more than 70 countries. The jury awarding the prizes was chaired by Claudio Teodori, professor at the Department of Economics and Management of the University of Brescia, and comprised Stefano Ferrari and Gianfranco Tosini, respectively head and member of the Siderweb Studies Office. To be included in the 2021 “Bilanci d’Acciaio” Study, companies must have had an annual production value for the 2019 financial year (the last year of the three-year period examined) above 2 million euros; while the indicators are: 1. Overall profitability ratio (ROA referring to the last available financial year). 2. Marginality rate on sales, identified as the ratio of EBITDA on sales (referring to the last available financial year). 3. Profitability of sales, identified as the ratio of EBIT on sales (for the last available financial year). 4. Ratio of financial charges on EBITDA (for the last available financial year). 5. Total debt ratio, identified as the ratio of debt to equity (for the last financial year available). 6. Turnover growth rate (average of the last three years).
The speech by Piero Arduini, President of Specialinsert Srl, UPIVEB Member, during the presentation of the award by Pietro Vargiu, Chief Underwriting Officer of Coface
compiled by Fastener World
Andreas Bertaggia new EFDA President On May 12, the EFDA Assembly of Delegates elected Andreas Bertaggia from Bossard as new President of EFDA. Andreas Bertaggia is Vice-President, Head of Global Supply Chain of Bossard Group based in the city of Zug in Switzerland. He has been a member of the Assembly of Delegates since 2019 and leader of the EFDA Task Force. Andreas Bertaggia succeeds Dr. Volker Lederer as President, who successfully held this office for ten years and had decided not to run for another term. The Assembly of Delegates also re-elected Gian Marco Dalpane, General Manager and owner of the Italian fastener distributor La Bulloneria Emiliana and delegate of EFDA’s Italian member association UDIB, as Vice-President and Vincent van Dijk, Secretary of EFDA’s Dutch member association NEVIB, as Treasurer. All officers are elected for a period of two years. EFDA further appointed Luca Bernasconi, shareholder and Purchase Manager at the Italian fastener importer and distributor VITAL spa, as new leader of the Task Force.
China Fastener World no.65/2022
The elections of officers took place during the 7th European Fastener Distribution Conference held from 11 to 14 May 2022 in Madrid. The
conference is the central event for EFDA’s members to discuss major issues and developments regarding the fastener business and global trade developments in general. It is a good platform to make new and further develop existing contacts. More than 75 representatives of leading fastener distributors from several European countries joined the event hosted by EFDA’s Spanish member association ADEFI.
Hong Kong Screw & Fastener Council States Strong Objection to EU's Confirmed Action to Impose AD Tax on China's Fasteners The EU has confirmed a maximal 86.5% anti-dumping tax on certain fasteners imported from China. February 20, the fastener division of CMCA (China General Machine Components Industry Association) issued a statement of strong objection and persistent opposition against EU's action. The division wrote: "The whole ruling process lacks basis on any facts and laws. The EU side lacks the qualification for the appeal. The substitute price isn't based on WTO's rules, and it is fabricated that standard fasteners from China have caused damage to automotive fasteners and other high-end products in the EU countries. ...... The EU market has tremendous demand for China's fasteners, and vice versa." ...... Once again the EU unlawfully abuses anti-dumping measures, ever since last time the EU lost a lawsuit in a WTO ruling. We are indignant that the EU insists on trade protectionism in violation of WTO's rules." The division reiterated that the Chinese fastener industry will take necessary actions to protect its rights. February 21, Hong Kong Screw & Fastener Council wrote to the division as an act of support for the division's statement, and stated to "strongly support CMCA's opposition and to object to EU's final determination to impose anti-dumping measures on iron and steel fasteners originated in China".
094
Fastener World News Boyd Joins Industrial Fastener Institute Staff Industrial Fasteners Institute (IFI) has announced that Preston Boyd has joined the organization as Manager of the Industrial Products Division. In this role, Boyd will work with companies that supply fasteners and formed parts to their customers, the makers of industrial products. His focus will be on the needs of the members of the division, as well as consulting on new membership programs, industry outreach and recruitment of new members. “Preston brings with him an impressive resume of fastener industry experience,” said Dan Walker, Managing Director of IFI. “He has worked in executive management with several fastener manufacturing companies throughout his career. And, he also has extensive experience with the IFI in volunteer roles as an active member of the Institute.” Prior to joining IFI staff, Boyd served as an IFI member company representative, then on the executive committee as a board member, eventually serving as IFI Chairman in 2017-2018. Boyd brings a wide range of industry experience ranging from national accounts manager to president and chief operations officer. Boyd has been hired to fill the position, previously held by Bob Hill, who retired from the IFI at the end of 2021.
IFI Mourns Passing of Former Managing Director Robert J. Harris With great sadness, the Industrial Fasteners Institute (IFI), announces the passing of retired managing director, Robert J. Harris. Having joined the IFI as Managing Director in 1995, Harris is credited with seeing the organization through major milestones including navigating the Institute through the Fastener Quality Act and restructuring its financial stability. “Rob was a friend, ardent supporter, mentor and always a willing sounding board for ideas,” said Dan Walker, Managing Director of the IFI. “Rob will be sorely missed by us all. Our thoughts are with Patricia, Nathan, Julie, his entire family, as well as his many friends throughout our industry.” Harris mobilized the IFI membership participation through the successful publication of the 7th, 8th and 9th Inch Fastener Standards and 3rd Metric Fastener Standards editions. And he is noted for reorganizing the IFI to focus on key technical and divisional leadership positions. Harris retired from the IFI at the end of 2017 and recently celebrated his 75th birthday before passing in January of 2022. The Harris family has suggested that in lieu of flowers, that contributions could be made in Rob's memory to Rescue Village or the Pat Meade Memorial Scholarship fund at Compton College (Re: In honor of Robert J. Harris 1111 E. Artesia Blvd. Compton, CA 90221 Attn: Reuben James.)
Indian Local Fastener Associations Advises Members Not to Export to Russia and Ukraine Amid the Russia-Ukraine conflict, Indian fastener associations have advised their members in early March, who are exporters of various goods to both these countries, to halt the shipment of goods until the situation normalizes. Businessmen say there are chances of their payments being held up and there is high risk of their shipments not reaching the destinations.
China Fastener World no.65/2022
Rajkumar Singla, president of Fasteners’ Suppliers’ Association of Ludhiana, said, “We held a meeting of our association and discussed the problems being faced by our industry. We have also decided that our members exporting to Russia and Ukraine must halt the trade till the conflict ends. The decision was taken after analyzing the current situation, which may also hit the cargo movement.” Narinder Bhamra, president of Fasteners’ Manufacturers’ Association of India, said “The war will cost the exporters doing business with Russia and Ukraine and their neighbouring countries.” Already there are reports of payments of several exporters getting stuck with the buyers there, as they have sought more time due to the war. “Now with tension escalating, we must refrain from doing business with them. Our association too has advised our members against dispatching new orders till the situation normalizes.” According to Atul Sethi, a fastener manufacturer, “Russia and Ukraine are big markets for us and several factories from Ludhiana export their goods to these countries. But due to the war, it is not safe to do business with them and even with their neighboring countries for which Russia and Ukraine are the transit points. We are following a wait-and-watch approach.”
095
Fastener World News EC Confirms a Maximal 86.5% Anti-dumping Tax on Certain Fasteners Imported from China The European Commission (EC) has announced in its final determination an anti-dumping tax range of 22.1%-86.5% against certain steel fasteners (excluding stainless steel screws) imported from China, which are wood screws (excluding square head screws), self-tapping screws, other screws and bolts with heads (with or without nuts or washers, excluding screws and bolts for fastening rail construction materials), and washers. The determination is consistent with the predisclosed document revealed last year and has come into force since Feb/18/2022. The involved products include CN codes falling within 7318 12 90, 7318 14 91, 7318 14 99, 731815 58, 7318 15 68, 7318 15 82, 7318 15 88, ex 7318 15 95 (TARIC codes 7318 1595 19 and 7318 15 95 89), ex 7318 21 00 (TARIC codes 7318 21 00 31, 7318 21 0039, 7318 21 00 95 and 7318 21 00 98) and ex7318 22 00 (TARIC codes 7318 22 00 31, 7318 22 00 39, 7318 22 00 95 and 7318 2200 98). The involved fastener companies which have responded to the investigation are subject to a tax range of 22.1%-39.6%. Those which have not responded to the investigation are subject to an 86.5% tax rate. For detailed tax rates for the involved companies, please view the latest official journal of the EC.
Thailand Terminates Anti-dumping Tax on Low Carbon Wire Rods Originated in China Thailand launched an investigation on January 9 of 2015 on low carbon wire rods originated in China, and then imposed an antidumping tax of 12.81%-31.15% starting March 10, 2016. On March 9, 2021, Thailand launched the first sunset review investigation on China's low carbon wire rods with a diameter greater than or equal to 16 mm and less than 0.29% of carbon content. The involved product codes are: 7213.9120.000, 7213.9190.010, 7213.9190.011, 7213.9190.012, 7213.9190.013, 7213.9190.033, 7213.9190.034, 7213.9190.035, 7213.9190.090, 7213.9920.000, 7213.9990.000, 7227.9000.021, 7227.9000.022, 7227.9000.023, 7227.9000.024, 7227.9000.030, 7227.9000.031, 7227.9000.032, 7227.9000.033, 7227.9000.034, 7227.9000.035, 7227.9000.039, 7227.9000.090.
China Fastener World no.65/2022
March 11, 2022, Thailand announced the termination of antidumping tax on low carbon wire rods originated in China.
India Forgoes Chinese Wire Rod Anti-dumping Duty Extension The Indian government has decided to reject the recommendation to impose a definitive anti-dumping duty on imports of wire rod of alloy or non-alloy steel originating in or exported from China. The Directorate General of Trade Remedies (DGTR) previously recommended extending the anti-dumping measures for five further years, Kallanish notes. “In exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, read with rules 18 and 23 of the Customs Tariff (Identification, Assessment and Collection of Antidumping Duty on Dumped Articles and for Determination of Injury)
096
Rules, 1995, the Central Government, after considering the aforesaid final findings of the designated authority, has decided not to accept the aforesaid recommendations,” says India’s finance ministry. The products under consideration were bars and rods, hot-rolled, in irregularly wound coils of iron or nonalloy steel or alloy steel, commonly known as wire rod. The products are used in automotive components, welding electrodes, springs, wire mesh, fasteners, nails, railway sleepers, and binding wires. DGTR had recommended an anti-dumping rate equal to the difference between the landed value of the imports and $546/ton. If the landed value of imports was more than $546/ton, then no duties would be applicable.
Chinese Automotive Export Continued Growth in Q1 2022 Statistics from China Association of Automobile Manufacturers show Chinese automotive companies exported 582 thousand vehicles (up 58.3%) in Q1 this year. Among them were passenger cars at 452 thousand vehicles (up 61.9%) and commercial cars at 130 thousand vehicles (47.2%). The Chinese automotive export broke the monthly record this January, reaching 231 thousand vehicles and up 87.7%, 540 thousand vehicles of new energy passenger car, up 538.7%. The export reached 180 thousand vehicles this February, up 60.8%. Overall, the Chinese automotive export surged 75% over the first two months of 2022.
Fastener World News Customs statistics show China exported 676 thousand finished vehicles in Q1 2022, up 57.8%. The export value was USD 11.75, up 87.9%. The top exported category was passenger car, followed by EV, sedan and pickup truck. Compared to the same period last year, the aforementioned 4 categories continue to grow fast, including EV with a stark growth speed. However, there is a reduction in the production of automotive and component companies as a result of the pandemic. Additionally, there is limited logistics and the export shrank in April compared to March. The customs statistics show China exported 171 thousand vehicles this April, up 10.32%. Despite the pandemic, the statistics reveal that SAIC's export and overseas sales were over 171.9 thousand vehicles, up 44.9%.
(China) Jiaxing-Shaoxing Sea Bridge Adopts Digital Bolt Monitoring Technology Jiaxing-Shaoxing Sea Bridge is the first in China to use a digital monitoring technology on high-strength hinge bolts. Sixteen bolts on the bridge were selected for real-time monitoring to analyze the load bearing of 1,300 bolts for the safety of the bridge. The managing director of the bridge said, "It's very crucial for the safety of the bridge to know if these 1,300 bolts are in the safe range. We used to rely on the torque method and angle method conducted by experienced people to inspect and determine the bolts' preload. They knocked on the structure, using sound, tone, state of appearance and other factors to determine if they have to adjust the fastening of the bolts. However, this is a high-cost and low-efficiency manual check that is way below the requirements for building a bridge that will last 100 years." "A bridge in service is subject to the influence of passing vehicles and wind that causes deviation in the bolts' fastening, and could affect the safety of the bridge in worst-case scenarios." Jiaxing-Shaoxing Sea Bridge was monitored once per year in the past, and now by utilizing digital monitoring, real-time checks can be performed on the bridge to improve data accuracy.
China Fastener World no.65/2022
Every move of the monitored 16 bolts are visualized digitally to provide clear and scientific data on bolt fastening and reference to the load bearing of other bolts.
097
Fastener World News (China) Qifeng Precision Industry to be Reviewed for IPO Application Qifeng Precision Industry Sci-tech Corp. lined up for an entry into Beijing Stock Exchange since September 28, 2022. The company is slated to be reviewed by a committee for its IPO application. It mainly develops, manufactures and sells fasteners and hardware for use with railroad, aerospace, machines, automobiles and ships. The products are mostly for export to Japan, the U.S. and Germany. Its clients include Vossloh Fastening System (China), and achieved a revenue of RMB 93.88 million with a gross profit of RMB 13.37 million.
Shanghai Essence Fastening's Revenue Grew and Net Profit Dropped in 2021 Essence Fastening is dedicated to developing, manufacturing and selling high strength precision fasteners and special connecting parts for the automobile, electronics and electric appliances, and telecommunication industries. In its annual financial report for 2021, the revenue was RMB 394 million, up 14.31%, the net profit was RMB 75.86 million, down 6.66%, the gross profit margin was 34.56%, down 5.23 percentage points, and the net profit margin was 19.26%, down 4.33 percentage points. In the same financial year, the company's income from special connecting parts was RMB 166 million, up 2.09%, taking up 42.05% of the operating income. For screws and bolts, it was RMB 151 million, up 21.21%, taking up 38.32%. For plastic fasteners it was 53 million RMB, up 34.65%, taking up 13.52%. The profit margins for special connecting parts, screws and bolts, and plastic fasteners were 36.83%, 30.89% and 40.15% respectively.
Several Taiwanese Steel and Fastener Companies Have a Full Order Book into Q2 The Russia-Ukraine war caused a shortage of materials as well as a hike in both energy price and steelmakers' manufacturing cost, and therefore wire rod price in the U.S. and Europe remains high. The U.S. wire rod price is high at USD 1,578-1,589 per ton and the European price at historical USD 1,360-1,440 per ton. On top of that is the growing ripple effect of EU imposing the AD tax on certain fasteners from China, as well as the depreciated New Taiwanese Dollars, both of which continue to bring a stream of orders to Taiwanese wire rod and fastener companies.
China Fastener World no.65/2022
Taiwan CSC has raised the Q2 wire rod price by NTD 2,200 per ton. With strong demand from overseas, the downstream Taiwanese fastener companies keep placing orders to Taiwan CSC and have filled up the order book for wire rods. Taiwan CSC estimates the second-quarter order volume will near 500 thousand tons. According to OFCO, the material shortage due to the war and eastern European steelmakers' energy cost hike significantly raise production cost, which leads to further increase in redirecting orders to Asia. OFCO sees stable order book status for Q2 and orders have aggregated to the yearend. The company's monthly capacity has been raised from 2,000 tons to a max 2,500 tons, and is going to reach a monthly 3,000 tons by yearend. Yieh Hsing Enterprise stated that the lockdown in Shanghai more or less affects orders in May to June including those for carbon steel and stainless steel wire rods, but overall order taking in Q2 is going in the direction anticipated. Additionally, orders have aggregated to Q3 and even the yearend for companies including Chun Yu, Tycoons, QST International, San Shing Fastech and Brighton-Best International.
098
Postponed to 2023 The organizer of Taiwan International Fastener Show, originally scheduled to take place on April 19-21 at Kaohsiung Exhibition Center this year (2022), has announced that considering the lasting unstable Covid-19 pandemic situation and the uncertainty of border control measures and after the discussion with show executives Taiwan External Trade Development Council (TAITRA) and Taiwan Industrial Fasteners Institute (TIFI), it has determined to postpone the Show to May 03-05, 2023.
Chun Yu Revenue in 2021 Breaks NTD 10 Billion Mark Chun Yu's consolidated revenue in December 2021 reached NTD 1.059 billion, up 25.11% from the same period of 2020. The consolidated revenue of the same period in 2020 was NTD 11.811 billion, up 46.64% over the same period of 2020, breaking the NTD 10 billion mark. Increased capacity and product re-arrangement brought benefits to the company's performance. Chun Yu's revenue will hit that mark more frequently into the future. The company's three largest production facilities performed well in 2021. The full-year revenue grew 81.1% in Taiwan, 31.1% in China, and 18.8% in Indonesia. The largest growth was in Taiwan where capacity expansion has been already planned beforehand and equipment has been continually set up.
Fastener World News Ta Chen International and Brighton-Best International Break Quarterly Records in Q1 Profit Gain Ta Chen and Brighton-Best have announced their Q1 financial reports for 2022. Ta Chen hit a quarterly high at NTD 30.24 billion in Q1 and earned NTD 4.285 billion in net profit after tax, up almost 200% over the same quarter last year at NTD 1.43 billion. The same quarterly record was made with Ta Chen's EPS at NTD 2.24 over the last same quarter at NTD 0.88. Brighton-Best is a joint venture of Ta Chen and a fastener distributor in the U.S. Its Q1 net profit after tax was NTD 1.309 billion, up 121.11% over the same quarter last year at NTD 592 million. The Q1 EPS was NTD 1.27, a stark growth from NTD 0.58. Both the profit and EPS broke quarterly records. Brighton-Best's profit gain also helped Ta Chen's first quarter gain.
Policies Needed to Support Steel Industry Development According to the recent report by the Ministry of Industry and Trade of Vietnam, overreliance on input material imports, small production value and outdated technology were among the major weaknesses of Vietnam steel industry.
Referred by the ministry, Vietnam's production capacity for steel billets stood at 27 million tons in 2021, of which 7-8 million tons was hot-rolled coil. With the exceptions of only a handful of large steel mills such as the Hòa Phát-Dung Quất Iron and Steel Complex, the Hưng Nghiệp Formosa Iron and Steel Complex, and Nghi Sơn Steel, the rest of the country's steel industry was made up of small mills, equipped with outdated machinery and technology. In addition, the industry lacked the capacity to meet domestic demand, especially for alloy steel which it has not been able to produce. The only longterm solution is to ramp up investment for the construction of large-scale steel complexes to reduce reliance on imports. The ministry's conclusion was that the industry's competitive capacity is limited as its production was marred with energy inefficiency and environmental issues. "For the most part, the industry is overly dependent on imports of raw materials including ore, scrap and coking coal, resulting in unstable prices," said the report. By the ministry's estimate, Vietnam needs to import around 18 million tons of ore, 6-6.5 tons of scrap and 6.5 million tons of coking coal this year. As prices for said materials remained high, the steel price is expected to climb, hurting both domestic consumption and exports. The ministry said the development of Vietnam steel industry remained a key component in the country's industrialization effort as a large number of industries including shipbuilding, manufacturing, defense hardware, mining and energy are highly dependent on quality steel. By 2030, Vietnam's total demand for steel is projected to reach over US$310 billion, of which automobiles alone account for $120 billion, industrial construction $120 billion, railways $35 billion and subways $10 billion, among others. Despite its key role in the country's socio-economic development effort, the industry has not received adequate support, especially from a policy standpoint, due to a lack of tailored and streamlined policies to support its growth, said minister of industry and trade Nguyen Hong Diên. Diên called for stronger government support for the sustainable and stable development of the industry as well as the country's metallurgy sector with a focus on increasing production of hot-rolled coil, high-quality steel and the establishment of steel megacomplexes.
Japan's Iron and Steel Bolt Export to Russia and Ukraine Could be Affected by Production Halt of Local Japanese Carmakers On the Russia-Ukraine war, KINSAN Fastener News (Japan) wrote, the pandemic had the world come to a halt and then the war outbreak put the world in a state of uncertainty. KINSAN continued, carmakers decided to raise the price of supplied materials in February and therefore the steel price might continue to rise as it did last year. Additionally, Japan is highly dependent on overseas resources and its industry policies and production is highly subject to external factors, making itself inevitably prone to the political shockwave from the Ukraine crisis. KINSAN analyzed, Japan's total fastener import from Ukraine and Russia in 2021 was almost none according to Ministry of Finance (Japan), but the total export to Russia exceeded 4,000 tons and the export to Ukraine was under 1 ton. It means Japan's fastener export to Ukraine and Russia accounts for 1% of Japanese fasteners going to the world. Among that 1% are iron and steel bolts taking the largest portion of 3,000 tons. These exported fasteners generally go to the automotive industry, but could be affected by the production halt of local Japanese carmakers due to the war.
099
China Fastener World no.65/2022
The report was part of the ministry's proposed "Strategy for the development of Vietnam steel industry by 2030, with a vision to 2050", which called for additional governmental policies to support the steel industry.
Fastener World News Taiwan in comparison exported 15,934 tons of fasteners to Russia in 2021, which accounted for 0.99% of those going to the world, which was also 4 times more than Japan's export to Russia. Taiwan exported 1,780 tons (0.11%) of fasteners to Ukraine, far more than Japan did. In export values, Taiwan exported USD 38.24 million (0.72%) worth of fasteners to Russia and a worth of USD 4.06 million (0.07%) to Ukraine. Although Taiwan and Japan both have 1% in fastener export to Ukraine and Russia, Taiwan has far more volume than Japan does and faces a greater risk. So far many Taiwanese fastener companies have reported to TFTA that their businesses are impacted. TFTA is closely monitoring the impact of the war and has held a seminar in quick response on March 16 this year.
other task is to reduce errors by onsite personnel who collect and input machine data which also requires management by a dedicated person. Their next step is to apply IoT to threading, forming and packaging to save labor and freights, through which they can form a distribution unit in the company to maintain profit margin and tackle the challenges from the pandemic. The workforce saved from the production line can be assigned to the work with higher added values.
Acquisitions
Japanese Nitto Seiko Acquired All Shares in KM Seiko in April Japanese Yamahiro Adopts Codeveloped IoT System Yamahiro is a construction fastener manufacturer and developer headquartered in Osaka. The company decided to introduce an IoT system to improve productivity. The practical experience they shared can shed a light on the efficacy by upgrading to smart factory and the tasks to heed. At first they purchased an IoT system worth a million Japanese dollars and tried connecting it to 3 machines, but they were not able to get the specific data they wanted. They thought they have their own technical people, so they headed on to co-develop their own IoT system. They had the technical personnel collect data from machines, and had another person use the Amazon Web Services platform (a cloud-computing platform established by Amazon).
China Fastener World no.65/2022
Using IoT, the first change they observed is the ability to measure productivity. By "visualizing data", they discovered they had less than 50% of total machine utilization. Knowing why and for how long the machines had stopped, they were able to improve to 85% and increase productivity by 170%. They used to have 2 shifts till 9 pm. Now they can achieve the same level of productivity on just the 1st shift till 5 pm. Besides shortening work time, they saved electricity bills, shortened 30 minutes on taking inventory, and discovered other unforeseen problems. The second change is "data sharing". Everyone including the employees and owner with a computer can see the data and give suggestions on the spot. If the owner sees a machine not operating, he will give orders to onsite personnel right away. Therefore, they solved the bottleneck in the fastener heading process.
A professional public manufacturer of auto screw driving machines, Nitto Seiko signed an agreement with KM Seiko to acquire all shares in KM Seiko on April 1. With a revenue of JPY 3.2 billion, KM Seiko designs, manufactures and sells bolts, nuts, cold headed and cold formed parts to the automotive and construction industries in Japan and overseas. After the share transfer, KM Seiko will be a subsidiary under Nitto Seiko. Nitto Seiko signed a share transfer agreement with KM Seiko as part of the "NITTOSEIKO Mission "G" tactic, expecting to utilize respective distribution routes, product development and production to create a synergy and provide automotive and construction customers with solutions.
Head of Central Europe left Bossard in May 2022 After 29 years as a member of Bossard Group's management and 15 years of successful work as CEO Central Europe and member of the executive committee, Beat Grob left Bossard Group at his own request at the end of April 2022 to devote himself to non-executive activities in the future. The region has been directly managed by Group CEO Daniel Bossard in a dual function.
The third change is "prolonging dies life". They started with dies requiring frequent change, and were able to go from one hour a time to ten hours a time for changing the dies, saving work time.
Beat Grob joined the company in 1990 as an active family member and head of group projects. After a study visit to the USA from 1992-1995, he prepared the entry into the Asian market. He then took over as head of global logistics. In 2005 he was appointed CEO Bossard Switzerland and one year later CEO Bossard Central Europe, thus taking a seat on the executive committee. Since 2006 Bossard Central Europe has developed very nicely under Beat Grob's leadership, making a significant contribution to the Group's success.
Right now their most critical task is to cultivate analytic talents. It is very time-consuming to analyze data and therefore requires experienced people to take charge. The
The board of directors and the executive committee would like to express their sincere thanks to Beat Grob for his tireless and successful work.
100
China Fastener World no.65/2022
101
Fastener World News Russia-Ukraine Conflict Could Bring down Global Automotive Sales by 2% Wall Street Journal reports, according to S&P Global, the Russian-Ukraine war worsened the disruption of global supply chain and could make the global sales of light vehicles drop 2%. S&P Global previously predicted the automotive sales of 2022 would grow 4% to 6%. It says the war may affect the European market because Europe relies on the supply of materials, natural gas and petroleum. S&P Global states the price rise will not affect the transition to electric vehicles, and points out the possible shortage of palladium as well as a possible price increase in steel, copper, aluminum and nickel, which bring critical risks to the automotive industry this year.
Ferry Company Loses USD 3.8 Million for an Insufficiently Torqued Bolt Würth Industry North America Renews Exclusive Partnership with Fastener Training Institute as 2022 Sustaining Sponsor
China Fastener World no.65/2022
Würth Industry North America is pleased to announce the renewal of their exclusive partnership with the F astener Training Institute as their 2022 Sustaining Sponsor. This sponsorship funds existing training programs, develops new industry-leading content, and supports FTI's virtual training platform. The generous support of Würth will be acknowledged throughout the year at FTI classes, webinars, and industry events. Würth Industry North America has been the Sustaining Sponsor of the Fastener Training Institute since 2019. Embedded in their philosophy and values, Würth believes education and lifelong learning inspire visionary thinking that transforms industries. They deliver on their commitment to supporting education, certification, and professional development through their partnerships with trusted industry education organizations. "Investing in education is critical to strengthening the fastener industry and fostering innovation—it is a key element of advancing our technologies, improving the ways we serve our customers, and navigating challenging times," said Dan Hill, chief executive officer for Würth Industry North America, "We are proud to invest in the present and future of the fastener industry by partnering with Fastener Training Institute for the fourth consecutive year."
102
An engine fire inside the Washington state ferry Wenatchee was caused by an insufficiently torqued bolt, which set off a chain reaction of broken parts and overheating, said a National Transportation Safety Board report released March 15, 2022. There were no injuries during the incident, which happened on a test sailing after a series of repairs. The 13-member ferry crew for stopping the fire within two to three minutes. However, the fire caused $3.8 million in damage and kept the Wenatchee out of service for nine months. The summary report says an oiler discovered white smoke in an engine room while the ferry was cruising at full power. Another crew member near the control panels saw fire, smoke and debris flying everywhere. Afterward, engineers found a large rod and piston strewn on the steel engine-room floor. Investigations found two broken bolts and another that unfastened while the engine was running. They were supposed to be torqued to 75 foot-pounds. By magnifying the grooves, engineers confirmed the "backed off" or unfastened nut hadn't been tightened enough, which led to other parts misaligning, then a loss of lubricating oil. Hot gases spewed into the engine room and exploded. Ferry officials have added engine room cameras, and will require secondary inspections of critical engine work including bolts. The Wenatchee returned to service in late January and serves the Bainbridge IslandSeattle route.
China Fastener World no.65/2022
103
Exhibition
Vietnam Manufacturing Expo 越南河內國際工業製造技術設備展 Hanoi, Tuesday, 31 May 2022, RX Tradex, the orga n izer of Vietna m Ma nu fact ur ing Expo (10 12/08/2022) & NEPCON Vietnam (14-16/09/2022) makes the announcement of the 1st Honoring Ceremony of Business Innovation Zone 2022. The ASEAN's leading exhibition organizer kick-starts for the new chapter of Business Innovation Zone Project to empower the competitive strengths for domestic electronic businesses, especially SMEs to reach out to the international markets and participate in global supply chains via many activities such as forums, workshop, Tech-talk, Honouring Ceremony, ... under the theme “Sync up the power of human-tech-Media”, RX Tradex also announces new brand identity following RX Global standards.
China Fastener World no.65/2022
According to the report of the World Bank Vietnam, Vietnam's recovery is gaining momentum. However, there are still heightened risks of weaker global demand and supply disruptions to economic prospects. Uncertainty related to the war in Ukraine and its impacts on major commodity supply and prices is expected to weaken global growth prospects, potentially affecting demand for Vietnamese exports. Supply disruptions caused by lockdowns in China could hurt Vietnam’s exports in coming months. If higher inflation persists in the medium term, the economy should be allowed to adjust to higher prices with the authorities incentivizing investments to increase productivity and aggregate supply. To mitigate risks to exports performance, diversifying t ra de pa r t ners wou ld be a pr udent st rat egic consideration. With the impacts of the Covid-19 pandemic, the demand for trade and production recover y of domestic a nd foreign enter prises increases, along with the urgency of practical opportunities for businesses in the manufacturing, supporting industries and electronics to improve production and business capacity for reaching the global supply chains. Mr. Vu Trong Tai, General Manager, RX Tradex, representative of the Organizing Committee, shared: “The Honoring Ceremony of Business Innovation Zone is a new activity besides the annual activities of Vietnam Manufacturing Expo (VME) and NEPCON Vietnam 2022. Together with new brand identity of RX Tradex and the support, joining hands of many new partners within the framework of the Business Innovation Zone Project, we believe that, VME & NEPCON Vietnam 2022 will be a destination that brings up many effective business connection opportunities for buyers and sellers as well as support
104
to honour and spread out the unique “business innovative stories” as real business lessons for the manufacturing, supporting industries and electronics communities in Vietnam”. With the participation of exhibitors from more than 10 countries and nearly 200 brands of famous technology & machinery firms in manufacturing and electronics industries that joined in international pavilions and remote booths coming from Japan, USA, Korea, China, Taiwan, Singapore, Thailand, Germany, India, …The Vietnam Manufacturing Expo (VME) will be organized from 10-12 August 2022 and The 14th Vietnam’s Only Exhibition on SMT, Testing Technologies, Equipment and Supporting Industries for Electronics Manufacturing – NEPCON Vietnam will be from 14-16 September 2022. Both exhibitions will be held at I.C.E 91 Tran Hung Dao, Hanoi. During three days of the exhibitions, there will be many activities such as a series of customized seminars, advanced technology updates from leading brands around the world and especially the completely complimentary business consulting sessions under the Business Innovation Zone Project to support businesses, the local suppliers and SMEs in manufacturing and electronics sectors to recover during and after Covid-19. For more details, please visit: www.nepconvietnam.com or www.vmeexpo.com
About Business Innovation Zone Si nce 06/2020, t he Busi ness I n novation Zone was kicked off by RX Tradex to support both local a nd i nter national enter prises, especially SM Es i n Manufacturing, Factory Logistics and Electronics in response to the changing landscape of business after the pandemic, to overcome the challenges with information and solution in utilizing the benefits of both “online & offline” business opportunities. Accordingly, RX Tradex will partner with business leaders, consulting experts, industry professionals, government officers to organize webinar series which will offer new insights and successful guerrilla business case studies. Join the Business Innovation Zone and receive the complimentary business consulting session.
Register to join the Business Innovation Zone Project or become the Partners, Sponsors, Speaker, Media barter: https://qrco. de/bcw43K
Exhibition
The 18th International Precision Engineering, Machine Tools and Metalworking Exhibition and Conference 2022越南胡志明市國際工具機展 MTA VIETNAM 2022 IS SET TO WELCOME HUNDREDS OF INTERNATIONAL & LOCAL EXHIBITORS IN PRECISION ENGINEERING, MANUFACTURING INDUSTRY HCM Cit y – T he opp or t u n it ies for t he engi ne er i ng a nd manufacturing industry will be many in the upcoming times. According to the Vietnam Association of Mechanical Manufacturers (VAMI), demands of the mechanical industry in Vietnam aim to reach more than US$300 billion until 2030. Meanwhile, Vietnam has about 25,000 mechanical manufacturing enterprises in operation, which serve only 1/3 percent of the country's mechanical demands. Therefore, the potential for the development of Vietnam's mechanical manufacturing industry is certainly promising. Only less than month to go, MTA Vietnam, the annual precision engineering, machine tools and metalworking expo for Vietnam and region, will operate the 18th edition at SECC, Ho Chi Minh City, Vietnam from 06 – 09 July 2022. The expo is organised by Informa Markets Vietnam - the world’s leading exhibitions organisers, providing customers and partners around the globe with opportunities to engage, experience and do business through face-to-face exhibitions, specialist digital content and actionable data solutions.
China Fastener World no.65/2022
This year, MTA Vietnam sets to welcome hundreds of international and local exhibitors to showcase their cutting-edge technologies, products and innovations in the industry. There will be some international pavilions from 12 countries & regions presenting at MTA Vietnam 2022, including: China, Germany, Hong Kong, Korea, Japan, Singapore, Switzerland, Sweden, Taiwan, Thailand, United Kingdom and USA. Some well-known exhibitors, such as: Bystronic, Trumpf, Takamaz, Vạn Sự Lợi, Hwacheon, Mitsubishi, Shandong Leiming, Jinan Bodor, Hor n, Mazak, Renishaw, etc and other industry players join to network, exchange information and showcase their latest technologies and products. Mr. Tee Boon Teong, General Manager, Informa Markets Vietnam says “the return of MTA Vietnam, after two years of Covid-19 disruption, will be an opportunity to support local enterprises to connect, update the new technologies, expertises with the regional and international enterprises. We hope MTA Vietnam 2022 will attract over 10,000 attendees, including owners, key decision makers, managers, engineers, technicians, experts and bankers to network, exchange expertise and knowledge and seek business opportunities.” MTA Vietnam 2022 will introduce a wide range of engineering products for Vietnam’s manufacturing industries, from additive manufacturing/3D printing, machine tools and tooling systems, metrology and laser systems to precision engineering and semiconductor
106
Time: 09:00 am – 5:00pm from 06-09 July 2022 Venue: Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City, Vietnam Organiser: Informa Markets Vietnam
manufacturing equipment and materials and components for automated manufacturing, he also said.
Onsite Conferences & Seminars Aside from innovation showcasing at the expo, there are some full and half date of symposia, conferences and seminars, where the industry experts and enterprises share their bestpractices and know-how. The Conference and Workshop with the theme “3D Metal Printing: From potential to application reality for professional manufacturing in Vietnam” will be taking place in the event on 9 July 2022, providing insightful knowledge about Vietnam’s 3D metal printing market and its application to reduce cost, increase productivity and profits. Other interesting topics are also presented during the 4-day expo to support enterprises in manufacturing industry to have an overview about the industry and its opportunities and challenges, as well as casestudies on how to efficiently manage manufacturing operations.
Co-located expo - Plastics & Rubber Vietnam 2022 Uniquely, MTA Vietnam 2022 will be co-located with the 9th International Plastics & Rubber Technologies and Materials exhibition for Vietnam (Plastics & Rubber Vietnam 2022) from 6 - 8 July 2022. The expo will demonstrate a comprehensive range of global technologies and equipment, plastics and rubber products, including semi-finished products to technical parts, production materials and services catered for the revitalised corelated plastics and rubber industries in Vietnam and the region.
Register your visit! The online registration system is now opened to welcome all attendees to visit the show. Scan the QR code!
About Informa Markets Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. Our portfolio is comprised of more than 550 international B2B events and brands in markets including Healthcare & Pharmaceuticals, Infrastructure, Construction & Real Estate, Fashion & Apparel, Hospitality, Food & Beverage, and Health & Nutrition, among others. We provide customers and partners around the globe with opportunities to engage, experience and do business through face-to-face exhibitions, specialist digital content and actionable data solutions. As the world’s leading exhibitions organiser, we bring a diverse range of specialist markets to life, unlocking opportunities and helping them to thrive 365 days of the year. For more information, please visit www.informamarkets.com.
Technology
Questions on
Fastener Heat Treating by Laurence Claus
扣件博士: 扣件熱處理 Heat treating fasteners is a complicated topic with many details to keep track of. The following are some questions and answers that should shed some light on basic concepts.
Q Why do You Heat Treat Fasteners?
A:
1 Fasteners are heated for a sufficiently long time to fully reach the critical, Austenitizing temperature (this is the temperature where the steel will realign itself into the Face-Centered Cubic (FCC) crystalline structure of steel known as Austenite).
There are a number of reasons that one might choose to heat treat a fastener. We can, however, break the reasons into three main categories; 1. To make the part stronger, 2. To make the surface harder and stronger, and 3. To improve workability and/or refine the microstructure. Processes such as Quench and Tempering and Austempering fit the first category, Case Hardening the second category, and Process Annealing the third category.
2 When fully transformed to 100% Austenite the parts are quenched in a substance that will rapidly lower their temperature. The act of quenching forces a nonequilibrium transition from the FCC Austenite to the Body-Centered Tetragonal structure known as Martensite. Martensite is very hard and strong, but also, unfortunately, very brittle.
Q Are All Fasteners Heat Treated the Same Way?
China Fastener World no.65/2022
A:
No. The heat treating mechanisms of different materials are often distinct and unique. Take for example a heat treatable 7075 aluminum bolt, the mechanism that drives strengthening is completely different than the mechanism that will strengthen a 4140 alloy steel fastener. Also, fasteners that utilize similar material may be heat treated differently depending on the desired outcome. For example, a steel thread forming screw is very likely to be Case Hardened while a steel bolt is Quench and Tempered. In this case, although the heat treating mechanism may be similar, the process is very different.
Q What is Quench and Tempering?
A: 108
Quench and Tempering is likely the most utilized heat treating process for steel fasteners and the one used for most medium (Property Class 8.8 and Grade 5) and high (Property Class 10.9, 12.9 and Grade 8) strength fasteners. Sometimes this process is referred to as Through Hardening or Neutral Hardening. The process occurs in three basic, but equally important steps:
3. Immediately after quenching the parts are too brittle to be put into service. To fix this problem, the third step is to reheat the parts to a temperature a little below the critical Austenite transition temperature (we do not want the steel to transition back to Austenite) and hold there for a time. This has the effect of relaxing the stresses in the crystal lattice caused by the shock of quenching and making the parts less brittle.
Q Explain the Importance of Tempering?
A:
When steel parts are quenched the FCC Austenite crystal is rearranged to form the Body Centered Tetragonal (BCT) Martensite crystal. When this happens the new crystal lattice is highly strained resulting in steel that is much harder and stronger than it was prior to heat treating, but also much more brittle. In fact, it is too brittle to release a fastener into service in this condition. If we were to do so, it is likely that the parts would break easily when
Technology exposed to certain types of service loads. So, we have to fix this. We do that by tempering. We re-introduce the parts to a furnace that is set at a temperature below the critical Austenite Transition temperature for a specified length of time. The result is that the parts become less brittle but also lose some of their hardness. The proper tempering temperature and time are two important parameters that the heat treater must control. If the tempering temperature is not high enough or parts are not allowed to soak at that temperature long enough, the parts will emerge insufficiently tempered, meaning they will still be somewhat brittle.
Q Why do Some People Call it
A:
Q Why do Some People Call It Through Hardening?
A:
Neutral Hardening?
It is called “Through Hardening” because the end result of the process is a part that is effectively the same hardness through the entire cross section. Of course, there may be a slight variation from one location to another, but it is controlled by specification to a maximum of only a couple of hardness points.
When steel is heated to high temperatures (for example the Austenitizing Temperature), the atoms are excited and subject to move about. This means that they are more likely to react to surrounding substances when an in-balance between the surrounding atmosphere and the parts exist. Therefore, when parts are in the Austenitizing furnace and have been raised to this high temperature level, they must be protected from these substances that will start deleterious chemical reactions. The heat treater does this by negatively pressurizing the furnace (i.e. preventing atmospheric air from seeping into the furnace openings) and surrounding the parts with a neutral atmosphere that will not react with the parts. This is why the process is sometimes called “Neutral Hardening”.
Q What Causes Quench Cracking?
A:
Quench cracking is the result of a complicated series of events revolving around the quenching process. In essence, when steel transforms from Austenite to Martensite there is a volume expansion as the atoms rearrange themselves into the new crystal lattice. When large diameter parts (or parts with areas of large cross section) are quenched, the outside transforms first followed by the inside (or core). When the expanding core interacts with the already expanded and now hard and strong outer shell, it creates residual stress. If the generated residual stress exceeds the local tensile strength a crack can form which quickly propagates throughout the part. Parts made of Alloy Steel are generally much more prone to quench cracking than parts made of Plain Carbon Steel.
Q What is Austempering?
China Fastener World no.65/2022
A:
110
Quench and tempering results in the formation of Martensite, a strong and hard structure of steel. Another steel structure that is hard and strong is Bainite. Like Martensite, Bainite will not naturally occur, and requires a special process to produce it. This process is known as Austempering. In many ways Austempering is similar to Quench and Tempering, but with two very distinct differences. Austempering starts out like Q&T by soaking parts at Austenitizing temperatures long enough for the structure to fully transform to Austenite. Like Q&T parts are then quenched. Along the way, however, is where the two processes diverge. Instead of cooling the parts nearly all the way to room temperature the quench is arrested at about 300°-350°C and held there for a sufficient length of time for the parts to transform to Bainite. This special quenching process is accomplished by quenching in a molten (liquid) salt, substances that remain liquid at very narrow temperature bands, thus allowing this isothermal cooling process to be feasible. The second significant difference between Austempering and Q&T is that unlike Martensite, Bainite does not require tempering. The process is complete when full transformation has occurred.
Q What is Induction
Hardening and How is It Utilized on Fasteners?
A:
Induction Hardening is the only process that can be applied selectively. Instead of heating the entire part, only the area of interest is rapidly heated above the Austenitizing temperature using an induction heating coil. The parts are then quenched, selectively hardening just the heated area. This is a common heat treating practice on the tips of certain thread rolling screws and for products like bi-metallic drill screws.
Technology Q What is Decarburization?
A:
The answer to the question above describes how the heat treater surrounds the parts with a neutral atmosphere. The element that the heat treater has to worry about is Carbon. If the furnace either lets unwanted substances into the furnace, which trigger the unwanted reactions that strip Carbon from the part or the atmosphere has a lower concentration of Carbon than the parts, then the parts are subject to losing Carbon. The longer parts are exposed or the greater the imbalance, the more Carbon that will be extracted from the part. This phenomenon is known as Decarburization and is always unwanted. If the surface of a part has experienced significant Decarburization it will lack the necessary Carbon to strengthen when quenched. This can lead to problems like soft threads that collapse when applied or a surface that is more vulnerable to fatigue crack initiation. Of course, Carbon can flow in the opposite direction as well. If the atmosphere has more Carbon in it than the parts, Carbon will move into the parts rather than out of it. This is known as Carburization. Although Carburization is not desired in a Neutral Hardening situation, there are many applications, where the desired end result is for a hardened surface, so that Carburization is desired.
Q Is There an Advantage to Austempering?
A:
Austempering is not possible for all materials or in all instances. However, it is particularly advantageous for parts that are prone to distortion. It is favored, for example, by manufacturers of spring steel clips because it results in less distortion than Q&T.
Q How are Parts Surface Hardened?
Q Is There a Difference
Between Stress Relieving and Annealing?
China Fastener World no.65/2022
A:
Yes. Stress Relieving processes par ts at temperatures below the critical Austenitizing Temperature. As such, the effect is to relieve residual stress left by the forming process. Annealing takes parts above the Austenitizing Temperature and, depending on the process employed, results in a homogenous, soft and workable Pearlitic structure.
Q What is Untempered Martensite?
A: 112
Remember that after quenching Martensite is very brittle. If the heat treating process is not conducted properly there may be several ways that a part can contain untempered Martensite. This is never good and parts with untempered Martensite present are vulnerable to failure.
A:
There are three main methods of surface hardening; 1. Carburizing, 2. Nitriding, and 3. Carbonitriding. Although any of these three processes could be utilized for fasteners, most fasteners are Carbonitrided. An earlier question and answer described Carburizing. By review, this is the process of driving Carbon into the part. The longer a part remains in the furnace under carburizing conditions, the deeper the Carbon will extend into the part and the deeper and harder the resulting “case” will be. Because it takes a long time to generate a deep case by Carburizing, this process would almost certainly have to occur in a batch furnace, which is slow and rarely used for a bulk product like fasteners. In Nitriding the heat treater diffuses Nitrogen into the surface. The process results in this Nitrogen addition forming nitrides on the surface which are hard and strong. Once again, this is a slow, diffusion process that requires a batch furnace and would rarely be employed with fasteners. Surface hardening of fasteners is almost entirely accomplished by Carbonitriding or what is more informally known as Case Hardening. The heat treater will inject dissociated Ammonia into a Carbon enriched atmosphere in the Austenitizing furnace. The result is an atmosphere that is rich in both Carbon and Nitrogen. Together these elements are absorbed and work together to form a case more quickly than using just Carbon or Nitrogen alone. However, because fasteners are processed in bulk using the furnace equipment to move parts, and there are limitations based on speed and furnace length, case hardening is possible, but the depth of the case cannot be developed as deeply as can be developed by Carburizing or Nitriding parts in a Batch Furnace for extended periods of time.