Fastener World no.204/2024 003
005 Fastener World no.204/2024
Fastener World no.204/2024 007
008 Fastener World no.204/2024
010 Fastener World no.204/2024
011 Fastener World no.204/2024
012 Fastener World no.204/2024
014 Fastener World no.204/2024
016 Fastener World no.204/2024
020 Fastener World no.204/2024
022 Fastener World no.204/2024
023 Fastener World no.204/2024
Fastener World no.204/2024 025
026 Fastener World no.204/2024
027 Fastener World no.204/2024
028 Fastener World no.204/2024
029 Fastener World no.204/2024
030 Fastener World no.204/2024
Fastener World no.204/2024 031
Fastener World no.204/2024 035
Fastener World no.204/2024 037
038 Fastener World no.204/2024
040 Fastener World no.204/2024
042 Fastener World no.204/2024
Fastener World no.204/2024 043
044 Fastener World no.204/2024
046 Fastener World no.204/2024
048 Fastener World no.204/2024
050 Fastener World no.204/2024
051 Fastener World no.204/2024
054 Fastener World no.204/2024
Fastener World no.204/2024 055
Fastener World no.204/2024 057
058 Fastener World no.204/2024
Fastener World no.204/2024 059
060 Fastener World no.204/2024
Fastener World no.204/2024 061
Cover Story
Sheh Fung Screws Now in Vietnam
“5 Arrows” Targeting New Heights Via High Value-adds
T
he new year kicks off with Sheh Fung announcing anticipated news to global buyers! The company, topping the industry as a major fastener player with exclusive painting craftsmanship, spent NTD 1.2 billion on a new plant in Vietnam which broke ground at the beginning of Dec., 2022 and was founded at the end of 2023. The plant spans 200,000m2 and 25% of the area is in use in phase 1. It will start production officially from Jan., 2024, and is expected to utilize the area in full in 5 years. Fastener World brings you the latest development with our interview with General Manager Kent Chen from the headquarters and Manager Mr. Sosa Yang from the Vietnam plant. So why in Vietnam? Kent laid out 4 reasons. First, he sees the value that Formosa Ha Tinh Steel Corporation, now mass-producing steadily in Vietnam, sources steel and technology from Taiwan CSC. “Prosperous local proliferation of industrial products will not do without a premium steel plant. Wherever a good steel plant is at, fasteners follow— that will be the future for Southeast Asia,” said Kent. Second, Vietnam can provide a larger manufacturing area, enabling higher flexibility for future business deployment. Third, Vietnam has a young and active population. Fourth, the EU-Vietnam Free Trade Agreement (EVFTA) allows products going from Vietnam to EU at zero tariff and will be a niche for Sheh Fung.
200,000 m 2
Initially, the new plant will reach 600 to 800 tons in monthly capacity and have 150 employees, equipped with 80 pieces of equipment handling heat treatment, electroplating, painting and more. Additionally, it is located in Phan Thiết City of Bình Thuận Province, 180 kilometers from Ho Chi Minh City, a 2-hour drive via highway, providing convenient access to traffic. Sosa pointed out that the Vietnam plant and Taiwan headquarters have different market positioning. Broadly speaking, the Vietnam plant extends from Taiwan headquarters to be a production base; the headquarters will essentially take orders. In detail, the Vietnam plant will specifically manufacture wood screws and self-drilling screws in phase 1, then introduce wire drawing lines in phase 2, manufacture automotive fasteners in phase 3, with other fastener types to be planned onwards. Further, the target clients are different. The Vietnam plant by design provides price-competitive as well as high quality products. Sheh Fung sketched out “5 Arrows” to launch business growth for the Vietnam plant.
“5 Arrows” for Vietnam Plant’s Business Growth ⁄⁄⁄⁄⁄ Vietnam plant spreads out geopolitical risks and a full-fledged Vietnam regional economic and trade agreement helps attract orders and deploy in markets
064
Fastener World no.204/2024 惠達雜誌
Cover Story The Vietnam plant was planned 3 years before COVID outbreak and geopolitics wasn’t much of a sensitive issue back then. Then, its founding at the end of 2022 coincided with heightened tension in Asia. Kent thinks it will bring critical growth momentum and advantages for the Vietnam plant. “The plant appears when clients long for Taiwanese suppliers to add overseas plants,” said Kent, “If there’s an overseas production base outside of the supply chain in Taiwan, it will boost confidence in placing orders to us and clients will be more willing to include us as part of their strategy planning.” Besides, thanks to EVFTA, the Vietnam plant can export to Europe at zero tariff. Additionally, in contrast to the fact that Canada currently imposes anti-dumping tariff on Taiwan, the fastener trade between Vietnam and Canada is subject to no tariff, thereby providing advantages for the Vietnam plant.
⁄⁄⁄⁄⁄ Increase expenditure and capacity to strengthen economies of scale
Opposite to the headquarters providing low-volume and diverse products, the Vietnam plant’s production line is designed to mass-produce in low diversity. Utilizing mass-production in the initial phase in a new market like Vietnam can boost the plant’s momentum, Kent explained. Therefore, Sheh Fung introduces a lot of equipment and local talents to the plant to expand capacity and strengthen economies of scale. The plant will rise into one of the key fastener manufacturing hubs in Southeast Asia.
⁄⁄⁄⁄⁄ One-stop Production and High Valueadd Coated Screws
The Vietnam plant combines production, post-processing, quality check, labor,” said Kent. He figures labor costs in Vietnam packaging and provides global buyers with one-stop manufacturing process and will rise in the future, so he thinks all Vietnamese world-class service. On another note, Kent observed the fact that Vietnam is factories will have to integrate IoT to optimize mostly constrained to producing low-end products, but he wants to provide production lines and manpower, and improve labors’ high value-add coated products. To that, the plant is added with coating technical skills to cope with cost uptrends. equipment. “We don’t want clients to have the impression that the Vietnam ⁄⁄⁄⁄⁄ Pioneer Strategy— Creating Sheh plant only produces low-end products. Our message to global buyers is that this plant will be able to produce the same level of products as with Fung’s “Satellite Plants” our headquarters. By the way, for anyone demanding a specific size at The Vietnam plant will replicate Taiwan fastener supply large volume, this plant can handle your needs,” said Kent. chain. Kent is inviting collaborators interested in tapping
into Vietnam to form satellite plants within the Vietnam plant. Sheh Fung will offer collaborators the land, information, fund Kent is planning to make this plant unmanned and introduce arrangements, and factory construction permit handling, to switch automated guided vehicles (AVG), which is on trial test. “I’m from outsourcing to in-plant production and help collaborators going for IoT which I have introduced in some parts of the connect with the world. “We have many partners in Taiwan who headquarters. I’m also using IoT to make the Vietnam plant may want to go in Vietnam. I want to give them a platform to build efficiency-optimized and use automation to optimize their own plants within our Vietnam plant area. I hope I will be able manpower deployment. Now China pays employees higher to help them and in turn help ourselves. Like Taiwan with the world’s than Taiwan does. If we don’t upgrade and transform and most complete fastener supply chain, Sheh Fung will build its own valuedeploy for our plants, at the end of the day we’d still have to added supply chain. If this replication is successful, I’m looking forward put a plant in another country and face the same problems. to seeing Taiwan fastener industry bloom and shine in Vietnam!” We can’t base production strengths solely on cheap
⁄⁄⁄⁄⁄ Industry 4.0, unmanned factory and AVG
CBAM in Pilot Phase and Sheh Fung is Ready now! Sheh Fung launched carbon inventory 2 years ago and set up a CBAM workforce to track information from EU and provide required data. Kent said: “The SAP system we use helps a lot in this field. We can quickly export carbon emission data and table templates from the system to EU CBAM declarants. It lightens our burden and we can effectively offer overseas buyers real-time and accurate information. CBAM comes on short notice but we have acted early and have no problem with it.”
Contact: Sales Assistant VP, Rita Su Email：rita_su@shehfung.com
Moreover, Sheh Fung has been verified by a 3rd-party and will work with EUdesignated verification bodies in the future. It will also apply for becoming a “voluntary declarant” under EU regulation compliance to provide EU with related information. It is 100% ready for the future global carbon reduction economy and will become the top partner for global buyers! Copyright owned by Fastener World / Article by Dean Tseng
惠達雜誌 Fastener World no.204/2024
065
066 Fastener World no.204/2024
Fastener World no.204/2024 067
issue 204 Jan./Feb. 2024
103
A 156
B
C 247
CHAO JING PRECISE MACHINES ENTERPRISE Cold Forging Bolt Formers, Thread Rolling Machines...
朝璟
189
CHI NING COMPANY LTD. Machine, Nuts, Tooling...
旗林
48
CHIAN YUNG CORPORATION SEMS Screws
將運
98
CHIEH LING SCREWS ENTERPRISE CO., LTD. Screws, Nuts, Hexagon Keys, Lug Wrenches, Rivets...
捷領
253
CHIEN TSAI MACHINERY ENTERPRISE CO., LTD. Thread Rolling Machines
鍵財
78
CHIN LIH HSING PRECISION ENTERPRISE Automotive Nuts, Brass Inserts, Bushes, Bushings...
金利興
Inside front cover
CHIN TAI SING PRECISION MANUFACTORY Self-clinching Nuts, Brass Inserts...
金泰興
244
CHING CHAN OPTICAL TECHNOLOGY CO., LTD. 精湛 Eddy Current Sorting Machines, Fastener Makers...
22
CHONG CHENG FASTENER CORP. Cap Nuts, Coupling Nuts, Conical Washer Nuts...
宗鉦
122
CHUN YU WORKS & CO., LTD. Drywall Screws, Socket Head Cap Screws , TC Bolt Sets...
春雨
179
CHUNGHO FASTENER CO., LTD. 鍾和 Customized Fasteners, Multi-Forming Screws, CNC Turning Parts...
185
CONTINENTAL PARAFUSOS S.A. 巴西商友暉 Automotive Part & Nut, Home Appliance Screws, Sems...
145
COPA FLANGE FASTENERS CORP. Hex Nuts, Hex Flange Nuts, Combi Nuts, Weld Nuts...
國鵬
90
CPC FASTENERS INTERNATIONAL CO., LTD. Stainless Steel, Bi-metal Self-drilling Screws...
冠誠
25
DA YANG ENTERPRISE CO., LTD. Special Automotive Nuts, Special Weld Nuts...
大楊
138
DAR YU ENTERPRISE CO., LTD. Chipboard Screws, Drywall Screws, Screw Nails...
達宇
144
DE HUI SCREW INDUSTRY CO., LTD. 德慧 Drywall Screws, Decking Screws, Self-drilling Screws, Roofing Screws...
21
DIN LING CORP. Chipboard Screws, Drywall Screws, Furniture Screws...
登琳
79
DRA-GOON FASTENERS INC. Chipboard Screws, Phillips Head Screws, TEK Screws...
丞曜
118
DUNFA INTERNATIONAL CO., LTD. Bushes, Spacers, Automotive Parts, Tubes, Turning Parts...
敦發
E 161
EASON TECH INDUSTRIAL CO., LTD. Spring Pins, Cage Nuts, Clip Nuts, Retaining Rings...
鈺森
F
52
FAITHFUL ENGINEERING PRODUCTS CO., LTD. Anchors, Box Nails, Door/Window Accessories...
誠毅
58
FALCON FASTENER CO., LTD. Automotive & Motorcycle Special Screws / Bolts...
鉮達
6
FANG SHENG SCREW CO., LTD. Shoulder Bolts, Button Head Socket Cap Screws..
芳生
59
FASTENER JAMHER TAIWAN INC. Automotive Nuts, Blind Nuts / Rivet Nuts, Bushings...
占賀
CHAN CHANGE MACHINERY CO., LTD. 長薔 Screw Head Machines, Bolt Former, High Performance Former...
44
FASTNET CORP. Dowel Pins, Flange Nuts, Weld Nuts, 4 Pronged T Nuts...
俊鉞
彰濱
80
FONG PREAN INDUSTRIAL CO., LTD. 豐鵬 Automotive Screws, Bi-metal Screws, Brass & Bronze Screws...
310EXPRESS COMPANY (Japan) Security, Tamper Proof, Anti-theft Screws... A-PLUS SCREWS INC. Chipboard Screws, Customized Special Screws / Bolts...
167
A & M PRODUCTS CO., LTD. Automotive Fasteners...
奕瑞
280
ABC FASTENERS CO., LTD. Drop-in Anchors, Expansion Anchors, Wire Anchors...
聯欣
88
ACHILLES SEIBERT GMBH (Germany) Tapping Screws, Drilling Screws, Thread Rolling Screws...
84
AEH FASTEN INDUSTRIES CO., LTD. Clevis Pins, Dowel Pins, Hollow Rivets...
31
ALEX SCREW INDUSTRIAL CO., LTD. 禾億 Button Head Cap Screws, Button Head Socket Cap Screws...
82
AMBROVIT S.P.A. (Italy) Chipboard Screws, Combined Screws, Machine Screws...
206
AMPLE LONG INDUSTRY CO., LTD. Hollow Rivets, Drive Rivets, Semi-tubular Rivets...
250
AN CHEN FA MACHINERY CO., LTD. 安全發 Straight Line Wire Drawing Machines with Computer Control...
290
ANCHOR FASTENERS INDUSTRIAL CO., LTD. ETA Series, Anchor Bolts, Anchor Nuts, Automotive Parts...
安拓
67
APEX FASTENER INTERNATIONAL CO., LTD. Nuts, Wing Nuts & Bolts, Turning Parts, Stamping Parts
嵿峰
120
ARK FASTECH CORP. Multi-Station Cold Forging Bolts / Nuts...
方舟
85
ARUN CO., LTD. Bi-metal Screws, Chipboard Screws, Drywall Screws...
鉅耕
101
ASCCO INTERNATIONAL CO., LTD. 今大唯 Chipboard Screws, Drywall Screws, Wood Screws, Tapping Screws...
94
AUTOLINK INTERNATIONAL CO., LTD. Automotive Screws, Machine Bolts, Flange Nuts...
鉞昌
寬長
浤爵
93
BCR INC. Automotive Screws, Piston Pins, Weld Bolts (Studs)...
必鋮
217
BEAR FASTENING SOLUTIONS, INC. IFI, DIN, ISO, JIS standard, Drywall Screws, Decking Screws
雄益
177
BEST QUALITY WIRE CO., LTD. Stainless Steel, Carbon Steel, Alloy Steel Wire…
上冠品
124
BESTWELL INTERNATIONAL CORP. Eye Bolts, Flanged Head Bolts, Hanger Bolts...
凱壹
248
BIING FENG ENTERPRISE CO., LTD. Blind Nut Formers, Multi-station Cold Forming Machines...
秉鋒
32
BI-MIRTH CORP. Carbon Steel Screws, Chipboard Screws, Concrete Screws...
吉瞬
191
BOLTINOX INDUSTRIAL CO., LTD. new 鉑鴻 Stainless Steel Solar Roof Hook, Hanger Bolts, Bolts, Nuts, Screws...
4
BOLTUN CORPORATION Automotive Screws, Bushes, Conical Washer Nuts...
恒耀工業
199
BULLS TECHNOLOGY CO., LTD. Screw/Shoulder Bolt, Nut / Bushing, Open Die Parts...
波爾澌
C 254 200
CHANG BING ENTERPRISE CO., LTD. Hook Bolts, Holders / Hooks / Rings, Dowel Screws...
D
F 195
H
87
HWALLY PRODUCTS CO., LTD. Drop-in Anchors, Chipboard Screws, Anchors...
I
235
INFINITOOLS CO., LTD. 勝邦 Hand Tools, Construction Tools, Car Maintenance, Plumbing Tools
249
INFINIX PRECISION CORP. Customized Punches and Dies
92
INNTECH INTERNATIONAL CO., LTD. 建豪 All Kinds of Nuts, All Kinds of Screws, Automotive Special Screws...
10
J.C. GRAND CORPORATION All Kinds of Screws, Chipboard Screws...
46
JAU YEOU INDUSTRY CO., LTD. 朝友 Chipboard Screws, Drywall Screws, High Low Thread Screws...
288
JERN YAO ENTERPRISES CO., LTD. Multi-station Cold Forming, Parts Forming Machines...
正曜
20
JET FAST COMPANY LIMITED Blind Nuts / Rivet Nuts, Aircraft & Aerospace Washers...
捷禾
皓正
258
JIE LE MACHINERY CO., LTD. Consolidation of Artificial Intelligence Equipment
捷仂
173
HARVILLE FASTENERS LTD. 豪威爾 Special Screws and Bolts, Sems Screws, Stainless Steel Fasteners...
209
JIEN KUEN ENTERPRISE CO., LTD. Hexagon Nuts, Nylon Cap Insert Lock Nuts, Square Nuts...
健坤
213
HAUR FUNG ENTERPRISE CO., LTD. 豪舫 External Tooth Washers, Long Carriage Bolts, Roofing Bolts...
154
JINGFONG INDUSTRY CO., LTD. Hex Nylon Insert Lock Nuts, Wing Nuts with Nylon Insert...
璟鋒
158
HEADER PLAN CO. INC. Chipboard Screws, Collated Screws, Deck Screws...
47
JOKER INDUSTRIAL CO., LTD. Hollow Wall Anchors, Concrete Screws, Jack Nuts...
久可
148
HEY YO TECHNOLOGY CO., LTD. Precision Pins, Rollers, Dowel Pins...
192
HISENER INDUSTRIAL CO., LTD. 海迅 Wood Construction Screws, Chipboard Screws, Drywall Screws...
97
HOSHENG PRECISION HARDWARE CO., LTD. Auto Parts, CNC Machined Parts, Bolts...
56
HSIN JUI HARDWARE ENTERPRISE CO., LTD. 欣瑞 Bushes, Construction Bolts, Special Cold / Hot Forming Parts...
153
HSIN YU SCREW ENTERPRISE CO., LTD. Acme Screws, Hexagon Head Cap Screws...
新雨
L 108
45
HU PAO INDUSTRIES CO., LTD. Automotive Nuts, Flange Nuts, Hexagon Nuts...
如保
194
FONG WUNS CO., LTD. Flange Nuts, Stainless Steel Nuts, Special Parts...
鋒汶
49
FORTUNE BRIGHT INDUSTRIAL CO., LTD. Cap Nuts, Dome Nuts, Nylon Cap Insert Lock Nuts...
鋒沐
76
FU HUI SCREW INDUSTRY CO., LTD. Automotive & Motorcycle Special Screws / Bolts...
福輝
143
FU KAI FASTENER ENTERPRISE CO., LTD. Precision Electronic Screws, Special Screws, Weld Screws...
福凱
130
FUSHANG CO., LTD. Carbon Steel Screws, Chipboard Screws, Concrete Screws...
甫商
GIAN-YEH INDUSTRIAL CO., LTD. Rivet Dies, Self-drilling Screw Dies, Screw Tip Dies...
健業
G 252 230
GINFA WORLD CO., LTD. 濟音發 Chipboard Screws, Countersunk Screws, Drywall Screws...
261
GREENSLADE & COMPANY, INC. (USA) Concentricity, Ring Gage, Plug Gage Calibration, Gages...
H 139
HAO CHENG PLASTIC CO., LTD. PP Boxes, PET Jars, ABS Boxes, PC Boxes..
J
樺麟
英飛凌
俊良
恆勇
和昇
K 175
KAN GOOD ENTERPRISE CO., LTD. 鋼固 Fastener, Hardware, Plastic, Instruction Booklet Package in Bags... 慶宇
141
KING CENTURY GROUP CO., LTD. Drop-in Anchors, Self-drilling Anchors, Sleeve Anchors...
74
KWANTEX RESEARCH INC. 寬仕 Chipboard Screws, Wood Construction Screws, Deck Screws... L & W FASTENERS COMPANY Construction Fasteners, Flat Washers, Heavy Nuts...
金大鼎
LI YOU SCREW INDUSTRY CO., LTD. Automotive / Sems / Nylock / CNC Machined Screws...
立侑
issue 204 Jan./Feb. 2024
L
M
N
P
211
LIAN CHUAN SHING INTERNATIONAL CO., LTD.連全興 Weld Nuts, Special Parts, Special Washers, Flat Washers...
S 278
282
LIAN SHYANG INDUSTRIES CO., LTD. Nut Formers, Nut Tapping Machines
連翔
292 14
SHANGHAI FAST-FIX RIVET CORP. Blind Rivets, High Shear Rivets, Closed End Rivets...
飛可斯
109
SHAW GUANG ENTERPRISE CO., LTD. Cap Nuts, Conical Washer Nuts, Flange Nuts...
紹光
LINKWELL INDUSTRY CO., LTD. 順承 All Kinds of Screws, Automotive & Motorcycle Special Screws...
62
SHEH FUNG SCREWS CO., LTD. Chipboard Screws, Countersunk Screws, Wood Screws...
世豐
LOCKSURE INC. Custom Washers, Flat Washers, Automotive Screws...
今湛
240
SHEH KAI PRECISION CO., LTD. Bi-metal Concrete Screw Anchors, Bi-metal Screws...
世鎧
129 89
MAC PRECISION HARDWARE CO. Turning Parts, Precision Metal Parts, Cold Forged Nuts...
鑫瑞
SHEN CHOU FASTENERS INDUSTRIAL CO., LTD. 神洲 Button Head Cap Screws, Chipboard Screws...
38
41
MASTER UNITED CORP. Chipboard Screws, Drywall Screws, Furniture Screws...
永傑
SHIH HSANG YWA INDUSTRIAL CO., LTD. Flange Nuts, Flange Nylon Nuts With Washers...
168
66
MAUDLE INDUSTRIAL CO., LTD. 茂異 Button Head Socket Cap Screws, Flange Washer Head Screws...
SHIN CHUN ENTERPRISE CO., LTD. 昕群 Automotive Screws, Chipboard Screws, Customized Screws...
136
212
MAXTOOL INDUSTRIAL CO., LTD. Plastic Screws, Drop-in Anchors, Expansion Anchors...
SHUENN CHANG FA ENTERPRISE CO., LTD. 舜倡發 Long Construction Fasteners and Other Modified Fasteners...
121
METAL FASTENERS CO., LTD. Thread Inserts, Self-Clinching Fasteners...
SIN HONG HARDWARE PTE. LTD. (Singapore) Hexagon Nuts, Hexagon Head Bolts, Blind Rivets...
新豐
165
28
友鋮
187
METECK ENTERPRISES CO., LTD. 商后 Automotive Fasteners, Brass Screws (Bolts), Building Fasteners...
SPEC PRODUCTS CORP. Lincensee Fasteners, Turned/Machined Parts...
12
恆昭
16
MIN HWEI ENTERPRISE CO., LTD. Button Head Socket Cap Screws, Chipboard Screws...
明徽
SPECIAL RIVETS CORP. Blind Nuts / Rivet Nuts, Blind Rivets, Air Riveters...
142
春澤
140
MOUNTFASCO INC. All Kinds of Screws, Alloy Steel Screws, Automotive Screws...
崎鈺
SPRING LAKE ENTERPRISE CO., LTD. Chipboard Screws, Thread Forming Screws...
40
SUN CHEN FASTENERS INC., 展鴻鑫 Cup Washers, Flanged Head Bolts, T-head or T-slot Bolts...
134
NCG TOOLS INDUSTRY CO., LTD. Tools for Fastening Anchors, Blind Nuts / Rivet Nuts...
昶彰
113
SUNCO INDUSTRIES CO., LTD. (Japan) Distributor Specializing in Fasteners
106
ND INDUSTRIES ASIA INC. 穩得 ND Pre-Applied Processes, Advanced Sealing Technologies...
137
SUPER DPD CO., LTD. All Kinds of Screws, Bi-metal Screws, Carbon Steel Screws...
24
SUPERIOR QUALITY FASTENER CO., LTD. Weld Nuts, Turning Parts, Long Screws, Spring Nuts...
96
TAIEAG CORPORATION 順基軒 Designed peripheral equipment suitable for fastener packaging
美商必丕志
162
TAIWAN FASTENERS INTEGRATED SERVICE 全聯鑫 Bolts, Screws, Nuts, Precise Mechanical Parts, Stampings...
鉑川
239
TAIWAN INTERNATIONAL TOOL FORM LTD. new 祐銓 Nut Forming Dies, Parts Forming Dies, Bolt Forming Dies…
132
TANG AN ENTERPRISE CO., LTD. Customized Automotive Parts and Special Fasteners
鏜安
15
THREAD INDUSTRIAL CO., LTD. Chipboard Screws, Flange Nuts, Heavy Nuts...
英德
111
TING RAY JOINT STOCK COMPANY (Vietnam) Chipboard Screws, Drywall Screws, TY-17 Wood Screws...
易連
R S
法斯訥
149
PAKWELL CORPORATION 開懋 Bi-metal Screws, Stainless Steel Screws, Carbon Steel Screws…
53
PENGTEH INDUSTRIAL CO., LTD. SEMs Screws, Special Screws, Binder Screws, PT Screws...
125
PPG INDUSTRIES INTERNATIONAL INC. Chromium-free Coating, ED Coating... PRO POWER CO., LTD. Screws, Bolts...
207
Q
系格
彭特
T
新倡發
三御 鑫程椿
104
PROTON FASTENERS S.L. (Spain) DIN 933 - 931 - 912 bolts in 12.9 quality
107
PS FASTENERS PTE LTD. (Singapore) Washers, Socket Set Screws, U Bolts, Alloy Steel Screws...
汎昇
105
Q-NUTS INDUSTRIAL CORP. Flange Nuts, Weld Nuts, Special Nuts, Spacers...
友俊
51
133
QST INTERNATIONAL CORP. 恒耀國際 Hexagon Head Bolts, Square Head Bolts, Weld Bolts (Studs)...
TONG HEER FASTENERS (THAILAND) CO., LTD. Hex Bolts, Stud Bolts, Socket Cap Screws, Hex Nuts…
51
TONG HEER FASTENERS CO., SDN. BHD (Malaysia) Stainless Steel Metric Screws, Stainless Steel Screws…
連宜
99
TONG HO SHING INTERNATIONAL CO., LTD. Hex Washer Head Screws, Indent Hex Head Screws...
18
TONG HWEI ENTERPRISE CO., LTD. A2 Cap Screws, Button Head Socket Cap Screws...
東徽
50
TONG MING ENTERPRISE CO., LTD. Stainless Steel Fasteners, Wire Rods...
東明
91
TSAE FARN SCREWS HARDWARE CO., LTD. 2 Cap Screws, Aircraft Nails, All Kinds of Screws...
采凡
8
REXLEN CORP. Clinch Nuts, Clinch Studs, CNC Parts, Stamped Parts...
2
SAN SHING FASTECH CORP. Automotive Nuts, Automotive Parts, Carbide Dies...
三星
81
SCREWTECH INDUSTRY CO., LTD. Machined Parts, Thumb Screws, Micro Screws...
銳禾
284
SEN CHANG INDUSTRIAL CO., LTD. 昇錩 Customized Special Screws / Bolts, Socket Head Cap Screws...
桐和興
T
晉英
146
TSIN YING METAL INDUSTRY CO., LTD. Stainless Steel Cold Heading Wire, Oxalate Coating Wire...
259
TZE PING PRECISION MACHINERY CO., LTD. 智品 Open Die Machines, Cold Headers, Cold Forming Machines...
U 221
U-JUNE-INSTRUMENT CO., LTD. Hot Mounting Machine, Grinding & Polishing Machine...
宇駿
201
UNI-PROTECH INDUSTRIAL CO., LTD. Slotted Nuts, Construction Fasteners, Automotive Parts...
致韋
212
UNIVERSAL PRECISION SCREWS (India) Dowel Pins and Shoulder Bolts...
60
VERTEX PRECISION INDUSTRIAL CORP. 6 Cuts/ 8 Cuts Self Drilling Screws, Barrel Nuts, Cap Screws
V
W 171
Z
57
YUH CHYANG HARDWARE INDUSTRIAL CO., LTD. 鈺強 Automotive & Motorcycle Special Screws / Bolts...
86
YUN CHAN INDUSTRY CO., LTD. Bits & Bit Sets, Hex Keys, Nut Setters, Wrench Sets...
雍昌
223
ZE XIN FASTENERS Chipboard Screws, Concrete Screws, Self-Drilling Screws...
澤馨
Machines & Equipment 緯紘
WAN IUAN ENTERPRISE CO., LTD. 萬淵 Punches/Dies of Various Nuts, Screws, Sleeves and Socket Boxes 威力寶
42
WE POWER INDUSTRY CO., LTD. Chipboard Screws, Concrete Screws, Drywall Screws...
126
WEIMENG METAL PRODUCTS CO., LTD. 偉盟 Standard / Customized Parts, Machining Parts, Stamping Parts...
26
WYSER INTERNATIONAL CORP. Open-Die Parts, Automotive Parts...
緯聯
283
YESWIN MACHINERY CO., LTD. Bolt Formers, Multi-station Cold Forming Machines...
友信
36
YI CHUN ENTERPRISE CO., LTD. 誼峻 Cap Screws, Socket Set Screws, Cage Nuts, Automotive Parts...
128
YI HUNG WASHER CO., LTD. Rubber Washers, Plastic Screws, Custom Washers...
益弘
54
YING MING INDUSTRY CO., LTD. Automotive & Motorcycle Special Screws / Bolts...
穎明
61
YOUR CHOICE FASTENERS & TOOLS CO., LTD. A2 Cap Screws, Bits & Bit Sets, Chipboard Screws...
太子
286
YOW CHERN CO., LTD. 侑城 Flanged Head Bolts, Chipboard Screws, Floorboard Screws...
機械暨周邊設備區
250 248 254 247 253 244 261 288 258 282 96 259 221 283
AN CHEN FA MACHINERY CO., LTD. 安全發 BIING FENG ENTERPRISE CO., LTD. 秉鋒 CHAN CHANGE MACHINERY CO., LTD. 長薔 CHAO JING PRECISE MACHINES ENTERPRISE 朝璟 CHIEN TSAI MACHINERY ENTERPRISE CO., LTD. 鍵財 CHING CHAN OPTICAL TECHNOLOGY CO., LTD. 精湛 GREENSLADE & COMPANY, INC. (U.S.A.) JERN YAO ENTERPRISES CO., LTD. 正曜 JIE LE MACHINERY CO., LTD. 捷仂 LIAN SHYANG INDUSTRIES CO., LTD. 連翔 TAIEAG CORPORATION 順基軒 TZE PING PRECISION MACHINERY CO., LTD. 智品 U-JUNE-INSTRUMENT CO., LTD. 宇駿 YESWIN MACHINERY CO., LTD. 友信
Tooling / Dies 工 / 模具區 252 249 239 171
GIAN-YEH INDUSTRIAL CO., LTD. INFINIX PRECISION CORP. TAIWAN INTERNATIONAL TOOL FORM LTD. WAN IUAN ENTERPRISE CO., LTD.
健業 英飛凌 祐銓 萬淵
WE MAKE YOUR
BRAND STAND OUT SERVICE
Y
Y
www.fastener-world.com
2,000+
suppliers joined us
200+
int'l trade shows attended
B2B ADVERTISEMENT ONLINE MATCHMAKING SOURCING PLATFORM GLOBAL EXHIBITION
+ 50,000+ 70,000 buyers will see
monthly e-newsletters sent to readers
your AD
076 Fastener World no.204/2024
Fastener World no.204/2024 077
082 Fastener World no.204/2024
084 Fastener World no.204/2024
Fastener World no.204/2024 085
086 Fastener World no.204/2024
Fastener World no.204/2024 087
Fastener World no.204/2024 089
092 Fastener World no.204/2024
093 Fastener World no.204/2024
094 Fastener World no.204/2024
Fastener World no.204/2024 095
096 Fastener World no.204/2024
098 Fastener World no.204/2024
Fastener World no.204/2024 099
Company Focus
ASCCO International Co., Ltd. has been in the field of hardware & tools for more than 30 years and has become a recogn i zed professional manufacturer and expor ter of hardware & tools in just a few years with its rich product know-how and services close to customers’ needs. In order to satisfy the needs of customers in the related construction field, it extended business to the fastener field about 20 years ago. Besides supplying concrete screws, chipboard screws, drywall screws, wood screws, tappi ng screws, deck screws, self-drilling screws, machine screws, nail screws, and hi-low thread screws, it has also successfully developed a patented anchor plug with chipboard screw, allowing each customer to find the most suitable fastening solution according to the needs of different applications.
Combination of Product Competitiveness and Complete Production Support Unlike other OEM companies, ASCCO has a solid product design capability, and its self-developed anchor plug with chipboard screw released a few years ago even gained popularity in conversations of the market. In addition to its ODM capability, ASCCO can also provide a
100
ASCCO International Construction Screw Manufacturing and Diversified Supporting Solutions ASCCO contact: Mr. Hsiu-Wei Liu Email: hsiuwei@ascco.com
variety of integrated solutions for customers' special size packaging and customization needs for construction screw applications, and can even provide more diversified choices such as plastic anchors, screw bits, or drill bits according to customers' needs. "We want to continuously create greater added value for customers. Even though the design, molding and peripheral processing costs are not low, by adopting a diversified screw supporting solutions and strategy, we have confidence and the ability to make customers' products show industry-leading competitiveness in all aspects,” said ASCCO Manager Sheng-Huo Liu.
Taking Orders in Taiwan, While Manufacturing and Shipment from Vietnam ASCCO's screws are mainly manufactured and shipped from Vietnam. With 350 sets of equipment, 3 heat treatment lines, 11 packaging lines, and QC equipment for straightening/drilling speed/hardness/coating thickness/salt spray/grinding/optical sorting, ASCCO is able to provide a complete solution from production, secondary processing (incl. heat treatment, plating/phosphating treatment), to packaging and inspection. Its monthly production capacity is up to 1,400 tons. With sufficient production capacity, well-established production process and quality control, as well as the advantages brought by EU-Vietnam FTA, ASCCO can help customers reduce procurement costs and greatly enhance their product competitiveness. “Prepacked mass-produced screws are our strength, however, we can also assist in the production of customized products or special materials. At present, 100% of our market is in Europe, and we have accumulated a lot of loyal customers in Poland, Germany, Greece, Switzerland and so on. In the future, we also plan to increase the share of screws in our total sales, and make early preparations for the Middle East, ASEAN, the U.S., Japan and other markets with great potential. I am optimistic that the global economy will gradually recover as customers' inventories are gradually depleted, and there will be opportunities for mid-range and high-end screws, so I expect 2024 to be a better year for both ASCCO and our customers,” says Manager Liu.
Fastener World no.204/2024 惠達雜誌
Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief
Fastener World no.204/2024 101
Earth-friendly Company
Integrating AIoT & Low Carbon Emission
Taiwan Shan Yin Takes Carbon Reduction Seriously
With the core value of "Innovation, Integrity and Sharing", Taiwan Shan Yin International Co., Ltd. having operations in Taiwan and Malaysia is a professional fastener manufacturer mainly engaged in order production, with 90% of its products being exported to Europe and the U.S. It not only developed SKT® coating screws, but also expanded the business reach to dental implants in 2008. Its strong creativity has enabled it to obtain int’l quality management system and car manufacturers’ certificates such as CE. Its record of 100+ patents is even one of the best in Taiwan fastener industry. With the imminent implementation of CBAM, strengthening carbon reduction at the process end has become a priority for Taiwan Shan Yin's future development.
Having Completed the GHG Inventory Report & Introducing National ESG Carbon Reduction Resources and Platforms "We’re satisfied with the quality of your service, delivery, and price, but if you can't keep up with CBAM in the future, we may still leave you." These words of a customer during the epidemic were a wake-up call for Taiwan Shan Yin President Jack Su and his team to realize that carbon reduction is no longer a slogan, but an alert that an internal carbon inventory should be initiated immediately. Accordingly, Taiwan Shan Yin took the lead in recognizing the importance of carbon inventory in Taiwan in 2021 and has completed its 1st ISO 14064-1 GHG Inventory Report in 2023, officially declaring that it’ll do its best to work with associate factories and global customers toward the goal of reducing carbon emissions and environmental sustainability. For utterly fulfilling carbon reduction and declaring that at least 10% of its electricity will be generated from green energy by 2025, Taiwan Shan Yin has created a CSO and each department with the management’s support has initiated a carbon inventory to actively collect data for integration into the existing ERP system, and the company has also initiated education/training programs to enhance the knowledge of CBAM among all employees. Besides the full internal support, it introduced ITRI’s "Sustainable Manufacturing Kit - Carbon Footprint Digital Platform" in early 2023 in order to identify the hotspots of carbon emissions in production lines and set up carbon reduction paths. In May of the same year, it started the carbon footprint calculation under the guidance of the Grenn Energy & Environment Research Institute of ITRI. It is currently implementing the " Fastener Forming Monitoring System Development Project" under the guidance of MIRDC. In Q1 2024, it’ll apply for IDA’s "Fastener Process Optimization and Low Carbon Manufacturing Technology Platform Development Project" in the hope of integrating resources of multiple platforms, utilizing manpower more efficiently, and moving towards the establishment of low-carbon intelligent production lines. In addition to fasteners, its dental implant business has also put efforts in carbon reduction, e.g., under the guidance of IDA's "Dental Implant System Transformation and Intelligent Development Program," it has developed PDL green surface treatment, which can replace traditional shot peening or acid etching. "Each of our products has an ID no., and by entering the code one can see the progress of manufacturing and carbon emission data of the product. Although we’re not a listed company, we’re serious about verifying our carbon emissions data, and we hope to replicate such experience in our Taiwan HQ to our Malay factory in due course,” said President Su.
Not Only ODM, But Also OBM As Taiwan Shan Yin enters its 40th anniversary, many leading European manufacturers are concerned about Taiwan Shan Yin's efforts to reduce carbon emissions and are seriously considering the possibility of expanding cooperation. In addition to securing 2nd or 3rd generation support from existing customers, Taiwan Shan Yin is also repositioning its focus on the mid- to high-end market. On the one hand, it provides OEM customers with functional analysis and suggestions, and on the other hand, its R&D department has been introducing patented new products with fewer processing steps, more carbon reduction processes, and higher CP ratios for ODM orders to solve customers’ challenges and new fastening problems. In the future, it also hopes to win more OBM orders in the high-end market and help them increase the added value of their brands. "We once worked on a DIY product project for a customer for 5 years and never had any delays in delivery, and solved his urgent delivery request within 1 month. I strive to pass on this spirit of service and experience to each corporate member. In this low carbon era when many areas require new thinking and practices, we’ll continue to enhance the productivity, competitiveness, and adaptability of our team, and provide customers with 100% assured service,” added President Su.
Contact: Marketing Director Campbell Hung Email: Campbell@biomate-device.com.tw
102
Fastener World no.204/2024 惠達雜誌
Copyright owned by Fastener World Article by Gang Hao Chang, Vice Editor-in-Chief
310express Company (Japan)
Earth-friendly Company
Small-package High-value Special Fasteners Delivered on the Same Day
A division under Saima Corp., 310express is an export division characteristic of specialty in special fasteners. Saima put up a branding team for this website and set it up in 2018 as a trading platform tailored to overseas customers with full English support. But what for? President Mr. Tak Saima noted 310express stands to tackle overseas customers’ pain points: “Fasteners like 1.7mm diameter screws aren’t readily available for places outside Japan, but we have access to stock them as a standard product. Plus, 310express also provides products other than Saima’s, and therefore if there are any special fasteners that you need customized and/or supplied in small packages, drop an email, give us a phone call or send us your drawings. We get the job done and deliver and that’s what we are good at!” 310express offers ‘express’ service known for its same-day delivery, with 90% of pre-payment done via credit cards. That’s Japanese efficiency we are talking about! To this day, Tak Saima boasts some 400 customers globally. “We have hardcorefans everywhere, loyal fans from the U.S., Canada, western Europe, Oceania, Taiwan and the other countries in Asia. We are their trouble killer.” The best seller on 310express—Ultra low head, 310Slim machine screw which is a confirmed recipient of Good Design Award 2022 — is an innovative space and weight saving screw with its head part nearly flat at only 0.5mm, without sticking its head out. Its incomplete threaded part is very short which enables stable fastening on thin plates. Another one— TRF screw — is a Tamper-Resistant Fastener used in various places to protect people's safety. It is being used in many places such as parking lots, public facilities, and playground equipment in parks and it has a lot to do with your life. There are a lot more to what 310express can offer and it has already made nearly JPY 100 million in annual revenue. Along with Saima Corp., 310express is a life-time supporter of Sustainable Development Goals (SDGs), cleaning up beaches together with the locals every March 10 (SAIMA DAY) to reduce micro-plastic in the ocean. It strictly complies with environmental regulations. “We can cooperate with customers’ demand on environmental protection related paperwork,” said Tak Saima. Tak Saima rolls out a new product every year and he revealed to Fastener World a new rollout planned for next June as well as a new R&D project scheduled for 2025. On top of that, his products appear in up to 20 shows annually and there are plans to exhibit in an Indian show in 2024 and a German show in 2025. He is on a mission to make 310express a household name worldwide.
Contact: Ms. Mami Hamaguchi Email: info@310ex.com Copyright owned by Fastener World / Article by Dean Tseng
惠達雜誌 Fastener World no.204/2024
103
Earth-friendly Company Barcelona-headquartered Proton Fasteners S.L. founded in 2016 is an industry-leading supplier specifically dedicated to the supply of high resistance bolts, with its customers distributed around the world, mostly from metal construction, petrochemistry, and the rising renewable energy industry sectors.
Proton FastenersThe Rocksolid Support for Renewable Energy Applications
Contact: CEO Javi Folgoso Email: comercial@protonsl.com
With a vision of being a market benchmark and main supplier for customers’ process improvement, the ISO 9001:2015 certified Proton collaborates with many international standards approved factories in Turkey, China, Poland, etc. that can guarantee its customers quick access to quality products at all times. Currently, Proton has a warehouse in Barcelona with a capacity for 300 pallets and also has representatives in Europe, Asia, and N. America to ensure seamless service offered to customers wherever they are. “Our customers are mostly in Europe, but we also have customers in USA, Mexico, Vietnam, Turkey, and Morocco,” said Javi Folgoso, CEO of Proton. With experienced service and premium quality as its middle name, Proton does whatever it takes to fulfil them into its quality control procedure. For instance, it visits collaborating factories to ensure good quality control and manufacturing process, thus allowing each piece of product delivered from its warehouse to be always in compliance with relevant standards requirements. On the other hand, Proton’s “Online Shop” is also a worth-noting resource enabling customers to view quotations and the availability of certain products in stock immediately. In order to provide customers worldwide with real-time service, “This year we’ve planned to establish two new operations overseas, including one office in Mexico and an extra new warehouse in Asia,” said Javi. “With our capabilities, we can provide all the solutions to our customers with big projects around the world. Our knowledge in structural bolts (EN 14399-4 and SB EN 15048) make us a reference as well.” Despite more unique customers’ requirements in 2024, Proton continues to demonstrate its leadership and impeccable adaptability in offering the best ever products and service to its customers, which consolidates its firm presence and sustainability in the era with more new challenges (especially the rising demand from renewable energies). Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief
104
Fastener World no.204/2024 惠達雜誌
Certificate of Registration This certifies that the Quality Management System of
Q-Nuts Industrial Corp.
AF T
No. 193-1, Lane 315, Sec. 1, Erren Road, Rende District, Tainan, Taiwan
has been assessed by NSF-ISR and found to be in conformance to the following standard(s):
ISO 9001:2015 Scope of Registration:
DR
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.
FT
No. 193-1, Lane 315, Sec. 1, Erren Road, Rende District, Tainan, Taiwan
has been assessed by NSF-ISR and found to be in conformance to the following standard(s):
DR A
IATF 16949:2016 Scope of Registration:
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.
Fastener World no.204/2024 105
Fastener World no.204/2024 107
108 Fastener World no.204/2024
Company Focus
Easylink subsidiary company – Ting Ray in Viet Nam
Offers Vertically Integrated Production and All-Inclusive Customer Service Email: sales@easylink.com.tw
Ting Ray Company was founded in 2005 and is 100% owned by Easylink Industrial Co., Ltd. The 30,000 square meters facility is located in Ba Ria Vung Tau Province in souther n Viet nam, 90 minutes driving from Ho Chi Minh City.
Competitive All-round Product Lines Ting Ray production is focusing on chipboard screws, drywall screws, TY-17 wood screws, self-drilling (TEK) and those large quantities screws used in furniture, construction with very competitive price. Size range is from M2.5 to M6.0 and a max. length of 200mm and monthly output is roughly 1,200 tons. It’s efficient to run with vertically integrated production process from forging, rolling, secondary operation (cutting tail and pinching point - TEK), heating, electroplating, optical sorting, and various packing by auto and semi auto machines with customer logo labels.
110
Fastener World no.204/2024 惠達雜誌
●
International Certificates ●
1. ISO 9001:2015 - Quality Management System 2. ISO 14001:2015 - Environment Management Systems 3. BSCI
- Business Social Compliance Initiative
4. EN 14592
- Timber structures - Dowel-type fasteners – Requirements
5. EN 14566
- Mechanical fasteners for gypsum plasterboard systems
6. FSC
- Forest Stewardship Council for packing label and carton
7. VPA
- Third party process audit for quality control
8. CBAM
- Carbon Border Adjustment Mechanism (working on)
COM PET I T I V E PR ICE , EXCELLENT QUALITY, ON T I M E DE L I V E RY a r e ou r principles and definition of the best service to customers. Let’s work together, grow up together for better tomorrow. Text and photos provided by Easylink
Company Focus
Fastener World Visits
Japanese Top-notch Fastener Importer & Exporter
Sunco Industries
Interview with President & CEO Yoshihide Okuyama
S
unco Industries (hereinafter written as “Sunco”) is a well-known trader importing and exporting fasteners in Japan. They expand footprints and now own 5 locations in Japan including the Osaka headquarters, 2 branches (Tokyo and Osaka), an eastern Osaka distribution center (Fig. 1) and a packaging warehouse (Fig. 2). They reach an annual revenue of JPY 37 billion, employing 800 people (including 450 full-timers and others being part-timers) and have found a niche of their own in the Japanese fastener distribution market. For overseas customers, they rolled out the online 3Q-Net purchasing platform with full English interface in 2022, and embarked on a business transformation to cover fastener export worldwide. President Okuyama expressed his ambition to deliver JIS fasteners from Japan to every corner of the world by working with global fastener distributors in domestic and overseas markets, mutually introducing products and creating mutual profits. Meanwhile, they noticed Fastener World’s influence on the global fastener market. In May 2023 President Okuyama visited Fastener World for a collaboration talk with President William Liao (Fig. 3). The talk led to knowing that Sunco introduced industryleading distribution software and hardware to become a sizable and characteristic model enterprise in Japan. It was then that President Okuyama strongly invited Fastener World to his headquarters to witness his logistics technology. November 2023, President William Liao visited Sunco’s headquarters and distribution centers, wanting to bring the top-notch Japanese logistics technology to your eyes through this report.
Fastener World visited Sunco Industries in Nov., 2023
112
Fastener World no.204/2024 惠達雜誌
Fastener World no.204/2024 113
Company Focus Fig. 1. Distribution center
Fig. 3. Sunco Industries visited Fastener World in May 2023
Fig. 2. Packaging warehouse
Leaders Insight: Fastener World X Sunco President Liao talked in-depth with President Okuyama at the headquarters (Fig. 4) as outlined into 6 topics below:
1. Motivation to change business model What motivated President Okuyama to shift from solely focusing on the domestic market to encompassing the overseas market? He explained: “We want to help buyers in trouble of finding JIS fasteners, give them more convenience and increase sales channels. Our expansion to overseas channels is ultimately in response to the demands of customers, and it is also a part of diversifying risks. Extending our domestic business model is not the only reason that we reach outside of Japan. In fact, in recent years we have geopolitical factors like exchange rate, inflation and supply chain disruption in play. On top of it, Japanese companies increase investment in building overseas plants, and there is significant growth in exporting equipment, automotive products, tools and industrial products. We are getting more inquiries and we feel it is the right time.”
2. Sunco's domestic knowhow— from Japan to the world “How do you replicate your logistics knowhow in Japan and apply it overseas?” asked William. President Okuyama said: “The experience we acquired in Japan is ‘delivering a variety of products in the quantity, to the location and at the timing that is required’. The same also applies to export. We provide an EnglishJapanese bi-lingual purchase platform called ‘3Q-Net’— an online product search and sales management tool— to make it easy for customers to search 2 million types of fasteners. It helps overseas companies a great deal. In Japan, ‘immediate response to demands’ has been our business model, and it won’t change even if it goes overseas.”
3. Determine product positioning and marketing channels Sunco Industries President & CEO Yoshihide Okuyama
114
Fastener World no.204/2024 惠達雜誌
So what fastener types does Sunco provide to overseas buyers? What about safety guarantee? Are products originating outside of Japan also
Company Focus available? President Okuyama said: “We mainly supply JIS metric products purchased from 1,200 domestically trusted sources. Our purchasing and QA units perform checks at the sources’ locations. Of course, we can also provide products purchased beyond Japan if overseas customers need them.” Sunco also stocks products from Taiwan. He added that Sunco is particularly good at delivering fasteners in quantity down to a single piece at minimum with no issue. All products are sold under the “Sunco” brand.
Fig. 4. Headquarters front
He specifically noted that in addition to existing Japanese inquiries, a marketing collaboration with Fastener World has brought to Sunco evident increase in American and European inquiries via the Fastener World website. Sunco started exporting 3 years ago and earned JPY 2 million revenue in the 1st year, JPY 10 million in the 2nd year and the 3rd year is expected to reach JPY 80 million. Up to 20% of the revenue comes from Fastener World’s marketing channels, he said.
4. Strategies to develop new overseas customers Are there any special services tailored for overseas customers? President Okuyama mentioned mailing starter kits, enclosed with product samples, to unacquainted potential customers as part of his new client development strategies. At International Fastener Expo 2023 he met many visitors who received the kit. Additionally, the “Socket Boy” (Fig. 6) which he rolled out as Sunco’s mascot appears in various exhibitions and group photos with visitors and now acts as a way for new customers to get to know Sunco quickly.
5. Sunco-style management— 3 features + 2 ace cards President Okuyama stressed 3 features in his business tactic. The first feature is expanding product lineup. Sunco handles over 2 million items and stocks 250,000 items. The second is adding new customers. His sales team exceeds 250 people (Fig. 8 to Fig. 10), having transacted with 5,500 companies so far and having 4,500 customer companies placing orders to Sunco every month. The third is investing in logistics Fig. 5. Wood screw threading machine from the 60s displayed at the entrance
Fig. 8. Purchasing unit
Fig. 9. Tokai Hokuriku (northwestern part of Honshu, the main island of Japan) sales unit
Fig. 6. Sunco Industries’ mascot “Socket Boy”
Fig. 10. Central Japan sales unit
Fig. 7. Father-and-son penguin mascots to represent generation progression 惠達雜誌 Fastener World no.204/2024
115
Company Focus
Fig. 11. Catalog display room
Fig. 12. Catalogs are digitalized and searchable Fig. 13. Eastern Osaka distribution center
technology. In the eastern Osaka logistics center (Fig. 13), the industry-leading rotary rack (Fig. 14) technology introduced saves the hassle of using trolleys and cartons to hand-pick products, upping operation speed by 2.5 times! Speaking of rotary racks, Sunco has an eye for logistics technology. They decided to introduce this technology in the wake of the eastern Japan earthquake to prevent products from being shaken off. Most importantly, to reduce the time spent on hand-picking and moving products to and off racks and on calculating small-quantity fasteners, as well as to reduce walk distances (Fig. 16). The result is obvious. They have successfully shortened work hours from 9 AM - 8 PM, to ending at 6:30 PM, but they are still able to keep the last-order deadline at 5:30 PM. In other words, drastic labor cost reduction and increased orders.
Fig. 14-1. Rotary rack Fig. 14-2. Close shot of the rotatory rack
Sunco has 2 ace cards— “auto product matching” and “optimized packaging space” (Fig. 17). Besides regular quantity, they can take orders for a single piece of fastener which is the minimal unit of quantity. Each customer order has a barcode, so even new employees and part-timers can just scan the code, view customers’ purchase lists and images on screen, and start packaging right away. Any wrong quantity will prompt a No-Go alert after scanning, which lowers human error rate down to zero (Fig. 18). Furthermore, each product is given priority points according to where it is stored in the logistics center. When a client orders multiple products, Sunco can calculate the points to automatically match the products, thereby maximizing the use of packaging box space to reduce wasting, improve efficiency and achieve fast shipping.
6. Continuously strengthen connection with Taiwan and the world Sunco has currently acquired ISO9001 and ISO14001 and received the IT-driven Enterprise Award. President Okuyama said Sunco is rooted on wanting to help customers, coexisting and thriving with customers, and bringing happiness to employees. That is what makes Sunco special. He has confirmed to strengthen connection with Taiwan and the world by increasing purchase, export and investment in upgrading logistics technology.
Fig. 15-1. Automated packaging machine
116
Fastener World no.204/2024 惠達雜誌
Fig. 15-2. Continuous type packaging made by the machine
Fig. 16. The rotary rack reduces the time spent on hand-picking and moving products to and off the product racks
Company Focus
Fig. 17. Auto product matching and optimized packaging space
Fig. 19. Wall of honor for honorary new and existing employees
Fig. 18. The monitor displays a red dot on a questionable package in the bucket after a barcode scan
Fig. 20. Artwork in the eastern Osaka Distribution Center
Fig. 21. Yasuko Tamaki, the world's oldest supervisor (left)
Sunco Creativity
Lesson of Japanese Business Revitalization
Service and facility are not the only highlights witnessed in Fastener World’s visit, but also their creativity. President Okuyama made a series of secret agent short drama featuring Sunco’s characteristics and put it on Sunco website. His headquarters has a “wall of honor” listing honorary new and existing employees (Fig. 19), as well as a gym to care for their health. He appears in many radio interviews to share his insights on the industry and is also in many Japanese news reports.
From this visit, we can tell that Sunco has a myriad of creative properties to expansively feature their people, products and facility. Compared with other Japanese companies, Sunco is able to stand out and go overseas because they have 3 features that are clearly carved. Additionally, they increase investment in a transformation to high technology and elevate shipping speed and efficiency to the international level. Lastly, they cross boundaries and expose themselves in various mediums.
Besides a lot of investment in the fastener industry, he crossed boundaries in 2020 to support Japanese aerospace by collaboration on rocket development. He said the rocket uses Japanese fasteners so he wanted to contribute Sunco fasteners to help Japanese aerospace grow. Also, in 2023 he worked with Hakobot (Japan) to help develop auto delivery robots. “Along with hardware companies, software companies will converge in the ‘eastern Osaka manufacturing city’. We will fulfill the goal of building a ‘technological manufacturing city’ in the future,” he said.
In a time when high technology prevails, the fastener industry in many countries is often associated with the “conventional” and “ageing” impression. Taiwan faces the same issue. Some business owners are concerned whether Taiwan fastener industry can keep its workforce and technological advantages. In the ageing Japan, business revitalization and technological innovation are pressing issues. However, we see the newly upgraded facility at Sunco and many young employees who have joined as new bloods to deliver explosive power. That is something to learn together with our readers from this visit.
To one’s surprise, Sunco owns a unique Guinness World Record— the world’s oldest office manager. 93-year-old Yasuko Tamaki is the general affairs manager to Sunco and she is still contributing herself on the job (Fig. 21). On the day of the visit, she introduced her book Rooting Down, Blossoming Up (literal translation). Everyone on the spot pays respect to her contribution to the fastener industry. In fact, a Taiwanese press reported her with the title “She’s not quitting— Guinness-verified oldest office manager in the world”. She even appeared in Hong Kong and Indian news reports. She has made a unique marketing sensation for Sunco.
A saying in Taiwan goes that success is no coincidence. In the interview with President Okuyama, we sensed he has an accessible personality and that he has an eye for business. His is the 3rd generation to lead Sunco and it is admirable that he can push up Sunco sales by two times in just a matter of years. Sunco is increasing collaboration on import, export, purchase and supply with global companies. Interested parties should contact Mr. Tomokazu Takada, Sunco assistant manager at purchasing department of international trade section.
Contact: Mr. Tomokazu Takada Email: export@sunco.co.jp
Copyright owned by Fastener World / Article by Dean Tseng
惠達雜誌 Fastener World no.204/2024
117
118 Fastener World no.204/2024
Fastener World no.204/2024 119
120 Fastener World no.204/2024
122 Fastener World no.204/2024
Fastener World no.204/2024 123
Fastener World no.204/2024 125
126 Fastener World no.204/2024
Fastener World no.204/2024 127
128 Fastener World no.204/2024
130 Fastener World no.204/2024
132 Fastener World no.204/2024
Fastener World no.204/2024 133
134 Fastener World no.204/2024
Fastener World no.204/2024 139
142 Fastener World no.204/2024
Fastener World no.204/2024 143
144 Fastener World no.204/2024
146 Fastener World no.204/2024
148 Fastener World no.204/2024
Fastener World no.204/2024 149
Association
The Grand Event of Taiwan Fastener Industry at the End of 2023
Perfect Closure of the 19th TIFI Member Representatives Meeting O
n December 20th (Wed.), Taiwan Industrial Fasteners Institute (TIFI) held the 19th (4th round) member representatives meeting and the 10th (9th round) joint meeting of the Board of Directors and Supervisors at HI-LAI Arena in Kaohsiung. TIFI Chairman Tu-Chin Tsai, Vice Chairman Yung-Yu Tsai, Former Chairman Anchor T. H. Chang, Taiwan CSC Vice President (Commercial Division) Min-Hsiung Liu and over 100 representatives from Northern, Central and Southern Taiwan attended this grand event of Taiwan fastener industry at the end of 2023. The gathering of large manufacturers and many corporate reps demonstrated that Taiwan's fastener manufacturing supply chain not only strives to contribute to Taiwan's economic performance on the international fastener stage, but also attaches great importance to the exchange, cooperation and unity of the whole industry.
150
Fastener World no.204/2024 惠達雜誌
Association In addition, in order to let all attending corporate reps have a better understanding of TIFI's efforts for members' interests in the past year, as well as future important activities and financial status, Chairman Tsai instructed Secretary General Huang to conduct the association affairs report. In the report, he also gave the good news of 11 new companies applying for the membership. "I’d like to thank all fastener industry professionals and seniors for their support to TIFI and thank Taiwan CSC for their great assistance to Taiwan fastener industry. Thanks to the efforts of all of you, the output value of Taiwan fastener industry reached NT$200 billion last year. However, we’d like to remind our friends who are mainly engaged in the European and American markets to pay more attention to the current ESG, energy saving & carbon reduction, CBAM, and changes in the international regional situations, and to think carefully before making any major investment, so that we can continue to maintain a leading edge in the future in the competition from the same industries in Vietnam, China, Indonesia, and Thailand, etc," said Chairman Tsai.
"At present, the global market has shown an improvement. According to the recent statistics of TIFI, the export volume of Taiwanese fasteners from January to November this year reached more than 1.1 million tons. Although the export volume declined by 16.3% in a single month, compared with the average 25% decline in January to November, it has been converged. The internal survey of Taiwan CSC also shows that the orders from small screws customers have shown an increase of about 20%, and those from wire drawing customers have also shown an increase of about 20%-30%. We’re confident that the fastener industry will gradually improve. With regard to carbon neutrality, Taiwan CSC will also assist all of you in conducting carbon inventories and will work together with all of you toward low-carbon/digital/supply chain transformation, and work toward high value-added products,” said Taiwan CSC Vice President (Commercial Division) Min-Hsiung Liu. Since its establishment in 1969, TIFI has continued to be a voice for its members' rights. In 2020, TIFI moved to the current site of Taiwan Fastener Museum in Gangshan (Kaohsiung), in order to facilitate the service provided to its members. Under the leadership of the past and incumbent chairmen of TIFI, the number of members has now reached about 700. TIFI is currently the largest fastener industry association in Taiwan. Chairman Tsai also announced that after Taiwan International Fastener Show was scheduled to take place on June 5-7 2024, TIFI will hold a member representatives meeting again to re-elect the board of directors, supervisors, permanent directors & supervisors, supervisors convener and the new chairman as soon as possible, and will inform the members in advance. Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief
惠達雜誌 Fastener World no.204/2024
151
Industry Focus
Production & Sales Conference with Fastener Business Owners
Taiwan CSC Sees 2024 Blooming with a Warmer Market The export of Taiwanese fasteners took a plunge in 2023 and local fastener business owners have been longing for a normal inflow of orders. On December 5, they gathered in a restaurant in Kaohsiung City for a market outlook presentation for the first quarter of 2024 by Taiwan CSC. Mr. Tu-Chin Tsai, Chairman of Taiwan Industrial Fasteners Institute (TIFI), said in his speech that Taiwan fastener industry has been through drastic ups and downs over the past three years. The pandemic redirected fastener purchase orders to Taiwan and pushed Taiwan’s fastener export to a historical high, but the high inventory level at overseas customers’ warehouses dipped Taiwan’s fastener export greatly in 2023. Now, many Taiwanese companies have survived and are eager for a taste of market recovery.
M
r. Yong-Yu Tsai, President of Jinn Her Enterprise, who will take the chairman role after Tu-Chin Tsai, said he has never seen the economy this bad in the 45 years of his fastener business. Besides, the manufacturing costs are rising. His electricity bill alone increases 4 million dollars a month. "This is the worst time ever, but it also means a beginning for the best time. We have to have confidence in ourselves,” said Yong-Yu Tsai. He recalled that when shipping costs peaked, there were overseas buyers who would choose air shipping which was more expensive just to obtain fasteners from Taiwan. In that regard, he suggests being aware that "the important thing about fasteners is their value, and price competition is not what we need." He called for Taiwanese fastener industry to think about this and come up with a way to run business.
U
nlike previous market outlook presentations in first-half 2023, this time Taiwan CSC uttered a clearly optimistic response to the owners in attendance. According to Taiwan CSC's research, the IMF upped the U.S. GDP and kept Japan's GDP flat, indicating that the U.S. and Japan will
152
Fastener World no.204/2024 惠達雜誌
lead the global economic growth in 2024. Taiwan's GDP growth rate forecast for 2024 has been upped to 3.15%. Meanwhile, Taiwan Directorate General of Budget, Accounting and Statistics indicates that Taiwan's economy has bottomed out in the third quarter of 2023 and will perform better in 2024. In Europe and ASEAN, their GDPs have been revised downward. Nevertheless, their GDPs in 2024 are still higher than the ones in 2023, meaning that their market situation will turn better.
Industry Focus
I
n ter ms of steel demand, World Steel Association forecasts that global steel demand will increase 1.8% in 2024, with Europe growing by 5.8%, North America by 1.5%, Asia by 1.3%, the Middle East by 3.2% and Latin America by 2.2%. On Purchasing Managers' Index (PMI), the U.S., EU, Taiwan, China, and Vietnam's indices are in the range of 44 to 49, while ASEAN and India have reached above 50. Many parts of the world are about to emerge from recession as PMI values above 50 indicate a period of prosperity.
F
rom October 2023 onwards, inf lation has cooled i n Eu rope, t he U.S. a nd China. Taiwan CSC said the fall in oil prices has driven inf lation down faster in many countries. In addition, the interest rate hikes in Europe and the U.S. are coming to an end, and interest rate cuts are already underway in Southeast Asia and South America. Europe will possibly cut the rate in the first quarter of 2024 and the U.S. will possibly do so in the second quarter.
for 2.99%). Taiwan's export of fasteners to the top five destination countries all fell significantly in weight.
Although Taiwan's fastener export statistics from January to October 2023 were dismal, Taiwan CSC cited data provided by TIFI and indicated that Taiwan's fastener industry had bottomed out in the third quarter of 2023. Summarizing the aforementioned economic indicators and statistics, Taiwan CSC said in a much confident tone that the steel and fastener market will turn positive from 2024 onwards, looking forward to a recovery that is on the way.
Copyright owned by Fastener World Article by Dean Tseng
O
n wire rod statistics f rom January to October 2023, Taiwan mainly imported wire rods from Indonesia (39%), South Korea (21%), Vietnam (14%), China (9%), Japan (8%), and India (5%), with the main types of imported wire rod being low carbon (49%) and alloy steel (37%), medium carbon (2%), and high carbon (6%). Over the same period, the total weight of imported wire rod was 298,000 tons, down 5%.
O
n Taiwan's fastener export statistics, the weight of exports for the same period was 1.06 million tons, down 25.47%, and the average unit price of export was US$3.76 per kilogram, down 0.79%. Export Weight Export Unit Price Change Change (%) (%) Wood Screws -15.06 -3.24 Self-tapping -29.05 0 Screws Bolts -28.02 +0.55 Nuts -18.32 -3.79 Products
D
uring the same period, the top f ive destinations for Taiwan's fastener export were the U.S. (489,000 tons, down 24.97%, accounting for 45.90%), Germany (86,000 tons, down 31.66%, accounting for 8.09%), the Netherlands (72,000 tons, down 9.97%, accounting for 6.82%), Japan (43,000 tons, down 27.48%, accounting for 4.07%), and Canada (31,000 tons, down 32.92%, accounting 惠達雜誌 Fastener World no.204/2024
153
154 Fastener World no.204/2024
Fastener World no.204/2024 155
157 Fastener World no.204/2024
158 Fastener World no.204/2024
159 Fastener World no.204/2024
Association
TFTA Hosts Annual Assembly- Hundreds of Members Gather to Network On (Fri.) December 8th, Taiwan Fastener Trading Association (TFTA) chose Queena Plaza Hotel in Tainan to hold its annual membership meeting. Hundreds of TFTA members from the north, central and south regions of Taiwan, as well as their families came to participate in this most important and grandest fastener industry exchange activity held before the lunar New Year. In addition to the presence of many fastener industry leaders and consultants, TFTA also invited representatives from Taiwan Fastener Association, Taiwan Steel Wire & Wire Rope Industries Association, MIRDC, TAITRA Tainan Office, and Mr. Yoshihide Okuyama, the 3rd generation President of Sunco Industries, a leading distributor and exporter headquartered in Osaka (Japan), which can supply at least 20,000 fastener types, to join together in experiencing the power, enthusiasm, and energy of Taiwan fastener industry. To promote the spirit of caring for the social vulnerable groups and being passionate about public welfare, TFTA also invited an arts performing group formed by a few patients with rare physical disabilities to perform on stage this year. The group's performances of dancing, singing, and music playing, which demonstrated their courageous and unyielding perseverance to break through barriers, touched the hearts of all guests in attendance, some of whom also purchased benevolent T-shirts, hoping to encourage more members and friends to join in the charity work.
160
Fastener World no.204/2024 惠達雜誌
With the delicious food and live band per for mance, Chairman Josh Chen invited several important guests to sing and dance together, and SUNCO Industries President Okuyama and his colleagues were also invited to sing several songs on the stage and drink with Taiwanese friends, making the atmosphere of the event reach the highest point. The next TFTA Chairmen and Vice Chairmen, as well as directors & supervisors election was also held at the same time. Mr. Arthur Chiang was elected to be the next new TFTA Chairman after a fierce competition among several candidates. Additional note: Sunco Industries is increasingly working with global partners on import and export, purchase and supply. Interested parties are suggested to contact assistant manager Tomokazu Takada of the purchasing department of international trade section at takada@sunco.co.jp
Copyright owned by Fastener World Article by Gang Hao Chang, Vice Editor-in-Chief
Fastener World no.204/2024 161
162 Fastener World no.204/2024
Fastener World no.204/2024 163
Industry Focus
What Do the Opposers Voice About CBAM? An Insight Into the Opposition Party Since the announcement of the EU CBAM, we have seen a wave of resistance across the world, with China and India being the most vocal. CBA M is almost a ful l-range and structural impact that can be described as "astronomical" in terms of the scale of its impact on a country's industry and economy. In addition to China and India, there are bound to be several other countries that will object to CBAM or may counter it in the future. This article summarizes the existing opposers’ voices to make readers put CBAM into perspective.
Before looking at the various opposing voices, there is a study that is of value for readers to refer to and make their own judgments. The authors, Indra Overland and Rahat Sabyrbekov, have published an interesting and predictive study on ScienceDirect, a scientific and medical bibliographic database. This study has the title of “Know your opponent: Which countries might fight the European carbon border adjustment mechanism?”. They used a scientific and verifiable method to predict the countries most likely to fight CBAM in the future and made rankings in Figure 1. The rankings take into account variables such as the volume and incremental cost of trade with the EU, carbon intensity, the track record of initializing the mechanism for WTO dispute resolution, domestic public opinion on climate change, and national innovation capacity.
Figure 1. CBAM Confrontation Index, All Statistical Aspects Included
The mentioned authors converted the graph into a world map (Figure 2), where it shows countries in darker colors with a higher probability to oppose to CBAM in the future. Figure 1 shows the highest probable is Iran and the lowest is Japan. The top ten countries most likely to protest are Iran, Ukraine, the U.S., Saudi Arabia, Egypt, China, India, Kazakhstan, Russia, and Belarus. Of the 48 countries included in the rankings, many are still experiencing challenges to their current economies. Below, we will look at the opposing voices of a few key countries.
164
Fastener World no.204/2024 惠達雜誌
Figure 2. World Map of CBAM Opposition Index
165 Fastener World no.204/2024
Industry Focus
■ China
By far the most vocal in the media, China could face a rise of 4% to 6% in the export cost of its steel products due to CBAM. China Iron and Steel Association (CISA) called CBAM a new trade barrier to Chinese exports, “If other countries adopt reciprocal and similar trade protection measures to protect their interests, it will lead to higher trade costs and an increased risk of trade friction. We hope the EU will take into account the cost and operational challenges for downstream steel consumers resulting from changes in the import structure". As of July 2023, China was gathering momentum against CBAM and hoped that its proposals for multilateral discussions at the WTO's Committee on Trade and Environment (CTE) would lay the groundwork for resistance to a future cross-border carbon tax mechanism. The loopholes cited by China include mirroring emission reduction under EU ETS in the emission reduction of another country, the lack of global carbon intensity standards, and disagreements over carbon pricing mechanisms between different jurisdictions. In response to China's reaction, Gerassimos Thomas, Director General for Taxation and Customs Union Affairs of the European Commission, contributed an opinion piece to South China Morning Post in Hong Kong on November 15, 2023, titled "EU carbon border tax: China’s cooperation will send right climate signal". In his article, he mentioned high-level talks between the EU and China:
， ，
Given China’s status as our second-largest trade partner, we understand China’s strong interest in the new measure and its roll-out. That’s why we welcome China’s invitation to set up an EU-China High-Level Dialogue on CBAM. When designing the mechanism, it’s important that we do so in the fullest transparency. For my part, it is a pleasure to travel to Beijing this week to meet my interlocutors in the Chinese authorities. Our goal is to increase mutual understanding, look for synergies and simplifications between our systems, see how we can lower any reporting burdens for the Chinese companies concerned…Feedback from Chinese business and civil society is also important for us. ...Part of our active and transparent outreach to Chinese authorities and businesses, including EU businesses active in China, is to better understand the country’s carbon pricing reporting system and methodologies, so we can most effectively take them into consideration after the end of the CBAM transitional period. For our part, we encourage China’s plans to further strengthen its ETS, and we note plans to further strengthen carbon pricing in the country. …Given its global influence and pivotal position as the world’s largest greenhouse gas emitter, the level of China’s climate ambition sends a very important message to the rest of the world. And, we can only encourage China to grow that ambition, particularly in the run-up to the COP28 climate change conference at the end of this month (editor's note: Nov., 2023).
， ，
Source URL (shortened): https://shorturl.at/hilHM
From Thomas' response, it can be observed that China as the world's largest carbon emitter may have a key inf luence in the adjustment process leading up to the official launch of CBAM in 2026.
■ India India has claimed that CBAM will harm its exports, pointing out that CBAM fails to allocate different credits to different stages of production in different countries. India has even threatened to take the issue of carbon tax to the WTO. The Hindu BusinessLine published an editorial suggesting that the Indian government should strategically resist CBAM, and published another news article on November 19, 2023 describing how the government is exploring alternatives to CBAM's impact on exports. One alternative, for example, is that if a product is exported to the EU after paying an US$100 tax for each ton of carbon, price negotiations would have to be conducted to add another US$100 tax for
166
Fastener World no.204/2024 惠達雜誌
each ton on other products coming from the EU. Government officials said this is not a countervailing duty on the EU, but a price negotiation to ensure that the duty levied on Indian companies is returned to India. The second alternative is for the EU to return the carbon tax to India, with the returned revenue being used to fund India's climate goals. On November 2, 2023, Commerce and Industry Minister of India Piyush Goyal said that the government would find a solution, most likely a domestic tax equivalent to the European tax, and that the new revenue will be used for green energy transition. The solution would indirectly help Indian exporters reduce their carbon footprints as they shift to cleaner energy production. Eventually, CBAM will no longer be needed.
■ Poland In addition to the countries listed in Figure 1, there are a number of countries not included in the list that have already protested to the officials. Poland is a clear example. Poland gets about 70% of its electricity from coal, and CBAM would threaten Poland's energy security. On August 8, 2023, Poland filed a complaint at the Court of Justice of the European Union (CJEU) to repeal the CBAM regulation, arguing
Fastener World no.204/2024 167
168 Fastener World no.204/2024
Industry Focus
The Brazilian National Confederation of Industry (CNI) is the main representative of Brazilian industrial sector and the highest body of the industrial trade union system. This organization made a submission to the EU in which it proposed amendments and questioned many aspects of CBAM:
， ，
The EU should provide adequate technical assistance, capacity building, and training to third countries and foreign producers/exporters to help them adjust to, and comply with, the obligations imposed by CBAM. To this effect, when does the EU Commission intend to launch information campaigns and technical support for third country partners? ... CNI considers that penalties during the transitional period should not be mandatory and that the obligation during this period is limited to reporting and competent authorities may initiate the procedure to cor rect incomplete or incorrect CBAM reports as well as failure to submit CBAM reports. Instead, such situations should trigger notifications and detailed instructions for correction of missing information. The transitional period should serve as an instructive opportunity for all players to get informed and adjust to the reporting requirements.
， ，
■ South Korea The South Korean government advised in its submission on the risks of leaking secrets and default values:
， ，
CBAM Implementing Act requires foreign operators to submit sector-specific information (e.g. in case of iron and steel products, a mix of alloy elements such as the percentages of Mn, Cr and Ni present is required to be included in the report). Given the possibility that a foreign operator may be in competition with an EU importer which first receives the report, it is worrisome that confidential information may be unnecessarily exposed to EU importers that are business competitors of the foreign reporting declarant. In this context, the Government of S. Korea requests the EU to reconsider or permit foreign operators to make direct reports and allow their EU subsidiaries to be a reporting declarant.
， ，
■ Taiwan Taiwan advised on the applicability of domestic laws to CBAM, the rights of domestic suppliers, and the risk of confidentiality leakage: To ensure compliance with the WTO national treatment principle and minimize the impact on small and medium-sized enterprises, the EU is recommended to simplify the certification requirements and administrative procedures such that all manufacturers can afford their administrative costs (including verification costs); if not, this may otherwise hinder downstream manufacturers from requesting for reductions in the number of required CBAM certificates in accordance with regulations. ...In accordance with Taiwan’s Climate Change Response Act, Taiwan will only levy carbon fees on emission sources designated by the central competent authority. Numerous manufacturers of CBAM-regulated products (e.g., screws) are not liable to pay the carbon fees. However, their upstream suppliers (e.g., manufacturers of semi-finished steel) are required to pay for the fees. ...Given that such products are complex products and that their embedded emissions include the emissions of their input materials, the carbon prices paid by their upstream suppliers should be recognized for a request to reduce the number of CBAM certificates to be submitted. ...the Implementing Regulation requires CBAM declarants to provide information on production routes and parameters…Some information may involve the disclosure of trade secrets. ...for products exported to Europe from Taiwan, such as screws and bolts, the input material accounts for more than 50% of the total embedded emissions, and the input material may come from a foreign manufacturer without an verification system. An inability to apply default values may result in problems with the import declaration, or even fines. We thus suggest relaxing restrictions on the use of default values. ...if a Taiwanese fastener manufacturer is unable to obtain information about product embedded emissions from foreign input material suppliers and is prohibited from using default values per the Regulation, it may unavoidably violate the declaration requirements. In such cases, there should be a reasonable appeal channel for manufacturers to seek fair adjudication.
， ，
■ Thailand Thai Ministry of Commerce is also concerned about the leakage of confidential information:
， ，
■ Brazil
Article 5 states that the EU Commission will publish the default values for the transitional period and that the same default values may be applied to all other countries outside the EU. Considering that each country has differing national default values, the Government of S. Korea requests the EU to recognize each country’s national default values provided that such default values are credible under their respective carbon pricing schemes.
， ，
that CBAM provisions are primarily fiscal in nature and therefore require a unanimous vote of all 27 EU member states, which could take two years or more to reach a determination. Although not immediate, this could have a significant impact on CBAM and the European Green Deal in the medium term. Full or partial withdrawal of the CBAM regulation could jeopardize the plans of the EU Commissioners for the competitiveness of the industry under EU-ETS.
Certain information which may be sensitive and have commercial value—such as those relating to production processes— the disclosure of
惠達雜誌 Fastener World no.204/2024
169
Industry Focus
， ，
■ South Africa Department of Trade, Industry and Competition (DTIC) of South Africa is concerned about the unequal treatment to developing economies as a result of CBAM:
， ，
CBAM has the effect of transferring the burden of climate action onto developing economies and places undue and unjust burdens on our country and industries. … Around US$ 1.5 billion exports of South Africa to the EU are at risk…our overall exports could decline by 4%, with the steel and aluminum sectors being particularly at risk. CBAM will not only affect the competitiveness of SA exports to the EU but could also result in increased imports by countries looking for alternate markets, resulting in dumping into SA and other developing countries. ...The African continent will lose at least US$26 billion per annum to the EU through carbon border taxes. …those countries that are economically more developed and have already made progress in transitioning to low-carbon economies may benefit more from CBAM than developing countries or less developed countries, especially due to factors such as subsidies. Moreover, the EU’s CBAM policy design … will create a direct impact on South Africa’s disadvantaged communit ies – exacerbat i ng i nequal it y, pover t y and unemployment.
， ，
Minister Ebrahim Patel said the EU's plan to unilaterally impose a tariff on carbon-intensive imports is extremely unhelpful. Calling EU CBAM a 'green trade barrier', he said: "We are particularly concerned about things like border adjustment taxes, and regulatory requirements that are imposed unilaterally,” Ebrahim Patel, South Africa’s trade minister, told the Financial Times. “If it gets to be an enormous defining thing between north and south, you’re going to have a lot of political resistance." In addition to the aformentioned governments, European and Japanese fastener associations have also made submissions to the EU.
■ European Fastener Distributors Association (EFDA)
EFDA pointed out that CBAM creates unequal treatment between importers and manufacturers:
， ，
The system boundaries for determining CO2 emissions are significantly broader for the import of iron and steel
170
Fastener World no.204/2024 惠達雜誌
products, which include fasteners, than for the ETS. Thus, for the import of fasteners, the CBAM declarant must provide information on direct embedded emissions ...the regulations have the effect of putting importers of fasteners at a disadvantage compared to domestic manufacturers, which is initially ref lected in ... higher costs due to the acquisition of certif icates by importers. We consider this unjustified disadvantage of importers compared to domestic manufacturers to be incompatible with WTO law. This unequal treatment must be eliminated before the Implementing Regulation applies. It will not be possible for importers to provide concrete emission values, which is why fastener distributors will essentially have to rely on the Commission's default values. Hardly any company has the necessary information on the production plants nor the emission data or will receive them with the expected accuracy from its suppliers. It is also simply not possible even for large companies to obtain necessary data in a given time. Especially in the very fragmented fastener industry with countless articles, suppliers and manufacturers, the determination of the data will be so time-consuming for the companies, even with clear specifications, that they will not be able to report the data by the end of January 2024. In any case, importers should not be held liable if, despite all efforts, they are unable to provide the necessary data.
， ，
■ The Fasteners Institute of Japan (FIJ)
F I J i s c o n c e r n e d a b o u t C BA M ' s i m p a c t o n p r i c e competitiveness and the risk of confidentiality leakage:
， ，
which could impair the interests of our economic operators. ... Rather than communicating such sensitive information to their EU peers, a more reasonable approach would be, for instance, to provide for our economic operators to disclose them to accredited verifiers.
This new regulation will force companies to create a large volume of an accurate data and information. It is obvious that this imposed extra workload will be an extra cost that should be theoretically passed onto the current export price. Most of our member companies are small and medium sized and have not enough personnel resources to take care of
Industry Focus this very detailed and strict data/information creation in English. Our biggest concern related to CBAM is this strict and complicated obligation will make companies lose competitiveness in price and may put them into serious financial situations in case of losing business due to this new regulation. This new rule insists that imported products should be declared with the contained emissions (both direct and indirect) on a "quarterly basis" while EU products are required to be declared on a "yearly basis" only for direct emissions, not for indirect ones. This is not a fair treatment. EU-ETS is not requiring to declare contained emission by product for EU products, while imported products, are required to declare "by product", that is another extra workload for exporters. We cannot see any clause and statement that restrict EU importers not to use data and information given from exporters for any other purpose than CBAM report. This is supposed to be a risk for exporters. These confidential data and information should be treated by EU importer carefully.
， ，
■ CBAM’s
Confidentiality Security, Fairness and Adaptability Under Critical Scrutiny
From the above opposing voices, we can summarize that many countries are concerned about leaking corporate secrets during the reporting process. CBAM's biggest weakness is the lack of legal transparency and the inability to provide a clear mechanism to safeguard information security. It has also been fiercely criticized for the unfairness it creates between advanced and under-developed nations, as well as between importers and manufacturers. It is too generic to be properly adapted to each country's carbon regulations, meaning that its legitimacy will continue to be challenged. In a future where carbon reduction takes dominance, a major revision of CBAM is imminent, and fastener business owners have no time to wait!
Copyright owned by Fastener World; Article by Dean Tseng
惠達雜誌 Fastener World no.204/2024
171
Industry Focus
CBAM Regulation in a Nutshell for Fastener Business Owners
For those who struggle with the daunting length of CBAM regulation in full text, Fastener World editors have gone through all 53 pages of the regulation, and extracted the essential parts into a brief article for fastener business owners. This article will get you familiar with at least 80% of the core context of CBAM, and help you get into the swing of it. The editors have slightly simplified abstruse statements in the regulation and cut out repetitive and redundant words and phrases to make it easier to read. Without further ado, here are the key CBAM excerpts.
Regulation (EU) 2023/956 of The European Parliament and of the Council (10 May 2023) ◢ Critical Definitions 1. ‘Direct emissions’ means emissions from the production processes of goods, including emissions from the production of heating and cooling that is consumed during the production processes, irrespective of the location of the production of the heating or cooling. For 7318 – screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, carbon dioxide washers (including spring washers) and similar articles of iron or steel, only direct emissions are to be taken into account. 2. ‘Indirect emissions’ means emissions from the production of electricity which is consumed during the production processes of goods, irrespective of the location of the production of the consumed electricity. 3. ‘Embedded emissions’ means direct emissions released during the production of goods and indirect emissions from the production of electricity that is consumed during the production processes. The authorized CBAM declarant shall
172
Fastener World no.204/2024 惠達雜誌
keep records of the information required to calculate the embedded emissions until the end of the fourth year after the year in which the CBAM declaration has been or should have been submitted. 4. ‘Actual emissions’ means the emissions calculated based on primary data from the production processes of goods and from the production of electricity consumed during those processes. 5. ‘Ton of CO2e’ means one metric ton of CO2. 6. ‘CBAM certificate’ means a certificate in electronic format corresponding to one ton of CO2e of embedded emissions in goods. 7. ‘Surrender’ means offsetting of CBAM certificates against the declared embedded emissions in imported goods or against the embedded emissions in imported goods that should have been declared.
Fastener World no.204/2024 173
Industry Focus 8. ‘Default value’ means a value calculated or drawn from secondary data, which represents the embedded emissions in goods. When actual emissions cannot be adequately determined by the authorized CBAM declarant, default values shall be used. When reliable data for the exporting country cannot be applied for a type of goods, the default values shall be based on the average emission intensity of the X % worst performing EU ETS installations for that type of goods. 9. ‘Carbon price’ means the monetary amount paid in a third country, under a carbon emissions reduction scheme, in the form of a tax, levy or fee or in the form of emission allowances under a greenhouse gas emissions trading system, calculated on greenhouse gases covered by such a measure, and released during the production of goods. 10. ‘Installation’ means a stationary technical unit where a production process is carried out. 11. ‘Operator’ means any person who operates or controls an installation in a third country. 12. ‘National accreditation body’ is appointed by each Member State.
(h) Names and contact information of the persons on behalf of whom the applicant is acting, if applicable 5. The applicant may withdraw its application at any time.
◢ CBAM Declaration 1. By 31 May of each year, and for the first time in 2027, each authorized CBAM declarant shall use the CBAM registry to submit a CBAM declaration for the preceding calendar year. 2 . T he C BA M de cla r at ion sh a l l c ont a i n t he fol low i ng information: (a) Total quantity of each type of goods imported during the preceding calendar year, expressed in megawatt-hours for electricity and in tons for other goods (b) Total embedded emissions in the goods, expressed in tons of CO2e emissions per megawatt-hour of electricity or, for other goods, in tons of CO2e emissions per ton of each type of goods (c) Total number of CBAM certificates to be surrendered
◢ Obligations and Rights of Authorized CBAM Declarants
(d) Copies of verification reports, issued by accredited verifiers
1. Goods shall be imported into the customs territory of the Union only by an authorized CBAM declarant. 2. Any importer established in a Member State shall, prior to importing goods into the customs territory of the Union, apply for the status of authorized CBAM declarant. 3. Where an importer is not established in a Member State, the indirect customs representative shall submit the application for an authorization. 4. The application for an authorization shall include the following information about the applicant: (a) Name, address and contact information (b) EORI number (c) Main economic activity carried out in the Union (d) Certification by the tax authority in the Member State where the applicant is established that the applicant is not subject to an outstanding recovery order for national tax debts (e) Declaration that the applicant was not involved in any serious infringements or repeated infringements of customs legislation, taxation rules or market abuse rules during the five years preceding the year of the application, including that it has no record of serious criminal offences relating to its economic activity (f ) Information necessary to demonstrate the applicant’s financial and operational capacity to fulfil its obligations (g) Estimated monetary value and volume of imports of goods into the customs territory of the Union by type of goods, for the calendar year during which the application is submitted, and for the following calendar year
174
Fastener World no.204/2024 惠達雜誌
◢ Carbon Price Paid in a Third Country 1. An authorized CBAM declarant may claim in the CBAM declaration a reduction in the number of CBAM certificates to be surrendered in order to take into account the carbon price paid in the country of origin for the declared embedded emissions. The reduction may be claimed only if the carbon price has been effectively paid in the country of origin. In such a case, any rebate or other form of compensation available in that country that would have resulted in a reduction of that carbon price shall be taken into account.
45
23 23
25
8-
25
00
5
45 8-
00
5
45 45
48
8-
48
00
4
8-
00
48
8-
48
00
8-
00
4
4
63
4
63
64
7-
00
64
7-
00
1
1
Fastener World no.204/2024 175
Industry Focus 2. The authorized CBAM declarant shall keep records of the documentation required to demonstrate that the declared embedded emissions were subject to a carbon price in the country of origin of the goods that has been effectively paid. The authorized CBAM declarant shall in particular keep evidence related to any rebate or other form of compensation available, in particular the references to the relevant legislation of that country. The information contained in that documentation shall be certified by a person that is independent from the authorized CBAM declarant and from the authorities of the country of origin. The name and contact information of that independent person shall appear on the documentation. The authorized CBAM declarant shall also keep evidence of the actual payment of the carbon price until the end of the fourth year after the year during which the CBAM declaration has been or should have been submitted.
◢ Registration of Operators and of Installations in Third Countries 1. The request for registration shall contain the following information to be included in the CBAM registry upon registration: (a) the name, address and contact information of the operator (b) the location of each installation including the complete address and geographical coordinates expressed in longitude and latitude, including six decimals (c) the main economic activity of the installation 2. The Commission shall notify the operator of the registration in the CBAM registry. The registration shall be valid for a period of five years from the date of its notification to the operator of the installation. 3. The operator may, at any time, ask to be deregistered from the CBAM registry. The Commission shall, upon such request, and after notifying the competent authorities, deregister the operator and delete the information on that operator and on its installation from the CBAM registry.
◢ Professional Secrecy and Disclosure of Information 1. All information acquired by the competent authority or the Commission in the course of performing their duties which is by its nature confidential or which is provided on a confidential basis shall be covered by the obligation of professional secrecy. Such information shall not be disclosed by the competent authority or the Commission without the express prior permission of the person or authority that provided it or by virtue of Union or national law. 2. By way of derogation from paragraph 1, the competent authorities and the Commission may share such information with each other, the customs authorities, the authorities in charge of administrative or criminal penalties, and the European Public Prosecutor’s Office, for the purposes of ensuring compliance of persons with their obligations under this Regulation and the application of customs legislation. Such shared information shall be covered by professional secrecy and shall not be disclosed to any other person or authority except by virtue of Union or national law.
◢ Accreditation of Verifiers A national accreditation body may, on request, accredit a person to be a verifier for the purpose of this Regulation.
176
Fastener World no.204/2024 惠達雜誌
◢ Review of CBAM Declarations 1. The Commission may review CBAM declarations, in accordance with a review strategy, including risk factors, within the period ending with the fourth year after the year during which the CBAM declarations should have been submitted. 2. Where the competent authority concludes that the declared number of CBAM certificates to be surrendered is incorrect, it shall determine the number of CBAM certificates which should have been surrendered by the authorized CBAM declarant, taking into account the information submitted by the Commission. The competent authority shall notify the authorized CBAM declarant of its decision on the number of CBAM certificates determined and shall request that the authorized CBAM declarant surrender the additional CBAM certificates within one month. 3. Where the competent authority concludes that the number of CBAM certificates surrendered exceeds the number which should have been surrendered, it shall inform the Commission without delay. The CBAM certificates surrendered in excess shall be repurchased.
◢ Sale of CBAM Certificates 1. A Member State shall sell CBAM certificates on a common central platform to authorized CBAM declarants established in that Member State. 2. The Commission shall ensure that each CBAM certificate is assigned a unique identification number upon its creation. The Commission shall register the unique identification number and the price and date of sale of the CBAM certificate in the CBAM registry in the account of the authorized CBAM declarant purchasing that certificate.
Fastener World no.204/2024 177
Industry Focus ◢ Price of CBAM Certificates
1. The customs authorities shall not allow the importation of goods by any person other than an authorized CBAM declarant.
1. The Commission shall calculate the price of CBAM certificates as the average of the closing prices of EU ETS allowances on the auction platform, in accordance with the procedures, for each calendar week. For those calendar weeks in which no auctions are scheduled on the auction platform, the price of CBAM certificates shall be the average of the closing prices of EU ETS allowances of the last week in which auctions on the auction platform took place.
2. The customs author ities may com mu nicate conf idential information acquired by the customs authorities in the course of performing their duties, or provided to the customs authorities on a confidential basis, to the Commission and the competent authority of the Member State that has granted the status of the authorized CBAM declarant.
2. The Commission shall publish the average price on its website or in any other appropriate manner on the first working day of the following calendar week. That price shall apply from the first working day following that of its publication to the first working day of the following calendar week.
◢ Surrender of CBAM Certificates 1. By 31 May of each year, and for the first time in 2027 for the year 2026, the authorized CBAM declarant shall surrender via the CBAM registry a number of CBAM certificates that corresponds to the embedded emissions declared for the calendar year preceding the surrender. The authorized CBAM declarant shall ensure that the required number of CBAM certificates is available on its account in the CBAM registry. 2. The authorized CBAM declarant shall ensure that the number of CBAM certificates on its account in the CBAM registry at the end of each quarter corresponds to at least 80% of the embedded emissions in all goods it has imported since the beginning of the calendar year.
◢ Repurchase of CBAM Certificates 1. Where an authorized CBAM declarant so requests, the Member State where that authorized CBAM declarant is established shall repurchase the excess CBAM certificates remaining on the account of the declarant in the CBAM registry after the certificates have been surrendered. The Commission shall repurchase the excess CBAM certificates through the common central platform on behalf of the Member State where the authorized CBAM declarant is established. The authorized CBAM declarant shall submit the repurchase request by 30 June of each year during which CBAM certificates were surrendered. 2. The number of certificates subject to repurchase shall be limited to one third of the total number of CBAM certificates purchased by the authorized CBAM declarant during the previous calendar year. 3. The repurchase price for each CBAM certificate shall be the price paid by the authorized CBAM declarant for that certificate at the time of purchase.
◢ Rules Applicable to the Importation of Goods
178
Fastener World no.204/2024 惠達雜誌
◢ Penalties 1. An authorized CBAM declarant who fails to surrender, by 31 May of each year, the number of CBAM certificates that corresponds to the emissions embedded in goods imported during the preceding calendar year shall be held liable for the payment of a penalty. Such a penalty shall be applicable in the year of importation of the goods. 2. Where a person other than an authorized CBAM declarant introduces goods into the customs territory of the Union without complying with the obligations under this Regulation, that person shall be held liable for the payment of a penalty. Such a penalty shall be an amount from three to five times the penalty referred to in paragraph 1. The payment of the penalty shall not release the authorized CBAM declarant from the obligation to surrender the outstanding number of CBAM certificates in a given year.
◢ Circumvention Practices of circumvention shall be defined as a change in the pattern of trade in goods, which stems from a practice, process or work which may consist of, but is not limited to: (a) Slightly modifying the goods concerned to make those goods fall under CN codes which are not listed, except where the modification alters their essential characteristics (b) Artificially splitting shipments into consignments the intrinsic value of which does not exceed the threshold
◢ Scope of the Transitional Period During the transitional period from 1 October 2023 until 31 December 2025, where the importer is established in a Member State and appoints an indirect customs representative, and where the indirect customs representative so agrees, the reporting obligations shall apply to such indirect customs representative. Where the importer is not established in a Member State, the reporting obligations shall apply to the indirect customs representative.
That’s a Wrap There you go. Fastener World keeps tabs on CBAM and for latest updates, check out www.fastener-world.com and our publications for more updates. Copyright owned by Fastener World / Article by Dean Tseng
Industry Focus
The Future of Global Solar Fasteners Market in the CBAM Era Definition of Carbon Border Adjustment Mechanism Era The Carbon Border Adjustment Mechanism (CBAM), also known as the EU carbon border tax, is a policy that will impose a carbon price on imports of goods into the European Union. This is expected to have a significant impact on the solar fasteners market, as it will make it more expensive to import fasteners from countries with less stringent environmental regulations.
Market Trends The global solar fasteners market is expected to reach a value of USD 3.2 billion by 2027, growing at a CAGR of 12.4% from 2022 to 2027. This growth is being driven by the increasing adoption of solar energy worldwide, as well as the need for high-quality fasteners to ensure the durability and performance of solar panels. The global solar fasteners market is characterized by a number of key trends, including: • Focus on quality and durability: Solar fasteners must be able to withstand the harsh environmental conditions in which they are installed. This is driving the demand for high-quality fasteners that are made from durable materials and can resist corrosion. • Need for standardization: There is a need for standardization in the solar fasteners market to ensure that fasteners are compatible with different types of solar panels. • Growing adoption of smart fasteners: Smart fasteners are equipped with sensors that can monitor the performance of solar panels and detect potential problems. This is expected to drive the demand for smart fasteners in the future.
Increasing Demand for Solar Energy and Impact of CBAM Solar energy is one of the fastest-growing renewable energy sources in the world. This is driving the demand for solar fasteners, as they are essential components of solar panels. The CBAM is expected to have a significant impact on the global solar fasteners market, as it will make it more expensive to import fasteners from countries with less stringent environmental regulations. This is likely to lead to increased demand for fasteners made in countries with stricter environmental regulations.
Countries with Lower Environmental Regulations1 In the global landscape of solar energy production, various countries are
180
Fastener World no.204/2024 惠達雜誌
navigating the potential implications of the Carbon Border Adjust ment Mechanism (CBAM) proposed by the European Union. Here's a snapshot of key players with lower environmental regulations that CBAM may have negative impact on their solar fasteners export: • China: China’s solar photovoltaic market has grown dramatically during the last decade. The country has made enormous efforts to expand its solar capacity, which increased from only 4.2 gigawatts in 2012 to over 390 gigawatts in 2022. China is by far the leading solar market worldwide, accounting for most of the cumulative solar capacit y installed globally, as well as new capacity additions. China’s solar capacity is projected to continue expanding in the next years, with forecast new installations ranging from 390 to 569 gigawatts between 2022 and 2026. In 2021, China's solar PV exports exceeded
Industry Focus USD 30 billion, underscoring its prominence as a leading producer of solar panels and fasteners with a robust manufacturing base.
grow from 9.80 gigawatt in 2023 to 15.01 gigawatt by 2028, at a CAGR of 8.91% during the forecast period (2023-2028). • South Africa: The South Africa solar energy market size was estimated at 6.04 gigawatt in 2023, and is expected to reach 9.98 gigawatt by 2028, growing at a CAGR of 10.56% during the forecast period (2023-2028).
• India: Electricity generation in the solar energy market was projected to amount to 39.95bn KWh in 2023. An annual growth rate of 7.13% is expected (CAGR 2023-2028). In
• Saudi Arabia: Electricity generation in the solar energy market was projected to amount to 0.26bn KWh in 2023. An annual growth rate of 2.90% is expected (CAGR 2023-2028).
Key Players with Higher Environmental Regulations and Potential Impact of CBAM • Germany: Electricity generation in the solar energy market was projected to amount to 53.91bn KWh in 2023. An annual growth rate of 2.28% is expected (CAGR 2023-2028). • Japan: Japan’s flexible solar panel market size was valued at USD 768 Million in 2022 and is projected to reach USD 1423.85 Million by 2031, growing at a CAGR of 7.1% from 2022 to 2031 according to a new report by IMIR Market Research. Electricity generation in the solar energy market was projected to amount to 65.93bn KWh in 2023. • Taiwan: The cumulative installed capacity for solar PV in Taiwan was 9,723.8 MW in 2022. It is expected to achieve a CAGR of more than 12% during 2022-2035. • UK: Electricity generation in the solar energy market was projected to amount to 11.41bn KWh in 2023. An annual growth rate of 2.34% is expected (CAGR 2023-2028). • USA: The U.S. solar PV market size was estimated at USD 29.68 billion in 2022 and was expected to reach USD 96.63 billion in 2023. Solar is becoming an increasingly important energy resource in the United States. In the last decade, solar has grown with an average annual rate of 24 percent, reaching a capacity of over 110 gigawatts in 2022.
Future Outlook 2 2021, the India solar energy market reached an estimated value of USD 38 billion. • Brazil: Electricity generation in the solar energy market was projected to amount to 6.20bn KWh in 2023. An annual growth rate of 2.72% is expected (CAGR 2023-2028). • Vietnam: The Vietnam solar energy market was estimated to be at 18.4 gigawatt (GW) by the end of 2023 and is projected to reach 20.4 gigawatt (GW) after five years, registering a CAGR of over 2.1% during the forecast period. • Thailand: Electricity generation in the solar energy market was projected to amount to 4.47bn KWh in 2023. An annual growth rate of 3.74% is expected (CAGR 2023-2028). • Malaysia: Electricity generation in the solar energy market was projected to amount to 0.81bn KWh in 2023. An annual growth rate of 4.92% is expected (CAGR 2023-2028). • Mexico: The Mexico solar photovoltaic market size in terms of installed base is expected to
The future of the global solar fasteners market is bright. The increasing adoption of solar energy worldwide, as well as the need for high-quality fasteners to ensure the durability and performance of solar panels, will drive the growth of the market in the coming years. The CBAM is also expected to have a positive impact on the market, as it will make it more expensive to import fasteners from countries with less stringent environmental regulations. This is likely to lead to increased demand for fasteners made in countries with stricter environmental regulations. Overall, the global solar fasteners market is expected to grow at a strong CAGR in the coming years. The increasing adoption of solar energy, the need for high-quality fasteners, and the impact of the CBAM will all contribute to the growth of the market. Source: https://www.mordorintelligence.com/industry-reports/ & https://www.statista.com/outlook/io/energy/renewable-energy/solar-energy 2 https://www.mordorintelligence.com/industry-reports/ & https://www.statista.com/outlook/io/energy/renewable-energy/solar-energy & https://www.globaldata.com/store/report/taiwan-solar-pv-market-analysis/ 1
Copyright owned by Fastener World / Article by Behrooz Lotfian
惠達雜誌 Fastener World no.204/2024
181
Exhibition
1st Edition
Manufacturing World Fukuoka 2023 Local Buyers Keen to Learn Fastener Industry Developments
Following Tok yo, Osa ka a nd Nagoya, Fu k uoka has its f i rst “Manufacturing World” show. The three-day show, held from November 29th to December 1st, took place in Hall A of Marine Messe Fukuoka. Hall A was mainly filled with Japanese manufacturers of forged parts and CNC parts. There were a few exhibitors solely specialized in inserts, nuts or bolts, and a few traders mainly offering forged parts along with a portion of screws. Hall B featured AI technology, with a handful of exhibitors of torque wrenches using smart technology and AI-enabled surface inspection equipment. These exhibitors feature AI for managing torque settings for operators or AI selflearning for detecting damages on the surface of screws and other parts. The rest of exhibitors provided AI production management software technology, which reduces human errors in order processing and manufacturing processes and lowers labor costs for operators. According to Fastener World’s staff on-site, most of the Japanese visitors kept a conservative attitude towards the first edition of the show in Fukuoka. They visited Fastener World’s booth mostly hoping to learn about the fastener industry and its structure through Fastener World magazines. Fastener World took the opportunity to spearhead the initial promotional campaign in Fukuoka for the fastener industry. Among the visitors to Fastener World’s booth, there was a Japanese owner looking for Taiwanese suppliers that can produce 5 million pcs of automotive tapping screws per month. In addition, a Japanese insert manufacturer revealed to Fastener World that they expected to start looking for Taiwanese representatives from mid-2024. By then, they will reveal a new patent product to Taiwan through Fastener World, bringing anticipation for new business opportunities between Taiwan and Japan. The organizer has announced the next Manufacturing World Fukuoka will be held from December 11 to 13, 2024. A few exhibitors have already booked their booths in advance before the end of the 2023 edition. Interested parties should sign up with the organizer. Fastener World will be keeping a close eye on the latest developments of the next edition. Follow Fastener World’s website for new information. Copyright owned by Fastener World / Article by Dean Tseng
182
Fastener World no.204/2024 惠達雜誌
Exhibition
Fasteners World Middle East 2024 Swarming Visitors with Inquiries Demonstrate Strong Purchasing Potential
Fasteners World Middles East, a professional international exhibition for the fasteners, hardware, industrial components and related raw materials/metal processing technology industries, was held at the Expo Centre Sharjah in UAE from January 8 to 11 this year, which is also a thematic sub-show of the well-known SteelFab. The 4-day exhibition attracted many key industry players and potential buyers from the local and neighboring Middle East countries to observe the latest developments and innovations in the industry. Supported by the local government's policy of encouraging the metal fabrication industry to undergo digital transformation to enhance market competitiveness and gain more opportunities for development, the exhibition featured not only fasteners & metal-related processing technologies, but also other welding/cutting, power tools, machine tools, pipes & tubes, stainless steel products, as well as AI and robotics. Hundreds of exhibitors from the UAE and other countries participated in the event, looking forward to deepening industry interactions and exchanges through the annual Middle East exhibition platform, and more importantly, promoting their brands to enhance their image and accelerating their steps to look for companies they can further establish business cooperation with in the future expansion of the Middle East market. Exhibitors from Germany, India and the UK, the largest overseas exhibitors groups this year, were also seen setting up their own national pavilions to showcase latest products, technologies and peripheral services. According to the observation of Fastener World's on-site staff, most of the local Middle East buyers who had a large demand for fasteners during the show were general metal manufacturers, large-scale project builders (e.g., steel mills or power plants), and telecommunication transmission parts manufacturers. Many traders also came to our booth to ask for the latest publications and suppliers info, mainly inquiring about standard fasteners for various applications, while the demand for special fasteners was relatively low. A few local buyers told Fastener World's on-site staff that “price, quality and flexible payment methods” were their key concerns when conducting pre-purchase evaluations. They also hoped to find Taiwanese fastener suppliers that can offer high c/p ratio of products through Fastener World’s multiple suppliers info platforms, including printed/digital publications, online buying and selling systems, and comprehensive supplier databases. As the UAE is one of the most important import markets for fasteners in the Middle East, and a key gateway for many overseas fastener suppliers to enter the Middle East fastener supply chain, the on-site presence of Fastener World staff will help fastener suppliers interested in expanding their business in the Middle East or the neighboring emerging markets to build up more cooperation with the local buyers. Copyright owned by Fastener World / Article by Gang Hao Chang, Vice Editor-in-Chief
惠達雜誌 Fastener World no.204/2024
183
Industry Focus
Wind Power Fastener Market, Introduction In the realm of renewable energy, wind power stands tall as a formidable source, harnessing the Earth's natural forces to generate electricity. As the global shift towards sustainable energy intensifies, the wind power sector has become a key player in the race to reduce carbon emissions. In this landscape, the often-overlooked yet crucial component—the wind power fastener— plays a pivotal role. This article delves into the nuances of the wind power fastener market, exploring its significance, current trends, challenges, and the strategic initiatives required to navigate the 'headwinds' and foster sustainable growth.
● Understanding the Wind Power Fastener Market Fasteners, often small but indispensable components, hold the key to the structural integrity of wind power installations. These include bolts, nuts, screws, and other hardware elements that secure the various components of a wind turbine, ensuring they withstand the forces of nature. The wind power fastener market is intricately linked to the growth of the wind energy sector, acting as a linchpin for the reliability and longevity of wind turbines.
● Market Dynamics and Growth Factors The wind power industry has witnessed exponential growth in recent years, driven by increasing global awareness of climate change and the need for sustainable energy sources. This surge in demand for wind energy translates into a parallel rise in the wind power fastener market. The expanding offshore wind projects, coupled with onshore installations, contribute significantly to the market's growth. Look at the following data: • Global Wind Power Capacity: According to the Global Wind Energy Council (GWEC), the global wind power capacity reached 837 GW at the end of 2022. This represents a 17% increase from 2021 and an astonishing 740% increase from 2010. • Annual Wind Power Installation: GWEC reported that 97 GW of new wind power capacity was installed globally in 2022, representing a 15% increase from 2021. This is the highest annual installation on record, demonstrating the industry's continued growth. • Regional Growth: Wind power is experiencing significant growth in regions worldwide. In 2022, Asia accounted for 54% of new installations, followed by Europe (21%) and North America (16%). This demonstrates the industry's global reach and diversifying market. • Global Wind Power Investments: BloombergNEF (BNEF) estimated that global investments in wind power reached US$160 billion in 2022, a 37% increase from 2021. This demonstrates the strong financial backing and investor confidence in the industry's future.
184
Fastener World no.204/2024 惠達雜誌
● Key Trends in the Wind Power Fastener Market A. Technological Advancements The fastener industry is adapting to the evolving needs of the wind power sector by developing advanced mater ials and coat i ngs that enhance cor rosion resistance and durability, crucial factors in the harsh environmental conditions wind turbines face. Leading countries in this investment include Europe (Germany, Denmark, UK), North America (USA, Canada), and Asia (China, Japan, South Korea). Specific focus areas include material innovation (high-strength alloys, corrosionresistant coatings), smart fasteners with sensor technology, and sustainable production processes. Although there are some challenges in the wind power fastener market like: • Corrosion Concerns: Corrosion can compromise the structural integrity of wind turbines, leading to safety hazards and operational losses. In 2020, a major offshore wind farm in Europe experienced several fastener failures due to corrosion, causing significant downtime and costly repairs. • Supply Chain Disruptions: Supply chain disruptions can lead to delays in project completion and increased costs, for example, the global chip shortage in 2021 impacted the production of wind turbine components, including fasteners, due to the reliance on specific semiconductors.
B. Rise of Offshore Wind Farms1 As countries explore their offshore wind potential, the demand for fasteners designed to withstand marine conditions is escalating. This trend is reshaping the wind power fastener market and driving innovations in anticorrosion technologies. As of October 26, 2023, here is a breakdown of the number of operational offshore wind farms in each country:
Industry Focus Country China United Kingdom Germany Denmark Netherlands Belgium Vietnam Taiwan Japan South Korea France Finland Sweden Portugal Ireland The U. S. Total
Number of Offshore Wind Farms 114 48 37 26 14 13 12 11 10 8 6 3 2 2 1 1 308
faces its own set of challenges, including high capital costs, intricate grid integration hurdles, and the increasingly competitive demand for maritime space. Despite these obstacles, Europe's commitment to renewable energy and its proactive approach to overcoming challenges position the continent as a frontrunner in the global offshore wind landscape. 3. Asia: In the burgeoning landscape of offshore wind energy in Asia, the region boasts 12 operational offshore wind farms, contributing to an approximate 2.8% share of the global total. This growth is fueled by escalating energy demand, reinforced by strong governmental support for renewable energy initiatives and notable technological advancements. Leading the charge in Asia's offshore wind sector are countries such as Vietnam, Taiwan, Japan, and South Korea. Despite these strides, the region encounters challenges, including a lack of experience and expertise in offshore wind projects, high upfront costs, and navigating complex regulatory frameworks. 4. USA: In the United States, the offshore wind sector is in its nascent stage, marked by the operation of a single offshore wind farm and a market share accounting for less than 0.2% of the global total. Despite this modest presence, the industry is propelled by a growing demand for clean energy, driven by ambitious national targets for renewable energy and notable technological advancements in offshore wind technology. However, the sector faces challenges such as high project costs, regulatory hurdles, and public resistance in certain coastal communities.
Key points of above statistic are: 1. China stands as a global powerhouse in the offshore wind sector, boasting 114 operational offshore w ind farms and commanding over 33% of the global market share. This dominance is fueled by robust government policies advocating for renewable energy, coupled with China's formidable domestic manufacturing capabilities and abundant coastal resources. However, challenges persist, including overcrowded coastal areas, grid connection issues, and a reliance on foreign technology for specific components. Despite these hurdles, China's strategic investments and technological advancements underscore its pivotal role in shaping the future of offshore wind energy on a global scale. 2. Europe: Europe stands at the forefront o f o f f s h o r e w i n d e n e r g y, b o a s t i n g a staggering 308 operational offshore wind farms and commanding a market share of over 50% globally. This dominance is propelled by Eu rope's extensive histor y in wind energy development, fortified by robust regulatory frameworks and supportive policies. Leading the charge in offshore wind initiatives are powerhouse nations such as the United Kingdom, Germany, Denmark, the Netherlands, and Belgium. However, Europe
186
Fastener World no.204/2024 惠達雜誌
● The Future of the Wind Power Fastener Market and Conclusion In the face of global challenges posed by climate change, the wind power sector stands as a beacon of hope for sustainable energy. The wind power fastener market, often overlooked in discussions about renewable energy, is a silent yet critical force driving the reliability and efficiency of wind turbines. Navigating the 'headwinds' of challenges requires strategic thinking, innovation, and a collective commitment to building a greener future powered by the inexhaustible energy of the wind. However, the wind power industry continues its upward trajectory, the wind power fastener market is poised for significant expansion. The integration of advanced technologies, coupled with a commitment to sustainability and resilience against challenges, will shape the future landscape. According to Market Research Intellect, the global wind power fastener market is expected to reach a value of USD 3288.6 million by 2028, growing at a CAGR of 7.7% from 2023. 2 Sources: Global Offshore Wind Farm Database and Intelligence: https://www.4coffshore.com/ & WindEurope: https://windeurope.org/ & Global Wind Energy Council: https://gwec.net/ 2 https://www.linkedin.com/pulse/global-wind-power-fastener-market-report-rrvbf/ 1
Copyright owned by Fastener World / Article by Sharareh Shahidi Hamedani
Industry Focus
Navigating the Green Horizon: A brief Exploration of
ISO 14064, ISO 14067, and ISO 14068 Certification in Fastener Manufacturing Introduction The fastener manufacturing landscape is undergoing a profound transformation as environmental sustainability takes centre stage. In this era of heightened awareness and responsibility, businesses are turning to globally recognized standards to guide their journey towards eco-friendly practices. ISO 14064, ISO 14067, and ISO 14068 stand as beacons in this quest for sustainability, providing a robust framework for measuring, reporting, and offsetting greenhouse gas emissions. This article tries to delve into the strategic importance of these certifications in fastener manufacturing, offering insights into their current applications, potential future trends, and recommendations for industry stakeholders.
ISO 14064: Pioneering Transparency in Greenhouse Gas Management
In the intricate web of fastener manufacturing processes, ISO 14064 emerges as a foundational tool. This standard, presented in three parts, serves as a comprehensive guide for organizations to quantify and report their greenhouse gas emissions. Part 1 focuses on the principles and requirements for developing, managing, and reporting organizational greenhouse gas (GHG) inventories, while Parts 2 and 3 address quantification and reporting at the project level. Fastener manufacturers globally are leveraging ISO 14064 to systematically assess their carbon footprint. For instance, fastener manufacturers incorporate ISO 14064 into their operational framework. They meticulously could measure emissions throughout their supply chains, from the extraction of raw materials to the distribution of finished products. This not only aligns with global sustainability goals but also fosters transparency in their environmental reporting.
As environmental regulations continue to evolve, ISO 14064 is likely to become even more integral to fastener manufacturing. The future may witness an increased emphasis on scope 3 emissions, encouraging companies to delve deeper into their supply chains for a more comprehensive understanding of their carbon footprint. Fastener manufacturers should anticipate and prepare for this shift by adopting robust data collection mechanisms and supply chain collaboration. Fastener manufacturers looking to future-proof their operations should consider proactive adoption of ISO 14064. Beyond compliance, this certification offers a strategic advantage in a marketplace increasingly favouring transparent, environmentally responsible practices.
188
Fastener World no.204/2024 惠達雜誌
Fastener World no.204/2024 189
Industry Focus ISO 14067: Quantifying Product Carbon Footprint for Market Leadership
In an age where consumers are becoming more discerning about the environmental impact of the products they choose, ISO 14067 holds particular significance for fastener manufacturers. This standard provides guidelines for assessing and communicating the carbon footprint of individual products, offering a valuable tool for those seeking a competitive edge in the market. The future trajectory of ISO 14067 suggests an increasing integration of product carbon footprint assessments into product labelling and marketing. Fastener manufacturers should anticipate this trend and consider leveraging their ISO 14067 certification to gain a marketing advantage, catering to environmentally conscious consumers.
For fastener manufacturers eyeing market leadership and resilience, ISO 14067 is more than a certification; it's a strategic tool for navigating the evolving consumer landscape. Companies should capitalize on this certification by integrating carbon footprint information into their marketing strategies and communicating their commitment to sustainability.
ISO 14068: Paving the Way to Carbon Neutrality
As the newest entrant into the ISO 14000 family, ISO 14068 is gaining traction as a guide for organizations aspiring to achieve and demonstrate carbon neutrality. This standard outlines principles and requirements for measuring, reducing, and offsetting greenhouse gas emissions. Forward-thinking fastener manufacturers are taking the lead in the pursuit of carbon neutrality. By implementing ISO 14068, companies can develop holistic strategies that not only focus on emissions reduction within operations but also involve investments in external projects that offset or remove equivalent emissions. This commitment not only aligns with environmental goals but also positions manufacturers as pioneers in sustainability.
The concept of carbon neutrality is likely to become more ingrained in corporate strategies, driven by both market expectations and regulatory developments. As governments worldwide intensify efforts to combat climate change, fastener manufacturers should consider ISO 14068 as a proactive means of future-proofing their operations against evolving environmental norms. Fastener manufacturers aiming for long-term sustainability should view ISO 14068 not just as a certification but as a strategic framework for achieving and demonstrating carbon neutrality. By actively engaging with external projects that offset emissions, companies can not only contribute to global sustainability goals but also fortify their position as environmentally responsible entities.
Benefits of Certification for Fastener Manufacturers
Conclusion
1. Market Competitiveness
Fastener manufacturers navigating the intricate landscape of environmental stewardship find a reliable guide in ISO 14064, ISO 14067, and ISO 14068 certifications. These standards not only enhance environmental performance but also strategically position manufacturers as leaders in sustainable business practices. As the future unfolds with greater environmental scrutiny, embracing these certifications is not merely a compliance exercise; it is a strategic i mperat ive t hat a l ig ns busi nesses wit h globa l sustainability goals, ensuring a resilient and responsible future. To thrive in this dynamic landscape, fastener manufacturers are urged to not only adopt these certifications but to proactively integrate them into their overarching business strategies. Future success lies not just in meeting current standards but in shaping a sustainable legacy for the generations to come.
ISO certifications enhance the market competitiveness of fastener manufacturers by signalling a steadfast commitment to sustainable practices. As exemplified by industry leaders these certifications are not just a compliance requirement but a strategic differentiator.
2. Risk Management Systematic identification and management of the carbon footprint enable fastener manufacturers to proactively mitigate environmental risks. This not only ensures regulatory compliance but also shields the organization from potential reputational and operational vulnerabilities.
3. Cost Savings The pursuit of sustainability through ISO certifications often yields costsaving opportunities. Streamlining operations for reduced emissions not only aligns with environmental goals but concurrently enhances operational efficiency, yielding long-term economic benefits.
4. Stakeholder Trust Trust is paramount in business, and ISO certifications act as a testament to a fastener manufacturer's commitment to transparent reporting and environmental responsibility. This engenders trust among key stakeholders, fostering robust relationships with customers, investors, and regulatory bodies. Source： https://www.iso.org/standard
190
Fastener World no.204/2024 惠達雜誌
All in all, adopting and complying with these ISO standards can positively impact fastener manufacturers by en ha ncing t hei r envi ron menta l credent ia ls, attracting environmentally conscious customers, and facilitating trade in regions where sustainability is a key consideration. Additionally, adherence to these standards can contribute to a positive corporate image, potentially leading to increased sales and improved trade statistics.
Copyright owned by Fastener World / Article by Shervin Shahidi Hamedani
Fastener World no.204/2024 193
194 Fastener World no.204/2024
Fastener World no.204/2024 195
Technology
Points of Interest When Using Aluminum Drawn Arc Weld Studs Prelude: The information provided has some basic guidelines needed to employ drawn arc aluminum stud welding. The use of aluminum weld studs has grown in popularity over the past 8 years because of their light weight and electrical grounding with integrated nut (Earth Stud). The goal is to touch on important questions about using aluminum drawn ac weld studs.
What
are a few special concerns with welding aluminum material?
Aluminum forms an oxidic skin when exposed to the environment. Aluminum oxide can also form during welding and is not advantageous. Also, there is concern about hydrogen dissolubility. When in the molten state, aluminum can react with hydrogen and create gas pockets in the solidified weld, making a porous material. The material must be free from moisture and lubricants. During welding the arc and molten material must be shielded by an inert gas, generally Argon.
What
are the basic aluminum materials to attach a drawn arc stud onto?
Assuming a suitable surface is available, aluminum studs can be welded properly to components made of aluminum sheet stock, extrusions, and castings. Successful weld results in sheet stock 3xxx series (Al-Mn), 5xxx series (Al-Mg) (considered excellent weldability) & 6xxx series (Al-Mg-Si), castings 3xxx and 5xxx series, and extruded 6xxx series. Still, each application should be evaluated for weldability using proper welding equipment.
Are
there dimensional and application limitations?
What
is meant by backing the weld area?
Backing is defined as a solid non-ferrous material (Copper) block approximately the diameter of the gas shield touching the material and centered directly behind the weld zone. Usually, the backing block is spring mounted providing 178N to 222N of force (40 to 50 pounds).
What
are the key aluminum panel surfaces conditions?
The material surface has a direct impact on the welding result. It is best to clean the components and subject them to a pickling passivation procedure to obtain a dry and contaminant free surface with a thin and even oxidic skin. Drawn arc welding uses AC welding machines which tolerate a small amount of dry lubricant. There are limits for maximum quantity and type of dry-film lubricants suitable for aluminum stud welding. Also, any additional lubrication with oil will have an adverse impact on the welding quality. These dry-film lubricants and oil must be studied, verified, and held constant if suitability testing shows it is feasible.
The minimum possible wall thickness of aluminum components to be stud welded is 1.0 mm without cracks appearing on the component back side. Recommendations are indicated in Table 1 that may differ depending on the joining variables. Therefore, the greater the weld f lange diameter (see Graphic 1) of a stud, the larger the material thickness of a component must be to successfully weld aluminum studs.
Graphic 1. Weld Flange Diameter location on studs.
Weld Flange
Table 1. Weld Flange Diameter vs. Weld Condition Weld Flange Dia. (mm) Weld without Backing Weld with Backing
196
Min. Panel Thickness, Cleaned & Passivated (mm) Min. Panel Thickness with Some Dry Lube (mm) Min. Panel Thickness, Cleaned & Passivated (mm) Min. Panel Thickness with Some Dry Lube (mm)
Fastener World no.204/2024 惠達雜誌
4.2 1 1.2 1 1.1
7.5 1.1 1.2 1 1.1
8 1.2 1.3 1.1 1.2
9 1.4 1.6 1.2 1.4
10 1.7 2 1.5 1.7
11 2 2.5 1.7 2
Technology
Can
moisture on the aluminum sheet panels be a concern?
Yes, condensation on panels will affect welding quality. Example, cold panels just delivered during the cold winter months should have time to warm up.
What
are some of the key process limitations and conditions?
Resistance Spot Welding cannot be in the same station as drawn arc. Studs cannot be placed over joints with adhesive. Avoid inconsistent or excessive stamping draw lubricants. The best orientation is downward (see Graphic 2). The limit is 45 degrees. Gravity may impact distribution of fillet under certain conditions, larger studs and thick materials requiring longer weld times (see Graphic 3).
Graphic 2. The best orientation to weld studs shows gas cover and secondary shield boot.
Graphic 3. Hot aluminum fillet can drip during welding process due to gravity, shown at 90 degrees.
Is
there particular material handling of Aluminum drawn arc weld studs?
Incoming aluminum weld studs are packaged in plastic bags. The studs have a one-year shelf life because old studs have aged thus changing their physical properties and require a modified weld schedule to be used. If stud bags are opened, the shelf life is compromised.
Are
there specific stud and nut surface finishes?
Common surface finishes for studs are BONDERITE M-NT 2040 (a.k.a. Henkel Alodine 2040), or equivalent, which provides a consistent known oxide layer and a shelf life of about 1 year. The nuts have a dry lubricant Microgleit DF921, or equivalent, to provide a constant low friction for torque performance and reduce the potential for mating thread galling.
Are
there reprocessing solutions for improper welds?
If the stud breaks off or welding is not possible and the wall thickness is < 1.5 mm, then a break-stem rivet with threaded mandrel could be used. These rivets are made of steel and require special sealing and corrosions avoidance. If the wall thickness is >1.5 mm, replacement aluminum studs can be welded after the damaged stud has been removed and the joining zone has been cleaned. Further reprocessing solutions such as MIG weldable aluminum plates with replacement aluminum drawn arc weld studs already attached can be used. If the walls have larger holes, then weld a stud to a similar piece of coupon and attach the coupon to the part.
What
are the key functions of a drawn arc weld Ground Stud Assembly (Earth Stud)? For quality control, the nut has a removal torque requirement (a.k.a. break-away torque) before paint. The stud and nut flange design serves 4 functions. See Graphic 4. 1.
The clamp load is generated against the flange providing a strong joint without putting the weld zone in tension.
2.
The nut is seated flush to flange preventing the intrusion of paint onto the grounding surface.
Aluminum studs must not be stored outside. Ideal storage is dry, lowheated rooms with low air humidity. Cold studs should be allowed to warm up to avoid condensation from air humidity. At least once every 6 months, all studs retained in the feeding drum or hopper should be removed and disposed of before refilling.
3.
The octagon shape provides the opportunity, in a production environment, to quickly test the weld using existing tools without changing the breakaway nut torque.
What
4.
The octagon can be used for anti-rotation with appropriately sized winged terminals that are currently available.
What
is the proper storage of aluminum studs?
are some of the stud and nut materials and preparations?
Many studs are made of AlMg5 (EN AW-5019, designated EN AWAl Mg5) and the nuts are AlMg2,5 (EN AW-5052, designated EN AW-Al Mg2,5) or equivalent. Next, they undergo a surface treatment characterized by a series of pickling and cleaning, with a final passivation coating/finish process. The studs are then placed into sealed bags for transportation and storage. These bags should not be opened until the time of use.
Graphic 4. Ground Stud Assembly (Earth Stud)
Copyright owned by Fastener World / Article by Ralph White
惠達雜誌 Fastener World no.204/2024
197
American News
AMERICAN NEWS Compiled by Fastener World
NFDA Panel: AI Attracts Younger Employees A fastener compa ny’s adoption of A r tif icial Intelligence can be impor tant in hiring younger employees who want a “forward thinking company,” panelist Lonni Kieffer of SmartCert pointed out during a National Fastener Distributors Association panel on “Using the Power of AI & Automation to Make Your Business More Efficient.” “It’s here,” panelist Rosa Hearn declared of AI. AI is knowledge based, Hearn of Brighton-Best International said. “We’ve been feeding it for years.” Any postings to Facebook or Google are now somewhere in AI, Hearn explained. Hearn advised checking what AI knows about your company already. “Be careful what you put into ChatGPT,” she cautioned. She cited the incident of a Samsung engineer posting new proprietary information and “now those company secrets are in the public domain.” Can AI make you a better salesperson? AI can learn about Rosa’s style from Facebook, LinkedIn and emails and be told to write a “personal” email to a customer. “Is it good enough to give the customer the “fuzzy wuzzies”? Hearn asked. “Time will tell.” AI “doesn’t know how to say ‘I don’t know,’” Hearn pointed out. Melissa Patel of Field said the Illinois-based fastener distributor chose to migrate to Power BI with a goal of improving results. “How do we find the right actions at the right time for the right people?” she asked. AI allows Field to manage profitability by categories such as by customer or even by branch. It also points to changing trends over time that allows Field to drill into item levels. It also allows Field to ask: What is the profit of this customer in the future? Is there a need to raise or lower prices? “BI allows us to see very clearly where we might have issues looking ahead,” Patel said.
Using the technology, Field can create a customer profit scorecard, measure other costs such as VMI, freight, excess lines and payment terms. Patel termed BI “a culture shift” that provides data to make decisions that are elevated to a new level. Picking apart the data “allows us to see more about profit quickly.” In the future, Field will be able to share more information with suppliers and customers that is specific to them, Patel forecast. Lonni Kieffer, co-founder of SmartCert, said AI isn’t really new if you think of consumer use of thermostats, GPS, online shopping and social media. Those have been moved from paper to digital and “these tools are all meant to provide efficiencies.” It is also part of “continuous learning” needed in “upscaling workers.” Kieffer se es Sm a r t Ce r t’s job a s a “technology partner” helping to “make life easier.” AI can read documents on your behalf, eliminate human error that you have with manual entry and create searchable data. Older emails are “fraught with peril,” Kieffer said. AI is going to get smarter yet, Kieffer predicted. Alex Goldberg of A MPG said the fastener manufacturer began in AI by scheduling three of their 70 machines. AI finds parts that are meant to be run together because of the tools it took to make an item, Goldberg said. The first standardization was bar diameter. Now AMPG can group unlike products together to produce fasteners with the least amount of tooling changes. AI can “recognize patterns that humans can’t.” Goldberg said. Goldberg said AMPG has used 30,000 setup sheets of paper previously in scheduling. “AI compliments traditional QC processes,” Goldberg said. For example, measurements are fed into a database. If a product is growing or changing, a message is sent to stop the machine. “We run 24/7 with mostly unattended machines,” and the alarms stop eight hours of bad parts, Goldberg said. AMPG will roll out more use of AI to the rest of the manufacturing floor.
STAFDA President: Labor Shortages Delay Projects Business owners and customers spent 2023 dealing with labor shortages on a large scale, the president of the Specialty Tools & Fasteners Distributors Association said in his State-of-the-Industry speech. “Personnel shortages and lack of skilled labor have made it difficult for many to complete projects on time and on budget,” Harry Klassen observed. Klassen, of Fastek Inc. of St Catharines, ON, joined STAFDA in 1998 when the convention was in Toronto. Klassen said the province of Ontario has signed 27,000 people to skilled trades – a 24% increase over 2022. Ontario is using an “all-hands-on-deck approach," which includes building skilled trades training centers across the province, letting trades recruiters into high schools and even loosening rules on how early high school students can start apprenticeships. ln 2022, the construction industry employed over 1.5 million Canadians, or approximately one of every 13 working Canadians, Klassen said. The number employed in US construction is over eight million. The Canadian Mortgage & Housing Corporation predicts the country needs five
198
Fastener World no.204/2024 惠達雜誌
American News million more homes by 2030 for housing to be affordable. With retirements, the construction industry needs a “daunting” number of 300,000 workers by 2032. "Ask any developer about supply issues and the availabilty of labour usually tops the list, Klassen said. “And there is no shortage of statistical evidence of that shortage. With no less than 80,000 job vacancies in the Canadian industry it is of a record high.” Klassen recalled he thought his high school classes offered “no bearing on my future” and was anxious to “get out into the work force.” He learned finish carpentry from his father, including framing houses, concrete work and drywall. “We even built a few homes together.” Klassen said he got his education through “the school of hard knocks.” Classroom learning “is advisable,” Klassen conceded. “The future of construction and distribution lies in the hands of younger people getting involved.” Klassen started a distributorship with “nothing to lose: A 500 sq ft office “and some crazy dreams, I turned a clothes closet into my repair room and so it began.” He sold to anyone who would come into the store and repaired all of the pneumatic tools and compressors “on my own.” When Klassen started selling pneumatic tools “many guys were still of the point of needing convincing that this was the wave of the future.” Thirty years ago, “I went to the job sites where I used the tools and showed the doubters the speed and ease of these new systems. There were “objections like you would not believe!”
“They won’t hold!” workers doubted. “To which I replied ....The glue on the nails holds better than hand drive nails.” He set up demos alongside “the fastest guys on site and crushed them.” He used his 12th grade math skills to show them the payback. “With the long hours and hard work I convinced many to jump on board and a lot of those customers are still with me today.” Klassen also “learned quickly that selling one line of products wouldn't be sustainable for long or keep customers coming back.” He started to carry hand and power tools and “our product lines grew and grew.” “What I do know is that in history if times are tough... a slowdown or recession hits, our industry is typically the last one in and the first one out of any economic downturn,” Klassen observed. Klassen predicted problems are going to be solved by being creative, such as “building with better materials and tools and I know that is why we are here. ....We have seen 3D printing with plastic. How about 3D printing with concrete?” ln the world of modern construction, technology can help attract young workers who have grown up in a digitally interconnected world and want to make an impact in the industry, Klassen said. He noted 40% of companies are using A.I. “As with the inception of pneumatic nailers when I started in business and cordless tools in general, technology is changing to increase the speed and ease of completing projects,” Klassen said. “We have learned to adapt and change over the centuries,” Klassen reflected. “And as we navigate this new normal, we will adapt as we learn to create new ways to speed up and improve processes. As we look around this room there are young and old and it will take all of us pushing our industry forward with new tools and technologies to help our customers succeed.”
惠達雜誌 Fastener World no.204/2024
199
American News Ford Fasteners Marks Its 60th Year Anniversary
Brighton-Best International & Parker Fasteners Partnership Brighton-Best International (BBI), Long Beach, CA, USA, and Parker Fasteners, Buckeye, AZ, USA, announced the formation of a strategic partnership on October 10, 2023, at the International Fastener Expo (IFE) in Las Vegas, NV, USA, starting in 2024. This partnership is likely to revolutionize the fastener industry by having quicker lead times on domestic stainless-steel sockets. Parker Fasteners, a manufacturer with a strong foothold in the domestic market, has been operational for over a decade and has earned a reputation for being customer-centric. Brighton-Best International has been operational for nearly 100 years and is known for its commitment to socket products and national high levels of stock. The agreement will focus on promoting the expansion of BBI’s stainless-steel lines. The partnership is expected to support distributor companies to expand their reach and increase their revenue and product offering of stainless steel. News provided by: John Wolz, Editor of FIN (globalfastenernews.com) Mike McNulty, FTI VP & Editor (www.fastenertech.com)
St eve C el la r y, P r e sid e nt of For d Fa st ene r s, I nc., NJ, USA, reports, “Ford Fasteners is proud to announce our 60th year anniversary of supplying our customers with quality 410 stainless steel screws. We supply self-drilling, self-piercing/sharp point and thread cutting screws. We also provide EPDM bonded sealing washers. Washers a re assembled to our screws in-house with our high-speed machinery for quick delivery. We pride ourselves with excellent customer service and we strive for same day shipping. We are independently owned and operated and are based in Fairfield.”
Huyett Acquires Big H Corporation O n D e c e m b e r 1, 2 0 2 3 , Huyett, acquired all the assets and business of Big H Corporation, doing business as PacFas and Mobile Fasteners. Big H was fo u n d e d by Bud d y Be a m a n in 1974 and, over the next 49 years, expanded into 84,000 ft 2 of industr ial space nea r I-45 and Hobby Airport in South Houston, TX, USA, just miles from the Houston Port. The acquisition of Big H solidifies Huyett’s market presence as a master distributor of industrial fasteners. Huyett CEO, Timothy O’Keeffe states that incorporating Big H’s expertise and established customer relationships into Huyett’s operations represents a significant step forward in the company’s growth strategy. This move will lay the optimum foundation for a seamless transition into 45,000 new SKUs, largely consisting of threaded fasteners that Huyett previously was not offering. O’Keefe commented, “We are excited to welcome Big H Corporation into the Huyett family. We look forward to continuing the Big H legacy and delivering unparalleled products and services to our customers.”
IFI Grows with 14 New Members in 2023 T h e I n d ust r ia l Fa st e n e r s Institute (IFI) has added 14 companies to its membership roster in 2023. These new members comprise a diverse array of industryleading companies, reflecting IFI’s continued growth. The following companies have joined the ranks of IFI membership in 2023. New Manufacturer Members include Chicago Rivet & Machine Co., CSM Fastener Products, Indux, SA de CV and Level 1 Fasteners, Inc. New Supplier Members are Bluewater Thermal Solutions, Dimac Srl, Industrial Steel Treating, Jehren Industries, Inc., King Steel Corp. and SmartCert. IFI also announces approval of its newest members including CMC Anchoring Systems (manufacturer), Chicago Fastener Manufacturing (manufacturer), FPM Heat Treating (supplier) and Carver Labs (supplier). The Industrial Fasteners Institute’s membership now stands at 135 manufacturers and 60 suppliers, which represents a 10% increase in the association’s membership since the year 2020.
200
Fastener World no.204/2024 惠達雜誌
Brazilian News
BRAZILIAN NEWS
Fig.3
Compiled by Fastener World
Fig.4
Crossing the Oceans 2023 was “the avant premiere year” on trade shows overseas to some Brazilian fastener manufacturers. Brazil hasn’t been an important export player in the international fastener market, mainly because the costs are so high, but nevertheless it is an emerging country. Could this scenario be changed? Soon after Belenus' exhibitor debut last March at Fastener Fair Global (2023) in Stuttgart, Germany, a Brazilian washer manufacturer, Metalmatrix, exhibited in two overseas events: Expopartes, June in Colombia, and Automechanika, July in Mexico.
TAITRA Business Mission, a Visit to Latin America
Last October was a time for two debuts by Hassmann and Metaltork as exhibitors to International Fastener Expo– IFE, USA. Both companies were founded more than 60 years ago, operating currently as strong domestic fastener players, focusing on heavy automotive sector, wind power energy among others.
Ta iwa nese fa st ener compa n ies held a roundtable meeting in Brazil.
Fig.1. IFE: Augusto Hassmann, Bernardo Hausmann, Denise Zerey, Serge Zerey (Hassmann), Ivan Reszecki, Charles Anderle (Metaltork) Automechanika: Idam Stival, Cristiano Grillo, Cássio Lopes (Metalmatrix)
Maxion Suppliers Award – 2023 The auto parts manufacturer unit created an exclusive category to award fastener providers. A division from Iochpe Maxion, the Maxion Structural Components -with an industrial plant located in Cruzeiro Town, SP, Brazil, held in November 2023 an annual award ceremony for the best annual providers. Although the awarding involves several suppliers’ sources, the highlight here goes to fastener manufacturer winner’s new category. The winners were: Quality Award to Metalac SPS; Project and Innovation Award to Ciser. The Development Award and Suppliers Award were given to Rivets Ind. Com.
202
Fig.2
Fastener World no.204/2024 惠達雜誌
In October 2023, the fasteners and tools business meeting took place at Hotel Meliá Paulista, in São Paulo, Brazil, an event that consisted of seven hours of business roundtables, in which companies from the fasteners segment, in addition to raw materials, were made available just like at a fair. More than 60 Brazilian business people at tended in sea rch of new a nd prof it able businesses. All support and organization were provided by the team from Taiwan Trade Center office Brazil, an official business agency, and the mission team was made up of 11 people from seven companies. "Brazil is a market that occupies an important posit ion for ou r members, as it ca n of fer incredible commercial potential; it is a country with a market of more than 203 million people, which has conditions to grow and enter strongest in the durable and semi-durable consumer goods market", told Sandra Shih (Bottom middle in Figure 3, labelled with number “1”), local director of TAITRA. The mission - which also included business roundtables in Argentina and Mexico - came back to Brazil after the previous one in 2013. News provided by: Sergio Milatias, Editor Revista do Parafuso (The Fastener Brazil Magazine) milatias@revistadoparafuso.com.br www.revistadoparafuso.com
Indian News
INDIAN NEWS Compiled by Fastener World
Bulten AB Expands Presence in India’s Market In a strategic move, Bulten AB is venturing into manufacturing operations in India, marking the start of a joint venture with two partners: Radium Fasteners Pvt Ltd and ZJK Precision Parts HK. However, through its subsidiary Bulten Radium Industries Pvt Ltd, it is pushed by rapidly growing domestic demand from global customers in the electronics market, particularly towards Indian manufacturing of micro screws.
Anders Nyström, President & CEO, Bulten, gave a brief overview of the company’s ambitious plan, stating that its main objective is growth, especially in the micro screw segment, driven by the booming electronics market in India. The company plans to begin production during the first half of 2024. This new production plant, which is under construction now in Jamnagar, Gujarat, will be the operational epicenter, with the desired operational capacity to be attained by the second quarter of 2024 with around 50 skilled professionals as the workforce. Bulten holds 51 percent of the control stake in the newly formed company. ZJK contributes their previous expertise as a former partner with Bulten in the field of micro screw manufacturing in China.
India Probes Chinese Fasteners The Indian authorities are delving into the alleged dumping of fastener originating from China. Clear evidence of damage suffered to the domestic industry by these dumped imports exists, assert local producers. Representations have been made by the association in the sector to the Directorate General of Trade Remedies (DGTR), which is a part of the Commerce Ministry, and hence, DGTR has commenced an anti-dumping investigation. Indian producers have provided relevant evidence to the authority. Following a rigorous assessment of valid representations, DGTR confirmed the reliability and adequacy of the submitted information. Hence, the authority has set about conducting an anti-dumping investigation, as evidenced by the Indian producers. The DGTR, in its statement, has explained that t he a nt i- du mpi ng i nvest igat ion on t he spe ci f ie d products coming from or exported by China is initiated independently to determine dumping, its intensities, and effects. An investigation of unfair competitive practices led to a recommendation for an appropriate amount of antidumping duty that will remedy the injury to the domestic manufacturer. This implies that the overall subject country presents a positive and significant price undercut. Furthermore, the domestic industry in this sector has undergone some forms of trade injury, including low capacity utilization, decreased sales volumes, financial loss, and market share shrinkage.
However, Radium commences as a newly formed company with experienced dealers in the Indian fastener’s industry. Furthermore, by acquiring the distribution company Exim Mfr & Enterprise, Bulten has expanded its presence in India and gained a foothold in the country’s burgeoning market.
Sterling Tools Surges 3.7 Percent in H1FY24 Sterling Tools Ltd, a leading automotive fastener manufacturer in India, and its fully owned subsidiary Sterling Gtake E-Mobility Ltd, a major MCU supplier to the Indian EV markets, have declared their unaudited standalone and consolidated results for the quarter and half-year concluded on September 30, 2023. As per standalone financial highlights, as the automobile industry marginally grew about 1 percent YoY for April–September, Sterling Tools demonstrated good performance and managed to register a significant 3.7 percent YoY growth in H1FY24. The growth was however faced with challenges such as stagnant sales that failed to absorb the manufacturing expenses, thus forcing up the employee’s cost. Commenting in Q1FY24, Atul Aggarwal, Whole Time Director, Sterling Tools Ltd, stated that the consolidated revenues increased by a great extent to INR 434.4 crore recorded during H1FY24 as compared to INR 353.8 crore in H1FY23. The company’s reported EBITDA was up 12.6 percent to INR 54.4 crore in the period. Notably, Sterling Gtake E Mobility, one of the key contributors to consolidated revenue in H1 FY24, accounted for 30 percent—double the number recorded in H1 FY23, which was 17 percent—highlighting the performance. The topline grew by 3.2 percent, standing at INR 304 crore on a standalone basis. The company achieved either better or similar results compared to the auto industry’s 1.0 percent YoY growth during the same period within the end-user product subsegments. News provided by Fasteners Association of India
惠達雜誌 Fastener World no.204/2024
203
Industry Focus
Restrictions on Use of Russian Raw Materials
Introduction On February 24, 2022, Russian President Vladimir Putin announced a "special military operation" against Ukraine, elevating the aggression from a low-intensity conflict to a fullfledged military engagement. Russia's invasion of Ukraine triggered international sanctions. The EU, the U.S. and other ally nations proposed and passed various types of sanctions. The EU approved sanctions against Russia, which included a ban on steel products originating from and exported by Russia. According to the Bureau of Foreign Trade under the Ministry of Economic Affairs of Taiwan, the ban on imports of Russian steel products includes prohibiting "the use and processing of Russian raw materials in third-party countries and having them imported into the EU". The EU amends the list of the above mentioned specific Russian steel products from time to time, and the current list covers 50 EU tariff codes including 24 customs codes from HS Code 7206 to 7229 and 26 codes from HS Code 7301 to 7326. This means the list of specific processed steel products that are subject to restrictions on importation into the EU has already covered fasteners and related products. The latest regulations and restrictions on the import, purchase and transshipment of EU sanctions against Russia were amended on February 25 of 2023 into the EU Council Regulation (EU) 2023/427 and published in the EU Official Journal on April 27 of 2023, which lists the restrictions on the import of steel products into the EU as set out in Article 3g, Annex 12 which restricts the types of steel products that can be imported into the EU. Annex 12 restricts the following steel products pertaining to processing by the fastener industry: (1) Steel sheets and strips for stamped washers: HS Code 7208, 7209, 7210, 7211, 7212, 7219, 7220, 7225, 7226 ; hot rolled sheets and strips, cold rolled sheets, coated sheets, hot rolled stainless steel sheets and strips, cold rolled stainless sheets.
204
Fastener World no.204/2024 惠達雜誌
(2) Wire rods for screws, bolts, nuts and studs: HS Code 7213, 7217, 7221, 7222, 7223, 7227, 7229; stainless steel wire rods, steel wire rods, cold-drawn steel wire rods. (3) Steel or stainless steel raw materials for wire rods: HS Code 7206, 7207, 7218, 7224. Semi-finished products like continuously cast steel or stainless steel blanks, such as bloom, slab, billet. (4) Semi-finished products or finished products like screws, bolts, nuts, studs and pins: HS Code 7316, 7317, 7318. Regarding steel products originated from Russia or processed and produced through a third-party country, as well as direct and indirect import and purchase of steel products restricted in Annex 12, which regulates companies and importers in the EU, the manufacturers and exporters will be required to cooperate with the EU importers to provide relevant supporting documents. The sanction will take effect as scheduled below: (1) Effective on steel products which are originated from Russia and which are combined with those manufactured in third-party countries starting from September 30, 2023. (2) Effective from April 1st 2024 on CN codes 7207 11, 7207 12 10, and 7224 90, which are steel products manufactured in third-party countries. (3) Effective from October 1st 2024 on CN codes 7207 12 10 and 7224 90, which are steel products manufactured in third-party countries. If we look at the time ranges of this EU sanction, wire rods will be restricted from April 1 or October 1, 2024. Semifinished products like continuously cast steel or stainless steel blanks, that is, the raw materials for wire rods, are restricted from September 30, 2023. In other words, for finished products like screws, bolts, nuts, studs and pins for importation into the EU, the source of their raw material (wire rods) are restricted from September 30, 2023. Products without a certificate of origin will violate the sanction and be barred from the EU market.
Industry Focus Restrictions on Fastener Products Entering the EU Given Russia’s act of destroying the stability in Ukraine, Regulation (EU) No 833/2014 on restrictive measures was amended into (EU) 2023/1214 to clarify that importers should provide proof for the country of origin of the steel raw materials used for processing products through third-party countries at the time of import. Finished fastener products for importation into the EU are regulated under the restrictive measures from September 30, 2023. Importers have to provide proof of origin for steel blanks or wire rods to prove they are from a non-Russia origin and do not violate the sanction. According to Article 3g under EU NO. 833/2014 as of July 26, 2023, the following documents can be regarded as a solid proof for the origin of steel materials: a) For semi-finished products: Material Test Certificate (MTC). Contents: Name of the manufacturer, the manufacture’s location, furnace number, product grade category (6-digit code). b) For finished products: If all information cannot be fit into a single MTC, it is possible to provide multiple MTCs. The contents should include: The furnace company name, the manufacturer’s location, furnace number, product grade category (6-digit code). The name and location of the fur nace company in connection to the following manufacturing processes: hot rolling, cold rolling, hot dipped metal coating, electrolytic metal coating, organic coating, welding, stamping/extrusion, drawing/coiling, resistance welding/submerged arc welding/ HFI/laser welding. An individual or multiple MTCs for the origin of steel used for production are to be submitted by EU importers to the EU importation Customs as a proof complaint to the sanction. If the Customs hold doubt within reason, the Customs may ask to provide additional proof. An example is an additional MTC detailing the phases of transformation that a product goes through. All MTCs should remain consistent. EU importers should hold responsibility for the correctness of the provided proof. The sanction takes affect in different phases in accordance to the types of steel products that are restricted for import or purchase or are processed through third-party countries. However, EU importers will eventually have to be responsible for providing proof compliant to the sanction’s requirement.
Proof Document of Fastener Products Compliant to EU Sanction Proof of origin for the materials used for fastener products should be provided. According to Article 3g under EU NO. 833/2014, if the proof of origin of the steel cannot be fit into a single MTC, multiple MTCs should be provided which cover all necessary processes such as blank steel manufacturing through furnace, hot rolling and cold drawing and heat treating wire rods, fastener forming, threading, heat treating fasteners. The MTCs are used as the document of proof for the regulated Russian steel materials compliant to the EU sanction. EU importers’ submitted proof documents for fastener products can be multiple MTCs. Therefore, it is suggested that the documents should include:
(1) M TC from furnace and hot-rolled w ire rod companies, stating the furnace company name, fur nace nu mber, lo c at ion of the hot rol l i ng manufacturer, and the consistency in furnace number. (2) MTC from cold-drawn wire rod companies and wire rod heat treatment companies, stating the locations of companies and the consistency in the number of furnaces used for heat treating wire rods. (3) MTC from fastener forming, threading, heat treatment and surface treatment companies, stating the locations of companies and the consistency in the number of furnaces used for handling wire rods. EU NO. 833/2014 doesn’t ask to use proof documents created under special requirements, nor is there a special requirement on the documents’ format and signatures. In this case, refer to the types of metal product test certificates under EN 10204 standard. Fastener manufacturers should have the above mentioned proof documents for compliance with the EU sanction. The MTC from furnace companies can be obtained through hot-rolled wire rod companies. Wire rod cold drawing and heat treatment companies can provide proof of origin or MTC which states the locations of wire rod handlers and the furnace numbers. Fastener manufacturers should provide MTC for fastener forming, threading, heat treatment, surface treatment, as well as the origin of furnace used for wire rods. The proof documents for fasteners entering EU should be created starting from steel makers, be kept consistent and correct throughout the fastener supply chain, and finally be compiled by fastener manufacturers to make it possible to trace back to steel furnaces, thereby preventing the risk of violating EU NO. 833/2014.
Copyright owned by Fastener World / Article by Wei-Ming Wang Reference： 1. Council Regulation (EU) 833/2014 2. Council Regulation (EU) 2022/2474 3. Council Regulation (EU) 2023/427 4. Council Regulation (EU) 2023/1214
惠達雜誌 Fastener World no.204/2024
205
206 Fastener World no.204/2024
European News
EUROPEAN NEWS Compiled by Fastener World
CBM Warns of Impacts from Latest EU Sanctions on Russia Manufacturers of iron, steel, or steel products could be sleepwalking into an export disaster, as a result of new EU sanctions on Russia, which came into force at the end of September, 2023. That’s according to the Confederation of British Metalforming (CBM), which is urging companies to urgently explore the legislation requiring evidence that iron and steel used to produce components in a third country (outside the EU, including the UK) does not originate from Russia. Stephen Morley, president at CBM, is predicting that many firms will be unaware of this change to exporting and it could cause products to be delayed at customs and, in some instances, trigger catastrophic production stoppages in critical automotive and aerospace sectors, as material test certificates will be required to confirm the facility and location at which the product was originally melted and poured, as well as requiring secondary steel processes to be also scrutinised. He said: “It is important to recognise that the scope of the EU measures on iron and steel products extends far beyond primary and secondary steel products to encompass many finished goods, including fasteners and other industrial consumables. They will also cover many retail products, such as stoves, cookers, kitchen and sanitary ware,” adding that the CBM has been warning its 200 strong membership body for more than a month and working with them to ensure they are able to provide the required evidence at point of importation. He continued: “Effectively, it is a case of preparing for the worst-case scenario, while fervently hoping that EU authorities recognise that the stringency of compliance requirements will jeopardise the flow of UK to EU supply chains.” Since alerting members to this growing issue, the CBM has been working closely with national audit, tax, advisory and risk firm, Crowe, and its expert customs team to validate its assessment and to interrogate the released FAQ guidance by the European Commission. The CBM is also deeply concerned that other associations and industrial membership bodies do not appear to have recognised the significance of the new sanctions and the massive hit on export trade it could bring. “There’s a lot of mixed messaging out there currently,” Stephen added, “with some suggestions that German customs may take a more pragmatic view about what evidence is required, whilst the latest information from Belgium and France suggest a more stringent approach. It’s so confusing for bosses who are already struggling with the impact of increased administration and trying to grapple with extortionate inflationary pressures and energy prices.” All that said, having pressed the Department for Business and Trade for further information, Stephen said the CBM has received a response with wording that implies more flexibility on the part of UK Customs authorities, although evidence is still required on the country of origin of iron and streel products processed in a third country, or countries.
210
Fastener World no.204/2024 惠達雜誌
Five Years of Year-on-year Growth for TensionPro Tension P ro, t he UK-based bolt tensioner specialist, has just celebrated five years in business by announcing record annual sales, a growing order book and the opening of additional production and office facilities. TensionPro provides what is called a ‘one stop shop’ for all bolt tensioning requirements covering equipment sales, repairs and refurbishment, spares, special tool designs, load calculations and new tensioner advice. Its core business spans the oil and gas, power generation, wind, civil and industrial markets. After year-on-year growth since 2018, the business is now firmly established in the bolt tensioning market with a wide range of proven, innovative products, a global customer base, and a worldwide network of distributors. Indeed, the company recently announced more local partnerships with distributors in key markets, having teamed up with Marcem in Australia to target the country's wind and mining sectors, as well as Kinetic Energy Services in the UK, a leading independent service and maintenance provider to the wind turbine industry. To satisfy demand for product, the company has also expanded its UK manufacturing operation by acquiring additional facilities adjacent to its current base in Norton Canes, Staffordshire. This will provide extra space for a dedicated refurbishment section, a training and demonstration area, and a large open plan office for the sales and engineering teams to work together in one location. The company also has an expanding workforce, which was further strengthened this year with a number of new appointments. Most recently, Georgina Orford joined as design engineer, bringing with her nine years of experience in bolt tensioner design – gained in positions with Hydratight and Boltight. As part of TensionPro's engineering team, she will help design bolt tensioner solutions, develop next generation bolting products and provide technical support to customers and distributors. Dave Metzger, director at TensionPro, explained: “Our first five years have flown by. There have been plenty of hurdles along the way and it’s not always been easy, but we have stuck resolutely to our focus as a specialist supplier of hydraulic bolt tensioning solutions, delivered wit h excellent customer support and service. Our business model is to work predominantly through distributors and we have developed some excellent relationships within our global network.”
European News ARaymond Invests in US Manufacturing Plant ARaymond is planning to invest US$12 million (€11.2 million) in its Logansport manufacturing plant in Indiana, USA – solidifying its long-term commitment to the region. The investment will include the installation of new pre-finish and coating lines, which will help streamline and improve the company’s overall operations. Larry Barker, ARaymond plant manager at Logansport, stated: “We’re excited to continue our commitment to the region and to grow our investment in the Logansport community. This new equipment will allow us to better serve our customers.” The new equipment will arrive at ARaymond’s Logansport facility in December 2023, and will be fully operational by August 2024. The addition of the new coating lines is part of ARaymond’s overall reimagining of its North American operations, including processes that were spread across multiple locations into one facility. ARaymond Logansport will process 80% of its coating work and serve as the primary shipping location for both the Hamilton, Ontario and Logansport sites. These changes will provide its customers with benefits, such as avoiding the need to pick up products in two different locations, crossing borders, reducing administrative work, and aligning with Corporate Social Responsibility (CSR) engagements. To celebrate the investment, the plant welcomed ARaymond’s global leadership team in July 2023 for a tour of the facility and to learn details of the impacts the US$12 million investment will have on operations. ARaymond’s leadership expressed their full support of this investment as it aligns with both their goals to continually improve the efficiency of their products and services and to be active players in their local communities. “Our company has been in business for 155 years,” highlighted Larry. “Our mission is to continue our story, by making the improvements that respond to our customer’s needs and in parallel bring value to our surrounding communities.”
A Quarter of Higher Sales for Bulten Bulten Group has reported that net sales amounted to SEK 1.378 billion for the third quarter of 2023, an increase of 25.9% on the same period the previous year (2022: SEK 1.095 billion). Adjusted operating earnings totalled SEK 36 million, equating to an adjusted operating margin of 2.6%. Bulten highlighted that the operating earnings have been charged with transaction costs of SEK 5 million – attributable to the acquisition of Exim & Mfr Holdings Pte Ltd, an Singapore-based distributor of fasteners and other components with annual sales of SG$ 40 million. Bulten explains that the acquisition provides it with a good platform to grow in new sectors, where the distribution stage is a pivotal sales channel. Anders Nyström, president and CEO at Bulten Group, commented: “The acquisition of Exim brings business opportunities in new customer groups. We had the highest ever Q3 sales in Bulten’s history and the capacity boosting measures have produced results, if later than anticipated, and have burdened the quarterly figures.” From January to September, Bulten’s net sales amounted to SEK 4.18 billion, an increase of 33.4% compared to the same period in 2023 (SEK 3.13 billion). Operating earnings (EBIT) totalled SEK 197 million, equating to an operating margin of 4.7%.
惠達雜誌 Fastener World no.204/2024
211
European News
Hilti’s Positive Momentum Continues Hilti Group increased sales by 11.3% in local currencies over the first eight months of 2023. In Swiss francs, growth amounted to 5% at a total of CHF 4.31 billion (€4.48 billion). At CHF 466 million, the operating result was 18.9% higher than in the same period 2022. In Europe, sales growth in local currencies was 11.9%. In the Americas, Hilti Group saw an increase in sales of 11.9% and in the Asia/Pacific region, the Group posted double-digit growth (+16.5%) as well. The Eastern Europe / Middle East / Africa region saw, as expected, a year-on-year sales decline of 2.3%. The appreciation of the Swiss franc against all major currencies led to a negative currency impact of 6.3% points on sales growth. “These results are in line with our expectations,” explained Jahangir Doongaji, CEO at Hilti Group. “While the overall supply chain situation is rapidly stabilising, the construction market outlook remains uncertain and varies in different parts of the world. Despite this uncertainty we continue with our long-term investments to strengthen our company strategically.” Following the particularly strong level of sales growth during the last four months of 2022, Hilti Group expects the sales and operating result growth to come down by the end of 2023, with sales growth leveling out at high single digits in local currencies.
212
Fastener World no.204/2024 惠達雜誌
BRALO Appoints New Global Sales Director BRALO has recently announced that Angel Calvo has joined the Group as global sales director, to contribute to the development and growing position as a leading company in the fastener industry. With sales in fifty countries, including nine international subsidiaries, as well as three global production sites, Angel will help to drive BRALO's success in providing a global offering of solutions developed to meet the needs of all its customers. Angel brings an extensive professional background within the industry, having worked in companies such as KONE and THYSSEN KRUPP, where he held sales management positions with both national and international responsibility. Previously, Angel also held sales and marketing management positions in various service companies for the industry, such as SAFETYKLEEN and NILFISK. As a leader in high-quality blind rivets, insert nuts and installation equipment, BRALO offers complete solutions in the sectors of industry, automotive, construction or renewable energy, among others. Under Angel's leadership, the entire sales and business development team will work in a coordinated manner to meet the needs of customers globally. “His extensive experience in business development and project management is a great addition to the BRALO team,” comments the company.
Fastener World no.204/2024 213
European News Business Process Management Acquisition Completes Following on from Hilti Group’s announcement of the acquisition of the 4PS Group at the beginning of July 2023, Hilti has now confirmed the competition authorities have approved the acquisition. With this acquisition, Hilti has expanded its software offering beyond asset management (ON!Track), and jobsite management (Fieldwire), to now include 4PS’ specialist business process management software for the construction industry. By joining forces, the two companies will now play a greater part in driving the digital transformation of the construction industry. Hilti has stated its commitment to retaining the approximately 350 strong 4PS team, including its management, with the former owners remaining on the board of directors of 4PS to support its integration in the coming years. It will also continue to operate under its existing 4PS Group brand name.
NORMA Group Achieves Sound Profitability in Q3, 2023 NORMA Group has achieved stable profitability despite sales decline in the third quarter of 2023, with group sales totalling €297.1 million – 6.7% lower than in the same quarter of the previous year (Q3 2022: €318.6 million). Guido Grandi, CEO at NORMA Group, commented: “We delivered a solid performance in the third quarter despite a sluggish market environment. Although our business volume was mixed, we still managed to achieve a sound level of profitability. With our ‘Step Up’ improvement program, we continue to focus on increasing our operational efficiency and leveraging new market opportunities in the areas of mobility, industry applications and water management.” In the EMEA region (Europe, Middle East and Africa), sales in the third quarter of 2023 were almost exactly in line with the previous year at €119.3 million (Q3 2022: €119.9 million). The slight decline of 0.5% is due entirely to negative currency effects. Organically, sales development was stable. Sluggish economic development in both the automotive industry and industry in general dampened demand for joining technology in the third quarter. In the Americas region, sales in the third quarter of 2023 fell noticeably by 12.4% year-on-year to €132.9 million (Q3 2022: €151.7 million). Organically, sales were down 5.6% in the period from July to September 2023. Negative currency effects had an additional negative impact of 6.8% on sales. Strikes at US vehicle manufacturers from mid-September affected customer ‘call offs’ to an unexpected extent, while demand for general industrial applications was also lower. The water management business, on the other hand, recovered after a difficult first half of 2023 and recorded slight organic growth compared to the same quarter of the previous year. In the Asia-Pacific region, sales amounted to €45 million in the third quarter. Sales grew by 7.6% organically. Business volume grew particularly well in the area of joining technology for battery cooling systems and other vehicle applications. Due to negative currency effects of 12%, the quarter saw an overall decline of 4.4% compared to the same period of the previous year (Q3 2022: €47 million).
214
Fastener World no.204/2024 惠達雜誌
Global Slowdown in Demand After an already challenging second quarter 2023, Bossard Group’s third quarter was further characterised by a weakening in demand, with low growth impulses from Europe and Asia. This is reflected in Bossard’s sales in the third quarter, which fell by 14.3% to CHF 249.8 million (2022: CHF 291.6 million). In local currency, the decrease in sales was 9.4%. Even in a more challenging economic environment, Bossard is continuing to pursue the implementation of its Strategy 200 – with extensive investments in future growth and further efficiency improvements made in the third quarter including the successful continuation of the roll-out of the new ERP system in Malaysia and Thailand. Moreover, the digitisation of processes was also the focus of customers. In an environment marked by a shortage of skilled labour and inflation, Bossard’s Smart Factory services drew even more attention. In Europe, Bossard posted a Q3 drop in sales of 9.8% to CHF 136.5 million (2022: CHF 151.3 million). The combination of ongoing inventory reduction on the part of customers and weakening demand continued in the third quarter. In an environment characterised by economic uncertainty, positive accents were set in the railway and electromobility industries. Following a phase of high double-digit growth rates, demand in America began to normalise. Sales fell by 16% to CHF 69 million (2022: CHF 82.1 million). The strong Swiss franc was a significant factor in this development. The successful expansion of the customer base was particularly evident in the positive development of the electromobility focus industry. In Asia, Bossard recorded a 23.9% decline in sales to CHF 44.3 million (2022: CHF 58.2 million). The appreciation of the Swiss franc was also evident in this market region. Demand in the Asia region was subdued overall, with the exception of the positive development in India. Based on the currently observable market trends, Bossard expects restrained sales development for the fourth quarter of 2023. For the full year 2023, sales of CHF 1.06 billion to CHF 1.08 billion and an EBIT margin slightly above 10% are expected. Bossard Group’s operating cash flow will continue to develop positively due, among other things, to the reduction in inventories. Notwithstanding the current volatility, Bossard is optimistic about the future and, following a phase of consistent investment in Strategy 200, is adhering to its medium-term financial targets. News provided by: Fastener + Fixing Magazine www.fastenerandfixing.com
Special Feature
Fastener Innovation Alley Auto-Torq Axle Fastener Auto-Torq offered by Stemco is designed to streamline wheel end installation by eliminating the need for complex processes and specialty tools. With no need for washers, clips, snap rings, screws, or keepers, Auto-Torq makes installation simple and efficient, the company says. Plus, by applying the optimum clamp load on the bearings every time, bearing wear is minimized, resulting in the longest bearing service life. Auto-Torq offers an all-in-one solution that is compatible with any industry hub manufacturer.
Japanś First Colored Titanium Blind Rivets To meet the increasingly diverse and complex needs of the industry, Nissen Rivet in Japan has for the first time achieved 100% localized manufacture of titanium blind rivets using advanced processing technology. In addition to improving efficiency and productivity, the applications of the blind rivets as an environmentally friendly fastening technology are expanding. The company also offers colored titanium blind rivets (using anodized coating).
High Corrosion Resistance The most important characteristic of titanium is its high corrosion resistance. It is ideal for use in corrosive environments.
Light Weight The weight is about 60% of stainless steel and iron counterparts. Ideal for weight reduction, e.g. for car and motorcycle silencers and truck bodies.
Environmentally Friendly Material Titanium hardly ages over time and is highly recyclable. It also has non-toxic and anti-bacterial properties that make it a human-friendly material compared to other metals.
惠達雜誌 Fastener World no.204/2024
215
Special Feature
MISTOL High Performance AI Sorting Machine MISTOL® AI, a high-performance inspection and sorting machine equipped with AI, has been developed by Nitto Seiko to enable inspections similar to human visual inspections and inspections of parts that have been considered difficult in the past. MISTOL® AI streamlines the image setting process, which used to be difficult, and makes it possible to configure settings without being restrained to the skill level of the operator. This product reduces work hours required for setting. Conventional machines use a “rule-based” method, in which inspections are performed based on rules set by human operators. However, the system was not accurate enough to recognize slight changes in the captured image due to unevenness or micro-defects on the surface of the target. In addition, many quantitative settings had to be made for each inspected item on the captured image, which required time and skill to set up. MISTOL® AI learns and judges captured images on its own, making it possible to handle inspections that have been difficult with conventional methods, with simple settings and operations.
Asfa® WP Waterproof Screw Nitto Seiko Corporation has released Asfa® WP, a new concept O-ring embedded screw that offers high axial force performance and waterproof performance. Its unique structure factors in product misalignment and stable carrying during the assembly process. This product, which has a different shape from general waterproof screws and offers various advantages in addition to waterproof performance, is patent pending. Because of the structure that incorporates an O-ring in the lower shaft portion of the screw neck, general waterproof screws require counterboring the fastened object and the contact area with the screw head is small, making it impossible to fasten with high axial force. The most important thing in fastening screws is to secure axial force. The flat washer on the underside of Asfa® WP provides a larger contact area with the fastener than an O-ring does, which reduces surface sinking of the fastener and enables fastening with higher axial force. In addition, since no counterboring is required for the fastener, it contributes to the customer’s total cost reduction. When we use general waterproof screws with embedded O-rings, if fasteners misalign, the O-ring is not compressed, resulting in loss of waterproof performance. With “ Asfa® WP,” the O-ring is positioned on the periphery of the head, which allows the O-ring to be compressed evenly and provides stable waterproof performance. Nitto Seiko began selling this product with a goal of selling 2.5 million units per month to the automotive, electrical and electronic equipment industries.
216
Fastener World no.204/2024 惠達雜誌
Special Feature
Tamper-proof Recess Inner® Recess Inner® rolled out by AzumaNeji from Japan is a tamper-proof part that restrains unauthorized removal of bolts by loading it into the recesses of a bolt. It was developed to improve safety by reducing the risk of tampering or disassembling to machines and systems. In addition, it also prevents dust from entering the hexagonal hole. Three types (BARNACLE, FLAT, and PLASTIC) with different characteristics are available in this lineup. The stainless steel “BARNACLE” and steel (stainless steel color plated) “FLAT” types can be removed with a special tool, while the “PLASTIC” type leaves traces when removed. The “Barnacle” is made of stainless steel and has high corrosion resistance, while the “Flat” is suitable for use where design is prioritized. “PLASTIC” is available in two colors, white and black. The white type is mainly for indoor use or machine tools, while the black type is mainly for outdoor use. It provides safety and security in a variety of locations and applications, including equipment and facilities in places where unspecified numbers of people come and go (park playground equipment, window grids, license plates, etc.), dusty locations in factories and outdoors, and parts of machines and equipment that should not be removed without authorization (mold positioning parts, core parts of precision machines, etc.).
New ICC Insert Nut Japanese Iwata Bolt headquartered in Tokyo has recently added a new product “ICC Insert Nut” into its wide range of fastener portfolio, which, according to the company, can solve various plating problems. This new product is currently available from M3 to M8. With improved plating feasibility and silver clearance, it can create a closed end by crimping the lid and eliminate common issues such as plating deposition. It can be applied to transportation, electronics and many other industries. With the application of this product, the overall length can be trimmed and the corrosion resistance, quality and reliability can be greatly improved. Iwata Bolt under the leadership of President Kiyotaka and Iwata celebrated its 74th anniversary in 2023 and continues to strive for maintaining sustainability and achieving further growth. compiled by Fastener World
惠達雜誌 Fastener World no.204/2024
217
Fastener Wolrd News
NEWS Compiled by Fastener World
Association News Tim Weller Elected as New BHMA President Members of the Builders Hardware Manufacturers Association ( BH M A) gathered and approved the 2023-2024 Board of Directors during the association’s annual Fall meeting on October 18th, 2023 in San Diego, California. Members who were elected to the 2023-2024 BHMA Board of Directors include Board President: Tim Weller, Allegion; 1st Vice President: Justin Crotzer, Dormakaba; 2nd Vice President: Mark McRae, Hager Companies; and Past President: Mark Bloom, Spectrum Brands HHI. The new Board members join the Directors: Scott James, CompX International Inc.; Robert Strong, Dormakaba USA Inc.; Ernie Mitchell, TownSteel, Inc.; Dick Kreidel, ASSA Abloy Group; and Mark Berger, Securitech Group, Inc. “I'm looking forward to what we will accomplish together,” noted Weller. “As BHMA nears its 100th anniversary, builders hardware safety and standards are more important than ever – and our organization has an incredible opportunity to continue being a leading voice for our industry.” BHMA’s new Board President, Tim Weller (AHC, CDC, FDAI), Manager of Codes, Standards and Sustainability at Allegion, brings more than 40 years of industry experience where he, amongst many things, is responsible for developing the product sustainability strategy to meet market requirements for Allegion’s products and solutions. Weller is active in numerous industry organizations such as the Steel Door Institute National Fire Protection Association, ASTM International, the U.S. Green Building Council, and more.
Industry Development Taiwan CSC's Wire Rod Price up NTD 800 in Q1 2024 According to Taiwan CSC's report, the global steel industry has hovered low for a year and a half and stockpile in the downstream
218
Fastener World no.204/2024 惠達雜誌
is at a relative low. Steel price and supply is bound to go higher in the first quarter of 2024. Considering the rise in steel-refining material cost and international steel prices, Taiwan CSC has raised the price for January 2024 as appropriate to cope with the increased material costs. The first-quarter price in 2024 has been reflected in accordance to the status of downstream industries.
Price adjustments for Q1 2024 by Taiwan CSC Products
Price Adjustment (NTD per ton)
Wire rod (low/mid/high carbon, cold headed, low alloy steel)
+800
Automotive materials
+500
Taiwan's International Carbon Credit Trading Platform is Now in Official Operation In order to assist domestic Taiwanese enterprises to reduce carbon emissions and create a fair, safe and transparent carbon credit trading system, Taiwan Carbon Solution Exchange (TCX), jointly invested by Taiwan Stock Exchange and National Development Fund of the Executive Yuan of Taiwan, has officially launched its "International Carbon Credit Trading Platform" on Dec. 22, 2023, with trading hours from 9:00 a.m. to 3:30 p.m. on weekdays, and the related execution details were also announced, officially announcing that Taiwan has entered a new era of carbon credit trading. Unlike other countries having carbon credit trading platforms that operate on a for-profit business model and in order to avoid market speculation, the buyers on this platform are only limited to domestic legal entities (which are only allowed to hold, cancel, and transfer carbon credits but reselling) and this platform is not open to the general public, while the sellers have to be foreign or domestic legal entities. Carbon credits trading and payments are processed in the form of advance receipts. Carbon credits are sold according to quotations. The unit of transaction is 1 ton of CO2 equivalent and is traded in U.S. Dollars. For the sellers' part, they are specifically required to meet the relevant standards for carbon credits (incl. the carbon credit issuer should be accredited by TCX, the vintage of the carbon credits should be within 5 years, and the carbon credit projects should meet at least 3 of the UN' Sustainable Development Goals...etc.). TCX hopes that through the establishment of this platform, it can effectively match supply and demand, create incentives for enterprises to reduce carbon emissions, and further promote the development of low-carbon production technologies and innovative industries.
Fastener Wolrd News Carbon Emission Fee for Evergreen Marine and YangMing Marine Out Evergreen Marine, YangMing Marine, and a number of large container shipping companies have notified their customers of the EU carbon emission fee, with Evergreen charging €27, YangMing charging €24, and CMA CGM Group charging €25 per container (20-foot) for the Asia-Europe route, which is the largest in terms of scale of operation. According to the levy announced by Evergreen, Evergreen charges €14 for the return trip to Europe, €23 for the trip to Mediterranean and USD 9 for the return, while YangMing charges €11 for the return trip from Europe, €18 for the trip to Mediterranean and €8 for the return. The return trip charges are more than halved because the EU only charges 50% carbon tax on European exports. Last year EU planned to have shipping included in the ETS from January 1, 2024, which requires shipowners or commissioned companies to purchase emission allowances and pass these costs on to shippers and renters, which, as DNV Maritime Vice President Rasmus Stute pointed out earlier, could expose mid-sized shipping companies to millions of dollars in liability each year. In addition to ETS, regulations such as the Carbon Intensity Index (CII) need to be considered as having a significant impact on the economic and financial position of small and medium-sized shipping companies.
EU Imposes Harbor Carbon Tax from January 2024 Last year EU planned to include ships traveling to European ports in the ETS program starting January 1, 2024, which is estimated to bring in US$3.6 billion in the form of carbon emission compensation for Europe in 2024. In other words, shipping companies will have to purchase carbon offsets for the emissions produced by ships traveling between two EU ports; for ships traveling between EU and non-EU ports, they will have to bear 50% of the emission fee. However, seven EU countries, including Spain and Italy, sent a letter to the European Commission calling for a suspension of the program to prevent shipping companies from avoiding European routes and shifting trade to nearby Mediterranean ports such as Tangier in Morocco, or Port Said in Egypt, which are less than 300 nautical miles from the EU coast. According to the latest estimates by Shipping Consultants, assuming a carbon price of €90 per ton, the ETS cost for a container shipping between Europe and Asia in 2024 is estimated to be as high as €810 thousand. Despite the high cost of ETS, it is reported that Maersk, the container leader, made a profit of US$30 billion in 2022. The bill generated by ETS is only a drop in the bucket when compared with the revenue of international shipping, so it may not have much impact on the end price. However, some EU countries on the Mediterranean coast, including Portugal, Greece and Cyprus, have publicly said that the ETS program, which comes into effect in 2024, could shift carbon emissions to other parts of the world, and that companies may take longer routes to avoid stopping at EU ports, and may even increase greenhouse gas emissions as a result.
CBSA Initiates Anti-dumping Re-investigation on Certain Carbon Steel Fasteners Originated from China and Taiwan The Canada Border Services Agency (CBSA) has initiated a re-investigation to update the normal values and export prices of certain carbon steel fasteners originating in or exported from China and Taiwan, and the amounts of subsidy of certain carbon steel fasteners originating in or exported from China. The products subject to the CITT's injury order (falling within HS codes 7318110000, 7318120000, 7318140000, 7318150010, 7318150042, 7318150045, 7318150049) are listed as below. Where an exporter of subject goods does not provide sufficient information to determine specific normal values or does not permit verification of information submitted, anti dumping duties will be assessed at the rate of 170% of the export price of the subject goods imported into Canada. Similarly, in cases where the Government of China or exporters in China fail to provide complete and accurate submissions enabling the determination of specific amounts of subsidy, the amounts of subsidy will be determined in accordance with a ministerial specification pursuant to subsection 30.4(2) of Special Import Measures Act (SIMA). Exporters that are not the manufacturer of the subject goods (e.g. trading companies, vendors, etc.) will receive normal values and specific amounts of subsidy 惠達雜誌 Fastener World no.204/2024
219
Fastener Wolrd News only to the extent that their suppliers/manufacturers provide sufficient information to the CBSA to permit the determination of normal values, export prices and amounts of subsidy. Imperial (inches)
Products
Diameter
Length
Diameter
Length
Wood screws
#4 to #24 (0.112" to 0.386")
3/8 to 8"
M3 to M10
10 mm to 200 mm
Square and hex lag screws
#14 to #24 (1/4" to 0.386")
3/4 to 4"
M6 to M10
20 mm to 100 mm
Sheet metal/tapping screws
#4 to #24 (0.112" to 0.386")
3/8 to 8"
M3 to M10
10 mm to 200 mm
Thread forming screws
#4 to #24 (0.112" to 0.386")
3/8 to 3"
M3 to M10
10 mm to 75 mm
Thread cutting screws
#4 to #24 (0.112" to 0.386")
3/8 to 3"
M3 to M10
10 mm to 75 mm
Thread rolling screws
#4 to #24 (0.112" to 0.386")
3/8 to 3"
M3 to M10
10 mm to 75 mm
Self-drilling tapping screws
#4 to #24 (0.112" to 0.386")
3/8 to 3"
M3 to M10
10 mm to 75 mm
Machine screws
#4 to 3/8" (0.112" to 3/8")
3/8 to 8"
M3 to M10
10 mm to 200 mm
Flange screws
1/4"; to 5/8"
3/8 to 4"
M6 to M16
10 mm to 100 mm
Any importers or exporters who have not received a letter from the CBSA, and who wish to provide a response to the RFI are advised to contact CBSA officers at simaregistry-depotlmsi@cbsaasfc.gc.ca to obtain a copy of the RFI.
Companies Development Ta Chen Group Invests in Aluminum Plant in Texas Ta Chen Group ( Ta i w a n) s a i d carbon steel price has been goi ng u p l a t e l y, a n d stainless steel may follow suit, but it will be until January 2024 before the situation turns clear. What is certain is that business performance will be better in H1 than in H2 2024. Ta Chen Group is continuing on expanding its aluminum plant in Texas. The group acquired the Texas plant from Alcoa for USD 350 million in October 2018, invested USD 260 million in July 2021 to increase the plant's capacity and add the second cold-rolling line. The cold-rolling line expansion was completed at the end of 2023 with a capacity up from 18 thousand to 31 thousand tons. Further, the group previously announced another investment in building a hot-rolling line for USD 131 million which was completed in 3 years expanding from 13 thousand to 31 thousand tons in capacity. The group's subsidiary Brighton-Best International (BBI) sells carbon, steel, stainless steel and alloy steel fasteners which altogether share 60% of the U.S. market. Its revenue per day slipped 10% in 2023 from USD 3 million to somewhere between 2.6 to 2.7 million. STAR which is the second largest local counterpart with USD 70 thousand daily revenue is currently held by a private equity firm. The private equity firm has less than 7 years to handle STAR and it will make for an opportunity for BBI to acquire STAR and increase gross profit margin by 3 to 5 percentage points from 35%.
220
Metric (millimetres)
Fastener World no.204/2024 惠達雜誌
Date
Event
2023/11/30 Initiation of CBSA's re-investigation responses to CBSA's request 2024/01/02 Importer for information due and government responses to 2024/01/08 Exporter CBSA’ s request for information due 2024/04/08 Closing of the record 2024/04/15 Case arguments due from all parties submissions from all parties in 2024/04/22 Reply respect of the case arguments 2024/05/23 Conclusion of CBSA's re-investigation
®
NAFCO to Build Malaysia Plant NA FCO, a leadi ng Taiwa n-based ma nu fact u rer of fasteners for aerospace and high-end industrial applications, announced on October 27, 2023 that it plans to invest in a Malaysian subsidiary in response to the company's future operational development and planning. The initial investment is expected to be approximately US$5 million and the plant will specializes in the production of automotive and aerospace fasteners. Fo u n d e d i n 19 77, NA F C O c u r r e nt ly h a s t wo production bases in Taoyuan, Taiwan and Jiangsu, China. The completion of the Malaysian plant will further enhance its production capacity in the automotive and aerospace fastener fields. The company has also obtained international certifications such as IATF 16949:2016, ISO 9001:2015, AS 9100:2016, ISO 17025, Nadcap, ISO 14001, ISO 45001, ISO 14064-1:2018, ISO 27001, etc. The quality of its products has been recognized by many customers around the world.
Fastener Wolrd News New Joint Venture Between Mitsuchi and SUMEEKO in Discussion Mitsuchi has held detailed discussions on establishing a joint venture with Taiwan's TPEx listed company SUMEEKO Ind. Co., Ltd. The company's board of directors passed a resolution on October 31, 2023 and decided that the basic guidelines of the joint venture are as follows. The specific details will be adjusted after a formal agreement with SUMEEKO is reached in the future. 1. Background Mitsuchi has manufacturing plants in Thailand, the United States and China, and has been producing and selling auto parts for Japanese auto parts manufacturers in the respective regions. SUMEEKO, which has no business relationship with Mitsuchi, is planning to manufacture fasteners locally for American EV manufacturers. In the process of expanding global orders, Mitsuchi is in line with SUMEEKO's intentions. In September, the two parties began discussions to establish a joint venture with Mitsuchi's production base MICA in Tennessee, U.S.A. After multiple discussions, Mitsuchi decided to establish a joint venture with SUMEEKO under the following framework, and will coordinate subsequent details after obtaining the formal consent of SUMEEKO. 2. Basic Guidelines The joint venture (hereinafter referred to as the "New Company") will be jointly owned by MICA and SUMEEKO at a ratio of 3:7 and will use part of the land and buildings owned by MICA as its production base. The new company's premises are leased by MICA. The new company will be a joint venture and produce fasteners for U.S. automakers. 3. Future prospects If this transaction materializes, the impact on Mitsuchi's consolidated results for the year ended June 30, 2024 will be minimal. However, Mitsuchi believes it will help improve operating performance.
TriMas Appoints New General Manager of Its Allfast Fastening Systems Business TriMas announced the appointment of William “Bill” Carrigan to the position of Allfast Fastening Systems General Manager, effective December 1, 2023. He will report directly to Vitaliy Rusakov, recently hired as President of TriMas Aerospace. Carrigan has a proven record of success in elevating performance within the aerospace fastener sector. He has held operating positions of increasing responsibility at leading aerospace companies, including Howmet Aerospace, previously a division of Arconic and Alcoa, and Consolidated Aerospace Manufacturing. Throughout his career, Carrigan has consistently driven revenue growth and performance improvement, while committed to operational excellence. He earned a dual undergraduate degree in Operations Management and Management Information Systems from the University of Wisconsin. “With a proven track record in the aerospace fastener industry, Bill brings a breadth of leadership experience and industry expertise, making him a valuable addition to our Allfast team and TriMas Aerospace group,” said Thomas Amato, TriMas President and Chief Executive Officer. Allfast Fastening Systems is a leading global manufacturer of solid and blind rivets, blind bolts, temporary fasteners and installation tools for the aerospace industry with content on substantially all commercial, defense and general aviation platforms in production and in service. TriMas Aerospace, TriMas’ second largest reportable segment, is a leading designer and manufacturer of a diverse range of products, including, but not limited to, 惠達雜誌 Fastener World no.204/2024
221
Fastener Wolrd News highly-engineered fasteners, collars, blind bolts, rivets, ducting and connectors for air management systems, and other highly-engineered machined parts and components, for use in focused markets within the aerospace industry.
locking washers. Today, no other global supplier offers CE-marked securing washers, and that Nord-Lock now accomplishes the feat puts the company in a unique position in the building and construction industry.
Brighton-Best, Parker Fasteners Announce Strategic Partnership
The CE marking is a requirement for anyone supplying products to the building and construction industry within the European Union (EU), ensuring that products comply with the EU’s rigorous safety and quality regulations. The milestone of attaining the CE mark reinforces Nord-Lock’s reason for existence – protecting customer investments and keeping people safe. By implication, it also reassures the already established perception of Nord-Lock being the given partner when safety and reliability really matter. "We are thrilled to introduce CE marking for our wedgelocking washers, reinforcing our commitment to delivering excellence in engineering and design. This achievement demonstrates our dedication to compliance and safety, providing our customers with a competitive edge in their operations." – Graham Souter, Vice President and head of the Nord-Lock Business Unit.
Brighton-Best International and Parker Fasteners announced the formation of a strategic partnership, starting in 2024, on Oct. 10, 2023. This partnership is likely to revolutionize the fastener industry by having quicker lead times. Parker Fasteners, a manufacturer with a strong foothold in the U.S. domestic market, has been operational for over a decade and has earned a reputation for being customer-centric. Brighton-Best International has been in business for nearly 100 years and is known for nationally high levels of stock. The agreement will focus on promoting the expansion of BBI’s stainless steel lines. The partnership is expected to support distributor companies to expand their reach and increase their revenue and product offering of stainless steel.
Specialinsert® Honored with ‘Chiave A Stella’ Award Sp e cia li nser t ® has won t he honorable mention i n t he 20 23 edition of the ‘CHIAVE A STELLA’ Award, as ‘Best Example of a Technological Solution in the Digital Field’. The Prize, now in its 15th edition, is open to all micro, small and medium-sized enterprises in Piedmont. It is awarded annually through a call for entries promoted by API Torino, Fondazione Magnetto and the newspaper ‘la Repubblica’, in collaboration with the UniCredit Bank, the Turin Chamber of Commerce and CONFAPI Piemonte, and with the scientific support of the Turin Polytechnic and the School of Management and Economics of the University of Turin. The initiative is of primary importance because it aims to promote Piedmont’s small and medium-sized entrepreneurs and their ability to generate wealth and knowledge on the territory in a responsible manner.
Strengthens Its Industryleading Position with Unique CE Marked Securing Washers When Nord-Lock, part of the Nord-Lock Group, introduced the innovative wedge-locking technology in 1982, the company swiftly rose to its current market-leading position as the global leader for bolting solutions. Now, the company is once again breaking new ground by announcing the addition of CE marking to its wedge-
222
Fastener World no.204/2024 惠達雜誌
The biggest upside of these washers now carrying the CE marking is that any building and construction business, in any EU market, can seamlessly reap the renowned benefits of these washers when compliance with regulations is assured throughout the assembly process. With a locking mechanism that uses tension instead of friction, Nord-Lock washers keep bolted connections tight and secure. Even when subjected to severe vibrations or dynamic loads, operators can rest assured that their bolts will stay in place.
250 Guests in India at fischer’s First International Expert Forum The fischer Group of Companies held its first International Expert Forum in India on 24 November, 2023. The familyowned company organised the all-day event in the capital New Delhi together with its Indian subsidiary. Around 30 journalists from various specialised media in the country attended the forum. The forum focused on the construction industry, including earthquake safety, fire protection and standards, and brought together experts from all over the world. The speakers and more than 250 guests in the packed hall focused their questions on future construction trends, various innovative construction methods and the importance of connections in various areas of construction. Professor Konrad Bergmeister, who heads the Institute of Structural Engineering at the Vienna University of Natural Resources and Applied Life Sciences, said: "fischer has organised a very successful forum here in India. It will attract attention in the construction industry throughout the country and will certainly increase demand. The mix of construction industry, planning engineers and science was very successful." Professor Akanshu Sharma from
Fastener Wolrd News Purdue University in the USA said: "Events like the 'International Expert Forum' are of fundamental importance for India and its construction industry. fischer will benefit a great deal from this forum here in the country." Dr. Oliver Geibig, Managing Director Business Units and Engineering at fischer, introduced the fischer Group of Companies to the guests and said: "It is a great honour for me to welcome so many industry experts here with us at fischer in India." Mayank Kalra, Managing Director of fischer India, said: "At fischer India, innovation, responsibility and reliability are essential in the construction industry. We are all about empowering our customers to achieve their construction goals with us." Uday Shikhare, Technical Director, fischer India, moderated the event and said, "We are honoured and overwhelmed by the response to fischer's first International Expert Forum in India."
Optimas to Develop Fastener Manufacturing Facility in Monterrey Mexico to Support Regional Sourcing Strategies That Minimize Supply Chain Optimas Solutions, a global industrial manufacturer/distributor and service provider, announced it will open a cold form manufacturing plant in Monterrey, Mexico in the second half of 2024. The Mexico production center will complement world-class fastener manufacturing facilities in Wood Dale, IL, and Droitwich Spa in the United Kingdom and continue the company’s near-shoring efforts to minimize supply chain risk. “More than ever, resource availability has given way to accessibility in the form of regionalization,” said Daniel Harms, CEO of Americas. “Our expanding localization strategy enables us to be more agile with our manufacturing and sourcing capabilities for industrial customers and suppliers. ” “We took great care to design our Mexico facility to mirror our capabilities at our manufacturing operations in Wood Dale so they can effectively play off each other,” said Ricardo Alonzo Rodríguez, vice president and general manager of Optimas in Mexico. “This ensures customers and suppliers have access to the same engineering, tooling, manufacturing and quality processes regardless of where we produce the fasteners. Optimas Solutions is one of only a few companies with in-house cold forming in the US, UK, and now, MX, which complements global distribution for fasteners and C-Class parts procurement. By working with a full-service distributor that is also a manufacturer, industrial producers can take advantage of multiple procurement paths and be supported by automated replenishment services, predictive analytics, engineering creativity, a certified quality management system and existing carrier relationships that ensure reliable delivery. “The ability to dual source adds significant strength to a customer’s procurement strategies because you can combine the breadth and depth of sourcing with the ability to manufacture more complex parts locally,” said Harms. “With fluctuations in demand occurring at an ever-increasing rate, procurement specialists depend on business partners that are flexible to meet production requirements.”
Through Joint Venture Company
Bulten Establishes Operation in India
Bulten is establishing manufacturing operations in India through a newly formed joint venture company – Bulten Radium Industries Private Ltd. – alongside two partners: Radium Fasteners Private Ltd. (Radium) and ZJK Precision Parts HK (ZJK). The driver is an increased need for domestically produced micro screws among international customers in the electronics sector with production in India.
惠達雜誌 Fastener World no.204/2024
223
Fastener Wolrd News "Our ambition is to increase sales, primarily of micro screws, to companies in the electronics industry. India is a growing market for this segment, as many international manufacturers of electronics are locating more and more of their Asian production in India. This is the driver behind our new operation in India, and we plan to begin production during the first half of 2024,” says Anders Nyström, President and CEO of Bulten. The operation will be based at a new production plant currently being constructed in Jamnagar, in the western Indian state of Gujarat. The aim is to be fully up and running during the second quarter of 2024, and to have about 50 employees. The building will be leased by Bulten Radium Industries Private Ltd. and therefore involves only limited investment costs for Bulten. Bulten has a 51 percent holding in the newly formed joint venture company. ZJK has previously been a partner to Bulten for the manufacture of micro screws in China, and Radium is a newly formed company owned by experienced players in the fastener industry in India. As well as the newly started JV company, Bulten also operates in India through the newly acquired distribution company Exim Mfr & Enterprise.
Deepening Supply Chain Relationships with Taiwan, Adolf Würth Holds Supplier Day 2023 The Würth Group, which has more than 400 companies and 85,000 employees in more than 80 countries and supplies more than 125,000 products such as fasteners, tools, DIY products, assembly materials, and industrial parts and components to customers in various industries, gave a Supplier Day event on Nov. 10, 2023 at the new site of its Taiwan branch located in Zuoying, Kaohsiung.
The support and cooperation from Taiwan fastener suppliers has always been the key to the Würth Group's stable revenue and growth year after year. Therefore, a number of executives from the Würth Group's parent company, reps from the procurement/quality/products/R&D departments of the Group's overseas subsidiaries and affiliates, Managing Director Andreas Dierolf of Adolf Würth GmbH & Co. Taiwan Branch, CEOs of Würth Taiwan Co., Ltd. and Würth Industry Taiwan Co., Ltd. were all present to interact with 90 partner suppliers and almost 250 guests from the fastener industry. Executive Director Axel Limberg of Delegate of German Industry & Commerce Taiwan and Chairman Tu-Chin Tsai of Taiwan Industrial Fasteners Institute also attended the event. The Supplier Day was the first large industry networking event of Adolf Würth GmbH & Co. KG Taiwan Branch after it moved to the new location in Zuoying. In addition to food and wine, two workshops and seminars on the topics of "Helping Suppliers to Implement Würth's Online Quality System" and "CBAM Requirements, Implementation and Impact" were held in the hope of deepening the exchange of information and close cooperation between Würth and its Taiwanese suppliers. Managing Director Andreas Dierolf of Adolf Würth GmbH & Co. KG Taiwan Branch particularly praised the Taiwanese suppliers as one of the best in Asia in terms of service, quality and innovation. In the opening speech he said, "This is the 6th Supplier Day in Kaohsiung in the 11 and a half years since the establishment of Adolf Würth GmbH & Co. KG Taiwan Branch. We’d like to thank everyone for their support and understanding. The success of our bilateral cooperation is mainly due to the support of the fastener specialists present here, who continue to produce and supply us with high quality fasteners, and we’re able to assist you in the sale of fasteners produced all over the world. We’re truly grateful for the partnership and the long-lasting friendship we have enjoyed with you." The Würth Group says that the fastener industry has had a tough year due to the slowdown in the global economy and regional wars, but is confident that it will be able to see the light of day in close cooperation with its suppliers.
224
Fastener World no.204/2024 惠達雜誌
Fastener Wolrd News
Acquisitions Auveco Expands Presence with Acquisition of ClipLizard Systems Au ve c o , a l e a d i n g fo r c e i n t h e automotive fastener and body hardware aftermarket, proudly announces its recent acquisition of ClipLizard Systems, headquartered in Spencer, IN. This strategic move solidifies Auveco's position in the Collision and Paint, Body, and Equipment (PBE) markets. ClipLizard Systems, recognized for its innovation and commitment to quality, specializes in sourcing and distributing automotive clips and fasteners to PBE distributors. Their licensed software solution, Materials Manager, enhances PBE inventory management. The successful transaction, finalized on November 1st, 2023, marks a pivotal moment for both companies.
“There are times when you just know it’s a solid match as we share the same drive and grit to make it happen for the customer,” states Kevin Weidinger, President of the Great Lakes family of distributors. “Frontier has great talent, a diverse group of loyal customers, and matches our core values perfectly!” “We are excited to add Frontier to our Nut & Bolt Fastening team in Buffalo!” continued Weidinger. Beginning Monday, December 4, 2023, Frontier Fastener has integrated with the existing Buffalo-based Nut & Bolt Fastening Solutions nestled on historic Connecticut Street. Nut & Bolt is a prominent brand in the fastener distribution group owned by Kevin Weidinger. The group operates Great Lakes Fasteners, Nut & Bolt Fastening Solutions, Lakeshore Shore Fastener, Hodges Fastener Corporation, and Connection Service Company. The group is headquartered in Cleveland, Ohio, with distribution and manufacturing centers in Ohio, New York, Michigan, and Wisconsin.
Auveco CEO, Jeff Gilkinson, expressed enthusiasm, stating, "The partnership with ClipLizard aligns seamlessly with our values of innovation and exceptional service. This strategic fit will bolster our ability to serve customers across North America." Ray Wilhoite, CEO of ClipLizard, echoed this sentiment, saying, "Joining forces with Auveco allows us to combine our strengths, offering an enhanced product and service portfolio to our channel partners." The collaboration opens new channels to market for both Auveco and ClipLizard, providing access to a broader product portfolio. The companies foresee increased opportunities for new product introductions by leveraging core best practices.
The consortium strives to maintain a distributor’s local identity and presence in their communities yet leverages the collective strength, size and abilities of the enterprise. Customers enjoy a vast inventory of standard and special fasteners plus bundled lean production services, including kitting, packaging, sub-assembly, and managed inventory programs (VMI). Headquartered in Cleveland (Twinsburg), Ohio – The Great Lakes Fastener Group is a full-line fastener distribution and manufacturing company that offers its clients a comprehensive portfolio of standard, metric and made-toprint fasteners, packaging services and innovative inventory solutions. The group maintains a quality management system to the ISO 9001:2015 and AS9100 standard.
Founded in 1916, Auveco has grown to become a predominant provider of automotive fasteners, serving thousands of wholesale distribution customers. ClipLizard, founded in 2003 by Ray Wilhoite, has developed a loyal following through its extensive portfolio of specialty clips and fasteners, catering to the needs of body shops.
Acquires Alliance Nut & Bolt
Great Lakes Fasteners Group Acquires Frontier Fastener
Alliance was founded in 1978 by Leon and Kevin Oshman. From the beginning, the business set out with a passion and commitment to provide the marketplace with an unparalleled level of customer service. In 1999, Kevin purchased his father's stock, securing complete ownership, and embarked on a journey of growth. Today, that passion, commitment and drive for growth remains core to Alliance, which operates facilities in Salina, Kansas, and Okarche, Oklahoma.
The Great Lakes Fasteners Group has acquired Frontier Fastener, Inc. of Buffalo, New York, to continue its rapid growth plans serving manufacturers and other customers throughout the Northeast. Frontier Fastener has been a Western New York fastener favorite for over 50 years serving a wide variety of customers across many segments. Frontier specializes in special fasteners designed to customer specifications. Paul Kramer has been with Frontier for over 50 years, having started working alongside his father. Paul's career started with odd jobs around the warehouse, and he worked his way to becoming President. “Aligning with the Great Lakes Fasteners Group just felt like a natural fit for me and the Frontier team,” said Paul Kramer, Frontier President. “Kevin and the Great Lakes team care deeply about their customers, just as we do, and together shared several fastener stories, including heroics performed for our customers!” “I am also delighted to stay on and be able to expand the products and services we now have available with Great Lakes,” continued Kramer.
Alliance Nut & Bolt's major fulfillment offerings include vendor-managed inventory, dock-to-dock managed inventory and kitting solutions. Rick Ambrosier, a 20-year veteran with the company, will continue in a leadership position as branch manager. Kevin Oshman will remain with the company during a transition period. Endries is a leading distributor of fasteners and Class-C parts serving industrial original equipment manufacturers and the Industrial marketplace worldwide. From its headquarters in Brillion, Wisconsin, and 11 U.S. and international distribution centers, Endries provides over 500,000 SKUs to its customer base. Endries operates primarily through a vendor-managed inventory model, managing C-part categories for its customers across diverse industrial end markets. Endries partners with customers through robust replenishment systems that provide products and support services, which are critical to maintaining the manufacturing process. 惠達雜誌 Fastener World no.204/2024
225
Industry Focus
Japan in Figures— Fastener / Automobile / Construction / Machine Statistics, GDP, PMI
Japan caught the eyes of the world more than ever in 2023 because of its strengthened alliance with the U.S. in recent years. The media buzzed with words that Japan could stand a chance to break away from the lost 30 years. Fastener World got words from some Japanese fastener manufacturers that the Japanese economy and manufacturing industry are still in the midst of many difficult challenges, including high production costs and severe labor shortages among other issues, which they have yet to feel a turnaround of the Japanese economy. Can this be confirmed with figures? This article collects statistical data of fastener-related industries and several important economic indicators, which are divided into five categories: "fastener", "automobile", "construction", "machine", and "GDP & PMI", with brief descriptions to provide readers with references.
Fastener Japan's Fastener Statistics in the Past Decade (Source: The Fasteners Institute of Japan and Ministry of Finance Japan)
Production
Export
Import
Year
Weight (Ton)
YoY (%)
2013
2,877,490
-2.86
8,414,194
-21.71
330,506
2.54
2,803,034 -11.92
253,649
2014
2,935,912
2.03
7,698,741
-8.50
328,481
-0.61
2,528,621
-9.79
2015
2,889,298
-1.59
6,916,906
-10.16
314,599
-4.23
2,306,425
2016
3,010,056
4.18
8,398,362
21.42
327,717
4.17
2017
3,207,572
6.56
7,941,247
-5.44
344,850
2018
3,297,245
2.80
8,090,491
1.88
2019
3,231,661
-1.99
8,489,804
2020
2,825,464 -12.57
2021
3,114,740
2022
3,210,000
2023 (Jan. – Oct.)
Value Weight Value Weight YoY (%) YoY (%) YoY (%) (USD 1,000) (Ton) (USD 1,000) (Ton)
Value (USD 1,000)
YoY (%)
12.04
852,255
1.60
248,866
-1.89
816,810
-4.16
-8.79
233,507
-6.17
768,541
-5.91
2,649,526
14.88
228,744
-2.04
792,274
3.09
5.23
2,642,971
-0.25
239,533
4.72
799,244
0.88
354,524
2.81
2,670,918
1.06
239,324
-0.09
841,247
5.26
4.94
319,806
-9.79
2,578,423
-3.46
254,916
6.52
886,242
5.35
7,751,863
-8.69
264,836
-17.19
2,226,752 -13.64
212,549 -16.62
726,686 -18.00
10.24
8,291,633
6.96
325,945
23.07
2,679,742
20.34
229,284
7.78
816,334 12.34
1.2
6,800,000
3.5
323,633
-0.70
2,402,830 -10.33
328,346
43.2
1,066,885 30.69
244,772
-24.36
Undisclosed
1,940,757
-19.21
YoY (%)
236,860 -27.86
808,311
-24.31
Japan's fastener production averaged about 3 million tons, with a domestic production value of about USD 7.8 billion. The average export weight is about 320,000 tons, with an export value of USD 2.5 billion, an import weight of 240,000 tons, and an import value of USD 800 million. In the COVID year 2020, Japan's production plunged 12%, export down 17%, and import down 16%. But right away in 2021,
226
Fastener World no.204/2024 惠達雜誌
Industry Focus production bounced back 10%, export up 20% and import up 12%. In 2022, production returned to a normal growth margin, up 1%, while export plunged 10% in contrast to a 30% increase in import. Export continued to plummet in the first ten months of 2023, approaching a 20% decline, while import fell 24%. Japan fastener industry's export changes resemble those of Taiwan’s. Both the countries rebounded quickly in less than a year after the COVID setback, and then spiraled down for two consecutive years. It is worth monitoring 2024 for a point of potential rebound.
Value (USD 1,000)
Weight (Ton)
Japan’s Domes�c Fastener Produc�on & Sales Change from 2013 to 2022 Year 2022
6,800,000
3,210,000
2021
8,291,633
3,114,740
2020
7,751,863
2,825,464
2019
8,489,804
3,231,661
2018
8,090,491
3,297,245
2017
7,941,247
3,207,572
2016
8,398,362
3,010,056
2015
6,916,906
2,889,298
2014
7,698,741
2,935,912
2013
8,414,194
2,877,490 0
1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000
Japan’s Fastener Export Change from 2013 to the First 10 Months of 2023 Year
2023 (Jan.-Oct.) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 0
1,940,757
244,772 323,633 325,945 264,836 319,806 354,524 344,850 327,717 314,599 328,481 330,506 500,000
2,402,830 2,679,742 2,226,752 2,578,423 2,670,918 2,642,971 2,649,526 2,306,425 2,528,621 2,803,034 1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Japan’s Fastener Import Change from 2013 to the First 10 Months of 2023 Year
2023 (Jan.-Oct.) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 0
808,311
236,860 328,346 229,284 212,549 254,916 239,324 239,533 228,744 233,507 248,866 253,649 200,000
400,000
1,066,885 816,334 726,686 886,242 841,247 799,244 792,274 768,541 816,810 852,255 600,000
800,000
1,000,000
1,200,000
惠達雜誌 Fastener World no.204/2024
227
Japan’s Fastener Export Change from 2013 to the First 10 Months of 2023
Industry Focus Year
1,940,757 2023 (Jan.-Oct.) 244,772 (Source: Ministry of Finance Japan) 2,402,830 2022 323,633 Top 10 Fastener Import Sources for Japan 2,679,742 2021 325,945 Code 61703: Nails, bolts, screws, etc. 2,226,752 2020 Japan P.C.264,836 Ton JPY 1,000 Import 2019 2,578,423 Ranking 319,806 Source 2020 2021 2022 2020 2021 2022 2,670,918 2018 354,524 0 World 2017 297,918 318,703 328,346 97,070,923 114,966,809 151,454,7612,642,971 344,850 1 China 2016 194,048 210,569 216,801 38,055,825 49,276,045 64,728,3802,649,526 327,717 2 Taiwan 201566,154 67,191 70,819 24,773,147 29,143,322 40,858,059 2,306,425 Up to 2022, China and 314,599 3 S. Korea 201412,839 15,407 13,619 4,685,725 6,024,996 6,701,217 2,528,621Taiwan stood as the largest 328,481 fastener import sources 4 Vietnam 201311,839 12,685 13,164 3,247,338 3,903,435 4,967,815 2,803,034 330,506 for Japan. Japan’s import 5 Thailand 4,645 4,210 4,678 2,956,298 3,389,000 4,112,804 weig ht f rom Viet n a m , 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 6 Malaysia 2,533 1,896 1,988 1,046,231 936,057 1,330,449 Germany, the U.S., and 7 Germany 1,032 1,148 1,199 2,419,395 2,839,362 3,970,157 Spain increased steadily. 8 America 933 1,181 1,157 13,400,879 11,706,991 14,883,356 Japan’s Fastener Import 2013 to the First 10 Months 9 Spain 336 391 Change 609 from 214,373 265,270 520,667 of 2023 10 Australia Year 803 807 561 491,145 706,076 622,507 808,311 2023 (Jan.-Oct.) 236,860 Destinations for Japan 1,066,885 2022 Top 10 Fastener Export 328,346 Japan P.C. Code 61509 Nails, bolts, screws, etc. ： 816,334 2021 229,284 Ton JPY726,686 1,000 Export 2020 Ranking 212,549 Destinations 2021 2022 2020 2021 2022 886,242 20192020 254,916 0 World 2018 279,577 346,517 323,633 257,102,234 324,979,462 841,247 341,078,663 239,324 1 China 201784,221 93,442 79,385 74,408,180 85,112,581 80,428,459 799,244 239,533 2 America 201666,278 81,733 70,225 61,504,889 76,968,506 78,220,678 792,274 228,744 China and the U.S. were 3 Thailand 201532,210 45,353 45,624 29,203,131 40,602,271 768,541 43,502,314 the largest fastener export 233,507 816,810 4 Indonesia 201413,283 22,833 27,531 10,971,757 18,864,526 25,226,327 desti nations for Japa n. 248,866 Japan’s export to Thailand, 5 India 2013 8,170 12,215 13,863 7,805,872 11,344,803 852,255 13,625,297 253,649 Indonesia, India, Brazil, 6 Mexico 12,056 14,229 12,490 10,613,230 12,842,986 12,838,213 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 M a l a y s i a a n d Ta i w a n 7 Brazil 5,930 9,243 10,066 4,597,655 7,242,948 9,351,117 increased steadily. 8 Malaysia 4,512 5,032 6,153 4,149,960 4,882,411 5,890,045 9 UK 6,177 6,065 5,408 4,447,837 4,837,971 4,624,928 10 Taiwan 4,461 4,897 5,050 4,483,822 5,217,950 5,605,564
Automobile Japan’s New Car Registra�ons or Sales (Unit: Vehicle)
Year 2023 (Jan.-Nov.)
2,450,767 753,023
2022
3,448,297
772,642
2021
0
1,000,000
2,000,000
Fastener World no.204/2024 惠達雜誌
4,598,615
4,301,091
Commercial Cars
228
4,448,340
3,809,981
894,125
2019
4,201,320
3,675,698
788,634
2020
4,416,247
3,000,000
4,000,000
Passenger Cars
All Types
5,000,000
5,195,216 6,000,000
Industry Focus Japan New Car Registrations or Sales (Unit: Vehicle) Year
2019
2020
2021
2022
2023 (Jan. – Nov.)
All Types
5,195,216
4,598,615
4,448,340
4,201,320
4,416,247
Passenger Cars
4,301,091
3,809,981
3,675,698
3,448,297
2,450,767
Commercial Cars
894,125
788,634
772,642
753,023 Undisclosed
Vehicle registrations in Japan for all vehicle types decreased every year from 2019 to 2022, but already surpassed the level of 2022 in the first 11 months of 2023. If you look closely, registrations of passenger cars and commercial vehicles were still decreasing every year.
Construction
Japan’s housing order value averaged at JPY 990 billion in the past 5 years. Apart from an obvious decline in the COVID 2020, the value was climbing up steadily afterwards.
Machine
(Source: The Japan Society of Industrial Machinery Manufacturers)
Metal Processing Machinery Order Value Statistics (Unit: JPY Million) 2021 Domestic External Demand Demand
2022
YoY (%)
Sum
Domestic External Demand Demand
Sum
2023
Domestic External Sum Domestic External Demand Demand Demand Demand
YoY (%) Sum
Metal Processing Machinery
82,672
79,329
162,001
136,409
55,531
191,940
65.0
-30.0 18.5
184,153
Others
535,155 216,349
751,504
561,913 194,715
756,628
5.0
-10.0
0.7
505,722 209,319
Sum
3,333,215 1,616,221 4,949,436 3,424,840 1,805,438 5,230,278
2.7
11.7
5.7 3,350,317 2,064,631 5,414,948
56,920
241,073
Domestic External Sum Demand Demand 35.0
2.5
25.6
715,041 - 10.0
7.5
-5.5
14.4
3.5
- 2.2
From 2021 when COVID was slowly subsiding, domestic demand for Japanese metal processing machinery continued to grow, while external demand was going downwards.
惠達雜誌 Fastener World no.204/2024
229
Industry Focus
Copyright owned by Fastener World / Article by Dean Tseng
GDP、PMI Japan's GDP output in 2022 was USD 4.24 trillion with a GDP per capita of USD 33,900. PTS (Taiwan press) reported that Japan's GDP in Q3 2023 fell 2.1% from the same period a year earlier, also a bigger decline than the 0.6% drop that economists had forecast. For 2023, Japan's GDP has been expected to decline by 0.2% year over year to USD 4.23 trillion. IMF predicts that Japan will be pushed out by Germany this year and step backwards as the world's fourth largest economy.
Year
230
Fastener World no.204/2024 惠達雜誌
Industry Focus
Overview of Automotive and Components Production and Sales in ASEAN 1. Auto Production & Sales in ASEAN Show Growth ASEAN consisting of 10 countries has an area of 4.44 million sq. km, a population of 620 million, and a GDP of over US$3.2 trillion in 2022, making it an emerging regional organization with considerable i n f lue nce. A mong ASEA N 10, T h ai la nd , t he Philippines, and Indonesia are open countries in the auto industry, and Indonesia in particular has replaced Thailand to be the largest auto market in ASEAN. However, Thailand is a country with less government intervention and protection for the auto industry. Thailand, having opened up its market, has established technical cooperation or production relationships with other int’l automakers, and is already ahead of other ASEAN countries in terms of manufacturing integration and cost competitiveness. Compared to Thailand, Malaysia is a country protecting its auto industry. Malaysian government is committed to the development of the local auto industry and is more deeply involved in it, which in turn faces the greatest pressure to reduce tariffs or protective measures and is more resistant to liberalization issues. The main reason that Malaysian government chose to adopt a protective policy for the auto industry is due to the country's special political and economic background and industrial environment.
In densely populated countries such as Thailand, Indonesia, Vietnam, and the Philippines, the ratio of car ownership per capita (the numbers of cars per 1,000 people in 2022 were 245.8 in Thailand, 91.3 in Indonesia, 17.3 in Vietnam, and 35.8 in the Philippines) is relatively low compared to those of advanced countries, and the future auto parts and components business opportunities have great potential for development, both in the AM and OEM market. Japanese automakers such as Toyota, Suzuki, and Daihatsu are optimistic about the development potential of ASEAN and are actively adjusting ASEAN to become the production bases of Completely Built Unit (CBU), and are placing their business in the ASEAN and emerging countries with Small Multi-Purpose Vehicles (MPVs). In comparison with the BRIC countries, vehicle ownership in ASEAN is still on the low side, and most of the citizens still use motorcycles as a means of transportation. In recent years, with the development of the economy and changes in consumer behavior, which has led to an increase in the demand for low-priced small cars, ASEAN will become an important competitive arena for major auto manufacturers in the future in terms of the global market and development trend. Fig. 1 shows the forecast of ASEAN auto production and sales. In 2022, ASEAN auto production was 4.384 million units, an increase of 23.9% from 2021, due to the increase in production in Thailand and Indonesia. In 2023, the boom continued, with the production of 4.417 million units, an increase of 3.0% from 2022, and the sales were estimated to be 3.838 million units in 2023, an increase of 12.1% from 2022. Fig. 2 is the forecast of auto sales in major ASEAN countries. In 2022, ASEAN auto sales were 3.425 million units, a 22.7% increase from 2021, mainly due to the increase in domestic demand in Indonesia and the Philippines, resulting in sales growth, with the largest auto market in ASEAN, Indonesia, selling 1.048 million units, Thailand, selling 849,000 units, and Malaysia, selling 721,000 units. Fig. 1
Major ASEAN countries have laid the foundation for auto parts manufacturing and assembly and have the capability of complete vehicle manufacturing and assembly. Global major car manufacturers have set up assembly factories in ASEAN and have begun to take shape due to sufficient labor, low wages, inexpensive land prices, and potentials for the development of the auto industry and market, etc. The auto industry in ASEAN is mainly concentrated in Malaysia, Indonesia, the Philippines, and Thailand. Indonesia, Thailand, Malaysia, the Philippines, Singapore, Vietnam and other ASEAN countries have terminated tariffs on auto imports and exempted auto parts from luxury tax.
惠達雜誌 Fastener World no.204/2024
231
Industry Focus Fig. 2
2. Domestic Demand is Obvious; Imports of Auto Parts are Larger Than Exports- Indonesia Indonesia's auto production scale used to be the largest in ASEAN, with an early start and supported by the domestic demand, giving it an advantage over other ASEAN countries in terms of industry development. Indonesia has the potential of the domestic demand market and natural resources, coupled with the implementation of the ASEAN Free Trade Area (AFTA), which has eliminated the 5%
tariffs on autos and auto parts between the 6 ASEAN founding member countries (i.e., Thailand, Malaysia, Singapore, Brunei, the Philippines, and Indonesia), making it easy for autos and auto parts to be exported from Indonesia to the ASEAN countries, and with a competitive edge in terms of cost. Indonesian government has listed auto assembly manufacturing as a key development industry and will actively promote the development of the auto industry in the next 5 years in the hope of replacing Thailand as the largest auto assembly production base in Southeast Asia. In 2011, the f looding in Thailand resulted in the dislocation of the auto parts supply chain and an imbalance between supply and demand, and major auto manufacturers realizing the concentration of production bases in a single place (Thailand) have been seeking a 2nd or 3rd production location. Indonesia has a large domestic market and natural resources, and coupled with the implementation of ASEAN countries' free trade zones, Indonesia is looking forward to obtaining the opportunities to become the regional production center of auto assemblies and components in ASEAN. Due to new vehicle models being put into production and the expansion of the domestic market, the demand for locally produced auto parts in Indonesia has become larger and major auto and auto parts manufacturers have continued to strengthen their investment and plant establishment in Indonesia. The components required for auto assembly in Indonesia are mainly imported in the form of semi-bulk parts, such as auto electronics, gearboxes, chassis, engine systems, steering mechanisms & systems, drive shaft components, brakes and suspension systems and other components, all of which are imported. Fig. 3 shows the sales value of auto parts in Indonesia. The sales values of Indonesia's auto parts (HS:8708, other auto parts) was US$8.65 billion in 2022, an increase of 11.7% from 2021. Fig. 4 shows the import and export values of Indonesia's auto parts. In 2022, the export value of Indonesia's auto parts was US$2.89 billion, an increase of 2.3% from 2021. Due to the lack of a complete supply chain in Indonesia's auto parts industry, most semi-finished components and
232
Fastener World no.204/2024 惠達雜誌
engine systems, automatic transmissions and other key components rely on imports, characterized by a market in which the value of imports exceeds the value of exports. In 2022, the import value of auto parts in Indonesia was USD 5.67 billion. In 2023, it is forecasted that the import value will be USD 5.81 billion, a growth of 2.4% from 2022 due to the factors of political and economic stabilization in Indonesia and the increase in auto ownership. Fig. 3
Fig. 4
Fig. 5 shows the major import origins and their share in Indonesia's total auto parts import in 2022. Most auto parts of Indonesia were imported from Japanese manufacturers, and the major import origins were Japan (41.0%), Thailand (35.8%), China (5.1%), Germany (4.4%), and Malaysia (3.5%), with the top 5 countries accounting for 89.8% of the total imported auto parts. Fig. 6 shows the major destinations of Indonesia's auto parts export in 2022, and the major export destinations were Thailand (24.6%), Japan (13.7%), Malaysia (13.4%), Brazil (5.8%), and India (5.7%), with the top 5 export destinations accounting for 63.2% of the total exported auto parts.
Industry Focus Fig. 5
Fig. 6
to AFTA regulations, the import tariffs and non-tariffs of existing ASEAN member countries (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) have been lowered to 0-5%. Thailand's Board of Investment (BOI) has listed the auto industry as one of the "Top 5 Industries for Investment Promotion" and has taken incentives to attract more multinational auto manufacturers to set up factories in Thailand. Under the ASEAN Industrial Cooperation Scheme (AICO), auto parts can enjoy tariffs of 0-5% in the ASEAN region, and tariffs on imports into Thailand have been reduced to 5%, provided they meet the 40% origin criteria. Autos have become Thailand's 5th largest export items, and its auto export ranked 1st among ASEAN and ranked 3rd in Asia, only after Japan and S. Korea. Thailand not only has become the ASEAN's largest auto assembly base, but also the world's top 10 car manufacturing countries. There are 16 auto assembly factories and 1,800 parts manufacturers in Thailand. Its industry focuses on development of pick-up trucks, and the output is only second to the U.S., which is a major factor that has contributed to the development of the auto parts industry. Fig. 7 is the forecast of Thai auto parts market. In 2022 Thai auto parts sales value was 16.94 billion USD. It is predicted that in 2023 Thail domestic auto parts will be still in strong demand, with the sales value of 18.39 billion USD, an increase of 8.6% over the previous year. Fig. 8 is the forecast of Thai import and export values of auto parts, showing that the value of exports exceeds the value of imports. As Thailand is the main overseas production base of Japanese vehicle manufacturers, the injection of resources is relatively more and the main key components (such as engines and gearboxes) are mostly imported from Japan. Fig. 7
3. The 2nd Production
Base of Japanese Car Manufacturers and Components - Thailand
In order to strengthen the development of the local industry and achieve the economic scale of production, Thailand restricts the types of domestic assembled vehicles, further enhances the nationalization and promotes the development of the component industry, and establishes The Thai Auto-Parts Manufacturers Association (TAPMA) as a national unification mechanism to provide the component industry with a mechanism for industry integration and development. Thailand announced a ban on "complete vehicle imports" and an increase in the tariff on "components imported to assemble" as a means of protecting the domestic auto industry. The number of local Thai component manufacturers has grown year after year under the government's dual policy of ceasing to grant production privileges and increasing the proportion of locally-produced components. After Thailand's accession to WTO, the restriction on the place of origin of auto parts must be abolished, allowing multinational enterprises to set up whollyowned enterprises. As a result of the liberalization, the auto assembly has been led by foreign investors, while the local manufacturers have turned into the supply chain of components, forming a system with a division of labor in the industry. In addition, the regional integration of AFTA has accelerated the liberalization of the automotive industry. According
Fig. 8
Fig. 9 shows the major import origins and their share in Thailand’s total auto parts import in 2022. Most exporters were Japanese manufacturers and the major import origins were Japan (49%), China (24.9%), Germany (7.5%), the U.S. (2.3%), and Indonesia (2.2%), with the top 5 countries accounting for 85.9% of the total imported auto parts. Fig. 10 shows the major export destinations of Thai auto parts (HS8708) and their share in 2022. Major export destinations were Japan (11.2%), Indonesia (10.0%), Malaysia (9.2%), China (7.9%), and the U.S. 惠達雜誌 Fastener World no.204/2024
233
Industry Focus (7.2%), with the top 5 export destinations accounting for 45.5% of the total exported auto parts. Fig. 9
auto parts are supplied to the OES, and most of the exported auto parts belong to the lower technology level, such as body panels, bumpers, brake pad components, or exhaust (pipe) systems, while high value-added key components (such as engine systems, automatic transmission, etc.) are imported, making Malaysia an ASEAN country whose import value of auto parts is larger than the value of its export value. Fig. 11
Fig. 10
Fig. 12
4. Government-led Development of Domestic Vehicle Industry - Malaysia Malaysia is committed to the development of the national car industry. Its cars have been domestically processed in terms of design, large-scale production, and integrated production of components. There are currently four domestic car manufacturers, namely Proton, Perodua, Inokom, and MTB, of which the first two are developing passenger cars. In order to face increasingly fierce int’l competition, declining proportion of domestic vehicles in the market, and maintain its advantage in domestic vehicles, Malaysia is actively developing into an auto assembly and production center of ASEAN. Most of the auto parts produced in Malaysia are made from raw materials that can be obtained domestically, and the technological level of the components is relatively low, labor-intensive and less valueadded or highly polluting components, such as tires, forging, casting, stamping, and other manufacturing industries. Fig. 11 shows the sales values of auto parts in Malaysia, with the sales value in 2022 being US$4.13 billion, an increase of 12.3% from 2021. Fig. 12 shows the import and export values of Malaysian auto parts, with US$2.72 billion import and US$910 million export in 2022. More than 70% of Malaysian
234
Fastener World no.204/2024 惠達雜誌
Fig. 13 shows the major import origins and their share in Malaysia’s total auto parts import in 2022, which were Thailand (34.9%), Japan (23.3%), China (12.7%), Germany (12.3%), and Indonesia (7.4%), accounting for 90.6% of the total. Fig. 14 shows Malaysia's auto parts major export destinations and their shares. The top 5 export destinations were Thailand (10.9%), Indonesia (9.4%), Singapore (9.3%), Japan (8.1%), China (6.7%), accounting for 44.4% of the total. Fig. 13
Fig. 14
Industry Focus 5. Conclusions and Suggestions Facing diversified demand for low-cost autos, small cars, and new energy vehicles in ASEAN such as Indonesia, manufacturers are advised to get rid of the habit of copying auto parts, enter the supply chain system of auto parts OEMs, utilize Taiwan's ICT technological advantages to develop innovative products with price differentiation (e.g., automatic transmission and drive mechanism, GPS, car recorder, car game and entertainment system, driver safety assistance system, and other high value-added products), and proactively lay out the auto parts market in Indonesia as early as possible, in addition to maintaining their original competitive advantages in AM and the global supply market.
Thai BOI provides support and incentives for industrial clusters in 7 provinces, incl. human resources, technology development, i nf rast r uct u re development a nd logist ics systems, t ax and non-t ax incentives, and financial and regulatory changes, to promote foreign investment. Thailand's key auto parts raw materials are mostly supplied by Japan, however, labor shortages and high production costs and other factors in Japan have resulted in high cost of raw materials and manufacturing. Taiwanese and Japanese manufacturers (incl. auto and auto parts manufacturers) have kept close relations for long, so Taiwan’s R&D and technological capabilities may bring more component substitution or OEM opportunities. Taiwan's auto parts manufacturers should follow the local government's policy on the auto industry and carefully select partners to match the direction of the government's consolidation of domestic assembly capacity, for example, by choosing to cooperate with existing assembly or overcapacity companies, especially those with a government background, to improve the quality of components in order to obtain the support of the government; and, secondly, by adopting a flexible and diversified approach to cooperation, which can initially be adopted by exporting parts for assembly to Malaysia, and then selling them under the current Malaysian domestic vehicle brands, or by assembly of bulk components in Malaysia, and then reselling them under their own brands in Malaysia and to ASEAN. Data source: ASEAN Automotive Federation; Global Trade Atlas; ITRI IEK
Copyright owned by Fastener World Article by James Hsiao
惠達雜誌 Fastener World no.204/2024
235
Industry Focus
The Impact of the Israeli-Palestinian War on Taiwan Fastener Industry
The "Israeli-Palestinian War", also known as the "Sixth Israeli-Palestinian War", began on October 7, 2023, when Hamas, a Palestinian Islamist movement, launched the largest invasion of Israel's mainland in 50 years. Hamas launched a military operation in the Gaza Strip, code-named the "Al Aqsa Flood", in which armed men infiltrated 22 Israeli cities, towns, and military bases, taking hundreds of Israeli civilians and soldiers prisoner, and firing thousands of rockets into cities such as Jerusalem, killing at least 1,400 Israelis and foreign nationals, according to the Israeli government. Israeli P r i m e M i n i s t e r B e nj a m i n Ne t a n y a h u immediately declared a state of war and launched a massive retaliatory operation agai nst Ga za , st at i ng t hat hu nd reds of thousands of Israeli military reservists would be mobilized in order to make the Palestinian militant group Hamas pay a heavy price. 48 days after the start of the war, Israel and Hamas agreed to a cease-fire from November 24, 2023, on humanitarian grounds. Hamas agreed to release 110 hostages, including 78 Israeli women and children, and 240 Palestinians were released f rom Israeli prisons in exchange. Unfor t unately, the ceasefire came to an abrupt end after seven days, and fighting resumed on December 1, with more than 18,000 deaths on both sides so far. On the other hand, the United Nations Security Council (UNSC) met on December 8 and voted on the United Arab Emirates (UAE) resolution calling for an "immediate humanitarian ceasefire" between Israel and Hamas. 13 out of the 15 UNSC member states voted in favor of the resolution, while the United States voted against and the United Kingdom abstained from voting, and the resolution on the ceasefire was rejected by the United States by one vote, which means that the "Israeli-Palestinian war" is going to continue for a while longer. Since the beginning of B.C., the Jews of Israel have been forced into exile for nearly 2,000 years. During the period of Jewish wander ing, the land of or igin has been inhabited by Arabs, who also regarded this land as their homeland. After the Second World War, the General Assembly of the United Nations, taking into consideration the
236
Fastener World no.204/2024 惠達雜誌
special situation of the Jews, who had been almost annihilated during the war, was willing to assist the Jews in returning to the place of their origin, i.e., the area of Palestine at that time, as a compensation. On November 29, 1947, the General Assembly of the United Nations adopted Resolution 181, the "Partition of the Palestine Trust Territory," which proposed the establishment of two provisional states, one Jewish and the other Arab. On May 14, 1948, Britain ended its trusteeship in Palestine and the Jews declared the establishment of a state called Israel. Shortly after the establishment of the state of Israel, the Arab countries of Lebanon, Syria, Iraq, Egypt and Jordan formed a coalition and organized tens of thousands of troops to attack Israel, which is known as the "First IsraeliArab War". Subsequently, there were five wars between Israel and the Arab countries in 1956, 1967, 1973, and 1982, and the wars between the Israelis and the Arabs lasted until 1993. In 1993, the signing of the Oslo Accords between Israeli Prime Minister Yitzhak Rabin and Palestinian Liberation Organization Chairman Yasar Arafat brought a ray of hope for peace. Israel agreed to let the Palestinians set up an autonomous government on the West Bank of the Jordan River and in the Gaza Strip, and the Palestinians also agreed to give up military force against Israel in exchange for statehood. Regrettably, the peace did not last long. In 2002, Israel built a separation wall in the reclamation area and effectively occupied the West Bank, and the Palestinians stood up to fight against Israel. The countries involved in the six Israeli-Arab wars from 1948 to 2023 are summarized in Table 1 below.
Industry Focus Table 1. The Countries Involved in the Six Israeli-Arab Wars Israeli-Arab Wars
1st
2nd
3rd
4th
5th
6th
Year
1948
1956
1967
1973
1982
2023
Countries for the Arab
Egypt, Syria, Jordan, Lebanon, Kingdom of Iraq, Saudi Arabia, Yemen, Palestine Liberation Organization
Egypt
Egypt, Syria, Jordan, Iraq, Palestine Liberation Organization
Egypt, Syria, Iraq, Jordan, Saudi Arabia, Kuwait, Libya, Tunisia, Algeria, Morocco, Cuba, North Korea
Palestine Liberation Organization, Syria
Palestine Hamas Organization
Countries for Israel
Israel
Israel, France, UK
Israel
Israel
Israel
Israel
Countries giving support to Israel
X
X
X
USA
X
USA, UK
There are two main organizations in the Palestinian areas, one is the Palestine Liberation Organization (PLO) and the other is Hamas, which is a shortened form of Harakat al-Muqawama alIslamiya (Islamic Resistance Movement), which was established with the aim of destroying Israel. The Gaza Strip is controlled by Hamas, while the West Bank is governed by the Palestine Liberation Organization. The Gaza Strip is a 41-kilometer-long, 10-kilometer-wide strip of territory between Israel, Egypt and the Mediterranean Sea, home to about 2.3 million people. Since the blockade, Israel has controlled the airspace over the Gaza Strip and its coastline, and has restricted the entry and exit of people and goods. Hamas, listed as a Foreign Terrorist Organization by the U.S. in 1997, is currently the main power in the autonomous government of the Gaza Strip, and since the Hamas administration of the Gaza
region, Israel has imposed a strict material blockade that has led to shortages of everything from food to medicine in the Gaza region, and the restrictions on materials have forced Palestinians to leave the Gaza region, and these blockades have deepened the Palestinians' hatred of Israel. The Middle East countries that may be affected by the "IsraeliPalestinian War" include Israel, Saudi Arabia, the United Arab Emirates, Iran, Iraq, Kuwait, Egypt, Jordan, Lebanon, Syria, Libya, etc. This article presents the statistics of exports of Taiwan steel fasteners (incl. steel screws, bolts, nuts, automotive screws, screw hooks, rivets, pins, cotter pins, washers and similar products falling within HS code 7318) to 10 Middle East countries from 2020 to 2022. See Table 2.
Table 2. Exports of Taiwan Steel Fasteners (HS code 7318) to 10 Middle East Countries from 2020 to 2022 Year
2020
2021
2022
Weight Value Weight Weight Value Weight Weight Value Weight (Ton) Share (%) Share (%) 1,000 USD (Ton) Share (%) Share (%) 1,000 USD (Ton) Share (%) Share (%) 3,968,861 1,363,250 100% 100% 5,319,169 1,610,698 100% 100% 6,140,351 1,607,481 100% 100%
1,000 USD World Israel
10,353
4,172
0.261%
0.306%
12,634
4,524
0.238%
0.281%
16,656
4,443
0.271%
0.276%
Saudi Arabia
22,951
11,519
0.578%
0.845%
21,951
9,984
0.413%
0.620%
29,513
10,555
0.481%
0.657%
UAE
17,917
6,878
0.451%
0.504%
14,915
4,614
0.280%
0.286%
15,226
3,837
0.248%
0.239%
Iran
14,398
7,528
0.363%
0.552%
8,637
3,813
0.162%
0.237%
11,504
4,529
0.187%
0.282%
Iraq
6,061
2,918
0.153%
0.214%
5,674
2,501
0.107%
0.155%
6,300
2,151
0.103%
0.134%
Kuwait
2,508
1,107
0.063%
0.081%
4,843
1,675
0.091%
0.104%
5,493
1,651
0.089%
0.103%
Egypt
4,290
1,817
0.108%
0.133%
5,003
1,646
0.094%
0.102%
4,962
1,316
0.081%
0.082%
Jordan
1,141
649
0.029%
0.048%
1,136
547
0.021%
0.034%
1,601
623
0.026%
0.039%
Lebanon
244
132
0.006%
0.010%
644
294
0.012%
0.018%
752
279
0.012%
0.017%
Syria
276
151
0.007%
0.011%
88
43
0.002%
0.003%
41
21
0.001%
0.001%
Total of 10 Middle East Countries
80,139
36,871
2.02%
2.70%
75,525
29,642
1.42%
1.84%
92,048
29,405
1.50%
1.83%
In Table 2, the proportion of the 10 Middle East countries to the total export value of Taiwan's steel fasteners (HS code 7318) is 2.02% in 2020, 1.42% in 2021, and 1.50% in 2022, and the proportion of the 10 Middle East countries to the total export weight is 2.7% in 2020, 1.84% in 2021, and 1.83% in 2022. It is thus estimated that the impact of the 10 Middle East countries on the export value of Taiwan's steel fasteners is about 2% at most, which is within the tolerable range. 惠達雜誌 Fastener World no.204/2024
237
Industry Focus The impact of the "Israeli-Palestinian War" on Taiwan fastener industry is not significant, but the political ripples generated should not be underestimated. Israel and Palestine have their own supporters. Those for Israel are the U.S., the U.K. and other Western powers, while those for Hamas are China, Russia, Arabia and other countries. These two forces, coupled with the fact that the Middle East is an important producer of oil in the world, and if the war cannot be quickly terminated, the butterfly effect may have a significant impact on the world economy. After the Hamas attack on Israel, the U.S. Department of Defense dispatched two carrier strike groups, the nuclear-powered aircraft carrier USS Ford and USS Eisenhower, to the Eastern Mediterranean Sea to make preparations for assisting Israel, while the UK also dispatched two warships and reconnaissance planes to the Middle East and deployed them in the Eastern Mediterranean Sea area near Israel to show its support for Israel and demonstrate the military deterrence of the U.S. and the U.K. in the Middle East. The United States and the United Kingdom are also showing their military deterrence power in the Middle East. Since World War II, Israel has been the largest recipient of U.S. military aid, with the U.S. providing a total of US$158 billion bilateral aid and military funding to Israel, and US$3.8 billion military assistance to Israel in 2023 alone. The U.S. has even expressed support for Israel's troop contribution to the Gaza Strip in the United Nations Security Council, and in the UNSC meeting of December 8 voting on the resolution of "immediate humanitarian ceasefire between when Israel and Hamas ", the US voted against it and the UK abstained from voting. As the US is a permanent member of the UNSC, it has the right of veto, and the resolution of Israeli-Palestinian ceasefire was vetoed. The main supporting forces behind Hamas may include the Arab countries, China and Russia. The Ministry of Foreign Affairs of the PR China (MFA) published on its website on November 30, 2023, that "President Xi Jinping has repeatedly elaborated on China's principled position on the current Israeli-Palestinian situation, emphasizing that a cease-fire should be put in place immediately to stop the fighting, to ensure the safe and smooth f low of humanitarian channels, to prevent the conf lict from spreading, and to implement the 'two-state solution' to promote an early, comprehensive, just and lasting solution to the question of Palestine". At the initiative of the Chinese rotating presidency of the UN Security Council in November, the Council held a highlevel meeting on the Israeli-Palestinian issue, which was chaired by Chinese Foreign Minister Wang Yi and attended by the foreign ministers and high-level representatives of nearly 20 countries, including Brazil, Palestine, Qatar, Jordan, Saudi Arabia, and Egypt, as well as all members of the Council. The Council adopted Resolution 2712, which launched the initial step of promoting the cease-fire between the Israelis and the Palestinians. Regrettably, as mentioned earlier, the motion for an "immediate humanitarian ceasefire" was rejected by the U.S. by one vote. Russian President Vladimir Putin visited the UAE on December 06. While the war between Russia and Ukraine is still in a stalemate, President Putin made a rare trip to the Middle East, visiting the UAE and Saudi Arabia to discuss with the heads of the two countries about Ukraine and the Israeli-Palestinian war, and it is still to be seen whether it will have an impact on the war later on. In addition, the BRICS (Brazil, Russia, India, China, and South Africa) announced after the BRICS summit in South Africa
238
Fastener World no.204/2024 惠達雜誌
in August 2023 that the BRICS will expand its membership in 2024, and that Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE have been invited to join the BRICS cooperation mechanism. Among them, Egypt, Iran, Saudi Arabia, and the UAE are very important oil exporting countries and Middle East countries practicing Islam, which leads to an important issue of civil and biological capital "oil". Looking back at history, the 4th Israeli-Arab War in 1973 once triggered the world's first oil crisis. At that time, the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, announced an oil embargo on countries supporting Israel during the 4th Israeli-Arab War, targeting Canada, Japan, the Netherlands, the UK and the U.S. The embargo lasted for nearly a year, and during the embargo period, global oil prices rose by nearly 300%, from US$3 to nearly US$12 per barrel, which had a significant impact on the global economy. This embargo caused the world to experience a global recession, with unemployment and inflation rising at the same time, stock and bond prices plummeting, and the post-World War II economic boom coming to an end. OPEC member states have not yet responded to the Israeli-Palestinian war, but of course, with the success of the U.S. shale oil industry and the maturing of renewable energy technologies, OPEC's inf luence is much different from that of 50 years ago. It is judged that the chances of adopting the oil embargo strategy of 1974 are not very high, but it is not ruled out that it will use the reduction of oil production as a warning tool. The biggest difference between the "Israeli-Palestinian War" and the "Russian-Ukrainian War" is the land area where the war took place. Ukraine has a total land area of 603,700 sq. km, Israel has a total area of 22,072 sq. km, and the Gaza Strip has an area of only 365 sq. km. Due to the large size of the Ukraine's land area, and the provision of weapons and combat training by the U.S. and other Western countries, the war has not yet been over in the last two years, and as the Gaza Strip has only 365 sq. km (the area of Taipei is 271 sq. km), the research has concluded that the war will not be long-lasting in such a small area. In the 21st century, since Russia's invasion of Ukraine in February 2022 and the current "Israeli-Palestinian War", there has been a clearer division between the world's great powers, with the U.S., the UK, Japan, and the European countries as one group, and China, Russia, and the Arab countries as another. The "Russian-Ukrainian War" and the "Israeli-Palestinian War" have both shown that, when there is a conflict in geopolitical affairs, the two groups will intervene and wrestle with each other. At present, it seems that the "Israeli-Palestinian war" does not have much impact on Taiwan fastener industry, however, it cannot be denied that Taiwan fastener industry is facing a more and more treacherous and ever-changing world situation, and the uncertainty of the enterprise's operation is getting higher and higher, so the only thing is that we should uphold the attitude of striving for excellence, and continue to make progress in product development, production technology, product quality and low-carbon technology, to create a competitive advantage that is not easy to be imitated by competitors. Copyright owned by Fastener World Article by Dr. Wayne Sung
Fastener World no.204/2024 239
240 Fastener World no.204/2024
Fastener World no.204/2024 241
Fastener World no.204/2024 243
Fastener World no.204/2024 247
248 Fastener World no.204/2024
Fastener World no.204/2024 249
251 Fastener World no.204/2024
252 Fastener World no.204/2024
Fastener World no.204/2024 255
Special Feature
Dr. Fastener
Understanding Wheel Failures Editors’Note: There are many reasons for wheel failure. In this article, bolting expert Guy Avellon provides expert analysis from his experience to provide readers with answers to common causes and solutions.
Road hazards are generally on the right side of the vehicle in the form of frost heaves (Fig. 1), road grates, pot holes, etc., but will affect the left side when the wheels are rotated. Impact and shock loads to the wheel will cause embedment of the wheel lug nut into the wheel boss surface and affect wheel alignment. During tire rotations, the wheel is now rotated to another location where different wheel lug nuts are used that have a different mating seat impression. Most vehicles have a conical seated wheel nut. This is why tire mounting technique and retorquing the wheels after driving at least 25 miles are important. Fig. 1. Frost heave
When analyzing a wheel failure, most of all failures are due to metal fatigue. Fatigue can be exacerbated from normal tractive loads and bending to prying loads from cornering. However, the root cause may come from several sources. When the clamp loads are lost or reduced and the service loads exceed the remaining clamp load, the threads of the fasteners must absorb the excess load. In time, a stress raiser develops in the thread root causing a microcrack which grows and propagates through the material until a complete fracture occurs. Stress cracks will begin at the weakest area on the wheel stud; the thread run out of the wheel stud, which is the last incomplete thread towards the head, or at the first thread outside the nut when the wheel contacts the joint surface. Both stress initiation points were observed. The action of metal fatigue may be compared to the continual flexing of a coat hanger wire several times until it breaks. There are five major reasons for how wheel clamp load is lost: road hazards; rust; not retorquing the wheel nuts after remounting and driving a minimum of 25 miles; reusing the same wheel nuts and incorrect wheel installation, which will significantly damage the wheel nuts.
256
Fastener World no.204/2024 惠達雜誌
Corrosion can also inhibit proper tightening or seating of any fastener and joint connection. Rust / corrosion formation products will cause a cushion layer which will compress under loads, thereby relaxing the clamping force of the connection. It only takes 0.001” of joint relaxation to lose 30,000 psi of clamp load between the hub and rotor. Corrosion products may be removed from the surface but they easily return and continue to form. In some cases, the corrosion products grow to the point where it can actually cause separation of the joint. During the stress of this separation, the threads of the wheel nuts and wheel studs will become damaged.
Special Feature When the wheel lug nut is used again during tightening, torsion produces friction as the distorted thread f lanks engage each other to stretch the fastener during rotation of the nut. It is this increase in friction between the threads that will reduce the work energy available to stretch the fastener and provide clamping force, because friction must be overcome first before any work can be performed. Torque is a function of friction; therefore, any amount of torque output from a torque wrench, hand wrench to an impact gun will decrease due to the increase in friction between the threads. Each time the nut is retightened, the threads deform a little more, causing a further increase in thread friction and further loss of clamp load. The clamp load will continue to decrease upon every reuse of the nut and cause stress raisers in the threads. Under normal conditions, every time any nut is removed and retightened, it will never produce the same clamp load as the moment before it was loosened, even if the same torque was applied. Most of all repair shops use unregulated impact wrenches/guns. The common ½” (40 mm) impact gun delivers an initial torque of 425 lb-ft of torque or greater. The standard sedan or minivan requires a low torque of 80 lb-ft to 110 lb-ft of torque. An impact wrench looks for friction to cause it to stall. If the operator can sense a slight hesitation, he will impact the nut harder and faster to ‘overcome’ any obstacles like thread nicks or burrs. It is this type of impacting that weakens the threads of the nut and initiates stresses in the thread roots of the wheel studs.
nut is in the counter clockwise rotation, the same direction the wheel turns on the left side of the vehicle. Engine torque and wheel spin control devices apply additional stresses to the wheel. Snow, ice and even when it rains, the surface oils allow the front tires to spin when starting from a stop. The spin control on most vehicles only allows the wheel to spin one quarter rotation or less before the automatic traction brake is applied in a harsh and sudden manner. This contributes to further wheel stress and loosening and will further exacerbate a fatigue crack that has already begun. Any tightened joint will lose 10-15% of its clamp load from joint relaxation within 90 seconds of tightening. This is why a good tightening procedure will retorque the assembly a second time. Criss-cross patterns and torquing in increments will ensure evenly clamped joint materials. Then, any dynamically loaded joint must be retorqued after applying service loads to that joint due to embedment, reseating of components and loss of clamp load. When new disc brakes (Fig. 2) are installed, the disc brake and brake hat go over the wheel hub which contain the wheel studs. New wheel nuts are never provided due to the many styles of wheel nuts for different vehicles. Therefore, the same wheel nuts are always reused. The wheel nuts are hardly ever placed on the same wheel stud or mate with the same conical wheel mounting hole when the wheel nuts are replaced and/or when the wheel is rotated. Therefore, the nut seating is different, which is why it is always important to retorque the wheel nuts after driving the vehicle a minimum of 25 miles so the components can reseat themselves, then be retorqued in their new secure position. This is also a recommended practice as stated in any vehicle Owner’s Manual. Fig. 2. Disc brake and wheel hub
The use of unregulated air impacting guns will destroy the internal threads of a wheel nut with accumulated use, not to mention destroying the conical wheel boss surface of the wheel itself because the wheel nuts almost never go back onto the same wheel stud and mate with the same wheel boss depression. Improper tightening techniques, such as not using a criss-cross pattern, will also apply uneven loads on the wheel assembly. Full torque should never be placed on one wheel nut, they should all be tightened at a low torque first to position and set the wheel. Then in a criss-cross manner, tighten all of the wheel nuts to the final torque. All auto and truck manufacturers specify using a torque stick or torque wrench to avoid damage to the brake rotors. They also specify that the wheel nuts should be retightened within 100 miles of driving to be sure residual joint relaxation is reset. Once a wheel stud has weakened, the clamp load is reduced causing the wheel assembly to become loose. This will further exacerbate the looseness of the entire wheel to become very loose. If the wheel is on the left side of the vehicle and loose, it is much easier for the wheel nuts to become extremely loose due to the helix angle of the threads. Tightening a threaded nut is caused by rotating the nut in clockwise rotation. The loosening of a threaded
The continual reuse of wheel mounting components will cause a loss of clamp load every time the wheels are removed and replaced for tire rotations, new tires, brake inspections and replacements, new rotors, new shocks or struts or the addition of winter / summer tires. Statistically, due to the average number of times a wheel is removed and remounted, wheel nut thread damage significantly increases after the 100,000 mile warranty and continues exponentially higher the closer the odometer approaches 150,000 miles and beyond. Every threaded nut has a finite life. They need to be replaced after 100,000 miles. Copyright owned by Fastener World / Article by Guy Avellon
惠達雜誌 Fastener World no.204/2024
257
258 Fastener World no.204/2024
259 Fastener World no.204/2024
Technology
Roofing Screws Figure 1: Metal Roof Made to Look Like a Tile Roof
A
Figure 2: Example of a Standing Seam Roof
Figure 3: Installation of Exposed Fastener Metal Roof System
lthough metal has been a material option for roofs for hundreds of years, because of challenges posed by high cost, lousy appearance, and poor longevity, it has only recently become a feasible mainstream choice. In fact, today in the United States metal roofing represents one of the fastest growing areas in the residential roofing segment. It is now possible to choose from a selection of metal roofing solutions that either provide large, continuous panels or metal alternatives to traditional roofing materials such as slate, tiles, shakes, and shingles in attractive designs and at affordable prices. Although some of these solutions are more expensive in the shortterm than their traditional roofing options, their superior durability and life expectancy makes them a smarter long-term investment. Of course, like any roofing material they must be securely fixed to the roofing substructure to protect the interior spaces below. Since metal roofing solutions exhibit their own unique qualities and challenges, many of these solutions require special or different fasteners from nails and staples used with traditional roofing solutions. As metal roofing has grown then, so has the need for innovation and engineering in the fasteners for this market space.
Metal Roofing Metal roofs can be classified into three distinct categories: Exposed Fastener Panel Type, Standing Seam Type, and Specialty Panel Type.
260
•
Specialty Roofing Panels: These include both small and large metal panels that have been fabricated to reproduce the look of ceramic tile, slate, shakes, and shingles (See Figure 1). Just like the items they are made to mimic, the panels are fastened at their top and the attaching fasteners subsequently hidden by the next panel above. These types of systems normally do not require specialty fasteners and often use the same or similar fasteners to the ones utilized by the traditional products they replace.
•
Standing Seam Systems: Standing Seam roofs are connected to the roof substrate by hidden clips. These clips are screwed to the substrate, often with special low profile head screws, but without regard to special sealing because the screws are covered with the roof panel and thus not vulnerable to water intrusion and exposure (See Figure 2). Panels are interlocked together at the seams. Metal roofs undergo considerable expansion and contraction from changing heat and cold conditions. Because a Standing Seam Roof essentially “floats” over the roof substrate there is no limitation in the length of the roof panel, and they often are seamless and uninterrupted. Standing seam roofs cost more to install but have a cleaner look and, more importantly, last longer.
•
Exposed Fastener Systems: Exposed Fastener System roof panels are installed directly into the roof understructure and are the most economical of all the metal roofing types (See Figure 3). The fasteners must be able to pierce the metal roofing panel and self-tap into the supporting understructure. For this reason, there are different versions for wood and metal connections. Since the fasteners are exposed on the surface of the roof, they must also have the capability to seal the penetration from water intrusion. The screws used in this method normally possess an external hex flange or washer head with a bonded EPDM or Neoprene washer. The heads and washers are usually painted to match the color of the roofing panel. When properly installed the washer is compressed to form a tight seal around the roof penetration. Since the panels are constrained by the fasteners holding them down and the metal panels undergo significant expansion and contraction with temperature changes, roof panels are usually limited to no longer than about twenty-five feet (about eight meters) in length. Therefore, they may be overlapped over long spans. Fastener World no.204/2024 惠達雜誌
Technology Roofing Materials Today there are a variety of material choices. When properly installed some of these materials are known to last a hundred years or more. • Steel: Steel is the strongest and least expensive metal roofing material. It is usually galvanized or coated with an Aluminum-Zinc alloy called Galvalume and then painted. Steel roofing panels will generally last 30 to 50 years. • Aluminum: Aluminum is lighter, softer, and more expensive than steel but will withstand the elements better than steel, especially in areas of salt air or acid rain. Aluminum roofing panels are almost always painted and will last 30 to 50 years.
• Copper: Copper is the longest lasting, most expensive, and perhaps most attractive of the metal roofing material choices. Copper forms a natural patina over time and copper roofs have been known to last up to 200 years. • Terre: Terre used to refer to a roof made of tin with a lead coating. Today it is stainless steel that is sandwiched between layers of tin. It does not hold paint but can last more than one hundred years. • Zinc: Zinc is often alloyed with Titanium for added strength and corrosion. It will last 80 to 100 years.
Challenges Although all three metal roof types exhibit application challenges, the exposed fastener system exhibits the greatest challenge related to the fasteners. Thus, purchasers of these systems must wrestle with the question of whether the added cost for premium longer lasting solutions is justified while installers must be very careful and intentional about how they install the fasteners that are specified. To perform properly, some of the fastener challenges that must be overcome with exposed fastener systems are: •
•
262
Condition of the Seal: The screw must be able to cleanly penetrate the metal panel and generate an effective and long-lasting seal. Screws that are installed off-angle, under tightened, or over tightened may upon installation or over time begin to leak. Thus, a successful roof seal is not only a function of how well the installer seats the screw but often also a function of the screw design, quality of manufacture, and type of sealing element. Sealing Material: Sealing washers come in two varieties and two different materials, bonded and non-bonded washers and EPDM (Ethylene Propylene Diene Monomer) and Neoprene materials. A bonded washer is one where the rubber gasketing material is bonded (adhered) to the bottom of a slightly beveled metal washer (See Figure 4). The ID and OD of the rubber gasket are slightly smaller than those of the metal washer it is attached to. This provides an overhang at the outer edge protecting the gasket from UV rays and a small amount of interference from the ID to retain the washer to the screw and to guarantee a tight seal around the screw itself. During installation, the bevel in the metal washer flattens providing an even stress distribution across the surface of the rubber washer. This prevents the screw head from embedding into the washer and squeezing out at its periphery. This is particularly advantageous because when overtightened the rubber gasketing material will want to creep away from the ensuing stress concentration which contributes to loss of clamp load and sealing capability. Fastener World no.204/2024 惠達雜誌
Figure 4: Example of Bonded Dealing Washer
Figure 5: Example of Corrosion to the Roof Panels Around the Fastener
Figure 6: Example of Corrosion to the Head of the Fastener and the Metal Roofing Panel
Bonded washers can also be larger in diameter because the metal washer is able to distribute pressure over its entire area. This provides a greater sealing area and makes it harder for water to penetrate the roof panel. Non-bonded washers are limited in diameter by the size of the bearing diameter of the hex flange or washer head or, when utilized, a head cap. Both EPDM and Neoprene are good choices for roof sealing, although EPDM is considered superior since it has better heat, light, and ozone resistance than Neoprene. •
Embrittlement of the Sealing Material: One of the challenges of using Neoprene and EPDM sealing material is vulnerability to environmental exposure. These materials are susceptible to temperature changes and get stiffer in the cold and creep in the heat. Prolonged exposure to such temperature cycles eventually weakens the gasketing material. Worse than the temperature cycling, however, is the exposure to UV radiation. These materials are embrittled by UV rays so that the unprotected periphery that is exposed ultimately breaks down and potentially opens pathways for water intrusion.
•
Damage to Sealing Material: Burrs and debris that are created when the screws pierce the roofing panel can tear the gasketing material creating pathways for water intrusion. It is important, therefore, that the screws be designed with sharp and efficient piercing points that either prevent or minimize the creation of burrs.
•
Corrosion and Head Appearance: Exposed screws must be durable so that they do not corrode while in service. Screws that begin to rust will, in the best case, be unsightly against the uncorroded roof panels but, in the worst case, begin to weep and leave streaks or stains of rust from each fastener. Additionally, care must be taken in proper fastener material selection to prevent negative galvanic interactions with some of the roof panel material types. Galvanic corrosion can result not only in corrosion to the fastener, but depending on the metal pairing, to the roof panel. Once again, this could result in unsightly corrosion but also damage to the roof panel around the screw, opening leak pathways (See Figures 5 and 6). Head appearance is also important and usually screws are painted to match the color of the roofing panels. Not all paint is the same, however, with liquid applied paint being far less durable than powder coated paint. Paint type is important because paint methods that provide poorer adhesion may be vulnerable to damage during installation which can lead to premature corrosion.
Technology Screws •
•
For Woo d Appl ic at ion s: Sc r ews for wood applications may be made of either hardened carbon steel or stainless steel. Naturally, the stainless steel variety has superior corrosion resistance to those made of carbon steel. However, the austenitic grades of stainless steel make poor choices for self-drilling or self-piercing points. Therefore, many of these roof screws may be made of the stronger but poorer corrosion resistant 410 martensitic stainless steel. Screws for wood to metal applications usually have either a sharp Type #17 point or a small #1 drill point. In either case, the point provides sufficient piercing capability to make it through the thin roofing panel but not enough strength to pilot holes in thicker metal trusses and purlins. These screws are usually Hi-Lo or spaced high-thread styles of threads for easy tapping into wood. Head styles are shared between wood and metal applications with the most common head form being hex flange or washer head varieties. For Met a l Appl ic at ion s: Sc r ews for m et a l applications are usually either hardened carbon steel or bi-metallic. Since stainless steel does not perform well in drilling through thicker metal, screws entirely made of stainless steel are seldom used in these applications. Instead drill point screws made of carbon steel are most common. There is a drill screw variant, however, that is bi-metallic with the upper body and head made of stainless steel and the drill point and thread forming zone made of hardened carbon steel. These are produced by friction welding the two materials together. The lower half is hardened carbon steel and houses the drill point and thread forming threads while the upper half is stainless steel and houses the upper threads and head. Screws for metal applications usually come with either a #3 or a #5 drill point. The #3 point is capable of self-drilling thicknesses up to 0.210” and a #5 capable of 0.500” thick material. Like screws for wood applications the heads are usually either a hex flange or hex washer head design.
Figure 7: Example of Roof Mounting Solar Fastener System
Sealing Washers •
Non-Bonded: A Non-bonded sealing washer is simply a washer of EPDM or Neoprene. It can be slipped onto the screw and retained by making the ID of the washer a little smaller than the OD of the screw. These washers perform similarly to an O-ring except that the cross-sectional geometry of these washers is not narrow and round like an O-ring but flat and rectangular like a flat washer. These washers rely on the underhead bearing surface of the screw to distribute load and compress them. With the head of the screw providing the only protection from exposure, they are more prone to potential embrittlement from UV rays.
•
Bonded Washers: A bonded washer adheres the EPDM or Neoprene washer to the underside of a flat or slightly beveled metal washer. The metal washer is slightly larger in OD and ID, so that the smaller rubber washer ID retains it to the screw and the slightly larger OD of the metal washer protects the rubber washer underneath from most UV exposure as well as providing more evenly distributed compression. Naturally, bonded washers are more expensive than the non-bonded variety. However, neither is completely effective in protecting the rubber washer from exposure to the elements and, most importantly, from UV radiation.
•
Capped Heads: Although technically not a washer, there are some premium roofing screws that have added a zinc-aluminum alloy or stainless-steel cap to the head. These oversize caps serve not only to improve the corrosion resistance of the hardened carbon steel screw below, but they fit over the rubber washer completely encapsulating it from the surrounding environment. In this way it is pretty well protected from the elements and far less prone to embrittlement.
Solar Fasteners Increasingly solar panel installations are being made on residential and commercial buildings these days. Although the screws associated with mounting these solar voltaic panels are completely independent of the screws used to fix the roofing panels, it is worth a mention here. Like roofing panels, roof mounted solar panels must be firmly fixed to prevent them from being damaged or torn off in a storm or by gusting winds. Therefore, the panels are fixed to a framework of mounting rails. These rails must be rigidly fixed to the structural underbody of the roof. The screw systems that typically make up this mounting hardware are a sophisticated combination of screw, sealing washer, bracket, and mounting nut (See Figure 7). Like the roofing screws described above, the screws in these systems are also designed with self-tapping threads and self-piercing or self-drilling points to effectively work in wood or steel. Although usually much larger in diameter than the screws for fixing roofing panels, these screws often are bi-metallic to provide hardened carbon steel on the portion of the fastener going into the roof substructure and stainless steel for the portion extending above the surface of the roof. Like the exposed fastener screws, these fasteners have a sealing washer to seal the roof penetration from water intrusion.
Wrap-up Exposed metal roofing screws, although simple in concept, must address multiple challenges. Like many similar fastening situations, there are multiple choices for a user to make, and various levels of performance that can be achieved. The user, therefore, must educate themselves on whether it is wiser in the long run to purchase a more premium fastener for the initial installation and avoid potentially costly rework later in the life of the roof or use less costly fasteners to ease the cost of roof installation. In any event though, there are many choices and those producing, purchasing, and installing these fasteners should know a little bit about them to be able to make the most informed choices on how to proceed. Copyright owned by Fastener World / Article by Laurence Claus
惠達雜誌 Fastener World no.204/2024
263
Industry Focus Introduction Since the start of the U.S.-China trade war by former U.S. President Donald Trump in 2018, the share of U.S. merchandise import from China has declined from nearly 25% to 16 percent in 2022. Most products are affected by the additional tariffs imposed by the U.S. Trade Representative (USTR). This decline is offset by an increase in the share of import from other Asian emerging economies. The main beneficiaries are India, Taiwan, and ASEAN members such as Vietnam, Malaysia, Thailand, and the Philippines. From the US-China trade war to COVID, supply chain challenges, the Russia-Ukraine war, and the US-Taiwan trade initiative negotiations, the market has begun to re-focus on the potential vulnerability of the global supply chain. It reflects the resurgence of international trade conflicts and protectionism. (Source from https:// www.thenewslens.com/article/187839) December 30, 2022, the V ietnamese government announced 16 trade agreements and economic partnership agreements to be implemented in 2022 to 2027, (Source: ITA, Ministry of Economic Affairs, Taiwan), and set up a permanent investment dispute resolution mechanism under the agreements to establish an independent investment dispute system to deal with any commercial disputes. The agreements are summarized below:
264
1.
Vietnam-Chile Free Trade Agreement (VC FTA)
2.
Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA)
3.
Vietnam-Cuba Free Trade Agreement (VC FTA)
4.
Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP)
Fastener World no.204/2024 惠達雜誌
5.
EU-Vietnam Free Trade Agreement (EVFTA)
6.
UK-Vietnam Free Trade Agreement (UKVFTA)
7.
ASEAN-China Free Trade Agreement (ACFTA)
8.
ASEAN-Korea Free Trade Agreement (AKFTA)
9.
ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP)
10. ASEA N-Aust ra l ia-New Z ea la nd Free Trade A rea (AANZFTA) 11. ASEAN-India Trade in Goods Agreement (AITIG) 12. ASEAN-Hong Kong Free Trade Agreement (AHKFTA) 13. Vietnam-Japan Economic Partnership Agreement (VJEPA) 14. Vietnam-Korea Free Trade Agreement (VKFTA) 15. ASEAN Trade in Goods Agreement (ATIGA) 16. Vietnam-Laos Trade Agreement
How Do FTAs Change Vietnamese Fastener Trade and Industry
Industry Focus According to Taiwan External Trade Development Council (TAITRA), despite the severe impact of COVID, Vietnam has benefited from the U.S.-China trade war and with the EU–Vietnam Free Trade Agreement (EVFTA) in effect in August 2020, Vietnam has gained a firm foothold in the EU market. Two years after the EVFTA launch, many Vietnamese enterprises have emerged from the pandemic. The first year of EVFTA (ranging from August 2020 to July 2021) saw a 6.2% increase in the value of Vietnam's exports to the EU, reaching US$39.75 billion. In the first 10 months of the second year of EVFTA (August 2021 to the end of May 2022), the value of Vietnam's export to the EU jumped by 39.71%, reaching US$36.8 billion. The growth mainly came from textile and apparel (16.7%), rice (42.9%), chili peppers (81.3%), aquaculture (22.7%), and machinery (20.9%). The proportion of Vietnamese exporters using Certificates of Origin (COs) to gain preferential tariffs under EVFTA has increased from 14.8% in the first year to 20.7% in the second year. Further, in 2021, Vietnam ranked 11th in the global export market to the EU, and 5th in the Asia export market after China, Japan, South Korea and India, thus proving that Vietnam's weight is increasing in the EU market which is very strict on quality requirements. (Source from https://www.taitra.org.tw/News_ Content.aspx?n=104&s=43149)
The Main Advantages with FTA for Vietnamese Fastener Companies and Trade Take EVFTA with the EU market which has very strict quality requirements as an example, the main highlights are: 1.
Rules of Origin (RoO): Measures to simplify the definition and procedures of RoO. Goods imported into Vietnam from the EU (and vice versa) will be entitled to tariff benefits under EVFTA upon submission of any of the following proofs of origin:
2.
Certificate of Origin (CoO) compliant to the FTA: • For goods imported into the EU, a declaration of origin shall be prepared for any goods by an approved exporter under the protocol, regardless of their value. Or a declaration of origin shall be prepared for goods under €6,000 by any exporter. • For goods imported into Vietnam, a declaration of origin should be prepared by the exporter and it should be registered in an electronic database in accordance with the EU legislation. According to this provision, government authorities of the EU have to inform Vietnam that such laws are applicable to their exporters.
Table 1. EU Fastener Trade Statistics for 2022 (Customs Code 7318: Steel Screws, Bolts, Nuts, Washers, etc.) Import Ranking
Partner
2020 (Euro)
2021 (Euro)
2022 (Euro)
2020 (kg)
2021 (kg)
2022 (kg)
EU27
4,703,428,968
5,988,643,217
8,062,651,447
1,560,900,548
1,853,675,002
2,032,115,658
1
China
1,124,834,668
1,685,581,227
2,210,047,871
643,166,410
784,373,858
787,031,590
2
Taiwan
1,012,097,510
1,304,539,923
1,906,960,986
373,176,999
432,392,932
502,842,100
3
Turkey
250,113,831
363,799,836
562,403,729
78,892,138
116,211,570
147,794,916
4
Vietnam
193,789,700
220,459,099
404,967,185
99,433,492
98,578,051
133,270,667
5
India
187,415,500
277,337,771
411,086,901
67,732,375
97,778,212
125,971,724
6
Thailand
69,203,789
83,650,642
142,135,532
42,867,110
46,648,841
64,295,920
7
South Korea
145,461,539
179,056,244
214,855,946
30,802,225
37,193,166
40,109,675
8
Malaysia
64,884,737
74,328,333
117,280,008
32,364,162
33,575,378
37,905,366
9
U. K.
346,415,222
305,093,566
348,144,153
54,485,016
35,233,191
32,033,067
10
Switzerland
362,345,419
413,955,872
449,724,326
25,686,806
29,517,676
30,054,604
Partner
2020 (Euro)
2021 (Euro)
2022 (Euro)
2020 (kg)
2021 (kg)
2022 (kg)
Export Ranking
EU27
4,317,739,262
4,893,847,505
5,356,393,152
569,476,149
632,737,789
594,244,201
1
USA
734,509,127
851,680,614
991,916,924
79,202,141
98,224,763
92,401,145
2
China
855,890,985
889,621,304
864,687,914
96,393,983
98,323,894
90,563,141
3
U. K.
464,303,040
532,346,729
579,686,814
71,514,835
77,777,339
73,031,141
4
Switzerland
276,058,679
328,785,939
380,811,386
36,737,157
42,586,785
43,577,546
5
Mexico
192,112,821
230,600,829
275,522,527
27,686,516
33,638,580
38,080,004
6
Turkey
190,304,362
211,821,879
267,336,627
29,857,349
31,281,788
35,403,634
7
Brazil
146,446,454
182,719,905
214,324,486
22,569,171
29,992,842
31,361,223
8
India
99,628,133
146,247,930
170,676,392
13,304,756
19,794,204
20,040,117
9
Norway
122,524,195
125,111,263
146,971,094
21,430,498
19,197,941
17,587,184
10
Morocco
78,485,181
96,349,528
112,946,849
9,863,875
14,512,843
15,151,479
(Source: Fastener World Magazine, No.201, p. 245) 惠達雜誌 Fastener World no.204/2024
265
Industry Focus Table 2. EU Fastener Trade Growth Rate EU’ s Fastener Annual EU’ s Fastener Annual EU’ s Fastener Annual EU’ s Fastener Annual Import Value Growth Import Volume Export Value Growth Export Volume Export Rate Growth Rate Rate Growth Rate Destination
Ranking
Import Source
2021
2022
2021
2022
2021
2022
2021
2022
1
China
27.33%
34.63%
18.76%
9.63%
USA
13.34%
9.45%
11.11%
-6.08%
2
Taiwan
49.85%
31.11%
21.96%
0.34%
China
15.95%
16.47%
24.02%
-5.93%
3
Turkey
28.89%
46.18%
15.87%
16.29%
U.K.
3.94%
-2.80%
2.00%
-7.89%
4
Vietnam
45.45%
54.59%
47.30%
27.18%
Switzerland
14.66%
8.89%
8.76%
-6.10%
5
India
13.76%
83.69%
-0.86%
35.19%
Mexico
19.10%
15.82%
15.92%
2.33%
6
Thailand
47.98%
48.23%
44.36%
28.83%
Turkey
20.03%
19.48%
21.50%
13.20%
7
S. Korea
20.88%
69.92%
8.82%
37.83%
Brazil
11.31%
26.21%
4.77%
13.18%
8
Malaysia
23.10%
19.99%
20.75%
7.84%
India
24.77%
17.30%
32.89%
4.56%
9
U.K.
14.55%
57.79%
3.74%
12.90%
Norway
46.79%
16.70%
48.78%
1.24%
10
Switzerland
-11.93%
14.11%
-35.33%
-9.08%
Morocco
2.11%
17.47%
-10.42%
-8.39%
3.
Mutually Approved Standards for Technical Regulations: To protect the health, safety and environment of the EVFTA signatory countries, the Agreement covers several mutually approved standards to facilitate trade between the EU and Vietnam, such as Sanitary and Phytosanitary (SPS), Geographical Indications (GI), labor standards and corporate social responsibility.
4.
Withdrawal of Tariffs: As the largest exporter of goods from the ASEAN region to the EU, Vietnamese traders are entitled to the withdrawal of about 85.6% of import tariffs imposed by the EU on Vietnamese goods after EVFTA comes into force. Vietnam has committed to an immediate reduction of ta riffs by 48.5%. Table 3. EU Fastener Trade Average Price Growth Rate Wit h i n seven yea r s of t he EU’ s Fastener Import Average Annual Import Average agreement in effect, the EU will Import Price (Euro Per KG) Price Growth Rate withdraw 99.2% of tariffs and Source Ranking Vietnam will withdraw 91.8% of 2020 2021 2022 2021 2022 tariffs. Of the remaining 0.3% of EU 27 3.0133 3.2307 3.9676 7.21% 22.81% Vietnam's export income, the EU 1 China 1.7489 2.1490 2.8081 22.87% 30.67% has committed to provide Vietnam 2 Taiwan 2.7121 3.0170 3.7924 11.24% 25.70% with a quota of 0% tariff rate on imported goods. In ten years, 3 Turkey 3.1703 3.1305 3.8053 -1.26% 21.56% 98.3% of Vietnam's import tariff 4 Vietnam 1.9489 2.2364 3.0387 14.75% 35.87% provisions will be wit hd rawn 5 India 2.7670 2.8364 3.2633 2.51% 15.05% (accounting for nearly 99.8% of total import).
Statistics on the import and export of fasteners to and from the EU in 2022 show that the trade volume and value of fasteners from Vietnam to the EU continued to increase after the EVFTA came into effect in August 2020, as shown in Table 1. Using 2020 as the base year for EVFTA, Table 2 shows the annual growth rate of the import and export volume and quantity of fasteners in the EU. The annual growth rate of the average unit price of fasteners in the EU is shown in Table 3. The value of fasteners that Vietnam imported from EU grew over 45.45% since 2021. The volume growth rates in 2021 and 2022 were 47.30% and 27.18% respectively. The average unit price of fasteners sold from Vietnam to the EU went from 1.9489 EUR/ kg in 2020 to 3.0387 EUR/kg in 2022. Therefore, Vietnam has the advantage of zero tariff under EVFTA, and with mut ually approved EVF TA technical
266
Fastener World no.204/2024 惠達雜誌
6
Thailand
1.6144
1.7932
7
S. Korea
4.7224
4.8142
5.3567
1.94%
11.27%
8
Malaysia
2.0048
2.2138
3.0940
10.42%
39.76%
6.3580
8.6593
10.8683
36.20%
25.51%
9
U.K.
10
Switzerland
Export Destination Ranking
2.2106
11.08%
23.28%
14.1063 14.0240 14.9636 -0.58% 6.70% EU’ s Fastener Export Average Annual Export Average Price (Euro Per KG) Price Growth Rate 2020 2021 2022 2021 2022
EU 27
7.5819
7.7344
9.0138
2.01%
16.54%
1
USA
2
China
9.2739
8.6707
10.7349
-6.50%
23.81%
8.8791
9.0479
9.5479
1.90%
5.53%
3
U.K.
6.4924
6.8445
7.9375
5.42%
15.97%
4
Switzerland
7.5144
7.7204
8.7387
2.74%
13.19%
5
Mexico
6.9389
6.8552
7.2354
-1.20%
5.54%
6
Turkey
6.3738
6.7714
7.5511
6.24%
11.51%
7
Brazil
6.4888
6.0921
6.8341
-6.11%
12.18%
8
India
7.4882
7.3884
8.5167
-1.33%
15.27%
9
Norway
5.7173
6.5169
8.3567
13.99%
28.23%
10
Morocco
7.9568
6.6389
7.4545
-16.56%
12.29%
Industry Focus regulations, such as CE and ETA, Vietnam attracts higher-level technology into the fastener industry to enhance the level of fasteners and product quality, and pushes the upgrade of Vietnam fastener industry. Since 2022, the average unit price of Vietnam fasteners sold to the EU reached 3.0387 EUR / kg, higher than China at 2.8081 EUR / kg, slightly lower than Taiwan at 3.7924 EUR / kg, Turkey at 3.8053 EUR / kg and the EU (27 countries) at 3.9676 EUR / kg. In essence, the EU imports fasteners from ASEAN, and Vietnam fasteners have become the best choice with the largest number of suppliers in the ASEAN region. Vietnam's fasteners supply to the EU in terms of annual value, annual volume, and average unit price are more preferrable than other countries in the ASEAN region. Vietnam’s volume of supply in 2022 accounted for 5.02% of the annual import value and 6.56% of the annual import volume of the EU. Excluding Turkey, Vietnam has become an important source of EU’s fastener import, second to China and Taiwan.
How FTA Changes Vietnamese Fastener Industry and Trade L o o k i n g a t h o w F TA c h a n g e s Vietnamese fastener industry and trade based on t he globa l fastener impor t statistics of ASEAN countries from 2019 to 2022 (Table 4), in the framework of ASEA N Trade in Goods Ag reement (AT IGA), A SE A N m a i n ly i m p o r t s fasteners f rom member count r ies ( T ha i la nd, Ma laysia , Si nga por e, Philippines, Indonesia, Brunei, Vietnam, Laos, Ca mbodia, a nd Vietna m). T he highest demand was in Thailand, where the increase and decrease of import value in 2019-2022 was relatively insignificant. Vietnam's import value increased from US$570 million to US$730 million in 20192022; Malaysia's import value grew from US$390 million to US$610 million in 20192022. There was an increase in Indonesia, Singapore, and the Philippines but not much. Looking at ASEAN’s global fastener export value from 2019 to 2022 (Table 5), Vietnam among ASEAN countries exported the most fasteners in terms of value to the world, followed by Thailand, Malaysia, Singapore, Philippines, Indonesia and others with little change.
Table 4. ASEAN’s Global Fastener Import Value Statistics 2019-2022 (Unit: USD) Region/Country
2019
2020
2021
2022
ASEAN
3,207,761,736
2,858,893,240
3,638,574,201
3,816,360,815
Thailand
1,026,531,851
882,213,198
1,143,210,169
1,101,731,837
Vietnam
575,662,688
622,577,713
755,585,521
730,771,963
Malaysia
394,805,239
383,835,503
522,623,686
612,528,465
Indonesia
538,443,339
333,024,395
479,995,735
589,098,637
Singapore
410,102,177
361,285,084
437,315,140
481,982,411
Philippines
162,043,190
149,195,700
203,470,106
199,277,299
Cambodia
43,239,832
52,906,760
53,962,486
56,113,220
Myanmar
31,044,053
39,852,517
24,017,891
23,261,483
Laos
13,760,349
18,119,170
11,336,715
11,861,561
Brunei
12,129,019
15,883,199
7,056,752
9,733,939
Table 5. ASEAN’s Global Fastener Export Value Statistics 2019-2022 (Unit: USD) Region/Country
2019
2020
2021
2022
ASEAN
1,843,250,322
1,648,062,422
2,076,860,565
2,344,670,380
Vietnam
454,986,133
453,104,662
537,930,184
680,892,576
Thailand
546,689,704
440,945,411
604,421,131
672,558,565
Singapore
316,832,665
296,899,054
328,210,803
368,513,207
Malaysia
297,999,446
270,440,947
363,752,804
360,689,811
Philippines
149,038,317
109,300,591
142,690,230
140,289,828
Indonesia
77,200,806
76,566,978
97,285,836
116,674,563
Myanmar
167,884
580,619
1,448,809
4,660,916
Cambodia
173,983
80,125
634,986
288,170
Brunei
160,945
38,404
484,955
102,745
Laos 440 105,632 (Source: Fastener World Magazine, No.202, p. 304)
828
N/A
Table 6. Vietnam’s Global Fastener Export Value Statistics 2019-2022 Ranking
Partner
2019
2020
2021
2022
0
World
455,313,287
453,786,102
538,209,422
681,261,108
1
Germany
73,807,148
66,334,608
86,090,237
134,503,498
2
U.S.A.
59,015,220
76,036,817
92,571,057
118,805,211
3
Japan
57,146,963
61,506,583
71,728,853
74,711,559
4
Netherlands
47,743,899
53,913,428
56,177,121
70,052,381
5
Canada
17,591,333
25,025,588
27,745,790
32,992,195
6
Poland
20,440,253
18,471,080
23,654,472
30,214,485
7
Italy
18,904,355
14,237,841
15,707,009
23,070,713
8
Belgium
16,288,917
11,832,121
11,982,438
21,546,958
9
UK
22,118,224
15,576,740
18,684,529
18,018,226
10 Thailand 16,972,781 15,410,095 (Source: Fastener World Magazine, No.202, p. 313)
17,857,527
15,395,914
Comparing Vietnam's and Thailand's global fastener export (Table 6 and Table 7), Vietnam's export to the EU under EVFTA, including Germany, the Netherlands, Poland, Italy, Belgium, and the UK, grew significantly. The U.S. and Canada grew largely, and Japan has seen a small increase. For Thailand, which is also a member of ASEAN, there was no significant change in global fastener export value. Within Thailand’s global fastener export value, Thailand’s export to the U.S. and India grew largely, while the export to the EU (Germany, Italy and the Netherlands), Japan, and South Africa had little change. There was only a minor export increase to Indonesia and Vietnam, both of which are ASEAN member countries. 惠達雜誌 Fastener World no.204/2024
267
Industry Focus Table 7. Thailand’s Global Fastener Export Value Statistics 2019-2022 Ranking Partners 2019 0 World 462,515,330 1 U.S.A. 74,074,999 2 India 40,119,088 3 Japan 37,929,043 4 Indonesia 37,688,833 5 Germany 35,896,513 6 Italy 14,097,972 7 Argentina 18,973,832 8 S. Africa 19,870,262 9 Netherlands 14,611,731 10 Vietnam 16,251,447 (Source: Fastener World Magazine, No.202, p.306)
2020 372,182,982 64,387,668 33,534,830 34,128,489 20,853,562 26,624,449 10,963,444 14,800,694 15,598,526 11,397,254 14,065,676
2021 520,327,859 89,439,600 48,093,526 42,781,259 47,146,695 32,708,515 15,536,498 23,582,856 24,639,253 14,074,973 16,401,453
2022 676,756,996 148,092,289 64,858,259 47,917,444 45,146,524 43,453,092 29,944,534 28,850,181 21,656,871 21,290,604 20,853,097
2023 (Jan.-May) 258,632,211 40,699,966 28,646,141 14,368,436 34,788,573 21,426,562 8,026,763 12,397,038 11,675,309 9,935,439 5,283,021
Comparing the fastener trade statistics of Vietnam and Thailand, which are both members of ASEAN, the statistics indicate that EU’s demand for Thai fasteners is slowly going down. The EU, the U.S., and Canada have a growing demand for Vietnamese fasteners. Vietnam benefits from the U.S.-China trade war. With EVFTA in effect from August 2020, under the government's FTA policy, Vietnam enjoys the advantages of the EU withdrawing tariffs, thanks to mutually approved technical regulations and standards, Vietnam attracts higher level of fastener technology into its own fastener industry, resulting in a sharp growth in the unit price and sales volume of fasteners. It also proves that the biggest change lies in improvement of fastener grade and product quality, which not only promotes the upgrade of Vietnam fastener industry, but also attracts orders for supplying higher product grade and product quality to the U.S., Canada, Japan and other regions. Compared to other ASEAN countries, the fastener industry and trade in Vietnam under the FTA policy, result in a positive cycle of unit price, sales volume and technological upgrade and transformation. Two years after the agreement took effect between Vietnam and the EU, Vietnamese fasteners are becoming more and more important in the EU. Vietnam's fastener industry and trade have been stable in the EU market. The quality of products has been greatly improved, so that the U.S., Canada, Japan and other regions are gradually paying more attention to the added value of Vietnamese fasteners. Reference： 1. Wei-Ming Wang, 2020.11, Development of Vietnamese Fastener Industry and the Impact of EU-Vietnam FTA, Fastener World Magazine, No.185, , p.282-287 2. 2023.07, 2022 Fastener Trade Statistics of EU, Fastener World Magazine, No.201, p. 245 3. 2023.09, Fastener Trade Partners of ASEAN Countries (2019-2022), Fastener World Magazine, No.202, p. 304, 306, 313。
268
Fastener World no.204/2024 惠達雜誌
Copyright owned by Fastener World / Article by Wei-Ming Wang
Review of 2014 Taiwan Industry
Taiwan Fastener Chronicle H2 2014 in Review TFTA Visited China Automotive Fastener Companies
2014
T F TA a r r a n g e d fo r t h e following tours: GWO Lian Machinery, Zhejiang Cowin Fastech, Hung Li Machinery Industrial, Zhejiang Yeswin Mach i ner y, Ch i ng Cha n Optical Technology, Eagle Metalware, Jiashan Sanyung Electric Furnace Industry, General Motors Shanghai.
Hsin Hung Launches 3,200+ m2 Plant Japanese experts' designated "professional self-locking nut maker"
June
July 4-5 June 18-20
Aug. Tycoons' New Steel Plant in Thailand with Arc Furnaces Launched Integrating Tycoon's fastener production and steel refining into one supply chain.
TFTA's Visit to NFDA The annual business meeting also featured remarks from Bill Chen and Ivan Lin of Taiwan Fastener Trading Association.
惠達雜誌 Fastener World no.204/2024
269
Review of 2014 Taiwan Industry TFTA Symposium The event featured critical issues: regulations, techniques, marketing, product upgrade.
TFTA Central Chapter Factory Tour Executive Secretary James Hu and Vice Executive Secretary Carey Chen, respectively a steering wheel manufacturer (GSK InTek) and an automated warehouse and facility supplier (Sheng Chyean) were the host companies.
Oct. 3 Aug. 1 TFTA Session Courses on "Heat Treatment", "Surface Treatment", "Cloud Applications" Drew Over 100 Attendees.
270
Fastener World no.204/2024 惠達雜誌
Oct. 15
Review of 2014 Taiwan Industry Fastener World Exhibited at M-Tech Tokyo
Exhibition
Fastener World Took Taiwanese Exhibitors to Fastener Expo Shanghai
Aug. 28-30 June 25-27
Fastener World Exhibited at Expo Nacional Ferretera
Oct. 23-24 Fastener World Exhibited at NIFMSE There were a total of 618 exhibitors and over 800 booths, up 3% from its previous year.
2014
June 19-21
惠達雜誌 Fastener World no.204/2024
271
Technology Copyright owned by Fastener World / Article by Jozef Dominik
Fastener Topics - Still An Actual Subject Despite the fact that there are countless theoretical publications on screws and threaded connections, this topic is constantly relevant. The reason is simple. Screws are among the oldest structural elements and they have not lost their importance neither during the industrial revolution nor in the current era, characterized by a high degree of automation and electronic data processing. Bolts are the most widely used machine components. A failure of the bolted joint could cause breakdown of machines and equipment with unpredictable consequences. Therefore, proper design, dimensioning and assembly of bolted joints is extremely important.
assembly, but on the other hand, after final assembly, it is necessary that the joint does not fall apart. Securing bolted joints against loss of assembly force during operation has become one of the most important decisions of the designer. The beginning of the industrial revolution also caused an unprecedented development of screw connections. The first industrially made screws were made of wood (Fig. 3). At present, it is steel with a strength of 800 - 1400N/mm2, stainless steel with high corrosion resistance and at the same time high mechanical properties (martensite stainless steel), brass, Cu and aluminum. Ti alloys are used for special purposes.
With a little imagination, it is easy to imagine that the screw connections (Fig. 1) are the symbols derived from philosophy Yin & Yang and are considered the fundamental principles of the universe and all things in it. Yin & Yang fit together organically.
Fig. 2. Friction demonstration Fig. 3. Screw made of wood
At the same time, the development of new, highly sophisticated polyfunctional fasteners types (Fig. 4) and the improvement of their assembly procedures took place. Fig. 1 However, the analogy with the philosophical principle of Yin & Yang is not the only argument that separates threaded joints from the captivity of technocracy.
Fig. 4. Polyfunctional fastener
The characteristic element of screw joints - the thread/spiral is an autochthonous geometric formation and exists ab origine. So it is not a product of the human intelligence. Today there are many irrefutable arguments about this. Homo sapiens only used it to his advantage and gradually developed up to the current high theoretical level. When we talk about screw joints, we cannot forget another important factor independent of humans, and that is friction (Fig. 2). Men can influence it by choosing the roughness of the contact surfaces, but cannot completely eliminate it, because it exists outside of their will. If it weren't for friction, any structure would disintegrate into its individual components. Here it is necessary to remind the so-called thread joints paradox, according to which friction is undesirable during
272
Fastener World no.204/2024 惠達雜誌
Conclusion A well-k nown metaphor forces itself into attention: “Dogs bark, the caravan moves on”. It also applies to screw connections. For years, research institutes and designers have been trying in vain to replace threaded connections with fasteners that are more convenient for assembly. The screws steadfastly maintain their position and stay that way.
Industry Focus
Exploring Taiwan's Fastener Export Potential Countries-
Australia and New Zealand 1. Foreword
2. Global Fastener Importers and Exporters
In 2023, the world was affected by high interest rates, high inflation and China's post-epidemic economic performance that was not as expected, resulting in weak demand for endproducts. Manufacturing activities in various countries continued to slow down, coupled with the expansion of the U.S.China wafer ban, the Russia-Ukraine war and Israeli-Hamas conflict which have not yet ceased, the global geopolitical trend of the group confrontation, and the impact on the global supply chain and industry development. For export-oriented Taiwanese fastener companies, their main export destination, the U.S., accounted for more than 40% of the share, and the implementation of EU CBAM has also affected Taiwanese steel and fastener industries. As far as Taiwanese fastener companies are concerned, it is inevitable to create a flexible supply chain and look for alternative potential markets, so this study is based on the analysis of two potential markets for Taiwan—Australia and New Zealand, which have a demand for Taiwan's fasteners as an import target.
a. Import Analysis
Table 1 shows global major fastener importing countries and values from 2018 to 2022; in 2022, the global fastener import value was US$53.49 billion, the compound growth rate of global fasteners in the past 5 years was about 4.3%, and the top 3 major importing countries were the U.S. (US$8.53 billion), Germany (US$5.10 billion), and Mexico (US$3.62 billion). As for the two target countries in this article, Australia's import amounted to US$722 million (1.4% of the global total) and ranked 20th, while New Zealand's import amounted to US$162 million (0.3% of the global total) and ranked 48th. In addition, the top 10 fastener importing countries had more than half of the world's total share, with a compound growth rate of around 4.7%; under the global political and economic turmoil in recent years, the U.S., as the no. 1 fastener importer, still maintains strong demand, with both its import value and compound growth rate being the highest among the world's major importers. The top 3 importers with higher growth rates were: the U.S. (9.2%), Poland (8.5%), and Italy (7.8%).
Table 1. Global Major Fastener Importing Countries and Values in 2018-2022 Country USA Germany Mexico China Canada France The UK Italy Poland The Netherlands Subtotal of Top 10 Importers Subtotal of Other Importers Global Import Total
2018 60.0 44.5 29.9 32.2 16.4 18.8 14.1 10.4 9.5 10.1 246.1 206.6 452.6
2019 58.1 40.7 30.2 28.4 16.6 17.7 13.7 9.5 5.0 9.5 229.3 198.0 427.4
2020 50.6 35.5 24.9 27.9 13.8 14.8 10.5 8.9 9.3 8.7 204.8 178.4 383.2
Unit: US$0.1 bn;% 2021 65.7 45.4 32.0 32.8 16.4 17.9 13.7 13.3 12.4 11.4 261.0 222.1 483.1
2022 85.3 51.0 36.2 28.6 19.8 19.5 15.5 14.0 13.2 12.8 296.0 238.9 534.9
2022 Share 16.0% 9.5% 6.8% 5.3% 3.7% 3.7% 2.9% 2.6% 2.5% 2.4% 55.3% 44.7% 100.0%
CAGR 9.2% 3.5% 4.9% -2.9% 4.8% 1.0% 2.3% 7.8% 8.5% 6.1% 4.7% 3.7% 4.3%
惠達雜誌 Fastener World no.204/2024
273
Industry Focus Table 2. Global Major Fastener Exporting Countries and Values in 2018-2022 Country China Germany Taiwan USA Japan Italy France S. Korea The UK Switzerland Subtotal of Top 10 Exporters Subtotal of Other Exporters Global Export Total
2018 64.5 68.9 46.4 43.5 29.9 21.0 16.4 9.1 9.2 9.6 318.6 99.6 418.2
2019 64.2 65.5 43.2 44.0 27.7 19.4 15.9 8.8 9.2 8.7 306.4 94.1 400.6
2020 69.6 60.9 39.9 36.2 23.8 17.1 13.1 7.9 7.6 8.0 284.1 84.6 368.7
Unit: US$0.1 bn;% 2021 93.0 73.6 53.3 41.4 29.3 22.1 14.4 9.1 8.8 9.4 354.4 107.4 461.7
2022 111.8 72.0 61.2 47.7 25.8 22.8 14.8 10.1 9.5 9.3 384.9 119.6 504.6
2022 Share 22.2% 14.3% 12.1% 9.4% 5.1% 4.5% 2.9% 2.0% 1.9% 1.8% 76.3% 23.7% 100.0%
Table 3. Taiwan's Fastener Export to the Global Market from 2018 to 2022 Country USA Germany The Netherlands Japan The UK Canada China Mexico Sweden Italy Subtotal of Top 10 Export Destinations Subtotal of Other Export Destinations Taiwan's Total Export
CAGR 14.7% 1.1% 7.2% 2.3% -3.6% 2.1% -2.5% 2.7% 0.7% -0.8% 4.8% 4.7% 4.8%
Unit: US$0.1 bn;%
2018 17.8 4.5 2.6 2.3 1.8 1.6 1.4 1.0 1.0 1.1
2019 17.6 3.9 2.3 2.4 1.7 1.5 1.1 1.0 0.9 0.8
2020 17.0 3.4 2.0 2.1 1.4 1.3 1.3 0.8 0.9 0.7
2021 22.6 4.6 2.9 2.5 2.1 1.8 1.9 1.2 1.2 1.0
2022 27.4 5.1 3.3 2.8 2.1 1.9 1.7 1.4 1.3 1.3
2022 Share 44.8% 8.3% 5.5% 4.7% 3.4% 3.2% 2.8% 2.2% 2.2% 2.1%
CAGR 11.4% 3.0% 6.3% 5.5% 3.7% 4.4% 4.5% 9.5% 8.0% 5.3%
35.1
33.2
30.8
41.8
48.4
79.1%
8.4%
11.3
10.0
9.1
11.5
12.8
20.9%
3.1%
46.4
43.2
39.9
53.3
61.2
100.0%
7.2%
b. Export Analysis
Table 2 shows the global major fastener exporting countries and values from 2018 to 2022; in 2022, the global fastener export was US$ 50.46 billion, the compound growth rate of global fasteners export in the past 5 years was about 4.8%, and the world's top 3 exporting countries were China (US$ 11.18 billion), Germany (US$ 7.20 billion), and Taiwan (US$ 6.12 billion). As for the two research targets in this article: Australia’s export was US$ 162 million (0.3% of the global total) and ranked 31st, while New Zealand’s export was US$ 4 million (0.01% of the global total) and ranked 69th. In addition, the top 10 exporting countries accounted for nearly 80% of the world’s total and the compound export growth rate was around 4.8%. The top 10 exporting countries in Asia included China, Taiwan, Japan and S. Korea, etc. Exporting countries with higher growth rates were in the following order: China (14.7%), Taiwan (7.2%), S. Korea (2.7%), etc. China's share of the high-end fastener market is not yet high, but with more than 10,000 fastener manufacturers across the country, sitting in the world's largest fastener exporter, coupled with S. Korea's fasteners catching up with their Taiwanese competitors, it is clear that Taiwan is facing fierce competition in Asia.
3. Analysis of Taiwan’s Fastener Export to the Global Market Table 3 shows Taiwan's fastener export to the global market from 2018 to 2022; the export value of Taiwan's fasteners to the global market in 2022 was US$6.12 billion. With the advantage of self-sufficiency in the production system, Taiwan fastener industry still shows tough supply chain characteristics under the impact of the epidemic and global politics and economics, and the compound growth rate of exports in the past 5 years was about 7.2%; Taiwan's top 3 export destinations were: the U.S., Germany, and the Netherlands, and the top 10 export destinations accounted for nearly 80% of the total. The main export destination, the U.S., has a stable demand for Taiwanese fasteners, accounting for 44.8% of the total, benefiting from the U.S.-China trade war and the U.S. post-epidemic favorable policies, with a compound growth rate of more than 11.4% to secure the first place, the second Germany and the third Netherlands compared to the U.S. both showed an export value of a significant difference, and the top 10 export destinations did not show any negative growth, but in the aftermath of the epidemic, a substantial increase in operating costs, a net interest rate decrease, the dilemma to raise prices for long-term customers, coupled with the European and U.S. resistance to inflation resulting in industrial demand, end customers facing the de-inventorying stage, Taiwan fastener industry still faced the rare phenomenon of declining orders in Q4 2022; Table 3 shows the countries with the most significant compound growth rate in the past 5 years, which were the U.S. (11.4%), Mexico (9.5%), Sweden (8.0%), and the Netherlands (6.3%), all of which are worthy of further development of Taiwanese companies.
274
Fastener World no.204/2024 惠達雜誌
Industry Focus
4. Australia’s Fastener Import and Imported Items Analysis a. Import Analysis
Table 4 shows the major fastener import origins and values of Australia from 2018 to 2022; the value of fasteners imported by Australia from the world in 2022 was US$722 million, with a compound growth rate of 5.4% in the past 5 years, and the top 3 import origins were China, Taiwan, and the U.S., which accounted for nearly 75% of Australia’s total fastener import. The top 10 import origins together accounted for 90% of Australia’s total fastener import and those with higher compound growth rates were: South Korea (10.1%), Taiwan (7.7%), India (7.4%). Taiwan, being Australia's second largest fastener import origin, also plays a key role.
b. Imported Items Analysis
Table 5 shows the major imported fasteners and values of Australia from 2018 to 2022; the major imported fasteners of Australia in terms of value and percentage were: other iron & steel screws and bolts (US$311 million/43.0%), iron & steel nuts (US$83 million/11.4%), iron & steel self-tapping screws (US$78 million/10.8%), etc. Iron & steel screws accounted for 40% of the total and also appeared stable demand (with a compound growth rate of about 5.9%). Australia’s imported fasteners with higher compound growth rates in the past 5 years included: iron & steel self-tapping screws, iron & steel spring washers (11.9%), iron & steel wood screws (11.5%), iron & steel pins (10.8%), etc.
Table 4. Major Fastener Import Origins and Values of Australia from 2018 to 2022 Country China Taiwan USA Germany Italy Japan The UK India France S. Korea Subtotal of Top 10 Import Origins Subtotal of Other Import Origins Australia's Total Import
2018 2.41 0.96 0.93 0.34 0.19 0.16 0.13 0.08 0.08 0.04 5.31 0.55 5.86
2019 2.34 0.84 0.96 0.32 0.17 0.19 0.11 0.08 0.08 0.05 5.14 0.54 5.67
2020 2.21 0.85 0.85 0.29 0.18 0.16 0.10 0.07 0.07 0.06 4.84 0.49 5.33
Unit: US$0.1 bn;%
2021 2.89 1.04 0.93 0.35 0.20 0.15 0.10 0.10 0.09 0.06 5.91 0.64 6.55
2022 3.12 1.29 1.00 0.35 0.20 0.17 0.11 0.10 0.08 0.06 6.48 0.75 7.22
Table 5. Major Imported Fasteners and Values of Australia from 2018 to 2022 Product HS Code Other Iron ＆ Steel Screws & Bolts 731815 Iron & Steel Nuts 731816 Iron & Steel Self-tapping Screws 731814 Other Iron & Steel Non-threaded 731829 Articles Iron & Steel Wood Screws 731812 Iron & Steel Threaded Articles 731819 Other Iron & Steel Washers 731822 Iron & Steel Pins ＆ Cotter Pins 731824 Iron & Steel Spring Washers & 731821 Other Lock Washers Iron & Steel Rivets 731823 Iron & Steel Automotive Screws 731811 Iron & Steel Screw Hooks & Screw 731813 Rings Australia's Total Fastener Import
2022 Share 43.2% 17.9% 13.8% 4.8% 2.8% 2.3% 1.5% 1.4% 1.0% 0.9% 89.6% 10.4% 100.0%
CAGR 6.7% 7.7% 1.8% 0.9% 2.0% 0.9% -4.6% 7.4% -1.3% 10.1% 5.1% 8.0% 5.4%
Unit: US$0.1 bn;%
2018 2.47 0.68 0.49
2019 2.44 0.63 0.46
2020 2.25 0.57 0.46
2021 2.74 0.75 0.65
2022 3.11 0.83 0.78
2022 Share 43.0% 11.4% 10.8%
CAGR 5.9% 4.9% 12.5%
0.64
0.64
0.55
0.58
0.72
9.9%
3.0%
0.37 0.60 0.41 0.09
0.32 0.56 0.39 0.09
0.40 0.55 0.35 0.09
0.50 0.60 0.45 0.11
0.57 0.50 0.46 0.13
7.9% 6.9% 6.3% 1.8%
11.5% -4.6% 2.7% 10.8%
0.04
0.04
0.04
0.06
0.06
0.8%
11.9%
0.05 0.02
0.05 0.02
0.05 0.02
0.07 0.02
0.06 0.01
0.8% 0.2%
4.4% -5.1%
0.01
0.01
0.01
0.01
0.01
0.1%
1.7%
5.86
5.67
5.33
6.55
7.22
100.0%
5.4%
惠達雜誌 Fastener World no.204/2024
275
Industry Focus
5. New Zealand’s Fastener Import and Imported Items Analysis a. Import Analysis
Table 6 shows the major fastener import origins and values of New Zealand from 2018 to 2022. In 2022, the values of fasteners imported by New Zealand from the world was US$162 million and the compound growth rate of imports in the past 5 years was 11.4%. The top 3 import origins were: China, Taiwan, and Australia, accounting for 75% of New Zealand's total fastener import. China alone accounted for as much as 40% of the total import, and the top 10 import origins together accounted for 95% of the total import. New Zealand’s fastener import origins with higher compound growth rates were: Switzerland (19.1%), Taiwan (14.5%), and China (13.7%). Even though the import value was not high, Taiwan is still New Zealand's second largest fastener import origin with a higher compound growth rate in recent years.
b. Imported Items Analysis
Table 7 shows major imported fasteners and values of New Zealand from 2018 to 2022; the major imported fasteners of New Zealand in terms of value and percentage were: other iron & steel screws and bolts (US$82 million/51.0%), iron & steel self-tapping screws (US$16 million/9.7%), iron & steel wood screws (US$14 million/8.9%), etc. Major imported iron & steel screws and bolts accounted for more than 50% of the total import and appeared stable demand (with a compound growth rate of about 7.4%). In the past 5 years, fasteners imported by Table 6. Major Fastener Import Origins and Values of New Zealand from 2018 to 2022 Country China Taiwan Australia The U.S. Germany France The UK Japan Italy Switzerland Subtotal of Top 10 Import Origins Subtotal of Other Import Origins New Zealand's Total Fastener Import
Unit: US$0.1 bn;%
2018 0.39 0.26 0.08 0.10 0.05 0.03 0.02 0.03 0.02 0.01 0.98 0.07
2019 0.40 0.27 0.08 0.10 0.06 0.03 0.04 0.03 0.02 0.01 1.02 0.08
2020 0.36 0.25 0.07 0.09 0.05 0.02 0.03 0.02 0.02 0.01 0.93 0.07
2021 0.66 0.35 0.12 0.10 0.07 0.03 0.04 0.03 0.02 0.01 1.44 0.09
2022 0.65 0.45 0.11 0.09 0.08 0.03 0.03 0.03 0.03 0.02 1.52 0.09
2022 Share 40.1% 27.7% 7.0% 5.7% 5.1% 2.1% 2.1% 1.8% 1.7% 1.1% 94.3% 5.7%
CAGR 13.7% 14.5% 9.5% -1.3% 11.4% 3.9% 13.4% 2.1% 10.0% 19.1% 11.7% 6.9%
1.05
1.10
1.01
1.53
1.62
100.0%
11.4%
Table 7. Major Imported Fasteners and Values of New Zealand from 2018 to 2022 Product HS Code Other Iron ＆ Steel Screws & Bolts 731815 Iron & Steel Self-tapping Screws 731814 Other Iron & Steel Wood Screws 731812 Iron & Steel Nuts 731816 Other Iron & Steel Washers 731822 Other Iron & Steel Non-threaded 731829 Articles Iron & Steel Automotive Screws 731811 Other Iron & Steel Threaded Articles 731819 Iron & Steel Pins & Cotter Pins 731824 Iron & Steel Rivets 731823 Iron & Steel Spring Washers & 731821 Other Lock Washers Iron & Steel Screw Hooks & Screw 731813 Rings New Zealand's Total Fastener Import
276
Fastener World no.204/2024 惠達雜誌
Unit: US$0.1 bn;%
2018 0.62 0.06 0.03 0.11 0.07
2019 0.61 0.07 0.06 0.12 0.08
2020 0.54 0.08 0.07 0.10 0.06
2021 0.81 0.13 0.12 0.15 0.10
2022 0.82 0.16 0.14 0.14 0.10
2022 Share 51.0% 9.7% 8.9% 8.7% 5.9%
CAGR 7.4% 26.9% 42.5% 5.6% 7.3%
0.06
0.07
0.06
0.08
0.08
4.8%
7.7%
0.03 0.03 0.01 0.01
0.03 0.04 0.01 0.01
0.03 0.04 0.01 0.01
0.06 0.05 0.01 0.01
0.07 0.07 0.02 0.01
4.2% 4.1% 1.0% 0.8%
24.3% 19.7% 11.0% 2.2%
0.01
0.01
0.01
0.01
0.01
0.6%
7.5%
0.00
0.00
0.00
0.00
0.01
0.3%
21.0%
1.05
1.10
1.01
1.53
1.62
100.0%
11.4%
Industry Focus New Zealand with higher compound growth rates included: iron & steel wood screws (42.5%), iron & steel self-tapping screws (26.9%), iron & steel automotive screws (24.3%), iron & steel screw hooks and screw rings (21.0%), etc. Although the values of New Zealand’s imported fasteners were not high yet, the compound growth rates of many types of fasteners have been more than 10% in recent years, which is a potential market worthy of Taiwan's attention.
6. Conclusions In recent years, the change in the global political and economic situation has emerged one after another, and this article puts forward the following recommendations for the fastener markets of Australia and New Zealand, which are the subjects of the study: •
Australia: Australia is a potential market with rich natural resources and a large hinterland. At present, in terms of external economic and trade relations, China is still Australia's largest trading partner, however, China has implemented trade blocking measures on Australia's exports to China. Although it has not yet caused any obvious effect for Australia to switch orders to Taiwan, it is an opportunity for Taiwanese industry to continue to pay more attention to it; in addition, Australia's various minerals and rare earths have great global economic benefits and Australia's mining companies are ver y competitive in the supply chain, including exploration, engineering, mineral processing (such as metal refining and purification or new metallurgical technology), environmental management, mining safety, R&D, and training, etc.; the Australian government has also launched the green energy-related "National Reconstruction Fund", "Productivity Investment Program", "AllAustralia Electric Vehicle Policy", etc, all of which are likely to generate the demand for fasteners. Taiwanese fastener manufacturers can evaluate various industries in Australia that have demand for fasteners to develop new markets and products, and break away from the existing pure export model.
•
New Zealand: New Zealand's total economic scale reached US$241.7 billion, but due to labor shortage and inflation, the overall economic momentum was slightly insufficient, and the fastener import and export values of New Zealand were not high, but New Zealand's fasteners appeared a double-digit growth rate in the last 5 years; it is worth mentioning that, since the Agreement on New Zealand-Taiwan Economic Cooperation (ANZTEC) came into effect on December 1st, 2013, both sides have committed to the principle of autonomy and liberalization through ANZTEC. According to the Agreement, Taiwan enjoys tariff exemption for 14 fastener items under tariff code 7318, which covers almost all iron & steel fasteners, however, New Zealand does not report a significant fastener import volume, so it is recommended that Taiwanese companies should understand the demand of the local industry and evaluate whether to strengthen the sales to New Zealand.
Copyright owned by Fastener World / Article by Dr. Arthur Hsu Source: ITC/compiled by MIRDC
惠達雜誌 Fastener World no.204/2024
277
279 Fastener World no.204/2024
280 Fastener World no.204/2024
281 Fastener World no.204/2024
Fastener World no.204/2024 283
Fastener World no.204/2024 287
288 Fastener World no.204/2024