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Company Focus
FAST DRILLING! TURBO DRILL VG Coating -High Corrosion Resistance 2,000~5,000 hrs & 20~50 cycles Minimal Hydrogen Embrittlement
12-30mm Metal Plate Patent#: M588179
024FastenerFastener World no.190/2021 000 World no.190/2021
Company Focus
New Product Added Successfully Developed the
“Turbo Drill Screw”
by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
Successfully tapping into the high-end supply chains in Europe and the U.S. with quick drilling screws, drilling screws, selftapping screws, and wood screws, Bi-Mirth Corp. has dedicated itself for years to the OEM production and R&D of various screws to meet customers’ urgent demands for high-quality, effective, and durable products. With relentless hard working of its professional R&D team, Bi-Mirth has once again successfully developed the new “Turbo Drill Screw” made of carbon steel, which can help achieve excellent fastening on thick steel plates.
Patented Structural Design; Applicable to Thick Steel Plates The main reason that this Turbo Drill Screw can help achieve excellent fastening on thick steel plates is the combination of two advantageous structural designs from drilling point and twisted thread. One advantage is the integration of a thinner drilling point to allow users accomplish a more efficient working performance. Another advantage is the integration of the twisted thread, which can help to overcome the high difficulty in drilling through a thick steel plate, to achieve an outstanding metal filings removal. Bi-Mirth President Thomas Shih said, “Our R&D team spent almost 2 years developing this product and improving the die design to the almost perfect status. It would be absolutely no problem if a user takes this Turbo Drill Screw to fasten a thick steel plate in the thickness of 12mm to 30mm!”
Exceptional Results in Salt Spray and Kersternich Testing; Products are Not Susceptible to Hydrogen Embrittlement In addition to great corrosion-resistant VG Coating, this Turbo Drill Screw can also pass 2,000-5,000 hours of salt spray and 20-50 cycles of Kesternich testing. President Shih added, “We have world-leading technology to treat products well in terms of salt spray and Kersternich, and have maintained long-term collaboration with a well-known university in the segment of electroplating and heat treating. We even have our own electroplating and heat treating lines, so our products are almost not susceptible to hydrogen embrittlement.”
Certified and Patented in the EU and Taiwan Bi-Mirth has all of its manufacturing lines compliant with CE, ISO, and ETA requirements and has introduced into its plants the state-of-the-art facilities from Germany as well as more than 100 sets of screw heading, drilling, thread rolling, thread cutting, and forming machines to respond to global customers’ demands. President Shih said, “Thus far, this Turbo Drill Screw has been certified and patented in the EU and Taiwan, and several domestic and overseas customers have also demonstrated their high interest in purchasing this product. In the future we also plan to develop the Turbo Drill Screw in diameters of 8mm (5/16”) and 10mm (3/8”) to respond to more customers’ demands for outdoor engineered fastening products.”
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Contact: Bi-Mirth Sales Dept.
Email: sales@bimirth.com.tw
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TECHNOLOGY, PRECISION, RESISTANCE.
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Ambrovit S.p.A. Italy
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Tel +39 (0) 382 810280 WWW.AMBROVIT.COM Fastener World no.190/2021
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Certificate of Registration This certifies that the Quality Management System of
Q-Nuts Industrial Corp.
T
No. 193-1, Lane 315, Sec. 1, Erren Road, Rende District, Tainan, Taiwan
DR AF
has been assessed by NSF-ISR and found to be in conformance to the following standard(s):
ISO 9001:2015 Scope of Registration:
Manufacture of nuts and metal parts. Certificate Number: Certificate Issue Date: Registration Date: Expiration Date *:
1835-IS1 06-NOV-2017 01-NOV-2017 31-OCT-2020
Carl Blazik, Director, Technical Operations & Business Units, NSF-ISR, Ltd.
Certificate of Registration This certifies that the Quality Management System of
Q-Nuts Industrial Corp.
T
No. 193-1, Lane 315, Sec. 1, Erren Road, Rende District, Tainan, Taiwan
AF
has been assessed by NSF-ISR and found to be in conformance to the following standard(s):
IATF 16949:2016 Scope of Registration:
DR
Manufacture of nuts and metal parts.
Exclusions: Product design.
IATF Certificate Number: 0277634 Certificate Number: 1835-TS10 Certificate Issue Date: 06-NOV-2017 Registration Date: 01-NOV-2017 Expiration Date *: 31-OCT-2020
Carl Blazik, Director, Technical Operations & Business Units, NSF-ISR, Ltd.
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Company Focus
Tapping into Global Prepacked Fasteners Supply Chains
Kan Good Has What It Takes to “Keep Goods Covered”
by Gang Hao Chang, Vice Editor-in-Chief of Fastener World There are countless prepacked fasteners & par ts suppliers on the market, but only a few of them have what it takes to tap into the supply chains controlled by worldly known hardware and parts brands. Kan Good Enterprise Co., Ltd., established 14 years ago, is also among the few excellent suppliers. Inheriting the superior manufacturing technique and fastidiousness about customer service from its affiliated company, Zenith Good Enterprise Co., Ltd., Kan Good was founded in 2007 as a business specialized in offering OEM and ODM service for prepacked fasteners in order to satisfy the growing market demand.
Capabilities for Standard and Customized Parts; All Customers Can Find Their Own Suitable Products Compared to other companies in the same trade, Kan Good offers a more diverse range of prepacked fasteners. Its average monthly output reaches around 5-7 million packs and the volume of materials used per month approximates to 100 tons. Most of its products are sold to America (40%), Asia (35%), and Europe (20%) and are applied to houseware, assembled furniture, 3C electronics, sanitary ware, and many other DIY-related industries. Several worldly known brands and trademarks also maintain close and longterm collaboration with Kan Good. In the past, Kan Good once developed a new manufacturing process to support a customer’s R&D of machined products, which later helped the customer reduce the cost and increase the capacity and made the customer treat Kan Good with increased respect. Many companies in collaboration with Kan Good said, “Kan Good has quite excellent capabilities for customized service according to each customer’s demand and required specifications.” It can not only provide standard prepacked fasteners in specifications of 4cm X 4cm to 18cm X 10cm, but can also provide different combinations of at least 1-8 categories in each pack as per customer’s request, user manuals, and various packing materials such as PE, OPP, CPP, etc. In addition, if requested, it can also provide customers with value-added service like printing of company logos, trademarks, brand colors, bar/QR codes, etc. Such an all-inclusive service allows customers to have their own demands immediately satisfied by reaching out to only
one contact approach.
Using Facilities Only from Leading Brands; Stable Yield Rate Control Valuing product quality and perfect service a lot, Kan Good has its manufacturing procedure fully compliant with the ISO quality management system and further expanded its factory to Alian Dist. (Kaohsiung) in 2020. More than a hundred sets of multistroke forming machines, progressive-die stamping machines, heading machines, thread rolling machines, thread tapping machines, automatic fastener mixing & packaging machines, and optical sorting machines manufactured by Chun Zu, Chien Tsai and other leading machine manufacturers arrayed in the factory fully demonstrate Kan Good‘s dedication to keeping its manufacturing procedure management above the level at all times. All pre-packed products are required to undergo precision inspection before they are allowed to be shipped out of the factory, so Kan Good can always keep the defective rate within 200ppm. Kan Good noted, “Stable quality, favorable prices, punctual lead time, superior R&D ability, and overseas operations are all our advantages. In the face of the upcoming era of high goods prices and wages, the market demand for do-it-yourself products would definitely increase. As a result, we’ll continue to expand our service in this field and extend our reach to more markets based on the idea of sustainable operation.”msa.hinet.net
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Contact: Ms. Karry Wu, Vice General Manager Email: zenith.good@msa.hinet.net
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Interview with Industry Celebrity
Vic e Edito
b y G a ng H a o Ch a ng r- in -Chie f , of Fa ste ne r World
General Manager Hector Chu (left) and Executive Vice General Manager Johnson Chang (right)
Anchor Fasteners
G.M. Hector Chu:
Client Relationship is a Cornerstone for Enterprises and Being Relied on by Clients is the Best Marketing Different from other Taiwanese fastener suppliers starting their business from OEM production for standard parts, Anchor Fasteners Industrial Co., Ltd. has chosen for itself a different way since its inception. In early years when many leading manufacturers did not attach too much importance to special parts manufacturing, Anchor Fasteners with its forward-looking vision had already taken the lead to set foot on the niche market. Over the past 35 years, it has gradually become one of the leading fastener companies in Taiwan and its excellent product quality and client service have also rapidly earned itself positive recognition on the global stage. Anchor Fasteners specializes in production of anchors, rivet nuts, automotive parts, and speed riveting parts. Guided by President Anchor T. H. Chang, who values service, dedication, innovation, and efficiency very much, Anchor Fasteners has grown into a group with many affiliates, including Alliance Global Technology Co., Ltd. (manufacturing dental implants), AnMag Technology Co., Ltd. (manufacturing Mg alloy bike parts and medical parts), Ningbo Anker Special Fasteners Ind., Ltd. (providing one-stop anchor manufacturing service) and Anchor Fasteners (Vietnam) Co., Ltd. (supplying motorbike parts to Yamaha, Honda and many other Japanese motorbike brands). Through the deployment of operations in Taiwan, China, and Vietnam as well as their regional advantages, the entire Anchor Fasteners Group can offer more comprehensive service to satisfy the ever-changing demand of the global market.
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Industry-leading Ways of Doing Business and Valuing Client Relationship Management “The reasons that Anchor Fasteners could grow to the current scale are mostly attributed to the proactive leading strategy of President Chang, its team’s way of doing their jobs, and its dedication to client relationship management,” said General Manager Hector Chu. Chu added, “I’ve flied with President Chang for times to exhibit at many international trade shows ever since I started my career in Anchor Fasteners 32 years ago. During the period when lots of enterprises were still flipping yellow pages to look for target clients, Anchor Fasteners already started trying a new way of client development to meet overseas clients (buyers) face to face. Such straight ways of listening to clients’ demands and offering clients the immediate communication approach have helped Anchor Fasteners get more exposure and opportunities to win orders. I’ve also learned a lot of knowledge of doing business and techniques of interacting with various types of clients from President Chang and have them fulfilled in our sales management and staff training. In addition, as President Chang is very good at technical R&D, our technical staff are also benefited to grow their own technical R&D capabilities and continue to develop new products admired by the market.”
Interview with Industry Celebrity Due to the exclusive focus on client relationship management, Anchor Fasteners has successfully sold its products to the whole world and has had more than 70% of its products sold to Europe and the U.S. Last year, Anchor Fasteners in Taiwan and its independently operating affiliates altogether contributed the revenue of NT$2.5 bn.
Making Good Friends with Clients is the Key Chu noted, “Due to the pandemic over the past year, most enterprises could only communicate with their clients in digital ways, not to mention the fact that the rocketing shipping costs, surging material costs, and exchange rate fluctuations also made clients haggle over every cent spent on purchasing, which further reveals the importance of good client relationship. As a result, making clients feel the irreplaceability of an enterprise and situations of both sides fully realized are very critical, because clients may have more than one choice and you may be just one of them. If clients consider you a comrade they can trust and share weal and woe with, the establishment of long-term collaboration and partnership will be possible. Making clients rely on us is the best marketing and is also the direction we’ll spare no effort to work on.” Chu said humorously, “In the past when we visited our clients, we did not talk about business most of the time, even the contracts were left unsigned until the last few minutes!” All these words fully demonstrate the expectation of Anchor Fasteners to establish a true partnership with its clients rather than just establish business collaboration.
Improving Technology to Create Value for Clients Anchor Fasteners has a wealth of experience in OEM production for many well-known manufacturers, so it has accumulated a wide knowledge of manufacturing technology and process management. In recent years, it has also begun to extend its service to ODM production and many of its ETA approved anchors are the best proof of its strengths. Speaking of upgrade and transformation, Anchor Fasteners did invest a lot in product development and the training of its R&D engineers, which is why it always has strong capabilities in mold design and assisting clients in product development and has won many awards like National Industrial Innovation Award, Taiwan SMEs Innovation Award, Rising Star Award, etc. Recently, it has been also dedicated to the development of heavy-duty and high-unit-priced riveting fasteners, in order to provide high buildings, bridges and other constructions with better fastening solutions. Chu said, “The corporate culture of Anchor Fasteners is to make every impossible become possible. We introduced Total Production Management (TPM) very early and cultivate leaders who can solve problems through staff training, as staff in the front line are usually those who can find the actual problems. We hope our staff can focus on solving problems rather than evade them. To Anchor Fasteners, solving problems must rely on staff in the front line to find out problems, as they always have the best solutions to handle them perfectly.”
Foresee the Trend and Be Well-Prepared to Take on Challenges An enterprise must have insight into the market development, select a clear position, and have perfect strategic plans before it can go further, which is also a principle Anchor Fasteners has been continuously following in business running. Chu said, “An enterprise will be soon eliminated if it cannot adapt to market trends. A business runner must also see the trends and get prepared early before he can consolidate his own presence.”
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Chu also added that considering the nearly insufficient space of the current plant available for further expansion and the expectation of more product categories to be added into the current portfolio, Anchor Fasteners has been working on its plant expansion. So far, it has purchased a new plant at Benjhou Industrial Park, which is being refurbished now and expected to be completed in 1-2 years. After it is completed, some of its capacity will be relocated to the new plant and the deployment of its capacity can be expected to become more efficient.
In addition to maintaining good client relationship and improving technology, Anchor Fasteners has been also active in fulfilling its social responsibility, reinforcing occupational safety and hygiene management, looking after employees and participating in charitable activities, in order to build up a more solid and stable base for its business development. Chu noted, “A well-established base and good leadership and management are the key to sustainability of an enterprise. In the future, we hope that Anchor Fasteners will continuously be the irreplaceable superior brand and the most trustable collaborative partner in clients’ minds.”
Anchor Fasteners’ ad at page 284 Contact: General Manager Hector Chu
Email: hector@anchorfast.com.tw
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Company Focus
Master United Corp.
Relocates to New Office Mainly supplying U.S., Canadian, and European markets with construction, furniture, and DIY fasteners, Master United Corp. officially inaugurated its new office located in Neihu Dist. of Taipei City this year to meet the demand for a larger work space, the company’s long-term development strategy, and readjustment of the internal organizational structure. With a spacious maisonette to accommodate nearly 40 employees, complete software & hardware arrangement, synergy of finance/sales/purchasing divisions, and complementary collaboration with the operations in Shanghai, Zhejiang, and Ho Chi Minh City, Master United is expected to continuously maintain the leadership in its customer service and supply of various products. “Providing customers with better service has been always what the team of Master United is making every effort to achieve and the inauguration of our new office is the best proof that we are doing whatever it takes to realize our commitment to customers. Our new office will be an essential role in integrating the entire group and optimizing relevant labor & resource utilization. In addition, we’ll also arrange a sample showroom for customers visiting us in the future to understand more about the products and service we can provide,” says Master United.
New Holding Company Established to Coordinate Operation of All Affiliates The operations of Master United located in Taiwan, Vietnam, and China used to operate and process order intake under their own respective management (e.g., Taiwan is responsible for OEM orders for specialty screws, auto parts, and others with stricter quality requirements, while Vietnam mainly handles those from customers in N. America or Europe, where fasteners are not subject to AD tariffs). The average delivery per month of the Vietnam operation
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by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
Integrated Domestic & Overseas Operations Offering Customers More Desired Service is around 600-700 tons and that of its China operation (incl. associate factories) totals around 1,000 tons. As for the Taiwan operation, it mainly collaborates with suppliers, so there is no limit on its capacity. Through the establishment of a new holding company as well as the creation of a new company logo this year, the sales management and order processing in all operations can be fully integrated at a time. On the one hand, the efficiency of respective operations can be maximized through the integrated strategic management, on the other hand, more optimized customer experience can be also provided according to various customers’ purchasing bahaviors by integrating respective talents of Master United’s 2nd generation for management, sales, and marketing.
Consolidating Existing Customers’ Orders as a Top Priority; Cultivating Strengths to Develop New Customers According to Master United, “The global market demand this year is going crazy, not to mention that some companies have had their capacity fully booked through the beginning of next year (some even have seen orders through the middle of next year). Stable supply to the DIY market, the vibrant development of sales-boosting online ordering platforms, and months of city lockdowns in the west resulting in surging demand for home improvement DIY products have also benefited Master United with a lot of orders. However, this also means that the whole team must make more of an effort to deal with every customer’s order, in order to maintain collaboration with existing customers under the current condition of longer lead time. If the supply chain gets more stable and we’ve got more time to develop new customers, we may even consider different marketing methods (such as promoting sales of certain products on catalogues in different quarters) to accelerate the corporate growth, which will also allow us to stand firm and continuously march forward in the fastener industry full of challenges.”
Email: info@muc.com.tw
Company Focus
Thousands of Hardware Available for Supply
CHANG BING Collaborates with Customers to Create Business Opportunities
by Gang Hao Chang, Vice Editor-in-Chief of Fastener World Dedicated to household, construction, and DIY hardware industries for many years, Chang Bing Enterprise Co., Ltd. is specialized in production of OEM and customized hardware made from carbon steel, stainless steel, brass, plastics, and zinc alloy. With its strong R&D ability and first-rate processing technology, it continues to extend its marketing footprints to Europe, America, Australia, Japan, and many other advanced markets. In particular, when its 2nd generation joined the company in 2009, sales of Chang Bing have been also turned to a new chapter with a brighter future. Initiating its business as a hook manufacturer, Chang Bing mainly manufactures cup hooks, screw eyes, O.C.L. screws, clothes hanger hook, hanger bolt, scaffold eye bolt, gate hook and eye for wooden constructions; household S hooks, photo frame hardware, hardwall picture hook, curtain wire hook and eye, picture pins, zinc alloy wardrobe & towel rail fixture, robe hooks, door & window hardware; eye bolts, U bolts, J bolts, camping nail, plastic anchors, and many other fastening parts, stamping parts, hand tool, which are all essential tools for it to develop the global market. Complying with the ISO 9001:2015 quality management system and introducing the new Swiss-type CNC lathe & mill technology, Chang Bing continues to expand its product portfolio, improve product precision, reinforce the R&D of dies, and simultaneously integrate inplant automated/semi-automated production lines (incl. quality control and packaging), in order to achieve excellent yield, precision, and lead time. Thus far, it has successfully developed over 100 series and more than 1,000 sizes compliant with European, U.S., and Japanese standards, and has even extended to the development of industrial parts, automotive/motorbike parts, bike parts, sports utilities parts, and medical parts, which are approved by customer’s production part approval process III. Its ability to accept mass production or lowvolume-and-diverse-categories orders and offer customized packaging service not only creates lots of expectable possibilities for collaborative customers, but also reveals Chang Bing’s critical “flexibility” advantage to continuously stand out in such a fierce market competition. With 4 decades of experience, Chang Bing does not only satisfy customers’ demands for hardware, but also take on a commitment to customers to create business opportunities and sustainable growth together. Inside the company, Chang Bing adopts strict norms to ensure accurate product quality and production line control. Outside the company, it attaches much importance to long-term collaboration with customers and is always working actively with customers in order to create higher market share and value competitiveness of products. Many customers once collaborated with Chang Bing said, “Not only the performance of Chang Bing’s team always exceeds customers’ expectation, but also its leading service deserves appreciation throughout the industry.”
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Contact: Ms. Lin Email: changbing@hangers.com.tw
Fastener World
Industry Update
News compiled by Fastener World
Update of EU’s AD Investigation Against Chinese Iron or Steel Fasteners On July 20th, 2021, the EU Commission has made a pre-disclosure announcement in regard to the Case AD676, which is an anti-dumping proceeding concerning imports of certain iron or steel fasteners originating in the People’s Republic of China. Pursuant to Article 29a (2) of the basic Regulation, the Commission informs interested parties that it is intended not to impose provisional measures and the investigation will be continued. The definitive measure of the investigation is expected to be announced on February 22, 2022.
Q4 Steel Prices May Climb Due to Insufficient and Tightened Steel Supply After Taiwan’s China Steel Corp. (Taiwan CSC) adjusted the Q3 prices of its steel products by 4.1% on average, many industry analysts forecast that its Q4 prices may continue to follow the growing trend in the international market. Such a forecast is based on the reasons like: Russia announced a 3-month long and more than 15% provisional export taxes on metals including steel, aluminum, nickel, and copper; Chinese Government imposed certain measures to restrict exports of steel products; the reduction in steel manufacturing of Indian steel plants will continue through this September; many major steel plants in China, S. Korea, and Asia have announced plans for annual repairs or a temporary halt of production. All of these factors will surely lead to a more tightened steel supply in the global market already suffering insufficient steel supply. Considering the continuously growing market demand and in order to reduce the possible impacts on the supply to downstream manufacturers, Taiwan CSC has announced to postpone its annual repairs schedule to April 2022 (though small-scale annual repairs will still be carried out).
Companies Development Aluminum Alloy Supplier Ting Sin's Revenue Sets a Record High in June The aluminum alloy wire rods manufactured by Ting Sin are the materials for EV and aerospace fasteners. The company reports its June revenue at NTD 280 million, up 121.84% from the same month last year and up 104.35% from May. The revenue for the first 6 months this year is NTD 959 million, up 36.55% from the same period last year. Ting Sin said that end users' demand grow significantly as the COVID-sticken U.S. and Europe are opening up. The company now has a full orderbook for aluminum alloy products and is looking to mass-produce high-value-added aluminum alloy wire rods in the second half of 2021. Ting Sin said the furnaces in its second plant have been in operation starting from the second quarter. The company is still manufacturing at full capacity, and the orders have been fully arranged through Q1 2022. In light of China's restriction on production and Russia's restriction on export, the international aluminum price is expected to continue to rise. The company will begin to manufacture high-value-added aluminum alloy wire rods in Q3 which will contribute to its revenue.
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Fastener World News OFCO's June Revenue up 327% with Optimism for H2 2021 Taiwan's OFCO reports its consolidated revenue in June at NTD 362 million, up 327% from the same month last year. The consolidated revenue for the first 6 months of 2021 is NTD 1.7 billion, up 283.09% from the same period last year. OFCO said, due to the fact that Chinese steel fasteners are recently subject to import registration in the EU, the EU'S AD investigation against Chinese fasteners, short supply and surging demand in the global steel market, and steel prices being pushed to new heights, OFCO is now seeing a strong growth in order acceptance. To cope with increased orders, OFCO has ordered 11 sets of fastener forming machines and 11 sets of threading machines from Chun Zu, which is expected to increase its monthly capacity by 10%-15%. According to OFCO president, OFCO's main fastener business is expected to continuously perform quite well in the second half of this year.
PennEngineering® Announces Opening of San Jose, CA Office
Located in the PacTr ust Business Center at 780 Montague Expressway, the office expands the company’s presence in the Bay Area and provides their growing local customer base with greater access to direct local resources, including engineering support and product testing. “As a result of the continuing growth in the industries we serve, many with global headquarters in Silicon Valley, it was important for us to establish a permanent local presence here that allows us to easily collaborate directly with our customers and offer the critical services and capabilities they’re looking for in a fastening solutions partner,” shared Greg Swafford, Vice President of Sales (Americas) for PennEngineering®. I n addition to cor porate space, t he Sa n Jose location features a testing lab dedicated to engineering support and comprehensive testing services for the PennEngineering ® portfolio of fastening solutions, including brands such as PEM®, PROFIL®, ATLAS® and SI®. “Our new location not only provides our customers with valuable local engineering support but also gives them flexibility to test products with our team here in the lab. We can assess insertion capabilities for most of our standard products and also conduct a wide range of other testing services to determine the safety, compliance, and application suitability of their parts,” said Travis Moore, Western Regional Manager for PennEngineering®.
Appointment of a New Managing Director in TR VIC Stefano Pisoni has joined international fastener specialist TR VIC spa, part of the Trifast plc group of companies, as the new Managing Director. An inspirational leader with a proven track record in several industry sectors, Stefano has many years of experience working in senior management roles for a number of influential corporations, including Italian automotive giants Magneti Marelli spa and Pirelli Steelcord. His previous roles and his in-depth knowledge of international business markets combine to make him a natural choice to lead TR VIC into the future. His appointment underlines TR’s on-going commitment to expand its European operations, especially in the wake of continuing demand increases across the region. TR VIC is a hugely important part of the company’s infrastructure, and the arrival of Stefano will dovetail with a major focus on increasing capacity to reflect growth in vital markets. The Italian operation has recently passed an important 4-day audit as part of its IATF 16949 assessment. Andrew Nuttall, European Managing Director at TR Fastenings says: “During his career, Stefano has displayed a strong focus on innovation, product development and opportunities to increase market share, and we look forward to heralding a new era for TR VIC both regionally and within the global operation.”
Acquisitions TFC Acquires GLR Fasteners Inc. Triangle Fastener Corporation (TFC) is excited to announce the acquisition of GLR Fasteners Inc., located in San Jose, California. GLR is a distributor of fasteners used in roofing and glazing applications and has serviced the San Francisco Bay area since 1977. This acquisition expands its coverage in the Bay Area by providing customers local access to the complete line of Triangle Fastener products and services. GLR will immediately transition to become TFC's 24th branch. To ensure continuity, Gloria Rubalcava and her entire GLR team will continue to run the daily operations. The branch is located at 1425 Koll Circle #104, San Jose, CA 95122.
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Fastener World News Bülte Acquires the Fasteners’ Division of Werit The summer of 2021 marks a new milestone in the history of Bülte. The Bülte Group, which has been active in the manufacture of plastic fasteners and protection products since 1956, is now extending the scope of its activity by acquiring the specialised plastic fasteners division of the company Werit in Germany. Negotiations were concluded at the end of June 2021 between Mr. Schneider (Werit) / Mr. Stein (Werit) and Stefan Bülte, President of the Bülte Group. The acquisition represents a strategic turning point in BÜLTE's business policy and a new direction for the future. With this investment, Bülte is expanding its tooling range which will enable the company to further improve both quality and manufacturing efficiency. It will also strengthen its position in the Eastern and Northern European markets. Bülte will continue to maintain its current production facilities, mainly in Germany, thus maintaining and confirming its "made in Germany" criteria for ever greater quality, flexibility and reactivity. Like Bülte, the Werit Group is a family-owned company with production sites throughout Europe. Founded in 1949 by the engineers Wilhelm Schneider and his son Helmhold, the company with its headquarters in Germany is celebrating its 72nd anniversary this year. Another similarity to Bülte, which is celebrating 65 years of continuous existence this year. Specialising in thermoplastics for injection moulding and blow moulding technology, Werit will concentrate on its other business areas. The BÜLTE Group will further strengthen its market position in the field of plastic fasteners by taking over a long-standing market companion.
Association Jim Derry Awarded NFDA’s 2021 Fastener Professional of the Year Award The National Fastener Distributors Association is pleased to announce the 2021 recipient of its Fastener Professional of the Year award is Jim Derry of Field (Machesney Park, Illinois). The Fastener Professional of the Year award was created by NFDA to honor individuals and companies that make a substantial positive impact on people’s lives. Jim and his brother Bill purchased Field Fastener in 1990. As president and CEO, Jim focuses on Field’s long-term strategic plan and ensures that their partners love Field. He is dedicated to enhancing Field’s world-class culture that creates an environment that allows their team members to thrive and that is a competitive advantage in the marketplace. Field’s culture has been recognized by Great Places to Work and Inc. Magazine as being one of the best small places to work in America. The culture at Field is critical to the growth of the company, averaging 19% per year growth since 1990 and has been on Inc. Magazine’s fastest-growing private companies eight times in the past ten years. The overall goal of Field’s 10-year strategic plan is to improve lives, and Jim is committed to improving the lives of the Field team members, their families, Field’s customers and suppliers, and the communities in which Field operates. Under Jim’s leadership in 2020, Field created the Do Good Team. This initiative allows their team members to volunteer up to 40 hours per year focusing on charities of interest to them. The focus of this benefit is to allow their team members to spend a significant amount of time volunteering in the communities they operate.
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Jim along with Bill Derry founded The Derry Foundation, which supports educational initiatives. The foundation provided funds toward the engineering building at Rock Valley College located in Rockford, Illinois. It also helps fund Rock Valley’s scholarship program. Jim is also a current board member and past president of Carpenter’s Place, which provides the tools necessary for rebuilding the lives of the homeless. He is a Six Sigma Black Belt and believes strongly in lean principles to drive efficiency, continuous improvement, and innovation. Jim has a mechanical engineering degree from the University of Illinois. Jim received his award at the Professional Fastener of the Year Virtual Celebration on September 10 at 2:00 PM EST. Nominations for the next Fastener Professional of the Year award will open in January 2022.
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CFRTP LightWeight Wrenches
In Al no le va y ti on
Special Feature
Innovation Alley
Toshin Electric rolled out the carbon fiber reinforced thermoplastic (CFRTP) "CARBLACK Double Wrench Set" and "CARBLACK Monkey Wrench". CFRTP is known for being light-weight, rigid and resistant against static electricity.
compiled by Fastener World
Screws Resistant to Heat and Impacts of Chemical Solutions
The double wrench and monkey wrench come with the following features:
1. Lighter by one third than iron-made wrenches. From 500 down to 165 grams. 2. Rust-proof.
3. Resisting static electricity. No spark from collision or friction. Preventing explosion. 4. Not harming electroplated products. The middle section of the double wrench comes with a press-fit design allowing the user to join multiple wrenches into a wrench set that is portable and space-saving. The monkey wrench can open its jaw by 30 mm in maximum and has engraved scales.
N BK ( N a b e ya Bi - t e c h K a i s h a) h a s successfully developed a carbon-silicon made special screw with high hardness and resistance against heat and the impacts of chemical solutions. The screw can apply to the next-generation semiconductor industry and aerospace industry and will be mass-produced starting at the end of this year. The revenue generated from this type of screws is expected to reach JPY 100 million. The automotive industry is in growing need for special screws. NBK eyed the lightweight silicon material that is resistant against heat and the impacts of chemical solutions, and successfully developed the first silicon special screw on the market. NBK worked with a Ceramics Research Institute in Gifu Prefecture of Japan to find the best blend of carbon and silicon and gave birth to the product. NBK made its way into the special screw industry in 1999. Its order growth was mostly attributed to the semiconductor industry. Its business recorded a 10% growth in 2020.
QUICKLOC® Quick-release System The QUICKLOC ® clamping, rotation and pressure locks create repeatedly releasable joints. Easy to fit and even easier to operate –the right quick-release system also allows repeated opening and closing. QUICKLOC® is the perfect solution for components that are frequently used or serviced. QUICKLOC® is a high-strength system which is easy to use. The quick release fasteners are maintenance-free, vibration-resistant and have a captive seal to prevent loss. It comprises a hardened steel locking bolt, a plastic retainer and a spring steel slip-on lock bottom. In addition to its standard models, it offers custom designs as well. QUICKLOC® clamping, rotation and pressure locks are used in all industrial sectors where repeatedly releasable joints for fast assembly are required, including rail transport, the automotive sector, medical technology, compressor technology and heating engineering as well as aerospace.
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Special Feature PD400UR Screw Driving Device PD400UR Screw Driving Device is certified to "UR+" by Universal Robot. Nitto Seiko is the first Japanese company of its industry to have acquired the certificate with a screw driving device. The company successfully developed the URCap "NS SD600T" plug-in software which can be installed to the Universal Robot teach pendant from which the user can manage fastening torque and the driver's turning speed. Enter the target torque and the easy mode will automatically calculate the fittest turning speed, or select the detailed mode to allow for individual parameter configurations.
'Zero Chromate' Zinc Electroplating Technology
The Device is equipped with NX-T3 Driver Series/SD600T controller for high precision. Different torque values and turning speed can be set for each fastening spot, and 16 configuration sets can be stored to cope with various conditions. The user can choose to have the device pick up screws either magnetically or via vacuum suction.
"Zero Chromate" developed by Kamiyama Tekkosho in Japan can provide surface treatment for the company's self-drilling and self-tapping screws or can be used for OEM purposes. Since Geomet and other surface treatment solutions may affect the fit of screw recess and the tapping performance, the company has developed the next-generation Zero Chromate technology which is chrome and cobalt free and highly resistant against corrosion. The features include: 1 A 1µm Zero Chromate coating layer covers the top of an 8µm zinc coating layer to form a coating layer as thin as just 9µm. Its anti-corrosion performance has been confirmed in a salt-spray test to be 10 times better than that of a uni-chrome coating layer. 2. At almost the same cost as Trivalent chromium. 3. Value of usage between uni-chrome coat and Geomet.
Typhoon+ Hydraulic Bolt Tensioner
Nord-Lock Group is celebrating the launch of the new Typhoon+ hydraulic bolt tensioner which has been developed to meet the technical and environmental demands of the wind energy market, where high bolt load and restricted access applications are common challenges. Part of Nord-Lock Group, Boltight has developed a deep understanding of hydraulic bolt tensioning and is working hard to deploy the latest technology and advanced bolt tensioning solutions that permanently eliminate the risk of loose or over tightened bolts. The robust Typhoon+ design ensures reliability during frequent and repeated use necessary on wind turbine projects, both on and offshore, for low radial clearance applications. The new design offers: • Ease of use – a fast automatic spring-return design using a single reaction allows a full return to zero stroke piston retraction, and removes the need for manual input. • Improved seal technology – reduces seal changeouts and enhances general performance throughout the high cycle usage. • Safety – Over-stroke prevention removes the possibility of over-stroking the pistons. Internal failsafe technology keeps the tensioner on the bolt in the event of puller bar failure, ensuring user safety. • High Life Cycle – Long service intervals, not restricted by a fixed number of cycles thanks to high grade material puller bar. • Low Maintenance – due to an improved spring-loaded auto engagement gear driven nut rotating socket with a geared drive, and it's easy to use. • Durability – a unique surface finish provides long lasting protection in harsh environments. When asked about the launch of Typhoon+, Boltight’s Commercial & Projects Manager, Gavin Coopey said, "We're delighted to be launching this new solution to our overall product offering. We feel confident that the Typhoon+ will play a crucial role by making the process of using hydraulic bolt tensioners on wind turbine bolts much quicker, improve durability and reduce downtime”.
4. Thin, environment-friendly and corrosion-resistant.
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European News
Hilti Back to Growth
Compared with the first four months of the previous year, the Europe business region recorded a sales increase of 22% in local currencies. In addition to a solid growth rate in Northern and Central Europe, the dynamic recovery in the Mediterranean countries, in particular, contributed to this result. In the Americas, the 9.9% increase was broad-based, highlighted by the positive development in Canada and Brazil. Asia/Pacific posted a 13.6% increase in sales, despite the very serious ongoing Covid-19 situation in India. By contrast, growth in the Eastern Europe/Middle East/Africa region was only slightly positive (+5%) and still below pre-crisis levels due to the unchanged problematic situation in the Middle East. Currency developments in the first four months of 2021 were also pleasing. The weakening tendencies of the Swiss franc since the last quarter of 2020 have roughly aligned group-level business performance in local currencies with the picture in Swiss francs. For the full year, the Hilti Group continues to expect a sales growth in the high single-digit range in local currencies.
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I n t he f i rst fou r mont hs of 2021 Hilti Group increased sales by 14.7% to CHF 1.925 billion (€1.75 billion). In local currencies, growth amounted to 16% compared to the same period of the previous year. CEO Christoph Loos commented: “The recovery trend in the global construction industry has continued and we have made a good start to the new fiscal year. We have not only made gains compared with the low basis from 2020, but also achieved growth of around 6% in local currencies versus the first four months of 2019.”
Böllhoff Acquires SNEP S.A
SFS Acquires Danish Company SFS Group has a n nounced the acquisition of Jevith AS, a leading provider of fastening solutions for applications in high-quality building envelopes in Denmark. With the acquisition, SFS is expanding its market access in the northern European construction industry. Jevith AS was founded in 2001 and primarily supplies the Danish construction industry. Thanks to the company’s high technology and application competence, as well as the distinctive services, it has established a strong market position in Denmark. By acquiring Jevith, SFS will gain access to customers from the Danish construction industry, which will further strengthen the position of the Construction Division within SFS - securing future market growth as a specialist in fastening solutions in the building envelope. For their part, the customers of Jevith will benefit from the complementary SFS product range. In 2020 the company achieved a turnover of almost €5 million with around 10 employees. Jevith will in the future operate as part of the Construction Division within the Fastening Systems segment. The existing Jevith management team will continue to run the daily operations, ensuring business continuity.
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Böllhoff Group recently acquired the company SNEP S.A, a French manufacturer of special fasteners for the aerospace industry based in Montbrison. With this acquisition, Böllhoff aims to strengthen its own activities in the aerospace market segment. With the 100% acquisition of SNEP, Böllhoff is further expanding its market position in technical fasteners for the aerospace industry. In the future, SNEP will be seamlessly integrated into the international aerospace activities of the Böllhoff Group and is expected to play an important role in the further expansion of this business sector within the company. "France is an important aerospace market for Böllhoff," says Michael W. Böllhoff, managing partner. “The acquisition of SNEP helps us to be closer to key customers and to fulfil their individual requirements even better in future." SNEP's manufacturing know-how expands the Böllhoff Group's current manufacturing competencies for the aerospace sector, particularly in the areas of turning and machining. SNEP is also supposed to benefit from the affiliation with the Böllhoff Group - for example from its many years of experience in the field of innovation as well as in joining lightweight materials. The long-term goal of the takeover is to further strengthen SNEP's development competence and thus become a local development partner for the aerospace industry in France. "Last year, the aerospace sector suffered greatly from the effects of the Covid-19 pandemic," emphasises Wilhelm A. Böllhoff, managing partner. "In the medium term, we expect business there to recover, and thanks to the acquisition of SNEP, we will then be in an even stronger position to meet our customers' requirements." SN EP was fou nded i n 1918 a nd is a n established manufacturer of fasteners for the aerospace industry based in Montbrison, France. The product portfolio includes complex and highly specialised fasteners - from special washers, nuts and bushings to fluid fittings and build-to-print precision parts. With 110 employees, SNEP generated total sales of €16 million in 2020. Within the Böllhoff Group, SNEP will operate under the name Bollhoff SNEP S.A in the future.
European News Element Solutions Announces Planned Acquisition of Coventya Element Solutions Inc, a global and diversified specialty chemicals company and the parent company of MacDermid Enthone Industrial Solutions, has announced it has made a binding offer to acquire Coventya Holding SAS. Under the terms of the offer, Element Solutions will pay approximately €420 million in cash, including the assumption or repayment of debt, subject to certain adjustments. The transaction is expected to close in late Q3 or Q4 2021. Upon the closing of the transaction, Coventya will join MacDermid Enthone Industrial Solutions and will be reported within the Company’s Industrial & Specialty segment. Coventya is a global specialist in developing metal finishing chemical technologies with an array of solutions that provide decorative and functional coatings for industrial end-markets in over 60 countries. The business has manufacturing facilities in Asia, Europe and the Americas and its products serve customers globally across automotive, fashion, construction, electronic, consumer goods, energy, and aerospace/military end-markets. Coventya is expected to generate annual sales of approximately €160 million and adjusted EBITDA of greater than €30 million for its fiscal year 2021 ending in September. President and Chief Executive Officer Benjamin Gliklich comments: “We are very pleased to announce our proposed transaction with Coventya. This is an excellent business that aligns seamlessly with our acquisition criteria and a company that we have admired for decades. Coventya has a long history of providing innovation and high-quality solutions in attractive niche markets like our own. He continues: “We believe that Coventya’s deep customer relationships, solutions-orientation, and outstanding team, will improve our company and the breadth and quality of solutions we provide to our key markets. With this acquisition, we expect our MacDermid Enthone Industrial Solutions business to benefit from enhanced scale and strong complementary product offerings.” Coventya CEO Erik Weyls said: “This transaction is a great milestone for our company. We expect Element Solutions to provide Coventya and its people with resources and capabilities that will accelerate our growth. This has long been a logical combination, which we believe will provide customers with a broad suite of enhanced solutions that will be differentiated in our markets. I am incredibly proud of the team that has enabled Coventya’s success to date and thankful for their effort to build such an outstanding company. The future is bright for our business and its people, and we are all looking forward to becoming a part of the dynamic company that the team at Element Solutions is building.” * Under French law, Coventya’s shareholders may not accept the Company’s offer or enter into the binding purchase agreement until completion of consultation procedures with certain workers’ representative bodies.
News provided by: Fastener + Fixing Magazine www.fastenerandfixing.com
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Russian News
BelZAN to Replace Foreign Fasteners with Russian-made Fasteners on LADA Vesta and XRAY The Belebeevsky plant Avtonormal (BelZAN), managed by RT-Capital of the State Corporation Rostec, under a contract with JSC AVTOVAZ for developing and supplying fasteners for passenger cars in the Vesta and XRAY series, has started manufacturing products. Deliveries were scheduled to begin in August 2021.
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In a short time, the plant created design documentation for developing 34 new types of auto fasteners for models of the LADA Vesta and XRAY series, worked out the manufacturing technology of parts and carried out a full-scale preparation and mastered production. By the end of this year, BelZAN plans to supply up to 10 million units of fasteners with increased corrosion resistance, which will be used in the assembly of bodies and the installation of units on cars. “Last year, the plant concentrated its efforts on expanding the range of products and passing certification by leading domestic and foreign car manufacturers. Confirmed conformity of the company's products to the highest quality standards allowed us to receive new orders this year and already increased the production of components by 15% compared to the same period in 2020. After passing the quality audit of AVTOVAZ, the plant received an order to develop new types of automotive fasteners for cars of the Vesta and XRAY series. Today, the share of BelZAN's products supplied for these models is about 15%, and it will double after delivery,” said Kirill Fyodorov, General Director of RT-Capital LLC. In the Russian market the share of BelZAN’s fasteners for the automotive industry is about 36%. The plant is the main fastener supplier for KAMAZ, AVTOVAZ, Volkswagen, GAZ Group, Aurus and others.
OSPAZ and Hilti Announce Partnership Hilti and OSPAZ have begun negotiations to agree on an contract under which the Oryol plant of the Severstal hardware group will produce threaded rods. “Our company operates in accordance with quality and environmental management standards and strictly monitors all processes, while we are always open for cooperation and ready to improve production. Compliance with the high standards of a Western brand and the start of cooperation with Hilti is yet another proof of the quality of our work”, - comments Alexei Erenichev, director of the Oryol Steel Rolling Plant. “Localization not only helps us to be competitive in terms of price and flexibility, but also creates new jobs, increases the expertise of local manufacturers and improves our position in the field of sustainability by optimizing logistics,” comments Gemil Polat, Head of Contract Manufacturing at Hilti Russia.
Severstal Metiz Has Mastered over 80 New Types of Products The Cherepovets enterprises Severstal-metiz, Severstal Kanaty and the Oryol Steel Plant have mastered the production of 81 new types of products. "Severstal-metiz" mastered the production of new types of wire and fasteners for railways. The company also modernized the galvanizing unit, which allows simultaneous production of galvanized and phosphate wire. The Oryol Steel Plant in the first six months of 2021 added 40 new products, 85 percent of which are fasteners. “The development of new types of products is the result of our work on import substitution, entering new markets and constant dialogue with customers. Severstal-metiz products meet not only the needs of customers, but also all the necessary industry norms and standards, which is confirmed by our certification documents," commented Denis Tavrikov, commercial director of Severstal-metiz.
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Russian News Russian Steel Responds to the Introduction of Export Duties with a List of Negative Consequences "In terms of the introduction of export duties on metals from August 1, the profit of the companies will decrease by tens of billions of rubles, and the contributions to the budget will be noticeably reduced," said the group of companies Russian Steel. Metallurgists, who were previously accused by the government for "screwing up" the state, also threatened that the development of the situation could eventually "increase social tension in the regions." The group estimates in accordance with two scenarios - if the current market conditions persist and if prices decline. In the first case, according to the group's calculations, exports will decrease by a million tons, or about 40 billion rubles, and profits by 150 billion. The total deductions to the state budget will fall by 30 billion rubles, according to the association. In the second case, the decrease in export supplies should reach 2.5 million tons, or about 75 billion rubles. In this case, the profit will fall by 180 billion, and the budget will miss about 51 billion, "Russian Steel" emphasized. The group also stated that the introduction of duties will reduce the investment attractiveness of the sector and hinder job creation, various social prog ra ms a nd t he moder n ization of enterprises. "Russian Steel" believes that the decision on duties should be finalized and clarified together with representatives of the industry, "in order to reduce the negative impact on the development of domestic ferrous metallurgy. On June 25, the government approved of temporary duties on the export of metals, effective August 1 to December 31 this year.
The Group of Ferrous Metallurgy Enter pr ises "Rus sian Steel " unites the largest producers of metallurgical products in Russia. The Association was founded in 2001. The current members of the group are: Evr azHolding LLC, NLMK PJSC, MMK PJSC, OEMK OJSC (Metalloinvest Management Company L LC), Mechel PJS C, OMK A O , PA O Severstal, PAO TMK and OOO UK PMH.
News provided by Alexander Ostashov, editor of “Fasteners, Adhesives, Tools and...” Magazine
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Brazilian News
US$ 457 Million Worth of Fasteners Imported in the First Half of 2021 Ended the first half of 2021, the Brazilian Ministry of Industry and Commerce recorded more than US$ 457 million worth of imported fasteners (in steel, iron, and other metals). The total import value was 32.1% higher than the same period in 2020. In terms of volume, it was 98,650.51 tons, 59.3% higher than the same period last year.
Throughout 2020 the value was US$ 683.63 million in value and 125,068.4 tons in volume. In terms of value, China remained at the top among the ten largest fastener supplier countries, with a share of 23% in Brazil, followed by USA (16%), Germany (11%), Japan (9.9%), Italy (9.7%), France (4.4%), Taiwan (3.9%), South Korea (3.2%), Sweden (3.0%), and India (2.3%).
Brazil exported 26,925.62 tons of fasteners in 2020, with an export value of US$ 136.81 million. Among the ten largest fastener export destinations for Brazil, Argentina was the largest in value, accounting for 28%. USA was the second with a share of 18%. Paraguay was next (11%), France (6.7%), Germany (4.6%), Bolivia (3.9%), Uruguay (2.9%), Mexico (2.8%), Chile (2.5%), and Colombia & India were at 2.4%.
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Meanwhile, in the first half the Brazilian fastener export reached US$ 66.31 million, up just 1.5%. However, due to currency depreciation, the export volume grew 246.5% to 35,744.99 tons.
Import in Jan-Jun US$457.1 million
Export in Jan-Jun US$66.31 million
A Life Story of João Marques Castelhano Book addresses the successful trajectory of the founder of Jomarca Migrating from Portugal to Brazil at the age of 12 in 1954, João Marques Castelhano worked for some important Brazilian fastener companies in his youth, such as Fibam (closed) and Elbrus. After he resigned from Elbrus, he founded Jomarca at just 28 years of age in 1969. Currently, Jomarca is one of the biggest fastener manufacturers in South America, with more than one thousand employees and a capacity to produce more than 50 thousand fasteners per year. On December 5th, the Portuguese João Marques Castelhano will be 80 years old. João will announce his retirement on the same date. The life of João and Jomarca as well as his family and successors are written in a book, which he started on the 50th anniversary of the company in 2019 and completed in 2021.
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Brazilian News Automec is Confirmed with Visitors The biggest trade show for the auto parts sector in South America will take place on November 9-13. With an annual GDP near US$ 1.9 trillion, and a predicted production of more than 2.5 million automotive vehicles and 1.1 million motorcycles up to the end of December, Brazil will have two consecutive years without trade fairs. However, Automec, the International Auto Parts, Equipment and Services Trade Show has been confirmed to take place on November 9 to 13, held in the Expo Center North pavilion, in São Paulo city, SP, according to the official Press Office. The 15th edition of Automec perhaps is going to be the first and unique trade show in the country since 2019. Meanwhile, the event will include some fastener companies with industrial plants and/or offices in Brazil, such as Caillau (France), Growermetal (Italy) and the Fey, Metalmatrix, Naschold and ZM. However, as things get better with vaccination in progress, local exhibitors will form teams and book booths to participate.
by Sergio Milatias, Editor Revista do Parafuso (The Fastener Brazil Magazine) milatias@revistadoparafuso.com.br www.revistadoparafuso.com
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American News
American News FINdex Growth Slows Amid Continued Supply Disruptions and Rising Demand Continued supply chain disruptions and spiking demand muted the FIN Fastener Stock Index in the second quarter of 2021 even as the U.S. economy made strides to fully reopen.
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The FINdex halved its brisk pace in the second quarter, gaining 4.9% compared to a 6% gain by an index of related industrial stocks. In the opening quarter of 2021, the FINdex grew 9.6%. Grainger achieved the highest stock gain during Q2, rising 20.5%. In Q1, Grainger sales rose 2.8% to $3.1 billion. Other fastener companies with rising share value during Q2 included Chicago Rivet (up 2.2%); Dorman Products (up 1%); Fastenal (up 3.4%); ITW (up 0.9%); Howmet Aerospace (up 7%); Lawson Products (up 5.1%); Nucor (up 19.5%); Park-Ohio (up 2.1%); Simpson Mfg. (up 6.5%); Stanley Black & Decker (up 2.7%); and Tree Island Steel (up 10.2%). Fastener stocks losing value during the second quarter included Carpenter Technology (down 2.2%); EACO - Bisco Industries (down 0.5%); and MSC Industrial (down 0.5%). During the first half of 2021, the FINdex grew 15.1% compared to a 13% gain by an index of related stocks. Fastener companies recording first-half gains included Carpenter Technology (up 38.1%); Chicago Rivet (up 14%); Dorman Products (up 19.4%); Fastenal (up 6.5%); Grainger (up 7.3%); ITW (up 9.6%); Howmet Aerospace (up 20.4%); Lawson Products (up 5.1%); MSC Industrial (up 6.3%); Nucor (up 80.3%); Park-Ohio (up 4%); Simpson Mfg. (up 18.2%); Stanley Black & Decker (up 14.8%); and Tree Island Steel (up 90%). FINdex companies losing share value in the first half of 2021 included EACO - Bisco Industries (down 4.7%) and TriMas (down 4.2%). During 2020, the FINdex increased 10% during the year, lower than the 12.8% rise in stock value by an index of related industrial stocks.
Vertex Owner Acquired by OmniCable Ve r t ex D i s t r i b u t i o n ow ner Hou ston Wi re & Cable Co. was acqui red by O m n i C a bl e fo r $ 91 m illion cash. “Offer i ng both brands allows our customers a choice and to work with their preferred partner,” stated OmniCable CEO Greg Lampert. The combined company also will continue Vertex, HWCC’s fastener redistribution business. Houston Wire & Cable acquired Vertex Distribution in 2016. Vertex Distribution distributes corrosion resistant products including inch and metric corrosion resistant fasteners and alloy fasteners, blind rivets, hose clamps and security screws to industrial distributor markets. Attleboro, MA-based Vertex has branches in California, Florida, Georgia, Illinois, North Carolina, Ohio and Texas.
SWK Fastening Sales Climb 26% Engineered Fastening organic growth at Stanley Engineered Fastening climbed 26% in the second quarter of 2021 as strong automotive and general industrial markets were partially offset by weaker aerospace demand in addition to automotive OEM production impacts from the global semiconductor shortage. Consolidated Stanley Black & Decker sales during Q2 jumped 37% to $4.3 billion from volume (+31%), price (+2%) and currency (+5%) gains. The gross margin was 35.9%. Capital and software expenditures rose significantly to $105.1 million during Q2. First-half Industrial segment sales, including fastener results, climbed 13.7% to $1.26 billion, with segment profit more than doubling to $163.6 million.
Fastener Sales Rise Sharply At Fastenal Fastenal Co. reported fastener daily sales grew 28.4% to $503.6 million (33.6% of net sales) in the second quarter of 2021, driven by higher manufacturing and construction demand. Fasteners represented 26% and 34.5% of net sales in the second quarter of 2020 and the second quarter of 2019, respectively. Net sales decreased 0.1% to $1.5 billion in Q2 as PPE and sanitation products sales plummeted. The overall impact of product pricing on net sales in the second quarter of 2021 was 80 to 110 basis points. “We continue to experience pressure related to product and transportation cost inflation,” the company announced. “Pricing actions taken in the first and second quarters of 2021 contributed to the increase in the impact of net pricing on sales in the second quarter of 2021.” Fastener World no.190/2021
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American News Supply Chain Challenges Slow FDI The seasonally adjusted June FDI (55.8) moderated from May’s 61.8 as widespread product shortages constrained sales growth for some respondents. The sales index declined to 71.4 compared to 72.2 in May. Higher pricing continues to be a significant contributor to growth, as 87% of respondents saw higher point-of-sale pricing y/y (vs. 86% in May) and 84% m/m (vs. 76% in May). That said, given the magnitude of supplier price increases, other inflationary pressures and difficulty passing these on to customers fully, some respondents are seeing margin erosion. FLI also moderates. The seasonally adjusted FLI came in at 71.1, retreating vs. May’s 76.0, although still elevated relative to historical levels (average FLI reading over survey history is 55.3). Compared to May, the FLI employment index, respondent inventory levels and six-month outlook all weakened, while lower customer inventory levels were a partial offset. That said, a 70+ FLI continues to point to strong market conditions ahead despite June’s softening. Employment levels slightly weaker. The FDI employment index came in at 62.9 vs. 70.3 in May. Thirty-five percent of respondents saw employment levels as above seasonal expectations vs. May’s 49%. This reflects continued challenges in finding/retaining qualified labor amid a strong job market and enhanced federal/state unemployment benefits. Looking at the broader economy, the June jobs report showed a better-than-expected gain of 850,000 jobs coming off two straight soft reports. This solidly exceeded economist expectations for +706,000, and economists are encouraged this could perhaps mark a turning point in easing widespread labor constraints. Unemployment is still elevated, however, at 5.9% compared to the pre-pandemic level of 3.5%.
Inflationary pressures and supply chain constraints are key topics of focus. Supply chain disruptions again showed no signs of abating in June, and shortages appear to be extending towards many commonly stocked items. Said one respondent, “Importers are not only out of common items, but are quoting December ETA's. I have never seen shortages as widespread.” Given the strong demand, widespread shortages, and inflationary commodity markets, respondents continue to see significant inbound price increases: “Ocean Freight continues to run way behind schedule. Transportation Costs are skyrocketing. We are passing through as much of this cost as possible.” Echoing this, one respondent commented, “The price of everything is increasing every day.” While inflation is clearly helping revenue growth, some respondents are seeing margin pressure due to transportation cost increases that are eating away at the incremental profit opportunity: “While we are raising our pricing 5% (higher on some items), we are
losing margin because we have to pull inventory (if it is available) from all over the USA. UPS and Fedex Ground are eating up any additional margins we are getting by raising prices.”
IFI Soaring Eagle Award Recipients Recognized At an awards ceremony held during the 2021 Annual Meeting of the Industrial Fasteners Institute (IFI) in Scottsdale, AZ, USA, the IFI Soaring Eagle Technology Award was presented to Chad Larson of Lejeune Bolt Company, and the IFI Soaring Eagle Meritorious Service Award was presented to Laurin Baker of The Laurin Baker Group. Chad Larson serves as the President of Lejeune Bolt Company in Burnsville, MN, USA. Chad Larson’s career in the fastener industry has spanned some 30 years and he has worked in manufacturing, distribution, sales, production, quality assurance and now executive management. Chad Larson is recognized for his service and ongoing contributions to the fastener industry, especially in the field of structural bolting. He initiated and led a massive undertaking to combine six divergent ASTM structural bolt standards into a single coherent standard that has vastly improved standardization of structural fasteners. Laurin Baker is recognized for his many years of outstanding service to the institute representing and protecting IFI’s interests. Laurin’s expertise in navigating international trade, tariffs, environmental and tax policies has greatly benefited the interests of the Institute’s member companies, their employees and fastener users t he world over. Laurin Baker’s tireless work i n coordi nati ng and leading the coalition of IFI members, fastener distributors and North American fastener users resulted in the significant reform and improvement of the Fastener Quality Act.
Chad Larson (Right)
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Laurin Baker (Right)
American News LeJeune Adds Jon Craven to Staff Jon Caven will lead company sales nationally in his new role as Director of Market Development. He brings sales and business development experience from his 30 years as a sales professional and business owner. In his new role with LeJeune Bolt, Jon will implement sales, marketing, customer retention, and overall market development strategies, interface and build on relationships with key accounts, identify new and emerging market opportunities for existing legacy product lines, and create and penetrate new and existing market opportunities for LeJeune’s exclusive F3148 TNA® Fastening System. LeJeune Bolt, Burnsville, MN, USA, with a west coast office in Chino, CA, USA, is an international distributor of structural grade fastening systems, installation tools, and related fasteners for the commercial steel and concrete construction, bridge building, and transportation markets.
Optimas Invests in New Chun Zu & Formax Cold Headers Optimas Solutions, Wood Dale, IL, USA, a global industrial manufacturer, distributor and service provider, announced the acquisition of Chun Zu and Formax four die, four blow cold header manufacturing machines that will increase Optimas’ capabilities to deliver larger format diameter fasteners and free up existing cold headers. “The addition of these machines puts us on a higher playing field that few in the industry can match,” said Marc Strandquist, CEO of Optimas. “The efficiency of these cold headers will allow us to increase our ability to make larger diameter fasteners while freeing up other machines to produce smaller diameter fasteners, all helping us improve our output at all sizes. Most important, it helps our customers struggling to get products given stress on the supply chain and inventory shortages.” The Chun Zu machine will increase production by three million additional complex parts per month within the diameter range of 12 to 18 mm.
News provided by John Wolz, Editor of FIN (globalfastenernews.com) Mike McNulty, FTI VP & Editor (www.fastenertech.com)
This will allow Optimas to further focus on industries that require large diameter complex parts such as agricultural equipment, automotive, construction equipment and heavy-duty trucking. The Formax will improve Optimas’ manufacturing competencies of fasteners up to 18 mm in diameter. It adds to Optimas’ production on the company’s existing large diameter Formax machines, reducing lead times.
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Industry Focus
The Middle
Europe
Best Side Story
Fig. 1 Middle Europe
by Jozef Dominik
When we look at the simplified map of middle Europe (see Fig, 1) we can notice several interesting things: First of all it is a high concentration of car production in Slovakia. It is mainly due to the availability of relatively cheap labor, the stable political situation after joining the European Union, the fact that they are part of the free European market, and they have a good infrastructure and are close to the Western European market. In all Visegrad Group (V4) countries (CZ, SK, PL, H) , the industry has traditionally had a strong role and position. The outputs of the automotive industry are crucial for the economic situation and represent an important share of the region’s exports. In last decade, the region of the V4 countries has become the center of car production in Europe (Fig. 2 & Table 1). If it is taken into account that the average car contains about 2,500 various screws, nuts and washers then the total fasteners consumption is enormous. Only a small part of this is paid for by domestic production. The vast majority is imported. The reason is logical. Automotive production is characterized by a high degree of mechanization and automatization. This fact places specific requirements on screw connections. For example, one mounting direction or nutless connection is a matter of course. Slovakia continues to be the world leader in the production of cars per capita (Fig. 2), which means that it has produced about 200 passenger cars per 1,000 inhabitants. The share of the automotive industry in the total industry reached about 49%, generating up to 275,000 jobs.
200
(Unit: Vehicle)
100
0
a
ki
a ov Sl
y y d h ec an gar an Cz erm un Pol H G
Fig. 2 Car production per capita (Source: www.oica.net/category/ production-statistics)
The automobile industry became the economic "workhorse" for many countries in Central and East Europe (Table 1) after the inflow of foreign capital in the 90s of the previous century. It has become the centre of the prominent investors’ interest also in Central and East Europe.
Table 1. Characteristics of V4 Member Countries Area (km2)
Population
Car Production
Currency
Slovakia
48,845
5,554,324
about 1,000,000
Euro
Czech
78,866
10,256,760
about 1,000,000
local
Hungary
93,030
10,075,034
about 520,000
local
Poland
312,685
38,625,478
about 870,000
local
Country
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members of European Union and the Visegrad Group V4
Industry Focus Of course, it is not only the advanced economies of the V4 member states that attract the attention of foreign investors and visitors. Equally interesting is the history, culture, architecture, sports, nature, spa and gastronomy. Especially Slovakia is full of castles and ruins (Fig. 3) which suggest a rich history. It is similar in the Czech Republic, Austria, Poland and Hungary. It can be said that history has spilled over in Central Europe. The V4 region is diverse, has a lot to offer and has common interests. One of them is joint promotion in creditworthy markets such as the USA, Canada, Southeast Asia and the Middle East this is where it is important for them to work together.
Fig. 3 Castle Trenčín and Spiš ruin (drawn by Makuka)
The Visegrad (V4) countries were more prepared to face the COVID-19 pandemic, as it reached the region later than in another part of Europe. At present, thanks to the coordinated approach of the V4 countries, life is slowly returning to normal. That is also why the president of the Slovak Republic, Mrs. Zuzana Čaputová, was able to declare that the Visegrad (V4) countries have a reason to continue cooperation. Already in the border areas between Slovakia and Hungary, commuters go on a daily basis. But it is not just about the economic sphere, but also its very developed e.g. bathhouse. Rheumatism is treated in the world-famous spa Piešťany in Slovakia (see Fig. 4, a typical city symbol in the picture below to symbolize healing). In 1917, three emperors met in the Piešťany spa - the German emperor Wilhelm II., The Austro-Hungarian emperor and King Charles IV. and the Bulgarian Emperor Ferdinand I. You can't get around sports, either. Dramatic fights between the holder of a large crystal globe in skiing Petra Vlhová (SK) and Mikaela Shiffrin (USA) attract the attention of the whole world. Similarly, the three-time world champion in cycling Peter Sagan. This is related to favorable conditions for skiing and cycling in Slovakia. In CZ, there is ice hockey at the top world level. CZ is a multiple world champion and Olympic winner (Nagano) in this sport. Hungary, in turn, boasts a success in swimming and fencing. Poland in athletics and volleyball.
Fig. 4
The immense cultural and historical heritage of the V4 countries is also interesting for foreign visitors. Unfortunately, the defined media space does not allow for details, but cities like Prague (CZ), Budapest (HU), Krakow (PL), Levoča (SK) are literally historical architectural pearls. It is worth visiting them. And there are many other sights. I will mention at least the museum of the worldfamous founder of pop art Andy Warhol (see Fig. 5) in Medzilaborce in eastern Slovakia. His paintings sell for millions today.
What to Say in Conclusion?
Fig. 5
It is worth visiting the V4 countries which form the core of Central Europe. The proximity of Western markets, especially Germany, the high level of education of the population, and the developed infrastructure attract business partners and foreign investors.
There are other reasons to visit these countries. Rich history, natural beauty, spa, sports, developed tourism, traditional hospitality of the population etc. are attractions that not every country can boast. The arms of the V4 countries are open to visitors. The proximity of the three capitals - Vienna (AT), Budapest (HU), Bratislava (SK), not more than 150 km apart, attracts both investors and tourists. At the same time, Slovakia has the ambition to become a link between the European Union and Ukraine and Russia, as interesting trading partners. It is predestined not only by the geometric position, but also by the knowledge of the language and mentality of the mentioned countries. Fastener World no.190/2021
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Industry Focus
U.S. Plans to Reinforce Domestic Infrastructure & the Global Demand for Ocean Containers
by Sabrina Rodriguez
Data note: The data for this article is derived from the US Census trade statistics. US Census trade statistics analysis import and export on all modes of transportation. That value is calculated in USD by general CIF for imports and FOB for exports. Fasteners in this article are defined as any product under HS Code 7318 (screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers and similar articles of iron or steel).
Much of all international trade continues to be moving across the vast oceans on massive vessels containing upwards of 25,000 tons of goods. It’s no surprise that foreign trade depends on the reliable (although not always timely) delivery of good via maritime transport. Alternatively, air cargo ships continue to dominate the market of sensitive and costly commodities such as pharmaceuticals, flowers and even a variety of high-priced produce and seafood. The U.S. has arguably become the epitome of capitalism. Capitalism, which can often lend itself to be seen as an incredibly consumer centric and materialistic society, is opening a floodgate into one of the more incredibly complex supply chains. With fast and affordable fashion, increasingly higher demands for electronic goods and an extraordinary shift in demand for new residential housing construction, the U.S. is finding itself in a never-ending demand for imports. There is a demand for semiconductors used in laptops and tablets, lumber to maintain the current housing market boom and medical health equipment replenish the healthcare industry as another wave of COVID-19 cases begin to emerge. With this shift in demand comes the need for an increase in vessels and containers. Will the primary
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shipbuilding companies begin to prioritize and accelerate the construction of new vessels based on the existing market? Additionally, President Biden recently unveiled his 4.5 trillion-dollar infrastructure plan which includes improving the country’s sustainability, investment in highways and transit infrastructure, and generate projects related to clean water and broadband internet. It’s not exactly the Green New Deal, but it is a step in the right direction when it comes to cleaner energy and agriculture. The potential increase in infrastructure will not only be key for job creation for both American’s and foreigners alike, but also the demand for fasteners and other commodities used for manufacturing. It’s still difficult to tell whether this newly proposed plan will fall into place accordingly, however, it is predicted the number of bridges and public transit systems will lead to an abundance of foreign fastener trade.
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Industry Focus Are Shipbuilders Accelerating Their Manufacturing Efforts to Keep up with Global Demands? China, South Korea, and Japan are powerhouses in the shipbuilding industry as China Shipbuilding, Mitsubishi and Hyundai remain global leaders. It’s relatively safe to say cruise lines are not in the highest demand considering so many cruise ports around the world have not resumed operations for cruise lines. This leaves shipbuilders to primarily focus on freighters which transport cargo and bulk carriers which also transport cargo. Bulk carriers vary from regular cargo ships as bulk carriers transport unpackaged commodities such as oil, ore, coal, and grains. According to Statista, the current prediction is for the shipbuilding market to decline to a value of around 150 billion USD during the year 2020 – 2021, and then it will surpass the 160 billion USD value by the year 2023. The Wallstreet Journal recently reported an influx of new ship orders being reported by the major shipyards. VesselsValue Ltd. reports of these major shipyards claim those in China and South Korea are inundated with new demands. Hyundai executives reported the existing demand being the highest it’s been in 20 years, and that is considering their facility is operating at full capacity. While the demand is at an exponential high, the supply for steel is largely in question. According to China State Shipbuilding Corp., the price of steel is increasing. A cargo ship requires somewhere between 25,000 and 30,000 tons of steel which is about 30% of a vessels overall cost. For reference, a bulk cargo ship (also referred to as a large crude carrier) used to cost around $85 million USD to build back in October of 2020. Due to the increased cost of steel, that same type of vessel will now cost upwards of $100 million USD. With an increased number of ocean vessels expected to take sail sometime between 2022 and 2023, major ports around the world will need to invest into their own infrastructure to expand terminal availability. According to Datamyne, major U.S. ports have already begun to experience congestion in the harbors, delaying expected arrival dates
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and increasing freight rates. In some instances, cargo ships have had to make alternative routes into nearby ports due to the congestions in the harbor and the potential delay this would cause the vessel in accordance with the remainder of its sailing schedule. Los Angeles/Long Beach, California, which serves as one of the largest ports on the western seaboard of North America, experienced over a month-long congestion period earlier this year.
U.S. Infrastructure Plan – What does This Mean for Fastener Trade with the U.S.? If you’ve traveled to any metropolitan city inside the U.S. (albeit New York City and the surrounding area) and have had the pleasure of experiencing the public transit system, you would have quickly realized the lack of reliability due to a poorly developed and underfunded system. For city dwellers in the New York City area, public transit is both a blessing and a curse, of which the millions of users would agree requires an overhaul of improvements. High-speed trains continue to be a novelty only witnessed in futuristic movies (or Europe and Asia), while major highways continue to be deemed as ‘under construction’ for what feels like decades. During the first half of 2021, the U.S. has imported a total value of over 3 billion USD worth of fasteners by comparison to 2.5 billion during the first half of 2020. This is a 22% increase in value in 2021 which is outstanding. The first half of 2020 was deemed a very difficult time frame due to the pandemic, however, it’s already been proven that fastener trade has substantially recovered. The top 3 foreign trading partners supply the U.S. with fasteners are Taiwan, China and Japan which collectively make up between 60 to 65% of the total market. With the consideration of new infrastructure including bridges and public transit systems for major metropolitan cities and the increase in fastener demand that has been increasing steadily over the last 5 years, the total quantities of fasteners could potentially increase between 5% and 10% on an annual basis.
U.S. Fastener Import (H1 2020 – H1 2021) Country of Origin
2020 - H1 General Total Value CIF (USD)
2021 - H1 %
Volume Change
General Total Value CIF (USD)
%
General Total Value CIF (USD)
%
Taiwan
912,146,687
36.20
1,169,380,700
38.04
257,234,013
28.21
China
452,473,142
17.96
510,972,037
16.63
58,498,895
12.93
Japan
267,600,275
10.62
344,726,878
11.22
77,126,603
28.83
Germany
180,746,644
7.18
190,696,172
6.21
9,949,528
5.51
Canada
128,257,854
5.09
167,482,700
5.45
39,224,846
30.59
S. Korea
91,755,761
3.65
120,041,586
3.91
28,285,825
30.83
Italy
68,748,155
2.73
90,409,092
2.95
21,660,937
31.51
Mexico
56,081,818
2.23
68,172,976
2.22
12,091,158
21.56
India
52,546,697
2.09
85,805,635
2.80
33,258,938
63.30
U.K.
43,482,118
1.73
40,617,135
1.33
-2,864,983
-6.59
2,520,267,702 100.00 3,074,242,647 100.00
553,974,945
21.99
Total
Top Countries of Origin
Industry Focus U.S. Fastener Import (H1 2017 – H1 2021) Country of Origin
2017 - H1 General Total Value CIF (USD)
2018 - H1 %
General Total Value CIF (USD)
2019 - H1
2020 - H1
%
General Total Value CIF (USD)
%
General Total Value CIF (USD)
2021 - H1 %
General Total Value CIF (USD)
%
Taiwan
825,022,666
32.47
935,679,660
32.17
1,055,338,649
34.83
912,146,687
36.20
1,169,380,700
38.04
China
599,347,949
23.59
762,944,561
26.23
649,858,422
21.45
452,473,142
17.96
510,972,037
16.63
Japan
328,812,405
12.94
328,513,581
11.30
325,670,729
10.75
267,600,275
10.62
344,726,878
11.22
Germany
144,233,107
5.68
165,417,510
5.69
190,532,141
6.29
180,746,644
7.18
190,696,172
6.21
Canada
135,806,172
5.35
158,538,969
5.45
169,723,769
5.60
128,257,854
5.09
167,482,700
5.45
S. Korea
100,473,095
3.96
93,056,412
3.20
98,379,148
3.25
91,755,761
3.65
120,041,586
3.91
Italy
66,508,885
2.62
80,142,217
2.76
78,084,788
2.58
68,748,155
2.73
90,409,092
2.95
Mexico
55,017,448
2.17
58,032,972
2.00
66,344,872
2.19
56,081,818
2.23
68,172,976
2.22
India
48,041,276
1.90
59,503,138
2.05
78,792,238
2.60
52,546,697
2.09
85,805,635
2.80
France
43,863,521
1.73
43,433,615
1.50
44,654,719
1.48
40,522,586
1.61
33,301,901
1.09
2,541,508,067
100.00
2,909,318,029
100.00
Total
3,030,833,645 100.00
2,520,267,702 100.00
3,074,242,647 100.00
Recap Like most moving puzzles, the supply chain continues to be pieced together by the increased global demand and widespread fluctuations in the marketplace. Several different factors within the supply chain need to work together to make the introduction of newly built vessels. The same can be said about an increase in U.S. domestic infrastructure – in theory the proposed budget is outstanding, however, there are many moving pieces which can alter the expectations and results.
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Industry Focus
by Shervin Shahidi Hamedani
Introduction
Fastener Market: Malaysia Mega Rail Projects
Railways are the fastest means of agglomeration transport and its comparative advantages in terms of technical and economic such as transport capacity, cost and low-carbon, has made the railways, more specifically high-speed railways, as one of the fastest developing sectors in many countries. Today, the passengers have more concern about the quality of services more than ever in terms of safety, efficiency, convenience, and sustainability of transportation. Putting aside the impact of current pandemic, with the development of global economic industrialization and urbanization as well as fast economic growth of emerging economies, the overall scale and the total volume of railway passenger and cargo transportation have generally shown steady growth trend in the past decade in the world. Apparently, those scales and structures vary in different countries. The growth of railway passenger transportation is mainly concentrated in the Asian market. With the advancement of urbanization, population growth and the large-scale opening and operation of railway passenger-dedicated line, rail track sizes in Asia are huge, and the future is prosperous for the investment in upstream and downstream industries. This introduction can explain why the railway fastener market has become a very prosperous market in Asia. The leaping railway development and rail track sizes in Asia are becoming larger and larger, while creating more demands on railway fasteners, as they are important components of rail tracks and they are always used to connect track rails with railway ties or railway sleepers. Additionally, there is a wide range of industrial fasteners used in manufacturing trains and rail cars.
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Industry Focus Malaysia Mega Rail Projects As mentioned, the large demand from downstream high-speed train industry, subway industry and other industries drives the rail fastener industry to develop fast. One of the Asian countries, which has recently undertaken several mega rail projects, despite the Covid-19 pandemic, is Malaysia. The government of Malaysia is looking to put the economy back on the rails by continuing with the mega infrastructure projects like the East Coast Rail Link (ECRL), Kuala Lumpur - Singapore High Speed Rail (HSR), Mass Rapid Transit (MRT) and Light Rail Transit (LRT) projects. In February this year, it was reported that Malaysia’s economy contracted 5.6%, which is its worst performance since 1998. Therefore, the stakeholders, contractors and owners of all those mega rail projects in the country have taken measures to ensure work on these critical infrastructures will continue even in the face of the Covid-19 pandemic. In the following sections, major rail projects in Malaysia and their overall impacts on fastener markers have been studied. Kuala Lumpur - Singapore High Speed Rail (HSR) project aims to reduce travel times along the 350-kilometre route between Kuala Lumpur and Singapore to just 90 minutes (as compared to the current time of 11 hours on existing lines), creating a new era of connectivity between these partner nations. The latest Light Rail Transit (LRT) project is part of the Greater Kuala Lumpur (GKL) plan, which will provide connectivity to the western part of GKL. Development of the project is also expected to fuel economic growth in the region and generate employment for about 2,000 personnel during the construction phase. The Mass Rapid Transit (MRT) project is a strategic Government project which will increase connectivity of the Klang Valley’s public rail network. Klang Valley is an urban conglomeration in Malaysia that is centered in Kuala Lumpur, and includes its adjoining cities and towns in the state of Selangor. On top of all these projects is a very important and strategic project, which is the largest rail project in Malaysia, called East Coast Rail Link (ECRL) project. ECRL is a 640km railway link connecting different parts of the east coast region with the west coast region in Malaysia. This project is the biggest economic and trade project between China and Malaysia. This is a joint venture partnership with a 50-50 ownership between these two countries. Construction on the ECRL project began in Kuantan (the capital city of the state of Pahang on the east coast of Peninsular Malaysia) in August 2017, but the work was suspended in 2018 due to financial reasons. Construction resumed in July 2019, with the completion scheduled for December 2026. This could be good news for fastener manufacturers, as this project needs a large quantity of fasteners and tools. Some of the common types of fasteners used in rail projects are Concrete Pillow Fasteners, Buckle Plate Fasteners and Spring Fasteners. The amount of usage depends on projects if it’s about Conventional Rail, High Speed, Heavy haul, or Urban Transport. The ECRL project could be categorised as a conventional mega rail project, which mainly requires fasteners with high spring deflection, high tensioning force, high creep resistance, high elasticity with lower subrail foundation erosion. This is about the fastener demand directly generated from the project, but in overall ECRL will have a significant impact on Malaysia’s economy, which indirectly builds more demands for fasteners in this country. The project is expected to produce jobs worth USD4.2bn during the construction, while boosting small and medium-sized businesses. The project is also expected to increase the demand for housing, supplies, and transport in the regions along the East Coast Rail Link. The Kuantan Port-ECRL-Port Klang section will shorten the travel time between the two ports, thus benefiting trade in the region. Port Klang is a town and the main gateway by sea into Malaysia, the largest and nearest port to Kuala Lumpur. Freight transport along the East Coast rail link will account for 70% of the total revenue generated by the rail network, while the remaining 30% will be driven by passenger transport.
Conclusion Based on what have been discussed, in terms of market development, Southeast Asian countries in general and Malaysia in specific certainly should be targeted by international fastener manufacturers and traders. The majority of the countries in this region have not been able to fully grasp the latest technologies and skill sets related to railway fasteners products and failed to keep up with the technological advances in this industry. Therefore, the majority of supplies of railway fasteners and tools are still shipping from international manufacturers and suppliers, mainly from China and Taiwan. This can be a great opportunity for fastener suppliers to leverage on, in order to grow and to expand their businesses regionally and globally.
Source: East Coast Rail Link (ECRL) Project, Railway Technology The Star, Malaysia News: National, Regional and World News
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Industry Focus >> Overview Fasteners are the critical link in the load path of a building structure. They provide structural integrity and are a major point of energy dissipation under seismic and wind loads. Construction fasteners are generally classified as those fasteners that are used to secure building materials and can be classified as commodity fasteners or task-specific fasteners. Typical applications include: • • • •
Roofing (flat, sloped) Decks (steel, wood, composite) Bridges (ladder deck, multi-girder, suspension) Buildings (residential, commercial, skyscraper)
Typical examples include cement-board screws, drywall screws, needlepoint screws, outdoor screws, pole-gripper screws, self-drilling screws and woodworking screws. Steel and stainless-steel fasteners are commonly used in the construction industry1. Construction fasteners have some specific functions that make them important: 1. They must be efficient. Materials play the main role in an entire building. Therefore, fasteners as the fastening part will be vital, if fasteners do not do their jobs correctly (tight seal between materials) then a construction project will be broken easily. 2. They must be durable. When a construction has been built, it will stay there for several decades, so durability of fasteners is a very important factor in the construction industry. Poor quality fasteners not only reduce the life of a construction, but also is a potential danger for lives of people. Any lack of attention to the quality of fasteners makes the construction unsafe and increases the possibility of irreparable accidents.
>> Indonesia's Construction Situation Construction and fasteners always go "hand in hand". For the last few years, Indonesia had put its focus on infrastructure development, however COVID-19 stopped its sharp growth in 2020. Regarding the statistics, Table 1 shows the GDP growth rate for the construction sector in Indonesia. GDP from construction in Indonesia decreased to 18.40 USD billion in the 2nd quarter of 2021 from 18.85 USD billion in the 1st quarter of 2021. Thousands of construction companies have stopped their activities in Indonesia.2
The Construction Industry and Its Effect
on Indonesian Fastener Industry
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Industry Focus Table 1. GDP Growth Rate for the Construction Sector in Indonesia 3 Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
Growth Rate
8.13%
6.74%
5.52%
6.11%
5.18%
6.8%
6.09%
5.76%
-3.26%
>> The Situation of Construction Fasteners in Indonesia Indonesia is one of the fastest-growing countries in the world and is developing many industries. The fastener industry is one of the fast-developing industries in this country. The fastener industry in Indonesia can produce more than 300,000 tons of fasteners annually (at the end of 2020). Indonesia imported 69,730 tons of fasteners valued at 333 million USD and exported 15,836 tons of fasteners valued at 76.6 million USD at the end of 2020. Construction fasteners make up 20% of Indonesia's fastener consumption. That means Indonesia produced 60,000 tons, imported about 14,000 tons and exported about 3,200 tons of construction fasteners.
Top trading fastener partners of Indonesia in 2020: • • • • • • • • • •
Japan with a share of 39% (130 million US$) China with a share of 19.7% (65 million US$) Thailand with a share of 7.37% (24 million US$) Australia with a share of 6.58% (21 million US$) Singapore with a share of 6.1% (20 million US$) USA with a share of 5.04% (16.8 million US$) Other Asian countries, with a share of 4.49% (14.9 million US$) Italy with a share of 1.78% (5.95 million US$) Germany with a share of 1.71% (5.7 million US$) South Korea with a share of 1.67% (5.57 million US$)
The import structure of fasteners to Indonesia in 2020 consists of the following main commodity groups: • • • • • • • • • •
46% (156 million US$): 731815 - Screws & bolts 16% (53 million US$): 731816 - Nuts of iron/steel 12% (39 million US$): 731829 - Non-threaded fasteners 7.57% (25 million US$): 731822 - Washers 5.48% (18.2 million US$): 731814 - Self-tapping screws of iron/steel 5.08% (16.9 million US$): 731819 - Threaded articles of iron/steel 3.25% (10.8 million US$): 731824 - Cotters & cotter-pins, of iron/steel 1.5% (4.99 million US$): 731821 - Spring washers & other lock washers, of iron/steel 1.23% (4.1 million US$): 731823 - Rivets of iron/steel 0.454% (1.51 million US$): 731813 - Screw hooks & screw rings, of iron/steel
>> The Future of Construction Fasteners in Indonesia Nowadays, the governmental subsidies and the vaccination process have lit a glimmer of hope in this industry. Based on focused approach of Indonesian government to the construction industry, it is predictable that in the next quarters the numbers will grow up in the construction sector again. GDP from construction in Indonesia is expected to be 19.41 USD billion by the end of the 3rd quarter of 2021. In the mid-term, Indonesia's GDP in construction is projected to trend around 20.93 USD billion in each quarter of 2022 and 22.18 USD billion in each quarter of 2023. It means that we can predict a 5% growth in the construction fasteners market in Indonesia.
>> Toward a 138 Billion USD Business The total infrastructure spending was $76 billion in 2021. It was projected (before the pandemic issue) to increase to $138.6 billion by 2025. Indonesia has learnt a lot from the pandemic issue which convinces the experts that the value will surpass 138.6 billion USD in the future. Based on their problems due to the pandemic, • Indonesia's construction industry has started to make a powerful local supply chain in its sector because it has suffered a lot from too much reliance on importers, which means that there is an opportunity for more investments in the fastener industry of Indonesia. • On the other hand, the pandemic has developed the concept of remote working, and the construction industry will use robots in its businesses soon, which means that the speed of construction will be higher than before the pandemic in the future. Reaching 138.6 billion USD is possible and this number is likely to be surpassed. Digital transformation is changing the game role in the construction in Indonesia. 1 https://www.industrialheating.com/articles/92437-fastener-industry-overview-applications-materials-equipment-part-2 2 https://tradingeconomics.com/indonesia/gdp-from-construction 3 https://www.statista.com/statistics/1090479/indonesia-construction-gdp-growth-rate/
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Industry Focus
Analysis of
Motorbike
Production & Sales by Behrooz Lotfian
in Thailand by Behrooz Lotfian
Overview of the Motorbike Industry The global motorbike market is located in the region of Southeast Asia. More than 80% of the motorbikes sold in the world were sold in this region annually. This is a good reason for big motorbike manufacturers to transfer their production to this region. Nowadays, Thailand with over 1.5 million units of production is known as the 5th largest manufacturer in the world after China, India, Indonesia and Vietnam. More than 80% of their production is sold in the domestic market. The production and sales of motorbikes in Thai domestic market are currently in the "low volume" group, that is, motorbikes with the engine capacity of less than 250 cc. Thailand has a law that requires at least 50% of the value of all components of a motorbike to be supplied domestically before it is allowed to be sold in the country. Nowadays, due to the expansion of motorbike parts manufacturers, the domestic production of motorbikes completely uses Thai parts. Thailand is the main producer of small motorcycles in ASEAN and it is not only a domestic manufacturer, but also exports motorcycles and parts to ASEAN. In terms of producing motorbikes with engines above 250 cc or "high volume", Thailand does not currently have extensive domestic production, but Thai government has a plan for extension. The United Nations Economic Commission for Europe (UNECE) divides motorcycle production into two groups: sports motorbikes, which usually have an engine capacity of more than 250 cc, and small family motorcycles, most of which have an engine capacity of 100-125 cc.
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Family motorbikes are popular in Thai market. In fact, 80% of its domestic production belongs to this category, while the rest of production is related to sports motorcycles with engines above 250 cc.
Thai Capacity of Production, Brands and Cities There are 12 motorbike factories with 14 brands in Thai market. These 12 factories have more than 3.6 million units of production per year. Four Japanese brands including H o n d a , Ya m a h a , S u z u k i a n d K awas a k i h ave 8 7 % o f t h e to t a l production capacity in Thailand. Other manufacturers include Benelli and Ducati (Italian brands), KEEWEE and
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Industry Focus CFMOTO (Chinese brands), Triumph (British brand), BMW (German brand) and Harley-Davidson (U.S. brand). •
With a production capacity of 1.74 million units (1.7 million units from Honda and 40 thousand units from GPX), Bangkok tops the list of motorcycle manufacturing cities in Thailand.
•
The 2nd biggest city in terms of motorbike production is Samut Prakan. Yamaha is able to produce 600 thousand units in this city.
•
The 3rd biggest city in terms of motorbike production is Pathum Thani. Suzuki with 550 thousand units of production is located in this city.
•
The 4th biggest city in terms of motorbike production is Rayong with around 300 thousand units. Kawasaki with 260 thousand units, BMW with 10 thousand units and Ducati with 20 thousand units are all located in this city.
•
Chachoengsao Phetchaburi as the 5th biggest city is able to produce 160 thousand units, Benelli and CFMOTO with 100 thousand units and SYM and KEEWAY with 60 thousand units are also located in this city.
•
Chonburi is the 6th biggest motorbike manufacturing city in Thailand. Triumph with 120 thousand units and ZONGSHEN with 20 thousand units increased the production capacity to 140 thousand units.
The Motorbike Market During the Pandemic Motorbike sales in Thailand fell by 9.7% in 2020. The impact of the pandemic on Thailand was less than that on other top motorbike producing countries. Motorbike sales in Thailand fell by 15.8% in the first half of 2020, while the recovery was very small. Its sales rose by only 1.1% after Q2, fell again by 5% in Q3, and recovered by 10% in Q4. Therefore, Thai motorbike industry decreased by 9.7% in comparison with 2019, and its sales were 1.5 million units in 2020. Looking at the competitive market scenario in 2020, as usual, the market is dominated by
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Honda, which sold 1.18 million units of motorbikes, representing only 69% of its production capacity in Thailand and its sales dropped by 9.7% in comparison with 2019.
•
The second player, Yamaha, is far behind with only 239,531 sales (Yamaha was able to fill 40% of its production capacity). Yamaha's sales dropped by 10.9% in comparison with 2019.
•
In the third place is Piaggio (Italian brand) with 28,105 units, which increased its sales by 18.9% in comparison with 2019.
Industry Focus •
GPX (a local manufacturer) with 14,457 units experienced the sales decrease of 25.8% in comparison with 2019. It could fill more than 72% of its production capacity.
•
Kawasaki with the sales of 12,155 units (a 13.4% drop in comparison with 2019) couldn't catch 5% of its production capacity.
•
Suzuki with 11,996 units of sales (a drop of 44.7% in comparison with 2019) could fill just 2% of its production capacity.
The Future of Thai Motorbike Market Based on Krungsri report, as the economy recovers after the pandemic, domestic sales should increase by 3.0-4.0% annually. Exports will also return and increase by 4.0-5.0% annually as the overseas economy improves. However, the Thailand-based Harley-Davidson plant, which assembles motorcycles for export, will also help. The US-China trade dispute also provides opportunities for Thai exporters. Hence, we estimate that the total production will grow 3.04.0% per year over the next 3 years. The major factors influencing the growth of the market are growing population, improving consumer spending power, increase in the registration of new motorcycles and release of new models by manufacturers in the country.
ASEAN Market as Its Main Export Destination As mentioned earlier, the sector of Thai motorbike production focuses on the domestic market and the main group of customers in the domestic market are labors and agricultural workers. Thai manufacturers planned to expand exports of small motorcycles to the ASEAN market, but they have strong competitors such as China, Indonesia and Vietnam in this region, and exports to Vietnam and Indonesia as bigger producers than Thailand in the world are very difficult. Thai manufacturers have found another way for improving their export amount. Nowadays they export CKD of motorbikes to this region.
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Industry Focus
越南機車產銷分析
Analysis of Motorbike Production and Sales in Vietnam
by Sharareh Shahidi Hamedani
"Motorbike" is the Most Popular Transportation in Vietnam W hen you think about motorbikes, 'Vietnam is probably not one of the countries that comes to your mind. In fact, Vietnam ranks No. 2 on the world's list of "Motorbikes Per Capita,". According to the statistics of the Ministry of Transport of Vietnam, more than half of Vietnam's population has registered their motorbikes to the government, which means that Vietnam with a population of about 96 million people has 48 million units of registered motorcycles; on the other hand, more than 10 million units of motorbikes have not been registered in the country. Therefore, it reached a market size of 58 million units in 2020. The most popular transportation in Vietnam is “Motorbike”. It is difficult to deny that motorbikes play an important role in all aspects of daily life in Vietnam, especially in large cities. Hanoi, for example, is a city with more than 6 million units of motorbikes among a population of about 7 million, compared to half a million units of cars on the road. In this city, everyone has a motorbike to ride on streets and small alleys. As for Ho Chi Minh City, it shows the largest number of motorbike ownership, landing at 8.5 million units of motorbikes. However, the pandemic changed the numbers and the quantity of newly registered motorbikes has decreased.
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2020, a Dramatic Year! According to the Italy-based market research firm Motorcycles Data, the motorbike market in Vietnam ranked second in ASEAN. Vietnam’ s sales market size reaches around 3.0 million units, only second to Indonesia at more than 6.5 million units per year. The motorbike market in Vietnam is dominated by the Japanese and the undisputed leader of the market is Honda with the sales of 2.1 million units (-14.79% in comparison with 2019) followed by Yamaha with 471,527 units (-16.7% in comparison with 2019). The reasons for the decline were: • 2020 was a year of recession around the world. The global market was affected by the coronavirus. Although Vietnamese government had a strong ability to control the spread of the virus in the country, lockdowns still caused the decline in the number of motorbike registrations. On the other hand, motorbike sales declined throughout the region. • Air pollution- Vietnam is one of the 15 most polluted countries in the world and “motorbike” is the main cause of the pollution. Vietnamese government is encouraging companies to build electric motorcycles. Therefore, even during the pandemic, the electric vehicle segment is growing rapidly in Vietnam. While the motorbike market has shrunk sharply, the number of electric motorbike manufacturers has increased due to the government’s support. • VinFast is a local brand and a new player in the market with 2 years of operation experience in electric motorbikes. It sold more than 100,000 units of electric motorbike in 2020, more than double the number in 2019. What an admirable performance!
Industry Focus
Overlook of 2021 and Future Prediction
The Future Motorbike Market in Vietnam
Vietnam's motorbike market in the first quarter of 2021 appeared a decline compared to the last quarter of 2020. In fact, the first quarter sales in 2021 were 777,638 units (2.0% lower than the 1st quarter of 2020 and 2.1% lower than the same period of 2019). However, the market trend reveals an immediate improvement in sales this year.
The two largest cities of Vietnam (Ho Chi Minh City and Hanoi) are considering banning motorcycling by 2030 to reduce traffic congestion, economic damage and environmental pollution. The move is expected to reduce the number of traffic accidents, contribute to the sustainable development of cities and improve the quality of life for residents.
Honda is the market leader in Vietnam as its sales in the 1st quarter of 2021 was 532,546 units (5.8% lower than the same period of 2020). Yamaha is the 2nd biggest brand in Vietnam as it sold 144,364 units in the 1st quarter of 2021 (0.8% lower than the same period of 2020). VinFast is the 3rd biggest player in Vietnamese motorbike market as it sold 29,018 units in the 1st quarter of 2021 (21.6% more than the same period of 2020).
Experts say the government's plan is to use more electric motorbikes in large urban areas, so that they will ban gasolinepowered motorbikes in cities. Therefore, it is predicted that more brands of electric motorbikes will take advantage of this opportunity to enter the market in Vietnam. Conquering Vietnamese market is their goal.
The revenue generated from the motorcycle market in Vietnam is projected to reach US$ 4.4 billion in 2021. The road motorbike is the largest segment in this market and the market value will be US$ 3.5 billion in 2021. The average price of a motorbike is expected to be about US$ 1,900 in 2021. Honda is expected to gain the highest motorbike market share in Vietnam with 76.4% of the total sales, and in terms of value, the market share of Honda is expected to be 81.5% in 2021.
Nowadays, about half a million units of electric motorbikes are sold annually in Vietnam (based on the statistics of 2020). Wellknown foreign brands such as Yadea from China (the world's largest seller of electric motorbikes) and MBI from South Korea have entered the Vietnamese market since late 2019, and VinFast (a local brand) will also speed up its transformation period (from petrol-fueled motorbikes to electric motorbikes). The annual revenue growth rate of the motorbike market in Vietnam is projected to be 3.33%, resulting in a projected market volume of US$ 5 billion by 2025. On the other hand, some analysts believe that the motorbike sales are expected to reach 3.5 million units in 2025 and more than 50% of the sales will be electric motorbikes.
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Exhibition
Fastener Fair USA Heads to Cleveland,
Ohio November 8-10, 2021
Huntington Convention Center Fastener World’s booth at 520
Conference and Trade Show Event to Feature Best Practices in Industrial and Supply Chain Management The 2021 Fastener Fair USA will include a dynamic, day-long educational program on November 8, and a productive, two-day expo geared to the entire fastener industry on November 9 and 10. Fastener Fair USA is the only exhibition in the U.S. dedicated to the full supply chain – distributors, mechanical and design engineers, purchasers, wholesalers and OEMs, and for 2021, an expanded emphasis on manufacturing. In October 2020, Fastener Fair USA and the International Fastener Machinery & Suppliers’ Association (IFMSA) entered a multi-year agreement to bring the International Fastener Manufacturing Exhibition to Fastener Fair USA beginning with the November 2021 show. From automotive to aerospace, construction to HVAC, furniture to appliances, fastener professionals from every segment of the market find the latest products they need at Fastener Fair USA and the manufacturing sectors it serves. Fastener Fair USA 2021 will produce a pre-show conference program on November 8, as well as technical sessions on the floor on products and processes impacting the industry. Key among these is a heightened interest among OEMs and distributors in sourcing fasteners and fixtures closer to point of use. The pandemic has complicated the global supply chain, and more firms are expected to examine the potential to source more of their fastener production and processing, like adhesive application and coating, closer to home, or in some cases, in house.
Cleveland, the Perfect Location “We’re excited to return to Cleveland, and present the most robust Fastener Fair USA yet,” said Bob Chiricosta, Event Director for Fastener Fair in the U.S. and Mexico. “Given Ohio’s renaissance in advanced manufacturing, Cleveland is the perfect setting for the next Fastener Fair USA.” The advancement of manufacturing in Ohio received a boost this past year. In September, the U.S. Department of Defense approved an US$5 million grant to improve defense manufacturing processes in Ohio and train workers for next-generation jobs. In August, Ohio was named a Defense Manufacturing Community, in a program designed to support investments that strengthen national security innovation and expand capabilities for defense manufacturing.
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Coordinating partners in the Defense Department initiative include regional business development organizations, including MAGNET, a Cleveland-based non-profit consulting group whose mission is to grow the manufacturing industry to help small and medium-sized companies transform with technology, innovation, and talent. Fastener World no.190/2021
Exhibition ASEAN leading exhibition organizer together with Japan External Trade Organization (JETRO) and Vietnam Trade Promotion Agency (VIETRADE), Ministry of Trade and Industry (MOIT) organized the virtual MOU Signing Ceremony within the scope of the annual international exhibitions: Vietnam-Japan Supporting Industries (SIE) and Vietnam Manufacturing Expo (VME). The event is organized with the aims to enhance the trading relationships between Vietnam and Japan enterprises in manufacturing, industrial and supporting industries and empower the competitive strengths for domestic manufacturing business to reach out the global markets. In addition, the Organizing Committee announces the opening of Vietnam Supporting Industries Forum 2021 under the theme “Integrating Vietnamese Business into Global Supply Chains: Challenges and Opportunities after Covid-19”.
and expansion of investment scale. According to a JETRO’s survey, about 50% of Japanese enterprises which are investing in Vietnam answered that they want to “expand business activities" in the next 1 to 2 years that make Vietnam in the top of ASEAN countries for investment. However, the difficulties still remain, in which the biggest challenge is the low rate of localization in raw materials, supplies and components of Japanese enterprises in Vietnam, over 37% of business want to enhance localization activities.
The remarkable 2021 is a milestone for domestic and international trading businesses to strongly transform with digital technology and bounce back after the pandemic via strategies for optimizing resources and expanding business connections. Together with challenges from the instability of worldwide economic, the effectiveness of new trade agreements such as EVFTA and UKVFTA, policies to support and encourage FDI from the Vietnamese government are expected to create potential investment opportunities and partnership for companies that are ready to catch up with market trends. Within the frame of references, Mr. Vu Trong Tai, General Manager, Reed Tradex Vietnam, representative of the Organizing Committee - VME 2021 shared: “Even during the pandemic, Vietnam continues to be recognized by major financial institutions with positive vibes, stable evaluation as an attractive destination in the China + 1 strategy of global enterprises. For foreign investors, Vietnam is still a potential market with many opportunities in manufacturing and supporting industries. Together with the partnership of Reed Tradex and JETRO, supported by VIETRADE, in 2021, it is the first time that the international exhibitions SIE & VME Exhibitions will be held in both onsite & online formats “double” the power of business matching to support industrial businesses with the access to new technologies and expanding trading networks between domestic and foreign enterprises, especially between Japanese and Vietnamese firms.” In the other hand, The Chief Representative of Japan External Trade Organization (JETRO) in Hanoi, Mr. Takeo Nakajima, commented: “At present, Japan's total investment turnover in Vietnam has ranked second over total investment in the country both in terms of project’s quantity and capital. From January to May 2021, the number of investment projects decreased by 30%, but the investment capital recovered 5 times due to the high rate of infrastructure projects
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For more information, please contact: Sophie Kim Thơ (E: tho.le@reedtradex.vn)
With the participation of exhibitors from more than 10 countries and over 100 brands of famous technology & machinery in international pavilions from Japan, USA, Korea, China, Taiwan, Singapore, Thailand, Germany, Russia, India, …The Vietnam Japan Supporting Industries Exhibition (SIE) and Vietnam Manufacturing Expo (VME) will be held from 15-17 September, 2021 online via VME website. Many activities will be held face-toface and virtual during the exhibitions to support businesses and visitors in connecting with agents, distributors and business partners. Besides, annual programs such as seminars, pre-show forums will be organized online. For more details about SIE & VME 2021, please visit: www.vme-expo.com
About Business Innovation Zone Since 06/2020, the Business Innovation Zone was kicked off by Reed Tradex to support both local and international enterprises, especially SMEs in 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, Reed 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.
Ryan Phan Vinh (E: vinh.phan@reedtradex.vn)
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Taiwan, Japan, Brazil
Industry Focus
Fastener Trade (2018 - H1 2021) Taiwan Import
HS 7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel
3-Year Comparison from 2018 to 2020 (in Descending Order According to Figures of 2020) YoY Ratio (%)
Partner
2018 (kg)
2019 (kg)
2020 (kg)
YoY Ratio (%)
Partner
World
16,228,660
18,374,272
16,597,504
-9.56%
World
152,356,212
Japan
5,534,740
6,248,319
5,923,341
-5.20%
Japan
65,320,339
2
China
3,034,870
3,672,525
3,647,936
-0.03%
USA
22,444,713
26,785,166
27,844,570
-0.91%
3
Vietnam
2,492,054
3,170,962
2,312,366
-27.08%
China
9,393,007
10,279,450
15,143,539
48.39%
4
Philippines
1,176,520
1,167,517
517,069
-55.71%
Germany
10,207,160
11,857,743
10,329,451
-13.79%
5
S. Korea
300,417
332,917
476,283
43.06%
S. Korea
4,692,658
4,113,424
5,660,405
37.61%
6
Germany
377,593
399,763
413,784
3.44%
Netherlands
3,004,484
3,392,145
4,058,735
19.63%
7
Thailand
354,386
321,688
395,728
22.67%
Vietnam
4,013,572
4,580,616
3,719,309
-18.80%
8
USA
302,901
351,534
389,272
10.26%
Switzerland
2,290,556
2,073,390
2,182,902
5.28%
9
Turkey
182,373
312,557
379,366
21.37%
Sweden
3,047,454
2,857,695
2,033,164
-28.85%
10
Netherlands
154,768
238,793
UK
1,296,907
1,582,266
2,017,286
27.24%
Rank 1
160,162 -32.93%
2018 (USD) 2019 (USD) 2020 (USD) 159,937,426 157,680,579 66,179,082
61,494,765
-2.28% -7.07%
H1 2020 vs. H1 2021 (in Descending Order According to Figures of H1 2021) Rank
Partner
H1 2020 (kg) H1 2021 (kg)
Partner
H1 2020 (USD)
25.19%
World
76,448,117
YoY Ratio (%)
H1 2021 (USD)
World
8,186,701
10,249,144
1
Japan
3,080,640
3,284,136
6.61%
Japan
29,813,387
39,970,665
34.07%
2
China
1,657,204
2,428,771
46.56%
USA
12,721,869
16,770,112
31.82%
3
Vietnam
1,083,556
1,578,411
45.67%
China
7,803,939
9,808,887
25.69%
4
Philippines
151,275
933,311
516.96%
Germany
4,365,074
6,756,746
54.79%
5
Thailand
124,580
254,944
104.64%
S. Korea
2,922,055
3,216,712
10.08%
6
S. Korea
271,149
253,485
-6.51%
Vietnam
1,908,984
2,848,462
49.21%
7
Germany
156,905
251,064
60.01%
Netherlands
1,890,239
2,552,074
35.01%
8
Turkey
256,302
193,799
-24.39%
Philippines
569,380
2,421,417
325.27%
9
USA
188,259
180,012
-4.38%
UK
708,425
1,350,659
90.66%
10
Sweden
69,959
90,722
29.68%
Switzerland
1,257,594
1,294,222
2.91%
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99,970,979
YoY Ratio (%) 30.77%
Industry Focus
Taiwan Export 3-Year Comparison from 2018 to 2020 (in Descending Order According to Figures of 2020) Rank
Partner World
2018 (kg)
2019 (kg)
2020 (kg)
1,595,705,450 1,479,292,223 1,363,248,785
YoY Ratio (%)
Partner
2018 (USD)
2019 (USD)
2020 (USD)
YoY Ratio (%)
-7.84%
World
4,638,685,129 4,316,380,032 3,969,360,344
-8.04%
1,775,046,209 1,751,810,124 1,689,801,153
-3.54%
1
USA
629,276,927
621,962,469
609,131,936
-2.06%
USA
2
Germany
155,300,468
132,505,809
116,637,180
-11.99%
Germany
453,134,133
392,118,297
340,191,792
-13.25%
3
Netherlands
92,492,281
80,348,283
67,226,720
-16.31%
Japan
230,517,250
241,272,905
209,498,781
-13.17%
4
Japan
69,039,707
72,771,839
63,283,611
-13.04%
Netherlands
261,652,295
227,785,981
195,105,056
-14.33%
5
Canada
60,651,391
51,295,923
45,368,429
-11.56%
UK
178,355,595
171,259,001
136,840,671
-20.10%
6
UK
59,378,375
55,620,928
41,692,178
-25.04%
China
143,940,786
114,145,687
129,131,272
13.13%
7
Poland
34,104,044
31,645,985
27,418,561
-13.36%
Canada
163,070,593
145,037,763
128,760,834
-11.22%
8
Italy
41,551,408
32,429,910
27,368,054
-15.61%
Sweden
98,766,182
94,555,904
85,303,928
-9.78%
9
Sweden
29,841,067
28,912,202
24,839,100
-14.09%
Mexico
94,925,177
97,384,603
77,878,026
-20.03%
10
China
24,331,806
20,276,785
24,079,023
18.75%
Italy
105,402,379
82,026,949
70,888,895
-13.58%
Fastener World no.190/2021
217
Industry Focus H1 2020 vs. H1 2021 (in Descending Order According to Figures of H1 2021) Rank 1
Partner
H1 2020 (kg)
H1 2021 (kg) YoY Ratio (%)
H1 2020 (USD)
Partner
World
658,879,841
787,411,864
19.51%
World
USA
291,603,356
348,811,369
19.62%
USA
H1 2021 (USD)
YoY Ratio (%)
1,898,882,436 2,450,022,276
29.02%
801,695,136 1,042,492,434
30.04%
2
Germany
55,604,757
62,793,374
12.93%
Germany
160,167,826
195,441,208
22.02%
3
Netherlands
31,630,390
42,198,275
33.41%
Netherlands
91,357,586
126,574,045
38.55%
4
Japan
34,269,835
32,107,521
-6.31%
Japan
112,401,390
112,373,667
-0.02%
5
Canada
20,384,194
29,656,296
45.49%
UK
65,932,233
93,978,802
42.54%
6
UK
20,102,973
28,881,528
43.67%
China
58,054,847
90,310,993
55.56%
7
Mexico
10,479,019
17,686,252
68.78%
Canada
58,226,726
87,166,786
49.70%
8
Italy
13,911,817
16,796,226
20.73%
Mexico
33,927,705
58,645,872
72.86%
9
China
10,376,336
16,695,721
60.90%
Sweden
41,823,025
54,355,251
29.96%
10
Poland
13,969,678
15,481,098
10.82%
Italy
35,549,774
46,846,757
31.78%
Source: Bureau of Foreign Trade (Taiwan)
Japan Import
HS 7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel
3-Year Comparison from 2018 to 2020 (in Descending Order According to Import Volume of 2020) Metric Tons Rank
Partner
1,000 Yens
2018
2019
2020
YoY Ratio (%)
2018
2019
2020
YoY Ratio (%)
World
333,108
348,661
297,917
-14.55
120,589,782
120,112,826
97,060,506
-19.19
1
China
216,254
221,268
194,047
-12.30
48,469,169
46,588,998
38,054,837
-18.32
2
Taiwan
72,278
74,664
66,154
-11.40
28,407,337
28,759,101
24,773,147
-13.86
3
S. Korea
14,775
25,336
12,839
-49.33
5,789,484
7,860,063
4,685,723
-40.39
4
Vietnam
11,731
11,163
11,839
6.06
3,387,791
3,443,248
3,247,338
-5.69
5
Thailand
5,889
5,457
4,645
-14.88
3,627,621
3,459,067
2,956,292
-14.53
6
Malaysia
4,604
3,657
2,533
-30.74
1,973,062
1,671,085
1,046,231
-37.39
7
Germany
1,332
1,349
1,032
-23.50
3,024,923
2,781,108
2,419,395
-13.01
8
USA
1,333
1,328
933
-29.74
17,586,698
18,214,622
13,396,617
-26.45
9
Australia
214
401
803
100.25
190,370
291,032
491,145
68.76
10
Indonesia
822
671
500
-25.48
747,327
624,023
431,798
-30.80
218
Fastener World no.190/2021
Industry Focus
H1 2020 vs. H1 2021 (in Descending Order According to Import Volume of H1 2021) Metric Tons Rank
Partner
H1 2020
H1 2021
1,000 Yens YoY Ratio (%)
H1 2020
H1 2021
YoY Ratio (%)
World
163,645
154,154
-5.80
53,307,006
52,789,187
-0.97
China
108,152
100,872
-6.73
20,956,139
21,584,659
3.00
2
Taiwan
35,753
32,582
-8.87
13,360,361
13,142,184
-1.63
3
South Korea
6,811
7,466
9.62
2,489,069
2,718,094
9.20
1
4
Vietnam
5,981
6,910
15.53
1,666,286
1,941,797
16.53
5
Thailand
2,532
2,055
-18.84
1,573,135
1,577,419
0.27
6
Malaysia
1,222
933
-23.65
508,682
439,829
-13.54
7
USA
531
638
20.15
1,224,461
6,102,618
398.39
8
Germany
505
572
13.27
8,061,746
1,371,759
-82.98
9
Australia
454
324
-28.63
282,367
257,529
-8.80
10
Indonesia
280
310
10.71
234,477
306,563
30.74
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219
Industry Focus
Japan Export 3-Year Comparison from 2018 to 2020 (in Descending Order According to Export Volume of 2020) Metric Tons Rank
Partner
1,000 Yens
2018
2019
2020
YoY Ratio (%)
2018
2019
2020
YoY Ratio (%)
World
376,145
338,616
279,577
-17.44
333,255,619
305,163,698
257,090,865
-15.75
1
China
89,764
78,914
84,221
6.73
78,634,130
71,463,784
74,397,136
4.10
2
USA
83,915
80,804
66,278
-17.98
74,276,199
73,501,386
61,504,586
-16.32
3
Thailand
52,768
45,554
32,210
-29.29
44,383,274
39,876,989
29,203,131
-26.77
4
Indonesia
30,455
25,738
13,283
-48.39
25,334,111
21,023,412
10,972,051
-47.81
5
Mexico
15,536
14,336
12,056
-15.90
13,144,879
12,523,841
10,613,230
-15.26
6
India
13,273
9,943
8,170
-17.83
11,765,238
9,327,437
7,805,556
-16.32
7
UK
11,632
9,100
6,177
-32.12
8,008,615
6,528,126
4,447,837
-31.87
8
Brazil
9,851
8,588
5,930
-30.95
7,427,164
6,173,937
4,597,655
-25.53
9
Turkey
6,665
5,917
5,153
-12.91
5,332,815
4,405,194
3,859,177
-12.39
10
Malaysia
5,760
5,672
4,512
-20.45
5,130,880
5,183,760
4,149,960
-19.94
H1 2020 vs. H1 2021 (in Descending Order According to Export Volume of H1 2021) Metric Tons Rank
1
Partner
1,000 Yens
H1 2020
H1 2021
YoY Ratio (%)
H1 2020
H1 2021
YoY Ratio (%)
World
127,535
174,893
37.13
119,193,201
160,622,450
34.76
China
35,801
46,919
31.05
32,422,616
41,915,175
29.28
2
USA
30,196
42,180
39.69
28,119,590
38,788,628
37.94
3
Thailand
14,613
22,385
53.19
13,611,301
19,957,316
46.62
4
Indonesia
8,118
9,910
22.07
6,847,023
8,190,267
19.62
5
Mexico
5,670
7,216
27.27
4,982,492
6,362,428
27.70
6
India
4,013
6,659
65.94
3,655,608
6,174,131
68.89
7
Brazil
2,966
4,654
56.91
2,360,073
3,575,288
51.49
8
U.K.
2,687
3,286
22.29
2,053,581
2,516,859
22.56
9
Malaysia
2,176
2,978
36.86
1,588,375
2,789,463
75.62
10
Turkey
2,167
2,660
22.75
2,273,844
2,081,701
-8.45
220
Fastener World no.190/2021
Industry Focus
Source: Ministry of Finance, Japan
Brazil Import
HS 7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel
3-Year Comparison from 2018 to 2020 (in Descending Order According to Figures of 2020) Partner
2018 (KG)
2019 (KG)
2020 (KG)
YoY Ratio (%)
2018 (US$ FOB)
2019 (US$ FOB)
2020 (US$ FOB)
YoY Ratio (%)
World
123,292,034
114,959,546
96,393,965
-16.15
648,742,258
590,527,630
474,232,850
-19.69
1
China
44,237,435
45,018,883
47,398,383
5.29
121,801,344
118,639,032
117,144,626
-1.26
2
USA
8,301,603
7,112,581
5,311,821
-25.32
91,721,428
90,805,045
74,741,939
-17.69
3
Japan
11,969,245
12,567,987
6,439,826
-48.76
76,353,804
70,152,664
50,589,453
-27.89
4
Germany
8,313,039
7,579,926
5,020,829
-33.76
75,407,856
70,658,088
49,658,606
-29.72
5
Taiwan
12,938,026
10,067,320
8,863,240
-11.96
39,233,139
32,208,728
26,170,865
-18.75
6
Italy
9,722,978
6,187,395
3,937,145
-36.37
55,768,923
36,164,478
26,130,323
-27.75
7
France
4,021,996
3,222,984
1,776,499
-44.88
36,707,910
33,315,010
21,120,192
-36.60
8
S. Korea
5,015,276
5,420,189
3,613,568
-33.33
25,387,542
26,505,450
16,778,777
-36.70
9
India
2,565,552
4,222,521
4,751,957
12.54
10,339,308
12,299,795
13,885,699
12.89
10
UK
702,681
620,760
824,494
32.82
8,780,294
9,438,011
10,245,445
8.56
Rank
Fastener World no.190/2021
221
Industry Focus H1 2020 vs. H1 2021 (in Descending Order According to Figures of H1 2021) Rank
1
Partner
H1 2020 (KG)
H1 2021 (KG)
YoY Ratio (%)
H1 2020 (US$ FOB)
H1 2021 (US$ FOB)
YoY Ratio (%)
World
58,245,176
90,906,706
56.08
330,120,156
434,774,553
31.70
China
23,554,627
43,810,194
85.99
61,473,991
95,975,419
56.12
2
USA
4,926,472
5,967,124
21.12
72,327,502
69,898,663
-3.36
3
Germany
3,460,060
5,025,005
45.23
31,431,060
46,892,917
49.19
4
Japan
4,858,568
5,947,114
22.40
35,718,916
44,173,290
23.67
5
Italy
3,608,983
7,504,328
107.93
20,813,971
42,894,076
106.08
6
France
1,350,007
1,503,612
11.38
16,471,681
18,785,233
14.05
7
Taiwan
4,611,721
5,141,559
11.49
18,192,853
17,083,847
-6.10
8
S. Korea
2,208,986
3,030,427
37.19
9,476,240
14,046,479
48.23
9
Sweden
899,800
1,603,246
78.18
7,366,558
13,507,637
83.36
10
India
2,984,560
3,158,181
5.82
8,153,903
9,789,498
20.06
Brazil Export 3-Year Comparison from 2018 to 2020 (in Descending Order According to Figures of 2020) Partner
2018 (KG)
2019 (KG)
2020 (KG)
YoY Ratio (%)
World
25,432,517
22,329,231
23,176,849
3.80
1
USA
2,265,250
2,438,889
2,134,365
-12.49
41,206,524
2
Argentina
9,219,473
8,011,757
10,553,234
31.72
27,686,444
3
Paraguay
5,059,103
3,997,950
4,212,001
5.35
4
France
1,014,741
644,262
462,338
5
Germany
1,340,192
810,435
6
Mexico
594,482
7
Chile
Rank
8
Uruguay
9
UK
10
Colombia
222
2019 (US$ FOB)
2020 (US$ FOB)
YoY Ratio (%)
148,564,500 180,726,436
129,207,220
-28.51
77,379,432
47,341,359
-38.82
21,638,852
23,367,086
7.99
11,703,049
9,222,881
9,174,626
-0.52
-28.24
8,194,419
7,715,397
6,053,469
-21.54
606,937
-25.11
8,483,953
5,788,623
4,556,664
-21.28
637,662
383,559
-39.85
5,368,961
6,420,788
4,145,272
-35.44
363,574
389,234
398,314
2.33
3,634,378
4,765,329
3,547,027
-25.57
1,151,947
937,654
1,163,475
24.08
3,194,424
2,619,460
2,754,061
5.14
65,874
118,278
30,644
-74.09
3,446,003
4,805,382
2,716,998
-43.46
276,956
398,550
298,073
-25.21
3,400,752
3,698,306
2,651,859
-28.30
Fastener World no.190/2021
2018 (US$ FOB)
Industry Focus
H1 2020 vs. H1 2021 (in Descending Order According to Figures of H1 2021) Partner
H1 2020 (KG)
H1 2021 (KG)
YoY Ratio (%)
H1 2020 (US$ FOB)
H1 2021 (US$ FOB)
YoY Ratio (%)
World
8,907,371
33,097,493
271.57
64,039,873
61,328,154
-4.23
1
Argentina
3,538,082
6,804,374
92.32
8,612,905
17,826,851
106.98
2
USA
1,013,182
1,287,588
27.08
28,528,144
11,151,965
-60.91
3
Paraguay
1,529,020
2,380,623
55.70
3,485,466
5,954,046
70.82
4
France
295,051
502,018
70.15
3,187,825
4,357,645
36.70
Rank
5
Germany
277,548
455,683
64.18
2,225,393
2,947,928
32.47
6
Mexico
185,744
236,856
27.52
2,391,254
1,782,442
-25.46
7
Uruguay
462,239
674,439
45.91
1,243,413
1,781,092
43.24
8
Bolivia
333,576
582,255
74.55
988,643
1,730,992
75.09
9
Chile
244,774
220,396
-9.96
2,283,130
1,563,840
-31.50
10
Colombia
165,034
131,803
-20.14
1,514,152
1,552,967
2.56
Source: Ministry of Economy, Brazil Fastener World no.190/2021
223
Technology
Protecting Fasteners from Corroding Part 1: Basics of Corrosion and
Protection Mechanisms
by Laurence Claus
The man walked to his tool box, selected the right sized socket and returned to the piece of machinery he was trying to repair. He stared for a moment at the nut he was trying to loosen. It was badly corroded but he had done this many times before. Carefully seating the socket fully on the nut he began to apply pressure. At first nothing happened but then he felt a tiny change in the resistance, reinvigorating his incentive to keep pushing on the bar. Just as he thought he had given it his all, a resounding loud snap occurred catapulting him and his tools forward as his efforts were no longer restrained by the once stubborn but now broken bolt and nut. Crashing into the floor, he yelped in pain and cussed his misfortune. For many of us the story of this unfortunate mechanic could be one of our own. Many of us have encountered a bolt, nut, or screw stubbornly corroded into place by the rigors of time and use. It is for this reason that fastener designers take great care when considering their product’s environment and choosing a material, plating or coating for the fasteners to protect them from deteriorating and reducing the life of their product. This first installment in a series on protective finishes for fasteners will introduce the different types of corrosion that may be experienced by fasteners and the mechanisms that protective coatings and platings employ to protect them.
What is Corrosion? Corrosion is the destructive alteration of metal by chemical or electrochemical reaction with its environment. Chemical attack can occur directly when a metal fastener comes in contact with a corroding chemical, such as occasionally happens with automotive battery hardware located on or near a leaking car battery. More often, however, fastener corrosion occurs as the result of a more indirect electrochemical reaction. Rusting of steel and galvanic corrosion are examples of this mechanism. Fastener corrosion is a little like tooth decay. It may begin very modestly but often accelerates and always has the effect of reducing the mechanical integrity of the joint in some fashion. In the most common scenario a fastener component begins to corrode, slowly reducing the mechanical integrity of the fastener until it no longer maintains the requisite strength to withstand the loads or demands being placed upon it and fails in overload. Although this is the most common progression of corrosion with fasteners, galvanic action can also corrode the surrounding joint material. Two other corrosion induced failures include stress corrosion, such as hydrogen embrittlement, and corrosion fatigue, where the site of the corrosion initiates a crack that progresses into a fatigue failure. Although it is rare, fastener materials that have not been properly selected for their service environment can result in direct chemical attack. This occurs when the fastener material is soluble in the corroding medium, such as when a plain steel bolt comes in contact with hydrochloric acid. Some examples of very harsh environments where designers have to keep this in-mind include petrochemical plants, sour gas oil wells, pulp and paper mills, and certain food processing plants. When these environments are known or predicted, it is important that the designer choose a fastener material that is impervious to the solvent, perhaps stainless steel or a nickel alloy. Another strategy might be to choose a coating that is impervious and can withstand contact with the solvent. Much more commonly, corrosion stems from an electrochemical mechanism. This corrosion occurs as a result of microscopic chemical reactions that are catalyzed by tiny, self-generated electrical current flow. For these processes to initiate there must be an electrode consisting of an anode (positively charged area) and a cathode (negatively charged area), an electrolyte (electrically conducting liquid or substance), and an electrical potential difference to trigger the beginning of a current flow and, thus, the start of the reaction.
224
Fastener World no.190/2021
Fig. 1
Rusting of Steel: Rusting of steel is perhaps one of the simplest electrochemical corrosion reactions. When a droplet of water lands on bare steel there are differences in the electrical state produced at the interface of the electrode (the bare steel) and the electrolyte (the droplet of water.) This difference in state triggers current flow, which starts the process. In the case of rusting steel, an oxidation reaction occurs at the anodic area and releases an iron ion into the electrolyte. Likewise, a reduction reaction at the cathodic region forms hydroxide ions from atmospheric oxygen that surrounds the water droplet. A third reaction now occurs inside the water droplet (the electrolyte) and the iron and hydroxide ion combine to form iron oxide or rust. The rust precipitates out onto the surface of the part. If the part stays moist, this process continues and parts can quickly be consumed with rust. The longer this is allowed to occur the more extensive those parts can be deteriorated. Fig. 1 illustrates a badly rusted fastener.
Technology Galvanic Corrosion: Another type of electrochemical corrosion is Galvanic Corrosion or what is often simply referred to as dissimilar metal corrosion. Like any electrochemical corrosion mechanism there must be an anode, cathode, electrolyte, and enough electrical potential differential to trigger current flow. The current is triggered when two different metals with different electrical potentials are put in contact with one another. When the two contacting materials are in the presence of an electrolyte and have a large enough electrical potential difference, an electrical current flow is triggered between the material acting as the anode and the one acting as the cathode. In this process the material acting as the anode is stripped of its atoms and begins to corrode. The stronger the galvanic coupling the faster and more aggressive this form of corrosion will be. Fig. 2 illustrates the Galvanic Series Table and can be used by fastener engineers and designers to minimize the risks of galvanic corrosion. In essence the two ends of this chart represent materials that behave like the anode (corroded material) or the cathode (protected material). The position on this chart represents the material’s electrical potential. The further apart two materials are on this chart the stronger a galvanic coupling of the two will be if they are brought into contact with one another. For example, the pairing of Magnesium and Platinum would not be a good one as they are at the far opposite extremes of the chart. However, pairing materials with similar electrical potentials (as noted by materials located in the same colored bands) may trigger little or no galvanic reaction. The extent of galvanic corrosion will depend on three things:
Anode (Corroded End)
• The magnitude of difference in electrical potentials – the further apart on the Galvanic Series Table two materials are the greater the anticipated extent of galvanic corrosion. For example an aluminum part coupled with a Type 316 stainless steel part is expected to experience considerably more effects of galvanic corrosion than the coupling of identical components made of steel and tin.
Magnesium Magnesium Alloys Zinc Aluminum
• The strength of the electrolyte- the more minerals (ions) in an electrolyte the better it is able to conduct electricity. Therefore, salt water is a much stronger electrolyte than deionized water. The stronger the electrolyte the more quickly galvanic corrosion will occur.
Cadmium Steel and Iron
Fig. 2 Galvanic Series Table
Cast Iron Lead
• The relative sizes of the contacting areas- the larger the cathode is relative to the anode, the faster and more severe the galvanic corrosion will be. Take for example placing one small aluminum fastener in a large stainless steel plate. Clearly these two materials are separated far apart on the Galvanic Series Table. The aluminum fastener is the anode and is small compared to the cathodic stainless steel plate. In this case, in the presence of an electrolyte, the aluminum fastener would be expected to corrode quickly. Now flip this scenario around and make the single small fastener stainless steel and the plate aluminum. There is still a dissimilar coupling which will trigger galvanic corrosion, but the size of the cathode relative to the anode is quite small so that the only corrosion we might expect would be localized to just around the contact edges of the fastener with the plate.
Tin Nickel Inconel Hastelloy Brass Copper Bronze Monel Type 304 Stainless (passivated) Type 316 Stainless (passivated) Silver Titanium Graphite Gold Platinum Cathode (Protected End)
Fretting Corrosion: One of the few corrosion mechanisms that occasionally impacts fasteners that is not chemical or electrochemical in nature is fretting corrosion. Fretting corrosion results when highly loaded contacting surfaces rub against one another abrading the protective layer away, and in the case of materials that rely on protective oxide films prevent their regeneration. Fasteners made of Stainless Steel, Aluminum, and Titanium are particularly susceptible to fretting corrosion because they rely on protective oxides. Areas where this may be of concern are in mating threads and the bearing surfaces underneath the nut or bolt heads.
Crevice Corrosion: Perhaps one of the most insidious forms of corrosion is Crevice Corrosion. Crevice Corrosion is a localized electrochemical form of corrosion initiated when different areas of metal are exposed to different concentrations of the same electrolyte. This occurs in crevices, internal corners, low points and openings, or any place that moisture, dirt, and other foreign matter can accumulate. Because the corrosion may be acting over a very localized section of the fastener, the resulting environment can be quite harsh and result in extreme, and often unnoticed, damage. Additionally these localized areas of corrosion can generate a significant amount of atomic hydrogen, which can be absorbed into a part and lead a susceptible one to a hydrogen assisted stress corrosion failure. Fastener World no.190/2021
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Technology I recall working on a case a number of years ago where a fastener was threaded into the end of a shaft. The manufacturer cleaned the shaft prior to assembly. During one production run they did not do a good job extracting the cleaning fluid from the threaded hole. When the fastener was threaded in, the presence of the cleaning fluid, a strong electrolyte, triggered a crevice corrosion event.
Pitting Corrosion: Pitting corrosion is a highly localized form of corrosion at the metal’s surface where a microscopic pit forms and grows through subsequent attack into a deeper and more noticeable defect. The good news is that although pitting can be unsightly, it rarely threatens the mechanical integrity of the parts like other corrosion types do. The mechanism is a little bit complicated but essentially occurs when a very small area becomes oxygen starved and turns anodic. An electrochemical process is triggered, a pit forms, and often deepens as further attack occurs.
Protection Mechanisms: Now that we have looked at the more predominant corrosion mechanisms in fasteners, how do fastener protection mechanisms work to protect parts from corrosion? In essence there are four protection mechanisms that can be employed singly or, perhaps, in combination. • Barrier- A barrier mechanism is one that does exactly as the word describes. It creates a shield (or barrier) that acts to keep the corroding substances away from the base metal. This mechanism works well as long as the barrier stays intact. Corrosion begins as soon as the barrier wears away or is damaged and exposes what is underneath. Perhaps the most common example of barrier coatings are painted surfaces. • Sacrificial (Galvanic) - A sacrificial mechanism is one that sacrifices itself before allowing base metal attack. Like barrier mechanisms, these are effective only to the point that the protective layer remains. As soon as it is used up and the base metal is exposed, corrosion will start. Zinc electroplating is a common example of a sacrificial mechanism. • Passivation- The outer layer is made inert so that it protects the surface from corrosion reactions. Stainless steel is an excellent example of one that relies on a protective oxide to protect the part. • Sel f-hea l i ng- Perhaps t he best characteristic for a protective finish is to have self-healing properties. This simply means that the protective layer is able to repair itself if it is damaged. This mechanism is prized because it is not all that common, but very effective when it exists. Once again, austenitic stainless steel is an example of a self-healing finish.
In Summary: Fasteners can be subject to a variety of different corrosion mechanisms. Designers must, therefore, understand what kind of corrosive circumstances their products might experience and take protective measures to either delay the inevitable or prevent it entirely. In the next segment in this series (Fastener World Magazine Jan. 2022 issue) we will look at electroplating and how it prevents fasteners from corroding.
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Industry Focus
The Impact of
Taiwan-USA TIFA on Taiwanese Fasteners by Dr. Arthur Hsu
Foreword The trade war between the U.S. and China in recent years still has not come to an end despite the inauguration of U.S. President Biden, while the trade partnership between Taiwan and the U.S. has become closer instead, with the bilateral trade value reaching over NT$ 2,430 billion every ye a r. Tr a d e a n d I nvest me n t Framework Agreement (TIFA) between Taiwan and the U.S. suspended in 2016 was resumed in the end of June, 2021 and was focused on deepening TaiwanUSA relationship and helping Taiwan quickly recover from the impacts of the pandemic. During the meeting, Taiwan expressed its will to sign the Taiwan-USA Bilateral Trade Agreement (BTA) and continue to reinforce bilateral interactions to deal with trade related issues. The difference between BTA and FTA is that: in order to facilitate economic integration and eliminate trade ba r riers, F TA requi res up to 90% of goods and service traded between two cou nt ries to be subject to 0% tariff, while BTA requires opening the domestic m a r k e t a n d r e m ov i n g m o s t barriers against imports & exports to offer each other favorable trade agreements. One of the TIFA resolutions includes that: in order to create a better future for Taiwan and the U.S., both
sides will make an effort to promote the free flow of necessary goods and accelerate the customs clearance procedure under the WTO framework. Fasteners are one of the major foreign exchange earning industries for Taiwan, and this industry is highly export-oriented with more than 90% of its fasteners for export (over 40% for the U.S.), so TIFA will cause a significant impact on Taiwanese fastener companies. In the future, how can Taiwan get more preferential taxes or tax-free benefits for its fasteners will become a critical issue. This article will explore the trade statistics between Taiwan and the U.S. in recent years, the impacts of TIFA on the industry, and some strategies for the industry to respond to it.
Taiwan-U.S. Fastener Trade in Recent Years Table 1 shows fastener trade between Taiwan and USA and that between Taiwan and the world in 2014-2020; in terms of import, in 2020 Taiwan imported NT$ 4.87 billion worth of fasteners from the world (with the 7-year CAGR at 1.25%) and imported NT$ 0.85 billion worth of fasteners from the U.S. (with the 7-year CAGR at 7.63%). The fastener import from the U.S. was around 1618% of Taiwan’s total fastener import from the world. There was not much fluctuation over the last 7 years, but the proportion was growing (at 6.3%) on the whole. In export, Taiwan exported NTD 122.23 billion worth of fasteners to the world in 2020, with a -0.90% CAGR for the last 7 years. Taiwan exported NTD 52.28 billion worth of fasteners to the U.S. in 2020, with a 1.71% CAGR for the last 7 years, slightly higher than the CAGR of export to the world. The proportion of fasteners exported to the U.S. grew from 37.0% in 2014 to 43.3% in 2020. The proportion of the U.S. market inched closer to 50%, and for the past 7 years the U.S. market has had a CAGR of 2.63%. It shows evidently increasing importance of the U.S. market to Taiwan, meaning that fasteners will be a critical product for Taiwan to seek tax exemption from the U.S. in future bilateral trade negotiation. Table 1. Fastener Import & Export Trend Between Taiwan and U.S./World Unit: NTD 100 Million; %
Year Taiwan's Import from the U.S. Taiwan's Import from the World Percentage of USA in Taiwan's Total Import Taiwan's Export to the U.S.
2014
2015
2016
2017
2018
2019
2020
CAGR
5.5
6.2
8.0
7.2
7.9
9.2
8.5
7.63%
45.2
43.9
44.1
42.3
49.5
52.1
48.7
1.25%
12.1% 14.1% 18.1% 17.1% 16.0% 17.7% 17.4%
6.30%
477.7
502.0
473.7
502.7
574.8
578.5
528.8
1.71%
Taiwan's Export to the World
1290.5 1296.3 1226.5 1307.4 1460.6 1394.4 1222.3 -0.90%
Percentage of USA in Taiwan's Total Export
37.0% 38.7% 38.6% 38.5% 39.4% 41.5% 43.3%
2.63%
Source: Taiwan Customs and trade data by Taiwan Institute of Economic Research
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Industry Focus Import of U.S. Fasteners into Taiwan in 2020 and Estimated Influence In terms of import, according to Taiwan and the U.S. customs as well as the data from WTO, Table 2 lists the fastener items imported from the U.S. into Taiwan. The tax for fasteners imported into Taiwan mostly ranges between 4% to 10%. There are only few of them that are tax free. The import values and proportions of the top 3 fastener products imported from the U.S into Taiwan in 2020 are: Steel screws and bolts (at NTD 313 million, making up 36.9%); steel threaded products (NTD 129 million, 15.2%); steel nuts (NTD 114 million, 13.5%). Overall, the value of import into Taiwan from the U.S. is low. If Taiwan and the U.S sign the trade agreement in which Taiwan reduces the tax on fasteners imported from the U.S., the annual tax income for Taiwan will decrease by NTD 42.39 million which should be tolerable. The primary American fastener companies are Illinois Tool Works (ITW), Precision Castparts, Alcoa, Acument, etc. Although the fasteners manufactured by these companies vary in types, the ones that Taiwan imports from the U.S. are mostly high-value and high-price fasteners, which helps Taiwanese high-end industries access components with fewer costs. Table 2. Import of U.S. Fasteners into Taiwan in 2020 and Estimated Influence
HS Code
Items
Import Proportion
Currency: NTD; %
Estimated Annual Tax Income for Taiwan (10 Thousand)
Taiwan Tax
Import Value (100 Million)
10.0%
0.04
0.4%
37.8
731600
Iron or steel anchors, grapnels and parts thereof
731700
Iron or steel nails, tacks and similar parts
0.0%
0.02
0.2%
0.0
731811
Iron or steel automotive screws
5.0%
0.01
0.1%
2.7
731812
Other wood screws made of iron or steel
5.0%
0.00
0.0%
0.0
731813
Iron or steel screw hooks and screw rings
5.0%
0.01
0.1%
4.6
731814
Iron or steel self-tapping screws
5.0%
0.06
0.7%
31.2
731815
Other iron or steel screws and bolts
5.0%
3.13
36.9%
1563.4
731816
Iron or steel nuts
5.0%
1.14
13.5%
570.6
731819
Other iron or steel threaded products
5.0%
1.29
15.2%
643.0
731821
Iron or steel spring washers and other locking washers
5.0%
0.19
2.3%
97.4
731822
Other iron or steel washers
5.0%
0.78
9.2%
390.4
731823
Iron or steel rivets
5.0%
0.15
1.8%
75.6
731824
Iron or steel cotters and cotter pins
5.0%
0.51
6.0%
254.1
731829
Other iron or steel non-threaded products
5.0%
0.58
6.8%
289.0
741510
Copper nails, tacks and similar parts
5.0%
0.00
0.0%
2.1
741521
Copper washers (including spring washers)
4.0%
0.06
0.8%
26.0
741529
Copper bolts, nuts and similar parts
4.0%
0.08
1.0%
33.3
741533
Copper threaded products including screws, bolts and nuts
4.0%
0.02
0.2%
8.1
741539
Other copper threaded products
4.0%
0.02
0.2%
7.0
761610
Aluminum bolts, nuts and similar parts
5.0%
0.37
4.3%
184.1
2.5%
0.00
0.0%
0.0
10.0%
0.02
0.2%
19.0
8.48
100.0%
4239.5
79070020 Zinc screws, nuts, bolts and similar parts 830820
Hollow rivets or cotter rivets made of base metals Total
Source: Taiwan Customs and trade data by Taiwan Institute of Economic Research
Export of Taiwan Fasteners to the U.S. in 2020 and Estimated Influence Regarding export, Table 3 lists the trend of Taiwan’s fasteners export to the U.S. and the estimated influence. The U.S. imposes a relatively larger range of tax between 0% to 12.5% on Taiwan’s fasteners, and there are six tax-free items under this category. There remain 16 items that should be proposed as exempted items in Taiwan's future negotiation with the U.S. The value and proportions of the top 3 fasteners exported from Taiwan to the U.S. in 2020 were iron or steel screws and bolts (at NTD 26.13 billion, making up 49.4%), iron or steel nuts (NTD 8.39 billion, 15.9%), and iron or steel self-tapping screws (NTD 8.16 billion,
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Industry Focus 15.4%). These three items make up a large proportion of Taiwan’s export value to the U.S. and the market share there, but only iron or steel nuts are entitled to tax reduction. If Taiwan and the U.S sign the trade agreement in which the U.S agrees to lower the tax on Taiwan’s fasteners, Taiwanese companies will have around NTD 2.3 billion less to spend on tax every year. In the give and take where Taiwan seeks tax reduction from the U.S., Taiwan should keep an eye that the proposed content of tax reduction should be better than the content of FTA which the U.S. signed with countries (such as South Korea) that rival with Taiwan, just in case that could put Taiwanese fastener companies on a weak spot in global competition. Table 3. Export of Taiwan Fasteners to the U.S. in 2020 and Estimated Influence Unit: NTD 100 Million; %
HS Code
Items
U.S. Tax
Export Value
Export Proportion
Estimated Tax Income for the U.S. (Tax Reduction for Taiwan)
731600
Iron or steel anchors, grapnels and parts thereof
0.0%
0.39
0.1%
0.00
731700
Iron or steel nails, tacks and similar parts
0.0%
17.95
3.4%
0.00
731811
Iron or steel automotive screws
12.5%
0.84
0.2%
0.11
731812
Other wood screws made of iron or steel
12.5%
33.98
6.4%
4.25
731813
Iron or steel screw hooks and screw rings
5.7%
0.12
0.0%
0.01
731814
Iron or steel self-tapping screws
7.0%
81.65
15.4%
5.72
731815
Other iron or steel screws and bolts
4.5%
261.30
49.4%
11.76
731816
Iron or steel nuts
0.0%
83.91
15.9%
0.00
731819
Other iron or steel threaded products
5.7%
8.19
1.5%
0.47
731821
Iron or steel spring washers and other locking washers
5.8%
1.24
0.2%
0.07
731822
Other iron or steel washers
0.0%
12.24
2.3%
0.00
731823
Iron or steel rivets
0.0%
4.72
0.9%
0.00
731824
Iron or steel cotters and cotter pins
3.8%
3.11
0.6%
0.12
731829
Other iron or steel non-threaded products
2.8%
7.49
1.4%
0.21
741510
Copper nails, tacks and similar parts
2.5%
0.14
0.0%
0.00
741521
Copper washers (including spring washers)
3.0%
0.21
0.0%
0.01
741529
Copper bolts, nuts and similar parts
3.0%
0.32
0.1%
0.01
741533
Copper threaded products including screws, bolts and nuts
2.3%
6.57
1.2%
0.15
741539
Other copper threaded products
3.0%
2.46
0.5%
0.07
761610
Aluminum bolts, nuts and similar parts
5.5%
1.65
0.3%
0.09
3.0%
0.00
0.0%
0.00
0.0%
0.33
0.1%
0.00
528.81
100.0%
23.04
79070020 Zinc screws, nuts, bolts and similar parts 830820
Hollow rivets or cotter rivets made of base metals Total
Source: Taiwan Customs and trade data by Taiwan Institute of Economic Research
The Give and Take in the Talks Before the Signing of U.S.-Taiwan BTA ●
Fastener Materials
Taiwan’s steel import has been tax free since 2004. The steel and aluminum which the U.S exports to Taiwan are tax free. However, the steel and aluminum exported from Taiwan to the U.S. is still subject to Section 232 on the U.S. side. Although Taiwanese officials have expressed concerns to the U.S. in the TIFA conference in June and hoped the U.S. would quickly re-examine Section 232 on a reciprocal basis to retract the tax on Taiwan’s steel exported to the U.S., there is only a small fraction of American steel and aluminum that constitutes the material source of Taiwan’s fasteners; therefore, the negotiation on fastener materials poses little impact on Taiwan’s fastener industry. ●
Fastener Products
Taiwan is one of the sources of fastener import for the U.S., and South Korea as a rival to Taiwan is the sixth largest source of fastener import for the U.S.. Therefore, Taiwan should make claims for a better FTA deal than South Korea’s in terms of the conditions for tax exemption during the negotiation. Further, Taiwan should seek exemption on products under the HS Code 7318 which are currently taxed at 5% by the U.S. Fastener World no.190/2021
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Industry Focus As an example, iron or steel screws and bolts (HS Code 731815) will be a critical item for seeking tax exemption from the U.S., and therefore, should be included into the first list of items for BTA negotiation to make for a higher price advantage for Taiwan’s high quality fasteners entering the U.S. market. Regarding less competitive Taiwanese fasteners, the value of fasteners that Taiwan imports from the U.S. is not much and therefore the U.S. would gain less benefits (NTD 42.39 million) from tax exemption on fasteners even if the U.S. were to ask for it. On the principle of fair trade, considering that the value that goes from Taiwan to the U.S. is much higher than the case vise versa, the whole situation will be favorable to Taiwan. The outcome of the give and take makes little impact on Taiwan’s fasteners. Additionally, it is worth mentioning the deployment of Taiwanese companies on distribution in the U.S. Brighton-Best International, a joint venture between Ta Chen International and Taiwanese steel companies (including Taiwan CSC, Fang Sheng Screw, Jinn Her Enterprise, etc.), acquired the once-top American alloy steel fastener distributor Brighton-Best, and then started global marketing under the brand called Brighton-Best International (BBI). In 2014, BBI became the largest standard fastener importer and distributor in the U.S., integrating the distribution of steel and fasteners in the the U.S. market. If Taiwan and the U.S. make it to sign the BTA, it will strengthen the combined synergy of Taiwanese companies’ manufacture and distribution in the U.S. market.
Business Opportunities for Taiwanese Companies in U.S. Trillion Infrastructure Plan, Evaluated on Fastener Unit Price Besides trading values, we can use average unit price as a precursor to evaluate bilateral fastener trade between Taiwan and the U.S. Table 4 and Table 5 show the import and export unit prices for Taiwan/U.S. bilateral trade. In terms of import, Taiwan imports fasteners from the U.S. at NTD 1,998.8 per kilogram, much higher than the average (NTD 231.5 per kilogram) of Taiwan’s import from the world. In terms of export, Taiwan exports fasteners to the U.S. at NTD 80.9 per kilogram, lower than the average (NTD 80.6 per kilogram) of Taiwan’s export from to the world. Therefore, Taiwanese fastener companies developing the U.S. market should not be complacent about themselves being the top import source for the U.S. They should think about ways to speed up progression towards high-value fasteners. Table 4. Average Import Price of the Top 3 American Fasteners Imported into Taiwan in 2020 HS Code
Product Name
Import Value (NTD)
Import Volume (Ton)
Average Import Unit Price (NTD)
7318159000
Other iron or steel screws and bolts
310 million
199.3 tons
NTD 1,533.3/kg
7318190000
Other steel threaded products
130 million
22.1 tons
NTD 5,820.5/kg
7318160000
Iron or steel screws and nuts
110 million
69.2 tons
NTD 1,649.8/kg
Taiwan’s import from the U.S. in 2020
850 million
424.1 tons
NTD 1,998.8/kg
Taiwan’s import from the world in 2020
4.87 billion
21,026.6 tons
NTD 231.5/kg
Source: Taiwan Customs and trade data by Taiwan Institute of Economic Research
Table 5. Average Export Price of the Top 3 Taiwanese Fasteners Exported to the U.S. in 2020 HS Code
Product Name
Import Value (NTD)
Import Volume (Ton)
Average Import Unit Price (NTD)
7318159000
Other iron or steel screws and bolts
26.13 billion
343 thousand tons
NTD 76.2/kg
7318160000
Iron or steel screws and nuts
8.39 billion
84 thousand tons
NTD 99.4/kg
7318140000
Self-tapping screws
8.17 billion
108 thousand tons
NTD 75.8/kg
Taiwan’s export to the U.S. in 2020
52.88 billion
654 thousand tons
NTD 80.9/kg
Taiwan’s export to the world in 2020
122.23 billion
1.42 million tons
NTD 80.6/kg
Source: Taiwan Customs and trade data by Taiwan Institute of Economic Research
The trillion dollar infrastructure plan after Biden took presidency makes for an important business opportunity for Taiwanese fastener companies to take a share in the U.S. market, given the backdrop of the U.S. policy to mitigate China’s influence. The traffic infrastructure will cost USD 621 billion, and electric vehicle related investment and demand will largely increase due to factors such as increased demand for charging stations, as well as the U.S. policy to prohibit Chinese EV makers from going public in the American soil. Taiwanese fastener companies see opportunities in the U.S. modern revamping of public transportation such as roads, bridges, railway and seaports. The infrastructure for the Internet, power water facilities will cost USD 311 billion. The construction of high-speed Internet, and the upgrade on power facilities and pipelines in the U.S. will provide opportunities for Taiwanese fastener companies. No matter how it goes for the U.S./China trade war and Taiwan/U.S. BTA, Taiwan must dedicate itself to upgrading down-stream metal industries such as fasteners and hand tools, and develop high value-add fasteners to improve industrial competitiveness. This will ensure Taiwan fastener industry can enhance its trading role in the U.S./ China trade war and continue to expand its share in the global market.
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Special Feature
Dr. Fastener: Questions on
Fastener Heat Treating 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:
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.
Q Are All Fasteners Heat Treated the Same Way?
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 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 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.
by Laurence Claus
Q What is Quench and Tempering?
A:
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: 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). 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 non-equilibrium 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. 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. Fastener World no.190/2021
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Special Feature Q Why do Some People Call
Q Why do Some People Call it Neutral
A:
A:
It Through 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.
Hardening?
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 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 What is Austempering?
A:
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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.
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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 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.
Special Feature Q How are Parts Surface Hardened?
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.
Q Is There a Difference Between Stress Relieving and Annealing?
A:
Yes. Stress Relieving processes parts 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:
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.
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. Fastener World no.190/2021
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NEW KSP12-R Double Blow header with threading unit All In One www.sacmagroup.com
Sacma is introducing the new combined header model KSP12-R
ALL-IN-ONE to run fasteners from M3 to M8 with max. shaft length 60 mm. The KSP12-R combines typical SACMA solutions, proven by thousands of machines, with the most advanced mechatronic technology available in the market. The one-piece main frame, cast perlitic iron, normalized, natural aged for at least 12 months, high precision machined, is a guarantee of rigidity and stability for all the machine life. Major set up adjustments are now motorized for a quick and friendly changeover: S-feed wire feeder driven by torque motor, motorized wire stock gauge and DKO, threading starter driven by torque motor with self-learning function borrowed from Ingramatic rollers. The quality management is facilitated by two gates interfaced with the load monitoring system and discharging NC parts respectively after the header and after the roller. An optional sophisticated load control system is protecting the machine against overloads and is sizes are available when producing self-tapping screws. All those features make the KSP12-R the best value for Customer’s investment, especially when running parts traditionally by a line of connected machines. The high productivity ALL-IN-ONE allows to quick return and the legendary long life guarantees future profits. Ask for more information to : info@sacmalimbiate.it
Sacma Machinery Taiwan
No. 519, Qiaoxin 3rd Rd. • Qiaotou Dist. • Kaohsiung City Taiwan (R.O.C.) • Ph. +88 6905 902 872
Sacma Limbiate S.p.A.
Viale Dei Mille 126-128 • 20812 Limbiate (MB) • ITALY Ph. +39 0299 4521 • info@sacmalimbiate.it
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Special Feature
The new 13,553 sqm plant which Jern Yao i n ve st e d N T $ 0 . 4 b n i n e st a b l i s h i n g w a s inaugurated, making Jern Yao the largest cold forged parts formers manufacturer in Taiwan with the highest sales value at that time.
Sep. /2007
2007/11/29-30
Taiwan Fastener Trading Association held the annual member meeting and invited the then TFTA Chairman Bruce Sun, NFDA President Joel Roseman, EFDA President Bernhard Berrang and Secretary General Bernd Stapt to give speeches. The golf outing and new TFTA Chairman inauguration ceremony were also given.
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Hsiang Hsing Screw Bolt inaugurated a 2,314 sqm new plant and introduced more secondary processing machines for marching toward the production of customized and high value-added products.
Dec. /2007
Fu Hui invested NT$26 million in establishing a new office building. With years of technology and customized R&D capabilities, Fui Hui's special screws have been favored by many international distributors and leading companies.
Taiwan Industrial Fasteners Institute held the annual member meeting at Grand Hi-Lai Hotel, Kaohsiung. During the event, the EU's AD investigation against Chinese fasteners and the upgrade & transformation of Taiwanese suppliers became the main focus of discussion.
2007/12/14
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Special Feature Linkwell Industry celebrated its 30th anniversary and gave the “30th Years' Milestone” yearend gala event at Tainan Tayih Landis Hotel with the performance of foreign girl dancers, staff cosplay, and U.S. magic show that turned the atmosphere of the event jazzy.
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Jan. /2008
Special Feature Feb. /2008 TFTA held its new year networking banquet at Kaohsiung Grand Hotel. Lots of association members around Taiwan gathered together to exchange and interact with each other.
2008/03/07
Chun Zu celebrated its 35th anniversary milestone and concurrently held its new machine models release and office building inauguration ceremony.
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Special Feature 2008/04/09-12 NFDA celebrated its 40 th anniversary at its annual spring meeting, held in Scottsdale AZ at the Camelback Inn from April 9-12. The then TFTA Chairman David Horng and TFTA Chairman of International Committee Steven Fang were also invited as guests.
May /2008
Hsien Sun Industry inaugurated its new Yongkang, Tainan-based plant, entering the market of low-volumeand-diverse customized products to seek more business opportunities.
May /2008 Min Kuan inaugurated its new 6,610 sqm plant, which it invested NT$0.12 bn in establishing and introduced standard operating procedures that boosted its overseas sales.
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PTC Asia was given at Shanghai New International Expo Center. Around 2,000 exhibitors gathered under one roof to present to visitors their latest power transmission and logistics products, high-end technology and development trend.
2007/10/10
International Wire, Cable, Tube and Pipe Trade Fairs for Southeast Asia was held at BITEC, Bangkok, attracting 7,038 traders from more than 60 countries to visit. Over 33% of these traders were from China, India, Malaysia, Singapore, Vietnam, Indonesia, S. Korea and the Middle East.
2007/10/16-18
The biennial Korea Metal Week was open with 5 thematic halls, which attracted 226 companies from 15 countries to exhibit.
2007/10/24-28 2007/11/13-14
National Industrial Fastener Show/ West was held at the Mandalay Bay Hotel. The net floor area of the show was about 84,000 sqm. Around 700 exhibitors from 14 countries (incl. 72 Taiwanese exhibitors) attended the show, making it one of the largest fastener trade shows in the world.
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Special Feature 2008/03/18-21 The 6th FASTTEC was held at Sokolniki Culture and Exhibition Centre. Exhibits included various fasteners and related machines. FASTTEC was the only professional fastener trade event in Russia at that time.
The world's largest and leading trade event, "Wire & Tube", was given at Messe Düsseldorf, attracting the participation of 2,157 exhibitors (incl. 20 Taiwanese companies represented by Fastener World). During the 5-day event, 73,600 visitors from 90+ countries came to interact and socialize with each other. The biennial Practical World-International Hardware Fair was held at Koelnmesse fair grounds. The Fair was the world's largest hardware, hand tools, and DIY application trade fair. 97 Taiwanese fastener exhibitors represented by Fastener World in the year were also one of the “must-visit” at the Fair.
2008/03/31-04/04 Apr. /2008
The Moscow's largest and annual building materials & hardware show, MosBuild, took place at Moscow Expocentre. 5 Taiwanese hardware and fastener companies also went to exhibit to look for business opportunities of entering the Russian market.
2008/04/01-04
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