Emerging Fastener Markets Magazine No.7 by Fastener-World

9 17

CMY

Special Feature

Feature

DIES & TOOLING

工模具專輯 Arranged by Fastener World editors

Taiwan is the world’s 7th largest producer of metal dies and tooling with an annual capacity valued at USD 1.63 billion. Back in early times, it used to be that dies and tooling were manually processed in the production stage. As modern technology comes into play, many Taiwanese dies and tooling makers have developed and/ or employed computerized and digitized manufacturing to achieve the highest quality and precision. Some of them developed unique dies engraving and milling technology that is highly customizable to customers’ requirement. Here in this feature, we interviewed 4 Taiwanese companies that are well-recognized for manufacturing technique and quality.

Tsunami Ltd: The strongest support for metal processing.

Gian-Yeh Industrial Co., Ltd: Taking part in clients’ product design to build high-performance self-drilling screw dies.

Soon Bau Screw Mold Co., Ltd: CNC engraving & milling technique targeting customized high quality dies.

Cham Hung Enterprise Co., Ltd: Keeping an eye on the global market with development and supply of professional dies, molds & tooling.

Special Feature

Dies and Tooling Manufactured by Tsunami Ltd. The Strongest Support for Metal Processing 宣大企業精密工模具金屬加工堅強後盾

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

Tsunami Ltd., moving to its current nearly 1,985 sqm plant in Kaohsiung five years ago, has been a professional dies and tooling manufacturer and supplier for screws, nuts, sleeves and automotive/motorbike parts, which is widely trusted and recognized by relevant fastener manufacturers. With its capacity being fully utilized, Tsunami has nowadays become a significant role in the development and supply of molds and tooling in the global market. Its effort to improve the performance of dies and tooling and insistence on the quality of every detail also demonstrate its ambition to take the lead in the industry.

Achieving Both Results of Precision and Effectiveness, Tsunami’s Dies and Tooling Make Customers’ Products Perfect at All Times In terms of the effectiveness and precision of consumable dies and tooling for various types of cold/warm/hot forging formers, Tsunami always has requirements stricter than those of customers! From preliminary drawings, material selection to the final testing of finished products, the team of Tsunami follows the strictest operating standards at all times, which is also one main reason several domestic and overseas customers designate Tsunami as their only one supplier of high quality dies and tooling. Having dedicated himself to manufacturing dies and tooling for 3 decades, Tsunami General Manager Li- Ming Chang said in an interview with Fastener World, “The most significant features of Tsunami are its abilities to select the right tungsten carbide and choose the most suitable positions of holes on dies and a wealth of experience in determining the optimal forging force.” He added, “Forgi ng is generation of power, which will simultaneously create friction. O u r job is t o locate the most balanced point bet we en such power and friction in order to complete the manufacture of dies and tooling. Tsu n a m i wi l l also select, as per customer’s request, the most su it a ble material for manufacturing dies and tooling according to t h e r e s u l t s .” Chang’s words

fully revealed the confidence of Tsunami’s team in their technique and the ability to offer products their customers really need.

Sophisticated Testing Devices Equipped in the Factory, Helping Achieve More Accurate Specifications of Dies and Tooling With the new plant, Tsunami has greatly increased its capacity and had its customer service extended to cover more diversified areas. In addition, for reinforcing the accuracy of product specifications, Tsunami has also introduced various sets of testing equipment and prepared different types of solutions respectively for the demand of Europe/Japan for specialty parts and the demand of Southeast Asian countries for standard parts. Thus far, its products have been successfully exported to Europe, Japan, Malaysia, India and so on. Tsunami will also continue to advance its development and manufacture of dies and tooling and realize its commitment to offering customers high quality products, as what it has stated in its company mission: “We are capable of satisfying the demand for different dies and tooling of customers and the supply chain of relevant dies and tooling. We’d sincerely like to invite you all to be our customers and enjoy our supply and complete service for superior dies and tooling!”

Tsunami contact: Ms. Teresa Lo Email: tsunami.tim@msa.hinet.net

Special Feature

Strong R&D Capability of Self-drilling Screw Dies Boosts Clients’ Productivity

Gian-Yeh Industrial Co., Ltd.

強大鑽尾模具研發實力推升客戶生產力健業模具廠有限公司 by Dean Tseng, Fastener World Gian-Yeh located in Lungching District of Taichung is a die manufacturer with its technical ability recognized by major international brands. Particularly it is a specialized developer of self-drilling screw dies. It made an early start on the die business and has been designing and developing dies for self-drilling screw clients since Taiwanese self-drilling screw industry started to take off, eventually becoming a major pusher behind the development of this industry. Since its founding in 1989, Gian-Yeh has had 30 years of experience in manufacturing drill point dies for self-drilling screws. It also offers forging dies for screwdrivers, rivet dies, dies for woodworking iron nails, etc.

Taking Part in Clients’ Product Design to Build High-Performance Self-drilling Screw Dies Well-performing dies can not only extend die life but also produce more screws at a lower cost for clients. President Mr. Lin Tsang Yao said, “We prioritize and deliberately monitor the stability and quality of die materials. Using our dies, clients can consistently predict the volume of their screw production.” This helps Gian-Yeh earn clients’ trust and therefore its products are sold well to major high-end companies in the U.S., Europe and Japan. They attach importance to Gian-Yeh’s R&D capability and invite the company to be a part of product quality improvement design. They are willing to reference Gian-Yeh’s opinions on product design. “Participating in the product design of major international companies allows us to see through their perspectives and change ours to improve our technical ability further. During product design, we pay extreme attention to improving performance while respecting and retaining clients’ own uniqueness. We never leak

the designs nor use them with different clients. Clients who referenced our design suggestions have seen a huge boost in production quality and efficiency.” Currently Gian-Yeh’s capacity has reached 6,000 pieces per month, 60% of which are standard dies and 40% are customer-tailored dies. 40% of the products are exported and 60% of which are sold domestically. Gian-Yeh has two manufacturing plants equipped with over 120 EDM machines to instantly cope with all sorts of demand on volume and lead time. Furthermore, it has a spare area planned for future plant expansion. “As the number of our clients grow, we are increasing capacity every year. We and our clients are bonded with each other and grow together.” Gian-Yeh adopts computer aided design and high-speed engraving and milling to further improve its machining technique. It also enhances its basic die making capability for forging die flow, metallurgy, and surface electroplating. So far it is mainly focusing on developing dies for large size self-drilling screws and stainless steel screws. There is no end to Gian-Yeh’s die development and this is a continual progression that the company creates with clients.

Eyeing the Emerging Markets and Continuing to Develop New Dies Gian-Yeh’s die sales targets are not limited to advanced countries. The company has been watching the development of emerging countries. Currently it has clients in China, India, and Vietnam, and it is particularly looking forward to Vietnam’s sizable market potential brought by local preferential tariff. At the end of the interview with the president, he said there is an ongoing trend with selfdrilling screw dies. As screw makers are going for high quality screw production, the proportion of clients purchasing stainless steel screw dies is increasing. This phenomenon not only emerges in Asia but also in the U.S., Europe and Japan, which means the world’s demand for stainless steel screw dies is on the rise. Therefore, Gian-Yeh is actively developing stainless steel screw dies to make an early preparation for the future demand growth. With unique market sensitivity and robust R&D capability, Gian-Yeh’s dies are expected to set a new sales record! Gian-Yeh’s contact: President Mr. Lin Tsang Yao Email: m2212307@ms27.hinet.net

Special Feature

Making High Quality Customized Screw Dies with Precision Engraving & Milling

Soon Bau Screw Mold Co., Ltd.

以精密雕工刻劃高質量的客製化螺絲模具順寶模具有限公司 by Dean Tseng, Fastener World Located in Luzhu District of Kaohsiung City (southern Taiwan), Soon Bau was founded in 1987 starting off with manufacturing carriage screw die cores. Through the last 30 years, the company shifted from adopting traditional casting and EDM to CNC engraving and milling as a part of its technical upgrade. Today, the company provides many types of standard and customized screw punches and dies, punch bars and clamps for screws and nuts.

Developing CNC Engraving & Milling Technique Targeting Customized High Quality Dies After the successor took over the business from the founder, Soon Bau successf ully shif ted its manufacturing technique from traditional casting to high-level CNC engraving and milling. “With the increasing demand for customized screw dies, it became much clear that dies made from casting and EDM cannot form the curved surface and chamfer of special screws. In around the year 2000, we started to purchase CNC machines, and computerized, digitized and automated our whole manufacturing plant. Eventually we were able to produce dies with more precision, smaller tolerances, and better appearance.” According to general manager Mr. Zhuang, the traditional EDM can only do 2 dimensional processing and requires manual polishing afterwards, so the quality is subject to human errors. The CNC engraving

a nd milling developed by Soon Bau ca n do 5 dimensional processing and cut out dies in various sorts of shape, thereby fully replacing casting and EDM and keeping t he whole p r o d u c t ion line digitized, faster and consistent in quality. Through precise engraving, Soon Bau has broken the bottleneck of processing complex curved surfaces. Its engraving technique is especially effective on making embossed words on curved surfaces. It focuses business on customized screw dies and punches available in various types of tool steel including SKH-9, SKD-11, SKH-55, ASP30, and ASP60. Mr. Zhuang said, “We can manufacture dies made of various types of steel that need to be heat treated! Such dies are more flexible and cheaper than highly rigid tungsten steel dies and therefore are suitable for forming special screws.” There is no limit to the available sizes of Soon Bau’s customized dies. The smallest ones that the company has manufactured so far are mini-turret screw dies, and the largest ones are construction screw dies in 1.5 inch diameter. If clients provide their drawings, the company can produce their ideal dies as per drawings.

Soon Bau Successfully Developed Difficult Tungsten Steel Punches About a year ago, Soon Bau rolled out tungsten steel punches which are rare to the industry. It is highly difficult and time-consuming to polish this type of special rigid punch, but the company was able to create it through its precision engraving. Zhuang said the company’s special rigid punch can reduce die exchange, improve machine operability, increase capacity, and extend die life by more than 10 times. Besides domestic sales, Soon Bau currently takes overseas orders through traders. Due to high precision and quality, its punches and dies are supplied to the automotive, shipbuilding, aviation and food industries. Zhuang added that the company recently developed T40 punches, and that it will continue to expand the product line to offer clients punches and dies in more available sizes. Soon Bau’s contact: General manager Mr. Chuang Yao Zheng E-mail: soonbau@gmail.com

Special Feature

Keeping an Eye on the Global Market with Development and Supply of Professional Dies, Molds & Tooling

Cham Hung Enterprise Co., Ltd. 放眼全球市場專業工模具開發供應- 呈鴻企業有限公司 by Gang Hao Chang, Vice Editor-in-Chief of Fastener World

L ocated at t he fastener ma nu fact u r i ng heartland of Taiwan (Gangshan, Kaohsiung),Cham Hung Enterprise Co., Ltd. under the leadership of President Hui-Hung Huang has continuously kept its steady growth in business and expanded its customer base. Thus far, its business has been mainly focused on the R&D and manufacture of tungsten carbide products (e,g. tungsten carbide tooling for screws and nuts, cut-off knives and carbide quills), alloy steel products (e,g, alloy steel dies, cut-off knives, carbide quills, punches and other various alloy dies), and many other hex punches, trimming dies, fingers/grippers, K.O. pins, feeding rollers, thread rolling dies, springs, etc. In addition to being widely used in relevant domestic/overseas fastener processing applications, the excellent quality, durability and performance of Cham Hung’s products have also made the company industry-wide recognized by users.

High Precision and Applicability of Products Make Them Widely Adopted in One-station/Multi-station Formers In the application of molds, dies and tooling, material selection, whet her specif ications are precise enough or not, and whether the performance is as per customer’s request are factors that matter. So, Cham Hung, which has years of experience in the development of molds, dies and tooling and a team of technicians to supply these products is definitely qualified to

meet the expectations of the industry. As a result, its products have been applied to various one/multi-station formers for manufacturing socket sleeves, nuts, bolts, auto parts, motorbike parts, bicycle parts and so on. In an interview, President Huang, who is gifted with the development capabilities of molds, dies and tooling, said, “Cham Hung’s customers come generally from W. Europe, S. Europe, S. Asia, Southeast Asia and Northeast Asia. We’ve maintained very stable and harmonious long-term collaboration with each other. No matter what products our customers request (standard or customized, for example), our professional R&D team is definitely capable of completing the tasks as long as they can submit drawings in advance. Plus, we can even arrange a complete customized air or ship delivery procedure for any specific customer if necessary.

Global Business Expansion The No. 1 Product Manufacturing Solution for Customers As a company whose manufacturing procedures are ISO 9001 certified, Cham Hung is not only dedicated to the improvement of its manufacturing procedures for molds, dies and tooling, but is also expecting to establish consolidated collaboration with customers from different market segments, in order to offer the optimal solution to its global customers currently facing tough issues in manufacturing procedures. On the other hand, Cham Hung once exhibited at Fastener Fair Turkey in Istanbul in 2017 and 2018 to seek more business opportunities and potential customers, as well as strengthen the global brand exposure of its professional products. President Huang added, “We are always open-minded to any future possibilities! We will also be more active in exhibiting globally and will not exclude the possibility of expanding our facilities in the future.” Cham Hung contact: Ms. Daphny Huang Email: cham.hung@msa.hinet.net

NEW DELHI, INDIA 08/29-31, 2018 Hall 12 Booth No. TP-12

EXHIBITION

Hand Tools & Fastener Expo

The 17th Edition of the HAND TOOLS & FASTENER EXPO series carries forward the theme of ‘TOOLS FOR INDUSTRY’ from its previous successful edition, and it focuses on the need for quality, special and high-end Hand Tools, Power Tools, Fasteners, and Specialty Tools etc. by industry sectors – such as Automobiles / Auto Service, construction & Infrastructure, Heavy Engineering, Woodworking, and Furniture, Gardening / Horticulture, etc. This well established and only niche event for the world of Hand Tools, Power Tools & Fasteners - the HAND TOOLS & FASTENER EXPO 2018 will be the confluence of the international & national Hand Tools and Fastener manufacturers and key personnel and also Distributors/Retailers, Importers, Exporters, Industrial Suppliers, OEM’s etc. It is here that the future-oriented information exchange, discussions, decisions, buying-selling and investments will take place. The HAND TOOLS & FASTENER EXPO 2018 will be held at Pragati Maidan, New Delhi, India.

HTF 2018: A SNEAK PREVIEW

This co-location of industry events will maximize Business Opportunities for Industry Professionals. The event has recorded a steady growth, with increasing numbers of national and international exhibitors year by year.

• The focused B2B exhibition and only niche event for Hand Tools, Power Tools & Fasteners in India • The series is now recognized as the region's only sourcing point for quality Hand tools, Power Tools & Fasteners • Exclusive country pavilions for China & Taiwan • The Event attracts Visitors from India, the Indian sub-continent and beyond • Attendance assured from major Distributors / Traders / OEMs across the country • One-to-one business meetings and networking opportunities • Launch new products & Develop new market opportunities • Supported by leading Trade Media worldwide • HTF - the essential Sales, Marketing & Sourcing opportunity

新興市場五金及扣件展展前報導

Focused Exhibitions in Emerging Hardware & Fastener Markets. arranged by Fastener World

Come visit us!

09/26-29, 2018 Fastener Shanghai Fastener Shanghai – Shanghai Fastener & Tech Show 2018 will take place at Shanghai New International Expo Center, China. Concurrently with Asia’s largest and most international trade fair for wire and tube industries – wire & Tube China, Fastener Shanghai – Shanghai Fastener & Tech Show 2018 is designed to open up upstream and downstream channels to create a one-stop sourcing platform for fastener products, manufacturing equipment and raw materials. Products to be showcased at this high-quality platform will mainly focus on the following categories: standard and non-standard fasteners, fasteners in various industries, manufacturing skills of fasteners, supporting facilities of fasteners. In addition, Fastener Shanghai – Shanghai Fastener & Tech Show 2018 will also present special regional pavilions, such as Pinghu, Jiashan, etc. demonstrating their local industrial advantages. The biennial Fastener Shanghai – Shanghai Fastener & Tech Show is set to be one of the most important gatherings in the fastener industry. It is estimated that 3 events (including Fastener Shanghai – Shanghai Fastener & Tech Show 2018, wire China 2018, Tube China 2018) will attract 46,000 professional visitors from 95 countries and regions. Whether you’re here to source, find partners, or familiarize yourself with the Chinese fastener market; your expectations will surely be met at Fastener Shanghai – Shanghai Fastener & Tech Show 2018.

EXHIBITION

10/10-12, 2018

China International Hardware Show

China International Hardware Show organized by CNHA and Koelnmesse has reached over 150,000 square metres of exhibition space for the past three years and has without a doubt become the second largest professional hardware trade show in the world. CIHS 2018 keeps its original intention of technique-oriented and market-driven concept while balancing the development of both international and local markets to establish the comprehensive platform for networking, communication and trade.” Madam Shi Senglan, President of China National Hardware Association commented positively, “to unconditionally support the national China International Import Expo (CIIE), the exhibition date of CIHS 2018 will be adjusted to 10-12 October this year, which still falls within the best purchasing cycle. According to the organizers, “We will further strengthen the fair with more value-added services and continue to make it more user-friendly. At the same time, we will enhance the event promotion and provide high quality service to fulfill the demands of the whole industrial supply chain. Together with our partners we will join hands to consolidate and promote the integration, development and innovation of CIHS to continue being "the vein and barometer of the industry." The coming edition of CIHS will once again be the prime trade platform with high-quality service for exhibitors, visitors and the media, and set new benchmarks for the industry.

10/21-23, 2013

International Fastener Show China

Booth No. H3-518

In 2017, opportunity always sides with challenges. In order to keep up with the development of fastener industry and market, and promote the fastener manufacturing enterprises to transform and update, Shanghai Fastener Industry Association will hold International Fastener Show China with Shanghai Afastener Exhibition Co., Ltd. The goal is making IFS China to be one of the most commercially valuable and influential fastener show around the world. IFS China will attract the manufacturers of fastener, machinery, mold and consumption, fastener buyers, distributors and wholesalers at home and abroad to join the show. IFS China 2018 is the international exhibition for global colleagues in fastener industry, which will fasten the relationship among us, giving us a platform to show ingenuity and pursue dreams. The pursuit of a stronger nation for fastener industry shall be fulfilling with your participation.

10/17-19, 2018

Taiwan Hardware Show Known for high-quality production of competitive-value hardware, 420 of Taiwan’s top manufacturers will convene at the country’s biggest hardware exhibition, the Taiwan Hardware Show (THS) this 17-19 October at the Taichung International Exhibition Center. The convergence of OEM, ODM and OBM with different production niche at one venue will ease the process of finding new potential business partners for the 35,000 local and international customers that want to procure or have their products manufactured in Taiwan’s largest hardware industries cluster region. In focus at THS 2018 are the capabilities of Taiwanese manufacturers in catering to varying customers’ requirements and meeting their thirst for innovation. Targeting the attention of visitors comprising major brand retailers, large chain distributors and importers of hardware goods, THS’ exhibiting companies will showcase their ability to produce swiftly with high quality manufacturing, thereby allowing customers to sell fast and achieve optimum speed to market advantage. Presenting a broad selection of products across 8 categories, THS impresses upon the strong depth of Taiwan’s hardware manufacturing industry and their product saleability across many global markets.

EXHIBITION

Taiwanese Exhibitors in Focus Booth No. Company

10/16-18, 2018

Fastener Poland

Preparations for Fastener PolandÂŽ have started! On 16th-18th October 2018 at the EXPO Krakow International Exhibition and Convention Centre, the exhibitors and visitors will have opportunity for the second time to present their offer, target potential business partners, initiate cross-border contacts and long-lasting co-operations, exchange experiences. The 1st edition of Fastener Poland Trade Fair, which took place on 28th-30th November 2017, fulfilled the expectations of even the most demanding visitors. Up to 68% of exhibitors were companies from foreign countries, including China, the Czech Republic, Denmark, Spain, the Netherlands, Germany, Slovakia, Slovenia, Taiwan, the UK, USA and Italy. The Fair had nearly 11 thousand visitors, 25% of whom were from foreign countries. Visitors represented such industries as metal processing, automotive, joinery, construction, furniture and others. The 2nd Fastener PolandÂŽ Trade Show will be accompanied by interesting seminars, workshops and conferences, including the 2nd edition of the Fasteners Congress. Recruited from among top industry experts, speakers will discuss the latest solutions in the use and application of fasteners and specialist tools.

D45

Fastener World Inc. www.fastener-world.com.tw

D46

Home Soon Enterprise Co., Ltd. www.homesoon.com.tw

D47

Wei Zai Industry Co., Ltd. www.weizai.com.tw

D48

Jagular Industry Ltd. www.jaguraweb.com

D49

Ably Screw Ltd. www.ably-screw.com

D50

My Fasteners Int. Ent. Co., Ltd. / Miao Sen Int. Ent. Co., Ltd. tw-myfasteners.com

D53

Mao Chuan Industrial Co. Ltd. www.maochuan.com.tw

D54

Tung Fang Accuracy Co., Ltd. www.punch-die.com

D55

Fratom Fastech Co., Ltd. www.fratom-fastech.com

D56

Bi-Mirth Corp. www.bi-mirth.com

D57

Frontal International Co., Ltd. tooling.frontalinternational.com

D58

Kind-Auspice Industrial Co., Ltd. www.kindauspice.com.tw

D59

D&C Fastener Corporation www.dcfastener.com.tw

D68

Hoplite Industry Co., Ltd. www.hoplite.com.tw

D69

Chirek Fastener Corp. chirei.com.tw

D70

H.K.C. Rich Enterprise Co., Ltd. www.hkc-rich.com

D71

Topist Enterprise Co., Ltd. www.topist.com.tw

D72

Tsung Yang International Co., Ltd. www.tsung-yang.com.tw

D73

Sann Muo Enterprise Co., Ltd. www.sannmuo.com.tw

D74

Fastener Jamher Taiwan Inc. www.jamher.com

D95

Kuo Hsian Fastener Enterprise Co., Ltd. kuohsian.com/index.html

D96

ND Industries Asia Inc. www.ndindustries.com

D97

Nova. Fastener Co., Ltd. www.novafastener.com.tw

D98

Maudle (TUZ) Industrial Co., Ltd. www.tuz.com.tw

D99

Ji Li Deng Fasteners Co., Ltd. www.jldfasteners.com.tw

D100

Special Rivets Corp. www.src.com.tw Joker Industrial Co., Ltd. www.joker.com.tw

D129

Taiwan Industrial Fasteners Institute www.fasteners.org.tw

D130

Celebrite Fasteners Co., Ltd. www.celebritefasteners.com

D131

Chite Enterprises Co., Ltd. www.chite.com.tw

D132

Ray Fu Enterprise Co., Ltd. www.ray-fu.com

Special Feature

2018 Innovation Alley 新品大道 Japanese Precise Gauge Develops Auxiliary Fixing Hardware to Improve Fastening Efficiency Japanese Sinwa Mekki Develops "Sinwa Zint" Zn-Ni Alloy Electroplating with 20 Folds of Corrosion Resistance "Sinwa Zint" is a result of the technical collaboration between Sinwa Mekki and the American Pavco. This electroplating technology has 2 layers. The lower layer is the Zn-Ni alloy electroplating layer that is 10 times more corrosion resistant than Zinc electroplating; on top of that is "Topcoat" coating developed by Pavco. As such, corrosion resistance is leveled up to 20 folds. Iron rust resistance can last up to 2,000 hours, and zinc rust resistance up to 1,000 hours. This is the first time that the Japanese electroplating industry introduces Topcoat from a top American surface treatment company.

Japanese Fukui Byora Rolls out PLX Blind Rivet Used for Resin and Soft Materials PL X bli nd r ivet ca n tighten up sof t materials like automotive interiors, building materials, and rubber. The sleeves of the blind rivet can split in 4 directions to fasten soft materials. A single size of PLX blind rivet can cope with multiple widths of soft materials, reducing parts count and improving work efficiency. The company increased the pullout strength of the mandrel head as well to prevent loosening of the mandrel head after fastening. This mandrel head fastening achieves a simple and easy water-proof effect and prevents abnormal noise. Additionally, users can choose the special large flange type PLX blind rivet to further increase retention level.

Optical measuring machine maker Precise Gauge developed and launched sales of an auxiliary fixing hardware called "Inner Grip Ring". With the ring, the user can assemble or take out parts without removing the screws. After embedding the ring into a pre-dilled hole on the part and assembling the part with a screw, the ring expands and presses the inner portion of the hole and stays put. When the user loosens up the screw, the pressing force weakens and the part can be taken out. This will prevent missing or dropping screws and improve operational efficiency.

Hafren Offers Various Security Screws The need to safeguard against theft, vandalism and tampering is an increasingly essential part of many design specifications. To counter these threats, Hafren is constantly keeping one step ahead of the intruder by manufacturing a comprehensive range of vandal and tamper resistant fixings and fasteners which have a varied range of uses. Hafren's range includes time and labor saving self-tapping, self-drilling and thread forming screws. For fixing sheet metal to wood and other steel construction, Hafren have also developed self-drillers equipped with our 6-Lobe Pin security drive. Drilling tips provide a fast and easy application eliminating the need to pre-drill and the 6-Lobe Pin is great for higher torque applications. Hafren has also developed a specialized thread forming screw (Power6™) ideal for automotive and fencing applications. This tri-Lobular self-threading screw eliminates the need for nuts, reducing labor costs & installation time. The Power6™ Security Screws also feature a unique shaped 6-Lobe Pin drive, providing a higher level of security.

Japanese Kobori Rolls out the Anti-loosening Petal Fastener This February, Kobori Co., Ltd started sales of a new spring product that can prevent bolt from loosening. The spring is rectagular before fastening and is hexagonal after fastening. The name “Petal Fastener” is derived from its shape. With this spring, users can quickly tell whether the construction has been done and reduce management cost. It passes 30,000 cycles of vibration without bolt loosening.

Special Feature

PEM® PFC4™ Self-Clinching Captive Panel Screws Enable Easy Access to Stainless Steel Enclosures Without LooseHardware Risks PEM® PFC4™ self-clinching captive panel screws from PennEngineering® install permanently into stainless steel enclosures to enable easy access whenever necessary and eliminate risks associated with loose screws. The captivated screw remains reliably in place where designed in a door or panel and will not loosen, fall out, or damage internal components. Expanding their application potential, these springloaded fastener assemblies comply with UL 60950 equipment access standards. PFC4 captive panel screws will install successfully in stainless sheets as thin as .060” / 1.53mm with hardness up to HRB 88. A shoulder provides a positive stop during installation and the fastener ultimately will be flush on the opposite side of the sheet for a clean and unmarred appearance. A fully recessed head in the fastened position allows for tool-only access. The fasteners are manufactured from 40 0 Series stai n less steel providi ng corrosion resistance comparable to zincplated steel. They are available in assorted screw lengths and in thread sizes #4-40 through #10-32 and M3 through M5. All PFC4 fasteners are RoHS compliant.

Japanese NTT Comware and HPE Roll out AI Parts (Including Screws) Inspection Device On November 1, 2017, the two companies started selling "Deeptector” Edge AI (Artificial Intelligence) Package for factories in need of replacing visual check with automation. This package has NTT Comware's "Deeptector" image recognition technology pre-installed to HPE's "Edgeline EL1000" PC server used for IoT. Users will have to prepare images or surveillance clips of their products, and use the "recognition model creating tool" to classify them by inputting words and ratings (defective or not) before the package starts deep learning, and then use the completed model to identify defective and non-defective parts. The package uses 2 sets of NVIDIA Tesla P4 graphics processing unit for deep learning and logical computing. Each set can process 5 images in a second. NTT Comware rolled out the cloud version of "Deeptector" last June that could transmit the models created by the cloud to appliances.

Goebel Fasteners Introduces Peel Type “STAR” Rivets Goebel’s Peel Type “STA R” R ive t s a r e d e sig n e d w i t h a n aluminum body and a steel zinc plated mandrel. The aluminum body protects the rivet from corrosion. The rivet gets its name from a special folding mechanism: when you install a STAR rivet, it folds into four separate legs, resembling a large, incandescent, luminous point in the night sky. The special folding mechanism securely clamps two materials together. The STAR rivets are produced specifically for work with brittle and soft materials. The four legs create a large blindside bearing surface, thereby significantly lowering the risk of the rivet breaking through or sinking in thin and soft materials. The STAR rivets are most commonly used when working with wood or plastic materials.

New Hydraulic Bolt Tensioners for Offshore Wind The PGT-Series Bolt Tensioners provide high performance in tight spaces typically found in wind turbines. Key features include auto-retract pistons, overstroke protection and auto-engage nut rundown. The FTR-Series Foundation Bolt Tensioners are designed specifically for tensioning wind tower foundations bolts. The FTE-Series Elliptical Foundation Bolt Tensioners provide a fastening solution on wind tower foundation applications where limited space between the stud and wall prevent the use of standard tools. They feature an elliptical geometry, which enables fit in narrow access foundation applications without reducing load capabilities.

Special Feature

Customized C-Washers Available from Boker’s Boker's, a manufacturer of precision metal stampings, washers, spacers and shims, offers a wide variety of custom C-washers to its customers. C-washers obtain their name for being in the shape of a “C” as they have a slot cut from the center to the perimeter allowing the washer to be removed, replaced or inserted without completely removing the fasteners. C-washers are designed to slide in and out of position on a bolt or shaft in a partially completed assembly. They can also be used as a retention device on a grooved shaft to keep components in place. C-washers can be produced in over 2,000 commonly specified and difficult to find materials including low-carbon steel sheet, various spring steels, stainless steel, aluminum, brass, copper and nickel silver. Non-metallic materials include ABS, acetal, polyester, nylon, MD nylon, polycarbonate, fiber, polyethylene and various NEMA grade phenolics.

Japanese Yudensha Rolls out New Functional Oxide Film Forming Technology Features: 1. Bigger contact angle with excellent water repellence. 2. Forming fine and delicate oxide films that improve corrosion resistance. 3. Good slidability with little surface friction. 4. Unlike anti-seizure electroplating, Yudensha's technology prevents the film from flaking when used on bolts and nuts. 5. Unlike electroplating and resin coating, the film is etremely thin so it barely changes the end product's sizes. This technology is best suited for bolts, nuts, stainless steel and iron components.

Böllhoff Introduces ECOSIT® Supply Systems with Increased Efficiency With the new ECOSIT® supply systems, the focus is on the specific requirements and individual wishes of our customers. Bundling services, lowering costs. With its ECOSIT® systems the company increases the efficiency of the entire value chain and guarantee the highest quality and transparency, successfully harnessing the latest RFID technology. The ECOSIT® service package allows Böllhoff to take charge of the entire supply chain for customers: materials planning, procurement, quality management, stockkeeping and internal goods distribution right through to the production line.

Japanese BCS Rolls out "NS·PIN 4" Anti-loosening Ring BCS Co., Ltd. develops springs and supplies automotive clips. Now it is tapping into the fastener field. The automotive products take 85% of the company's product line and are supplied to domestic mainstream carmakers. BSC has good sales performance and expects itself to transition to supplying electric vehicle products in the future. The president of BCS has expressed his will to enter other fields. His current target is to supply "NS·PIN 4", an aniti-loosening ring for bolts and nuts used on railways and electric towers. The front end of the ring snatches the thread root to prevent the nut from loosening. Without using hand tools, the operator can assemble the ring to the nut with one push. Furthermore, the ring is reusable. It embeds itself in the outer diameter of the thread, so the nut can be re-fastened even with the ring attached.

Advantages •Orderly and tidy storage •Substantial time savings •100% availability

•Reduced inventory and safety stocks •Online control of all ordering processes •Modern RFID technology

Special Feature

Japanese Audec Offers Rust-proof Blackening Coating Applicable to Fasteners The Audec "Ultra Black Super" blackening coating features the following: 1. Forming an Fe3O4 coat on steel and cast parts at boil temperature. 2. Rarely producing irritant gas, significantly reducing impact on human bodies. 3. Improving working environment. 4. The blackening coat gives the materials a glossy look and its thickness does not interfere with size precision of steel and cast parts. It resists abrasion and does not come off from friction. 5. The coat contains rust inhibitor with excellent indoor rust resistance. 6. Applicable to mechanical elements like fasteners as well as components.

Japanese Yamanaka Provides PiezoBolt Embedded with Load Sensor Yamanaka Eng Co., Ltd's patented PiezoBolt has an embedded sensor that detects the surrounding load during fastening. With mechanical joining technology, the company can embed the sensor without the use of adhesives. Users can connect the bolt with a specialized measuring software through wire connection to assess anomalies or problems. Without a highly polymerized compound blocking the load transmission, the load will directly reach the sensor to enable high-precision load measurement. Furthermore, the sensor has excellent durability and impact resistance and therefore is suitable for water, oil, powder and dust-filled environment.

Japanese Matsumoto Sangyo Provides S0.5-M4 Small Screws Matsumoto Sangyo provides special screws for the medical industry. It specializes in S0.5-M4 micro-screws and miniature screws used in new territories like the aerospace machinery and medical industries. A few years ago it started to supply stainless steel special screws to an academic lab conducting brainwave research. The screws are used to assist the electrodes inserted into the brains of lab mice.

HellermannTyton Debuts Two Extreme-Duty Solar Module Cable Fasteners HellermannTyton, a specialist in the design and manufacture of robust solar fasteners, announces a high-performance Button Mount with Cable Tie and Locking Clamp. The two products fit the predrilled holes of most solar modules. They are rated for extended life in demanding outdoor environments and available for immediate shipping. The Button Mount with Cable Tie fits most module holes and requires zero insertion force. Once placed through the module’s frame, installers can insert the included Solar Tie through the mount on the frame’s opposite surface. The Locking Clamp fully closes and locks over a cable bundle. This fastener features an integrated fir tree mount for easy installation and includes a saddle for adding an optional Solar Tie and extending its bundle capacity. Designed with single-axis trackers in mind, it demonstrates exceptional extraction resistance. “Many installers run standard cable ties directly through sharp module holes, probably because it’s fast and easy; but unfortunately, those ties will fail prematurely,” said Product Marketing Manager – Energies Nick Korth. “So, we made these mounts easy to install but tough enough to withstand sun, wind and movement within module holes for years.” Both products fit holes from 9x12 mm to 9x14 mm and can manage several cables. They are manufactured of high impact modified, heat-resistant, UV stabilized material, which is ideal for long-term performance in the full range of weather and climate extremes.

Special Feature

Fixtureworks Introduces New Ring-handle Detent Pins Fixtureworks, a supplier of clamps, fixturing accessories, and machine tool, has introduced a new lineup of ringhandle detent pins in steel and stainless steel. Detent pins provide a secure, quick, and easy engagement for fastening, locating, and alignment applications that require frequent, repetitive use. The pins, with ring handle, work within commercial drill tolerances, and their spring-loaded ball retracts when inserted or removed. They come in diameter sizes of 3/16" to 1" with a pull-out strength from 4 lb to 40 lb. The grip lengths range from 1/2" to 6" depending on the diameter. The detent pins are available in either C1144 steel with steel split rings or 303 stainless steel with 316 stainless rings.

Alumseal® 611: New Zincate for Aluminum Alloys Designed to Extend the Electroless Nickel Process Bath Life Aluminum is a very reactive metal and has a tendency to form an oxide layer very rapidly when in contact with oxygen. The presence of the oxide layer is not desirable in cases where the surface has to be metallized. The adhesion of subsequent coatings applied on the aluminum surface is adversely affected by the oxide layer. To avoid the rapid oxidation of aluminum during the pretreatment steps and prior to electroless nickel or electroplating, it is a common practice to cover the surface with a thin uniform film of zinc by use of a zincate process. In the case of electroless nickel (EN) plating, the build-up of zinc contamination limits the bath life to 3 – 4 MTO. A new zincate process, Alumseal® 611, has been developed by Atotech to provide very thin zinc coatings in order to reduce the amount of Zn contamination in the EN bath, thus eliminating the need for an EN strike bath. Alumseal® 611 is designed to extend the bath life of the EN process to >6 MTO. Alumseal® 611 has demonstrated that coating weight of the zinc film is reduced by 30 – 60% on aluminum alloys when compared to existing zincate processes. “When using the new Alumseal® 611 zincate process in combination with the high Zn tolerant electroless nickel process Nichem® MP 1188, the bath life can be extended up to 8 MTO without an EN strike bath”, states Shakeel Akhtar, Global Product Manager for Wear resistant coatings (EN) at Atotech. “Atotech is the first company to achieve this milestone within the plating industry.” Due to low Zn build-up and high tolerance to Zn contamination, the efficiency of the EN bath is improved through higher average plating speed. The combination of Alumseal® 611 & Nichem® MP 1188 provides technical and economic benefits for the customer in a highly demanding industry.

Spida Studs Offer Increased Options for Boatbuilders Spida Stud offers increased strength and improved adhesion properties to ensure a truly reliable lightweight bonded fastener. New to the market, the Spida Stud offers a number of advantages over traditional bonded fasteners. First, the fastener itself is circumferentially welded to the back of the base, which reduces the risk of the fixing failing at the weld. This means that potential stresses are efficiently passed down the thread and dissipated out into the base of the fixing, greatly increasing the durability and ensuring the maximum possible breaking strength. The base of the Spida Stud features eight self-levelling mini feet, which ensure an optimal 0.5mm bond line of adhesive is formed under the fixing. This consistent layer of adhesive underneath the fastener aids bonding. The feet also make for a castellated edge that improves torque resistance by 24%, enhancing the performance of the part. These features are paired with a proprietary surface treatment called AdMaxTM which increases the contact area for adhesive. End users can specify marine 316L stainless steel, manganese and boron steel alloy, with further material options to be made available in the near future such as glass filled nylon and carbon fibre PEI lightweight engineering plastic.

Special Feature

Würth Releases New Plastic Universal Dowel SHARK Pro® The Würth has recently released a new plastic dowel called SHARK Pro(@). It has many features that will definitely draw the attention of relevant application industries, which are listed as below: 1. Ensures knotting in all cavities and struts in all solid building materials • Twist or retention device prevents turning in the borehole • Patented dowel head knots the dowel shaft when screwing in 2. Easy and quick installation 3. Low insertion torque and high tightening torque 4. Suitable for plug-in and push-through installation • Reversible anchor collar • Impact lock prevents premature spreading during push-through installation 5. Resistant to rotting, weathering and aging 6. Made of high quality polyamide (nylon) 7. Halogen-free and silicone-free 8. Temperature-neutral from -40 ° C to + 100 ° C

Bülte Releases New Washer Faced Hex Screws with Torx Manufactured in natural nylon, this new range combines 3 shapes in one: hex head, sta r d rive a nd washer. W hen compa red with metallic screws, natural nylon is light, non-conductive to electricity and has very good thermal properties. And the materials mechanical strength provides good resistance to shocks and will also resist staining. This triple fastener combination offers several advantages: - A variety of drive tools : Spanner / Socket / Torx driver - The combined washer that : o Limits the pressure / tension under the screw head o Offers better support and protects the fastened surface o Better distribution of the load - The star drive that: o improves tightening torque o is less likely to slip during tightening Dimensions available: M4, M5, M6, lengths 6 to 60 mm depending on the diameter. Besides Nylon, BÜLTE also proposes this range in PP, PE, PVDF, and PC on request. These materials are also stainless, and they offer higher resistance to diluted acids, greases, oils, alcohol or petrol. Another option is fibre glass filled Nylon wh ich combi nes en ha nce d me cha n ica l performance and long term durability. It represents the perfect polyamide for pieces that require higher Torque, and increased shock absorption. The washer faced hex screw with Torx can be adapted to all your applications and can be produced in a large range of colours (see RAL chart, minimum quantity on request).

Industry Focus

2017 Global Car Production & Sales Statistics

Note:

2017年全球汽車產銷統計 by Gang Hao Chang, Vice Editor-in-Chief of Fastener World, Data source: OICA

Foreword

CARS: BMW, Mercedes, Audi and JLR not reported

Estimate Over the past 5 years both the global car production and sales have been trending upward and reached new highs in 2017. The production, compared to 2016, grew 2.4% to 97,302,534 units, while the sales grew 1.03% to 96,804,390 units. The growth of both production and sales is still on the way. If viewed by continent, Asia, N. America and Europe remain the most important production and sales hot zones, where the production and sales both exceed the scale of 10 million+ units. In South & Central America, the Middle East, Russia and Africa, all demonstrated the trend of growth (except for the sales in South Africa) and the scale for each country landed at the level of 1-5 million units. The policies for the automotive industry in China, USA and Europe have been also deeply influencing the global car production and sales. Many issues (e.g. EV or green-energy cars) continue to be hot topics for discussion in the industry, which directly or indirectly create many business opportunities.

Table 1. 2016-2017 Global Car Production & Sales Statistics b. Sales a. Production Units

YTD 2016

YTD 2017

Regions/Countries

2016

2017

Total

95,057,929

97,302,534

All Countries

93,905,634

96,804,390

Car Production Table 2. 2016-2017 Europe’s Car Production YTD 2016 Q4 21,486,270 18,595,985

YTD 2017 Q4 22,161,107 18,768,153

5,746,808

Spain France *** As of 2011, Cars And LCV Only United Kingdom Czech Republic Italy Slovakia Poland Hungary Belgium Romania Sweden *** As of 2011, Cars Only Slovenia Portugal Netherlands *** As of 2013, Figures Once A Year Only Austria

UNITS ALL VEHICLES

- EUROPE - European Union 27 Countries Germany *** As of 2016, Cars Only

VARIATION

DIFFERENCE

3.1% 0.9%

674,837 172,168

5,645,581

-1.8%

-101,227

2,885,922

2,848,335

-1.3%

-37,587

2,090,279

2,227,000

6.5%

136,721

1,816,622 1,349,896 1,103,305 1,040,000 681,834 526,500 399,427 359,306 205,374 133,702 143,096

1,749,385 1,419,993 1,142,210 1,001,520 689,729 505,400 379,140 359,250 226,000 189,852 175,544

-3.7% 0 3.5% -3.7% 1.2% -4.0% -5.1% 0.0% 10.0% 42.0% 22.7%

-67,237 70,097 38,905 -38,480 7,895 -21,100 -20,287 -56 20,626 56,150 32,448

89,889

157,280

75.0%

67,391

109,730

99,880

-9.0%

-9,850

Finland

48,000

91,598

90.8%

43,598

Serbia

80,320

79,912

-0.5%

-408

Industry Focus 1. Europe Being the 2nd largest car production region, Europe produced 22,161,107 units of vehicles in 2017, up 3.1% from 2016. Production was mainly in EU member states. Top 5 car producers in the region were Germany, Spain, France, UK and Czech Rep. The combined production of these 5 countries represented over 60% of the Europe’s total. France showed the most significant growth of 6.5% compared to 2016, while UK entering the procedure of BREXIT negotiation showed the most significant drop of 3.7%. Among all European countries, Finland’s 90.8% YoY growth was the highest, while Austria showed the most significant drop of 9.0%. However, compared to the other countries in W. Europe (more than 2 million units of production per country), the annual production of Finland or Austria was below 1 million units, which is not large enough to influence the performance of Europe’s total production. Table 2 on the previous page shows 2016-2017 Europe’s car production.

2. America America’s car production in 2017 reached 20,669,537 units, down 0.7% from 2016. Leading countries in the region were USA, Canada, and Mexico in N. America. The production of these 3 countries represented over 80% of America’s total. USA remained the largest car producer in America, but production dropped by 8.1% in 2016. Canada ranked in the 3rd place also showed a 7.2% drop in the same year. What’s worth mentioning, Mexico’s automotive industry, greatly influenced by Trump administration’s “America First” policy, still showed a significant growth of up to 13.0%. As for South and Central America, Brazil was ranked the 1st place. Its production in 2017 reached 2,699,672 units and Argentina ranked the 2nd place reached the production of 472,158 units. The combined production of Brazil and Argentina represented over 90% of South & Central America’s total. In addition to the top 5 countries, Colombia, Ecuador, and Venezuela were also major producers in the region, but their productions were all below 0.1 million units. Except for Brazil, which showed a 25.2% growth over 2016, productions in the other South & Central American countries all declined. Venezuela, influenced by its political chaos and stagnant economy in particular, showed a 37.8% decline. Table 3 shows 2016-2017 America’s car production.

Table 3. 2016-2017 America’s Car Production UNITS ALL VEHICLES

- AMERICA USA Mexico Canada - SOUTH AMERICA Brazil Argentina *** As of 2016, Cars And LCV Only Colombia Ecuador Venezuela Chile Peru Uruguay

YTD 2016 Q4 20,821,670 12,180,301 3,600,365 2,370,656 2,670,348 2,156,356

YTD 2017 Q4 20,669,537 11,189,985 4,068,415 2,199,789 3,211,348 2,699,672

472,776 79,036 2,700 2,850 0 0 0

VARIATION

DIFFERENCE

-0.7% -8.1% 13.0% -7.2% 20.3% 25.2%

-152,133 -990,316 468,050 -170,867 541,000 543,316

472,158

-0.1%

-618

74,994 2,700 1,774 0 0 0

-5.1% 0.0% -37.8% ----

-4,042 0 -1,076 0 0 0

3. Asia and the Oceania Asia with advantages of manufacturing costs, labor force and economic growth has been one of the most important regions for global car production. In 2017, Asia produced 53,540,607 units of vehicles, up 3.3% from 2016 and higher than the total of Europe and America. Top 5 producers in this region were: China, Japan, India, S. Korea and Thailand. China with the production of 29,015,434 units, in particular, left the other countries far behind and represented over 50% of the region’s total. Japan ranked the 2nd place produced 9,693,746 units and its production was only 1/3 of China’s production. The production of India ranked the 3rd place was quite similar to that of S. Korea ranked the 4th place, landing between 4 million and 5 million units. Compared to 2016, India grew 5.8%, but S. Korea dropped by 2.7%. The productions of Thailand, Iran and Indonesia were all between 1 million and 2 million units and showed growth. Iran, in particular, showed a 18.2% growth, the highest among all Asian countries. Asian countries showing decline in 2017 were S. Korea, Malaysia, Taiwan and Australia. Australia, in particular, showed a decline of 38.8%. Table 4 shows 2016-2017 Asia’s and the Oceania’s car production.

100

Industry Focus

Table 4. 2016-2017 Asia’s and the Oceania’s Car Production UNITS ALL VEHICLES

- ASIA-OCEANIA China Japan India South Korea Thailand Iran Indonesia Malaysia Taiwan Vietnam Pakistan Philippines Australia Bangladesh

YTD 2016 Q4 51,846,421 28,118,794 9,204,813 4,519,341 4,228,509 1,944,417 1,282,172 1,177,797 545,333 309,522 236,161 214,650 116,868 161,294 580

YTD 2017 Q4 53,540,607 29,015,434 9,693,746 4,782,896 4,114,913 1,988,823 1,515,396 1,216,615 460,140 291,563 236,161 230,250 116,868 98,632 580

VARIATION 3.3% 3.2% 5.3% 5.8% -2.7% 2.3% 18.2% 3.3% -15.6% -5.8% 0.0% 7.3% 0.0% -38.8% 0.0%

DIFFERENCE 1,694,186 896,640 488,933 263,555 -113,596 44,406 233,224 38,818 -85,193 -17,959 0 15,600 0 -62,662 0

4. Turkey, Russia and CIS Located in part Europe and part Asia, Turkey reported successful results of its booming automotive industry in 2017. Its production grew 14.1% over 2016 to 1,695,731 units, not only better than that of Czech Rep., but also getting closer to the production of UK. The production of Russia and CIS in 2017 showed a significant growth of 22.1%, but the production of only 1,617,311 units was still less than that of Thailand, UK or Turkey. Top 5 producers in this region were: Russia, Uzbekistan, Kazakhstan, Belarus and Ukraine. Although Russia faced issues like deteriorating relationship with the West and sanctions from the West, its production in 2017 still grew 19.0% over 2016 and represented over 90% of the region’s total . The country showing the highest growth was Ukraine (81.3%), followed by Kazakhstan(79.1%) and Uzbekistan (59.1%). However, the productions of these 3 countries were all below 0.2 million units. Belarus and Azerbaijan respectively showed the decline of 22.2% and 100.0%. Tables 5 and 6 respectively show 2016-2017 Turkey’s car production and Russia’s (Incl. CIS’s) car production.

Table 5. 2016-2017 Turkey’s Car Production UNITS ALL VEHICLES

TURKEY

YTD 2016 Q4 1,485,927

YTD 2017 Q4 1,695,731

VARIATION 14.1%

DIFFERENCE 209,804

Table 6. 2016-2017 Russia’s and CIS’ Car Production UNITS ALL VEHICLES

CIS Russia Uzbekistan Kazakhstan Belarus Ukraine Azerbaidjan

YTD 2016 Q4 1,324,038 1,303,544 88,152 10,651 17,270 5,264 247

YTD 2017 Q4 1,617,311 1,551,293 140,247 19,071 13,428 9,542 0

VARIATION 22.1% 19.0% 59.1% 79.1% -22.2% 81.3% -100.0%

DIFFERENCE 293,273 247,749 52,095 8,420 -3,842 4,278 -247

5. Africa Compared to other regions, Africa does not have a mature car production industry. Its production in 2017 grew 3.1% over 2016, but was still below 1 million units. Over 60% of the production in the region was in South Africa. Top 5 producers in Africa were: South Africa, Morocco, Algeria, Egypt and Tunisia. Algeria showed the highest growth of 44.3% and South Africa was the only country in the region that showed a decline of 1.5% in 2017. Table 7 shows 20162017 Africa’s car production.

Industry Focus 101 Table 7. 2016-2017 Africa’s Car Production YTD 2016 Q4 903,568 599,004 345,106 42,008 36,230 1,940 0 0 0 0 0 0

UNITS ALL VEHICLES

AFRICA South Africa Morocco Algeria Egypt Tunisia Botswana Kenya Libya Nigeria Sudan Zimbabwe

YTD 2017 Q4 931,283 589,951 376,286 60,606 36,640 1,940 0 0 0 0 0 0

VARIATION 3.1% -1.5% 9.0% 44.3% 1.1% 0.0% -------

DIFFERENCE 27,715 -9,053 31,180 18,598 410 0 0 0 0 0 0 0

Car Sales 1. Europe Europe, following Asia and America, was the 3rd largest market for car sales. In 2017 20,916,025 units of vehicles were sold in Europe, an around 1.04% growth over 2016. Top 5 countries for car sales were: Germany, UK, France, Italy and Spain, which are all W. European countries. These 5 countries represented over 60% of the region’s total car sales. What’s worth mentioning, except for UK showing decline, is that other countries in the top 5 all showed growth in 2017. As for other European countries, they all showed positive trends (except for Demark and Ireland showing decline). The current car sales in Europe continue to be on the pace of steady growth. Table 8 shows car sales in Europe.

Table 8. 2016-2017 Car Sales in Europe

Table 9. 2016-2017 America’s Car Sales

REGIONS/COUNTRIES

2016

2017

REGIONS/COUNTRIES

2016

2017

EUROPE EU 28 countries + EFTA Germany United Kingdom France Italy Spain Belgium Poland Netherlands Sweden Austria Switzerland (+Fl) Czech Republic Portugal Denmark Norway Romania Ireland Hungary Finland Slovakia Greece Slovenia Croatia Luxembourg Bulgaria Lithuania Estonia Iceland Latvia Cyprus Malta

20,134,829 17,568,449 3,708,867 3,123,755 2,478,472 2,050,292 1,347,344 617,854 504,550 469,410 431,818 374,545 355,882 291,008 247,343 265,386 197,991 142,020 177,719 123,807 136,430 100,600 85,008 76,213 53,929 56,369 31,260 29,380 27,401 20,735 20,345 14,559 8,157

20,916,025 18,147,636 3,811,246 2,955,182 2,604,942 2,190,403 1,451,089 634,111 576,144 508,371 442,835 403,580 355,910 302,109 264,904 263,361 201,895 159,808 159,236 141,814 138,375 108,672 95,363 86,142 60,795 58,965 37,347 36,180 30,420 24,059 20,712 15,078 8,586

AMERICA United States Of America Canada Mexico CENTRAL & SOUTH AMERICA Brazil Argentina Chile Colombia Peru Puerto Rico Ecuador Uruguay Costa Rica Panama Bolivia Guatemala Paraguay Dominican Republic Guadeloupe Martinique Trinidad & Tobago Venezuela El Salvador Nicaragua Guiana (French) Honduras Cuba Jamaica Bahamas Belize

25,551,912 17,865,773 1,983,745 1,647,723

25,788,942 17,583,842 2,077,000 1,570,764

4,054,671

4,557,336

2,050,321 709,482 319,606 246,500 169,718 112,200 63,555 47,114 60,000 57,700 27,800 29,900 22,700 24,024 16,571 16,495 20,200 5,200 10,600 12,700 5,885 10,200 6,900 5,100 3,300 900

2,238,915 900,403 376,682 233,960 180,020 127,301 118,281 61,484 51,884 49,762 29,179 28,250 27,029 19,210 18,738 16,963 15,053 14,084 10,182 9,108 7,865 7,771 6,962 4,812 2,273 1,165

102

Industry Focus

2. America Car sales in America in 2017 reached 25,788,942 units, making it the 2nd largest market for car sales. Over 80% of car sales in the region were in N. America. If viewed by country, USA was the largest country for car sales, followed by Brazil, Canada, Mexico and Argentina. Although sales in USA and Mexico took the lead among all countries in the region, they both showed decline if compared to 2016. As for South & Central America, Brazil has demonstrated impressive performance in recent 2 years due to the recovery of its domestic industries. Argentina, Chile, Colombia and Peru were also main countries for car sales in the region. South & Central America represented less than 20% of America’s total car sales. Table 9 shows 2016-2017 America’s car sales.

3. Asia, the Oceania and the Middle East The region is not only the world’s largest car manufacturing heartland, but is also the world’s largest market for car sales. Sales in the region in 2017 were already larger than the combined sales in Europe and America and reached 48,903,658 units. Compared to 2016, the region showed the growth of around 1.04%. Top 5 countries for car sales in this region were: China, Japan, India, S. Korea and Iran. Theses 5 countries represented over 80% of the Region’s total car sales. The nearly 30 million units of car sales in China also made China win the title of the world’s largest car sales market. Among the top 5 countries, only S. Korea showed decline (and S. Korea also showed decline in its car production in the same period). Other countries incl. Australia, Indonesia, Thailand, Malaysia and Saudi Arabia were also main countries for car sales in the region. Table 10 shows 2016-2017 Asia’s, the Oceania’s and the Middle East’s car sales.

4. Turkey, Russia and Other Europe Car sales in Turkey, Russia and other Europe in 2017 were 2,768, 389 units, around 1.08% higher than 2016. Main markets for car sales in the region were Russia, Turkey and Ukraine. Although the car production of Turkey in 2017 was quite impressive, it car sales, on the contrary, were in a decline (below the level of 1 million units). Russia’s car production in 2017 was less than Turkey’s, but its car sales in the same period were getting closer to the sales in Turkey and reached 1,602,207 units (representing over 50% of the region’s total car sales). Except for Turkey and Macedonia showing decline in sales, other countries in the region were on a positive growing track. Table 11 shows 2016-2017 Turkey’s, Russia’s and other Europe’s car sales.

Table 11. 2016-2017 Turkey’s, Russia’s and Other Europe’s Car Sales REGIONS/COUNTRIES RUSSIA, TURKEY & OTHER EUROPE Russia Turkey Ukraine Serbia Belarus Bosnia Moldova Georgia Macedonia Albania Armenia

2016

2017

2,566,380

2,768,389

1,404,464 1,007,857 75,209 27,600 22,500 10,200 4,500 4,300 4,300 2,750 2,700

1,602,270 980,394 94,694 30,924 25,978 13,347 6,022 4,556 3,863 3,365 2,977

Table 10. 2016-2017 Asia’s, the Oceania’s and the Middle East Car Sales REGIONS/COUNTRIES ASIA / OCEANIA / MIDDLE EAST China Japan India South Korea Iran Australia Indonesia Thailand Malaysia Saudi Arabia Philippines Israel Vietnam Pakistan Taiwan United Arab Emirates New Zealand Oman Singapore Kuwait Kazakhstan Uzbekistan Qatar Hong-Kong Bangladesh Syria Iraq Lebanon Bahrain Palestine Jordan Brunei Sri Lanka New Caledonia Laos Cambodia Tahiti Turkmenistan Yemen Nepal Myanmar Kyrgyzstan Azerbaijan Tajikistan Mongolia

2016

2017

46,903,730

48,903,658

28,028,175 4,970,260 3,669,277 1,823,041 1,448,500 1,178,133 1,048,135 768,788 580,124 655,500 359,572 292,700 271,833 211,295 262,346 198,500 146,753 154,900 108,061 108,000 97,470 56,300 63,700 43,800 44,400 39,700 24,800 37,800 46,300 35,800 20,500 16,200 34,900 9,279 10,900 6,300 3,800 5,000 3,600 9,300 2,300 2,000 5,100 2,300 1,700

29,122,531 5,238,888 4,017,539 1,798,796 1,718,565 1,188,677 1,060,894 873,506 591,096 548,250 358,558 284,623 269,570 269,049 259,013 194,382 159,872 131,149 110,907 102,541 97,471 58,968 49,767 48,259 42,021 40,034 39,291 38,363 37,482 36,454 20,918 16,839 16,006 10,294 9,785 6,042 5,232 5,016 4,950 3,670 3,344 2,735 2,705 2,316 1,655

Industry Focus 103

Table 12. 2016-2017 Africa’s Car Sales REGIONS/COUNTRIES

2016

2017

AFRICA South Africa Egypt Morocco Algeria Tunisia Reunion Libya Mauritius Kenya Botswana Ivory Coast Nigeria Senegal Tanzania Zambia Uganda Angola Ghana Cameroon North Sudan Gabon Zimbabwe Malawi Congo Kinshasa Madagascar Burkina Faso Liberia Burundi

1,315,163 547,406 264,100 163,110 99,600 50,800 29,547 46,400 11,000 10,600 8,100 6,400 23,000 6,600 4,500 3,200 4,000 7,300 7,400 4,200 3,400 3,000 2,200 1,800 2,300 1,400 2,300 600 900

1,195,765 555,716 181,001 168,913 94,408 47,359 31,039 23,600 12,597 11,886 7,600 7,118 6,999 6,516 5,358 4,862 4,337 4,230 4,217 3,765 2,955 2,565 2,143 1,937 1,849 1,507 1,027 132 130

5. Africa Africa’s car production in 2017 showed growth, but its sales were down to 1,195,765 units. South Africa was still the largest market in the region for car sales and the car sales in South Africa in 2017 reached 555,716 units (representing over 40% of the region’s total car sales). Countries ranked the 2nd to the 5th places in the region were: Egypt, Morocco, Algeria and Tunisia. Except for South Africa and Morocco showing growth, the other countries among the top 5 all showed decline. Table 12 shows Africa’s car sales.

Conclusions With the statistics above, we can see that W. Europe, USA and China have been the major 3 powers in both car production and sales in recent years. Any policy change, measure announcement or industrial improvement & upgrade projects will all impact on the global automotive industry. The substantial demand for industrial parts and potential economic effect are some key parts relevant companies should be carefully aware of. How to grasp the opportunities and gain a presence in the market will be some directions for those companies interested in tapping into European, American and Asian automotive markets to focus on.

104

EXHIBITION

Belgium, Israel and China. Fastener Fair Mexico is the only one exhibition dedicated to screws, fixings, related machinery and service in Latin America and the fair this year was the 4th edition. The best location of its venue helped draw the attendance of more visitors and buyers from S. America, N. America and even from other regions/countries and made it easier for exhibitors from Taiwan and other countries interested in entering Latin American market to get quicker access to the purchasing demand of local buyers and establish more efficient partnering routes with each other in the near future.

TAIWAN Taiwan Int’l Fastener Show APR 10-12 This is the only B2B show in Taiwan particularly dedicated to related fastening products, technology and service. In the 2018 edition, 415 companies came to exhibit their latest fasteners, machines, technology, service and various fastening solutions. Fastener World Inc. once again became the most focused exhibitor at the show to offer industry professionals quick, efficient and a complete range of fastener purchasing info and suggestions through free dissemination of magazines and e-books. Many domestic and foreign buyers noted, “Fastener World did help them get complete info regarding Taiwanese and overseas fastener suppliers and those publications handed out from Fastener World’s booth also made their purchasing in Taiwan much easier! Some visitors experiencing Fastener World’s online B2B system onsite were even impressed by its business matchmaking efficiency.”

CHINA China (Guangzhou) Int’l Fasteners, Spring & Equipment Exhibition JUN 06-08 The 19th edition took place at China Import and Export Fair Pazhou Complex (C Area) this June. Exhibit profile included a variety of fasteners, installation/assembly products, manufacturing machines, applied materials, tools/systems, etc. The marketing team of Fastener World also booked a stand at the exhibition this year in order to observe local market developments and discover potential business opportunities for companies interested in tapping into Chinese market. Fastener World correspondent onsite reported, “Guangzhou has been one of the major commercial and trade cities in Southern China and it has very well-developed and quite booming manufacturing for cars, petrochemical and electric/electronic products. The exhibition this year also attracted several buyers and decision makers from domestic China and other countries to inquire for the most competitive and advantageous products/service.”

Fastener Expo Shanghai

JUN 20-22

Fastener Expo Shanghai 2018 took place at the new venue – National Exhibition and Convention Center (Shanghai). The 3-day event drew the attendance of nearly 800 exhibitors from around 14 countries/ regions to exhibit various standard/non-standard fasteners, industrial fasteners, fastener manufacturing technology & equipment, fastener molds & dies, consumables, materials and related products and technology. Fastener World’s onsite correspondent said, “Fastener Expo Shanghai is one of the three largest int’l shows dedicated to fasteners and is also the main gate for many Taiwanese companies interested in entering the Chinese market.” The organizer said that the next edition of Fastener Expo Shanghai will take place again on June 26-28, 2019 at National Exhibition and Convention Center (Shanghai).

Save the following dates Fastener World is going to attend! 08/29-31 Hand Tools & Fastener Expo

10/10-12 China Int’l Hardware Show

09/06-08 Expo Nacional Ferretera

10/16-18 Fastener Poland ◆

09/26-29 Fastener Shanghai

10/17-19 Taiwan Hardware Show

10/03-04 Torque Expo Coventry

10/30-11/01 Int’l Fastener Expo ◆

10/03-05 M-Tech Mechanical Components & Materials Technology Expo Osaka

10/30-11/02 Korea Metal Week

(◆means shows represented by Fastener World) For exhibition info, please contact Exhibition/Sales Dept. of Fastener World (+886-295-4000 / foreign@fastener-world.com.tw)

105

106

Industry Focus 107

Brazilian Fastener Trade Statistics in 2014-H1 2018

近五年巴西扣件進出口統計分析 by Gang Hao Chang, Vice Editor-in-Chief of Fastener World Data source: Ministry of Industry, Foreign Trade and Services of Brazil

Import According to the latest trade statistics released by the Ministry of Industry, Foreign Trade and Services of Brazil, in the first 6 months of 2018 Brazil imported around 62,942 tons of fasteners (SH code 7318) in total , better than 52,478 tons in the same period of 2017. If calculated by US$ FOB, in the first 6 months of 2018 Brazil imported around 340.37 million US$ FOB worth of fasteners from the world, better than 290.08 million US$ FOB in the same period of 2017. Table 1. Brazilian Fastener Import by Net Weight SH4 Code

SH4 Description

Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, 7318 washers (including spring washers) and similar articles, of iron or steel

2018 (Jan-Jun)Net Weight

2017 - Net Weight

2016 - Net Weight

62.942.771

112.179.543

98.613.075

2015 - Net Weight

2014 - Net Weight

139.056.167 166.439.473

Table 2. Brazilian Fastener Import by US$ FOB SH4 Code

2018 (Jan-June) - US$ FOB

SH4 Description

Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, 7318 washers (including spring washers) and similar articles, of iron or steel

340,365,816

2017 - US$ FOB

2016 - US$ FOB

2015 - US$ FOB

2014 - US$ FOB

595,545,114 583,243,398 717,284,177 907,601,965

In terms of main fastener import origins of Brazil, if calculated by net weight, the top 5 import origins were: USA, Argentina, Russia, China and Colombia; if calculated by US$ FOB, the top 5 import origins were: China, USA, Japan, Germany and Italy.

Table 3. Top 20 Fastener Import Origins of Brazil by Net Weight Country United States Argentina Russia China Colombia Bolivia Australia Canada Saudi Arabia Algeria Spain Nigeria Peru Germany Chile Morocco Netherlands Paraguay Israel Belarus

2018 (Jan-Jun) Net Weight 16,941,202,299 5,502,716,478 4,584,312,959 4,257,887,985 4,136,739,024 3,164,707,855 2,489,118,123 2,114,518,844 1,945,516,711 1,872,986,254 1,421,373,860 1,182,808,738 1,161,246,328 1,133,851,517 1,091,991,675 1,077,166,251 951,988,430 796,274,296 681,707,596 659,788,098

2017 - Net Weight

2016 - Net Weight

2015 - Net Weight

2014 - Net Weight

32,631,927,344 10,155,548,547 9,422,537,757 9,024,400,170 6,969,685,624 6,523,907,356 6,472,174,617 4,506,725,025 4,995,882,768 5,322,222,292 3,459,471,126 2,168,196,791 2,569,878,007 2,274,918,107 2,885,474,056 3,015,144,233 2,881,373,825 2,315,186,079 1,551,762,453 2,099,016,555

27,479,710,557 10,592,596,226 7,547,633,567 8,224,623,527 6,261,840,464 8,231,098,013 6,853,024,926 4,532,551,327 4,104,120,810 4,402,619,632 2,949,625,685 3,983,382,151 2,247,981,457 2,367,115,862 2,889,657,346 2,011,824,320 2,928,108,570 3,610,116,115 1,082,644,030 1,861,372,866

23,366,680,318 8,498,584,741 6,408,355,509 10,915,038,507 7,439,561,885 9,325,001,937 6,425,154,910 5,371,216,521 4,257,101,270 3,586,208,113 3,421,518,117 10,168,753,283 1,908,298,110 2,629,015,589 2,730,992,697 1,937,534,525 2,841,680,869 1,891,158,748 957,658,821 1,581,260,676

29,790,292,182 7,035,577,697 7,294,478,642 12,568,122,197 6,675,367,390 9,160,421,112 4,992,562,700 6,496,587,437 4,221,685,084 3,420,788,035 3,472,923,016 11,576,566,795 2,081,382,734 3,082,997,636 3,071,959,355 2,788,055,231 2,756,536,832 2,283,910,887 1,013,021,252 2,346,429,729

108

Industry Focus Table 4. Top 20 Fastener Import Origins of Brazil by US$FOB Country China United States Japan Germany Italy Taiwan France South Korea Spain Sweden Thailand India United Kingdom Netherlands Czech Republic Indonesia Switzerland Poland Turkey Canada

2018 (Jan-Jun)US$ FOB 63,946,310 45,646,892 38,008,879 37,431,486 35,557,643 21,213,056 20,215,082 13,941,036 8,109,134 7,375,393 6,875,677 5,103,301 4,159,940 3,009,491 2,832,558 2,774,567 2,571,360 2,531,166 2,369,321 1,968,444

2017 - US$ FOB

2016 - US$ FOB

2015 - US$ FOB

2014 - US$ FOB

103,312,641 101,631,977 74,328,861 61,939,088 58,467,893 30,584,186 35,530,909 25,896,562 12,458,282 10,898,725 10,018,459 7,093,955 7,599,142 4,754,319 4,279,194 4,077,996 4,284,627 3,411,903 4,121,852 3,966,276

75,067,207 144,410,247 68,829,686 59,354,457 46,680,574 26,786,661 42,761,675 22,922,942 11,095,046 9,055,900 9,697,813 4,149,419 8,340,577 2,854,118 2,769,396 3,261,882 5,154,761 2,132,426 5,503,928 3,985,289

131,429,924 156,763,007 82,166,569 68,997,960 51,658,593 38,851,780 46,235,030 25,035,325 13,765,061 9,912,002 11,381,609 6,702,756 11,977,467 3,053,651 3,375,282 2,187,699 9,239,927 1,796,005 5,643,862 3,880,186

162,265,793 188,856,490 95,681,576 103,810,888 64,002,558 51,699,235 58,304,218 30,950,869 16,909,823 19,005,196 13,297,894 7,010,446 15,973,207 5,170,874 5,414,485 3,180,373 11,677,495 3,249,915 7,155,568 5,546,979

Top 5 fastener categories Brazil imported from the world in the first 6 months of 2018 were: Threaded screws and bolts, of iron or steel, whether or not with their nuts and washers (excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)(731815), nuts of iron or steel (731816), self-tapping screws, of iron or steel (excl. wood screws)(731814), wood screws of iron or steel (excl. coach screws) (731812), and non-threaded articles, of iron or steel (731829). If calculated by US$ FOB, top 5 fastener categories Brazil imported in the first 6 months of 2018 were: Threaded screws and bolts, of iron or steel, whether or not with their nuts and washers (excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)(731815), nuts of iron or steel (731816), non-threaded articles, of iron or steel (731829), washers of iron or steel (excl. spring washers and other lock washers)(731822), and self-tapping screws, of iron or steel (excl. wood screws)(731814).

Table 5. Main Imported Fastener Categories by Net Weight SH6 Code

SH6 Description

2018 (Jan-Jun) - Net Weight

2017 - Net Weight

2016 - Net Weight

2015 - Net Weight

2014 - Net Weight

731815

Threaded screws and bolts, of iron or steel, whether or not with their nuts and washers (excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)

29,936,059

55,835,111

45,133,141

62,738,048

75,704,787

731816

Nuts of iron or steel

8,725,274

14,208,708

12,466,724

19,003,273

24,606,850

6,208,390

10,299,417

8,123,854

10,885,154

11,113,177

4,571,151

7,719,902

7,159,624

11,941,347

12,546,665

Self-tapping screws, of iron or steel (excl. wood screws) Wood screws of iron or steel (excl. coach 731812 screws) 731814

731829

Non-threaded articles, of iron or steel

4,337,201

8,185,198

8,510,717

9,304,487

12,395,071

731819

Threaded articles, of iron or steel, n.e.s.

4,286,938

8,412,085

10,787,512

15,921,027

18,562,740

731822

2,713,298

4,283,769

3,751,061

4,928,841

6,511,851

843,680

1,066,512

927,755

1,226,156

1,418,803

731823

Washers of iron or steel (excl. spring washers and other lock washers) Spring washers and other lock washers, of iron or steel Rivets of iron or steel (excl. tubular and bifurcated rivets for particular uses)

808,687

1,081,593

947,315

1,275,665

1,302,807

731824

Cotters and cotter pins, of iron or steel

325,150

625,058

542,045

600,091

844,503

731813

Screw hooks and screw rings, of iron or steel

120,330

276,418

96,946

247,805

338,489

731811

Coach screws of iron or steel

66,613

185,772

166,381

984,273

1,093,730

731821

Industry Focus 109 Table 6. Main Imported Fastener Categories by US$ FOB SH6 Code

2018 (Jan-June) 2017 - US$ - US$ FOB FOB

SH6 Description

Threaded screws and bolts, of iron or steel, whether or not with their nuts and (excl. coach screws and other 731815 washers wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)

2016 - US$ FOB

2015 - US$ FOB

2014 - US$ FOB

170,480,260

297,785,920 267,581,399 328,642,032 415,913,844

731816

Nuts of iron or steel

51,884,526

93,289,779 101,653,326 120,076,902 149,054,347

731829

Non-threaded articles, of iron or steel

46,733,139

87,606,942 104,013,283 117,865,411 153,496,403

731822

Washers of iron or steel (excl. spring washers and other lock washers) Self-tapping screws, of iron or steel (excl. wood screws)

17,838,643

32,966,421

34,238,208

39,142,267

52,235,623

15,529,582

23,364,839

17,228,469

24,630,425

27,425,926

731819 Threaded articles, of iron or steel, n.e.s.

15,353,917

27,006,141

27,828,919

41,673,211

52,068,568

or steel (excl. coach 731812 Wood screws of iron screws) and other lock washers, 731821 Spring washers of iron or steel of iron or steel (excl. tubular and 731823 Rivets bifurcated rivets for particular uses)

7,200,657

9,844,647

8,650,551

16,617,047

18,738,609

5,550,388

7,949,957

8,028,035

9,497,671

12,856,245

4,472,502

7,001,219

6,247,663

8,280,974

10,045,204

731824

Cotters and cotter pins, of iron or steel

4,137,491

7,228,846

6,901,636

8,555,351

12,745,796

screw rings, of iron or 731813 Screw hooks and steel

963,237

900,240

524,406

1,060,367

1,533,641

731811

221,474

600,163

347,503

1,242,519

1,487,759

731814

Coach screws of iron or steel

Export In terms of fastener export, part of the performances were also better than those in 2017. In the first 6 months of 2018 Brazil exported around 12,299 tons of fasteners (SH code 7318) in total , better than 10,418 tons in the same period of 2017. If calculated by US$ FOB, in the first 6 months of 2018 Brazil exported around 58.41 million US$ FOB worth of fasteners to the world, better than 53.45 million US$ FOB in the same period of 2017. Table 7. Brazilian Fastener Export by Net Weight SH4 Code

SH4 Description

Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, 7318 washers (including spring washers) and similar articles, of iron or steel

2018 (Jan-Jun) Net Weight

2017 - Net Weight

2016 - Net Weight

2015 - Net Weight

2014 - Net Weight

12,299,980

24,340,576

21,240,001

18,906,295

19,928,927

2014 - US$ FOB

Table 8. Brazilian Fastener Export by US$ FOB SH4 Code

SH4 Description

Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, 7318 washers (including spring washers) and similar articles, of iron or steel

2018 (Jan-Jun) US$ FOB

2017 - US$ FOB

2016 - US$ FOB

2015 - US$ FOB

58,406,563

115,204,876

97,226,982

103,609,122 120,532,557

In terms of main fastener export destinations of Brazil, if calculated by net weight, the top 5 export destinations were: Argentina, Paraguay, USA, Uruguay and Germany ; if calculated by US$ FOB, the top 5 export destinations were: Argentina, USA, Paraguay, Germany and India.

110

Industry Focus Table 9. Top 20 Fastener Export Destinations of Brazil by Net Weight Country Argentina Paraguay United States Uruguay Germany Bolivia France India Mexico South Africa Chile Colombia Thailand China Ecuador Dominican Republic Peru Portugal Indonesia Netherlands

2018 (Jan-Jun) Net Weight 5,223,800 2,270,780 745,827 694,992 652,051 586,561 342,803 294,823 257,062 126,206 119,895 117,972 114,815 103,472 72,129 62,724 59,742 49,341 39,419 37,126

2017 - Net Weight 2016 - Net Weight 2015 - Net Weight 2014 - Net Weight 9,095,580 4,089,851 2,086,700 1,244,777 1,393,534 1,034,977 736,932 663,472 648,279 242,524 407,493 330,209 260,686 295,367 351,347 24,052 209,095 120,478 63,465 75,893

7,267,171 3,815,096 1,382,741 1,078,984 877,678 701,188 575,021 609,358 589,828 381,512 568,320 338,277 277,001 360,306 273,477 105,275 504,430 99,102 64,901 61,490

6,900,908 3,655,371 1,146,490 959,530 420,805 1,121,386 212,871 578,872 545,609 284,427 311,408 200,348 212,238 384,266 153,686 97,791 407,333 99,336 9,079 137,091

7,915,458 3,457,506 1,142,081 1,334,218 481,388 1,072,394 71,962 495,801 549,942 223,521 321,045 144,245 225,495 594,817 192,501 19,567 172,716 98,980 3,555 72,081

Table 10. Top 20 Fastener Export Destinations of Brazil by US$ FOB Country Argentina United States Paraguay Germany India France Mexico Bolivia Uruguay Colombia Chile China Thailand South Africa Peru Dominican Republic Japan Czech Republic United Kingdom Italy

2018 (Jan-Jun)US$ FOB 16,291,259 7,758,298 5,146,069 4,647,483 3,199,738 2,973,234 2,104,350 1,811,300 1,657,419 1,423,862 1,143,478 1,106,862 1,104,644 783,536 779,784 507,651 392,667 375,114 349,036 337,925

2017 - US$ FOB

2016 - US$ FOB

2015 - US$ FOB

2014 - US$ FOB

27,595,927 17,143,942 9,413,546 8,487,819 6,218,598 5,924,524 5,082,728 3,129,025 4,316,815 2,380,857 3,837,893 2,356,749 2,286,981 1,370,654 1,568,009 230,926 751,426 627,275 688,798 1,108,702

21,839,124 12,832,409 7,974,397 6,115,683 4,936,453 4,224,057 4,815,556 2,208,336 3,001,860 2,413,322 2,921,576 2,570,007 2,488,862 1,641,242 2,086,157 687,794 469,801 20,412 580,430 1,703,321

27,302,810 13,154,882 8,463,440 4,630,502 5,562,150 2,299,402 5,663,120 3,595,537 2,937,690 3,109,945 2,834,750 4,305,796 2,031,676 1,994,279 2,272,841 366,739 267,128 28,427 920,745 366,558

32,605,159 15,668,625 9,570,095 5,894,608 5,867,348 1,451,515 4,947,895 3,896,701 4,453,068 4,234,930 3,206,137 5,785,192 2,213,318 2,061,804 1,867,634 213,812 253,609 14,819 1,043,376 519,004

Top 5 fastener categories Brazil exported to the world in the first 6 months of 2018 were: Threaded screws and bolts, of iron or steel, whether or not with their nuts and washers (excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)(731815), nuts of iron or steel (731816), threaded articles, of iron or steel, n.e.s. (731819), non-threaded articles, of iron or steel (731829), and coach screws of iron or steel (731811). If calculated by US$ FOB, top 5 fastener categories Brazil exported to the world in the first 6 months of 2018 were: Threaded screws and bolts, of iron or steel, whether or not with their nuts and washers (excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)(731815), non-threaded articles, of iron or steel (731829), nuts of iron or steel (731816), threaded articles, of iron or steel, n.e.s. (731819), and washers of iron or steel (excl. spring washers and other lock washers)(731822).

Industry Focus 111 Table 11. Main Exported Fastener Categories by Net Weight SH6 Code

2018 (Jan-June)Net Weight

2017 - Net Weight

2016 - Net Weight

2015 - Net Weight

2014 - Net Weight

6,616,911

13,131,328

10,880,517

10,800,968

11,291,535

731816

2,281,119

4,106,619

4,127,731

3,332,514

3,599,711

731819 Threaded articles, of iron or steel, n.e.s.

713,665

1,714,781

1,064,387

712,521

632,320

731829

Non-threaded articles, of iron or steel

625,433

1,479,627

1,505,001

1,384,919

1,414,695

731811

Coach screws of iron or steel

559,930

867,810

857,454

264,346

475,195

731814

Self-tapping screws, of iron or steel (excl. wood screws)

517,224

772,610

717,542

572,505

511,392

731812

Wood screws of iron or steel (excl. coach screws)

384,077

879,958

573,904

393,245

616,096

731822

Washers of iron or steel (excl. spring washers and other lock washers)

237,540

545,239

541,814

536,977

513,691

731823

Rivets of iron or steel (excl. tubular and bifurcated rivets for particular uses)

200,696

373,564

582,645

534,989

485,951

and other lock washers, 731821 Spring washers of iron or steel

114,844

354,851

289,026

281,260

302,673

SH6 Description

Nuts of iron or steel

731824

Cotters and cotter pins, of iron or steel

35,181

87,827

84,848

72,526

64,878

731813

Screw hooks and screw rings, of iron or steel

13,360

26,362

15,132

19,525

20,790

Table 12. Main Exported Fastener Categories by US$ FOB SH6 Code

SH6 Description

2018 (Jan-Jun) US$ FOB

2017 - US$ FOB

2016 - US$ FOB

2015 - US$ FOB

2014 - US$ FOB

25,892,186

51,089,520

42,637,308

47,519,722

55,446,889

731829

Non-threaded articles, of iron or steel

9,851,618

19,609,980

17,164,960

17,858,851

21,347,210

731816

Nuts of iron or steel

8,446,137

15,465,455

15,339,869

15,677,047

17,934,721

731819 Threaded articles, of iron or steel, n.e.s.

4,504,640

10,020,349

5,173,010

4,800,502

4,864,363

2,499,424

5,926,774

4,528,080

5,272,589

6,237,063

731823

Washers of iron or steel (excl. spring washers and other lock washers) Rivets of iron or steel (excl. tubular and bifurcated rivets for particular uses)

1,902,847

3,575,265

4,358,902

4,731,646

5,347,325

731814

Self-tapping screws, of iron or steel (excl. wook screws)

1,709,353

2,617,883

2,225,863

2,771,299

2,442,952

731812

Wood screws of iron or steel (excl. coach screws)

1,080,661

2,081,176

1,331,130

1,134,429

1,922,706

731811

Coach screws of iron or steel

926,401

1,439,431

1,495,491

593,502

1,007,819

and other lock washers, 731821 Spring washers of iron or steel

901,112

1,958,148

1,673,296

1,999,899

2,633,280

731824

Cotters and cotter pins, of iron or steel

623,606

1,282,517

1,214,016

1,117,153

1,201,946

731813

Screw hooks and screw rings, of iron or steel

68,578

138,378

85,057

132,483

146,283

731822

112

Emerging Fastener Markets News

Emerging Fastener Markets

113

Russian Companies are Approaching “Industry 4.0” 俄國企業朝工業4.0路線邁進 The jump to “Industry 4.0” gives the Russian enterprises a chance to overtake the lag. As examples: "ODK-Saturn", "Kalashnikov Concern", "RosElectronics".

全球新興市場新聞

On the basis of "ODK-Saturn" the first "smart factory" is being created in Russia. At the enterprise a testing ground for development of innovative production technologies will be created. The ground site is planned to be launched before the end of the year. At the site the prototypes of high-tech solutions will be developed and adapted for mass production. Domestic ideas and developments of "Industry 4.0" format will be tested at the real production conditions. arranged by Fastener World

Similar technologies are being introduced in other industries as well. In the automotive industry the production of a fundamentally new UAZ “Patriot” car of the 2020 model line has already equipped with “the factory of future”, and the company “VolgaBus” works with the help of a new program to create the unmanned commercial vehicles. The largest nuclear icebreaker "Arctic" at the "Baltic Plant" is also built using electronic systems. Several other projects are being implemented in the aircraft industry and the rocket and space industry. By 2035 it is planned to create 40 smart "factories of future" in Russia, as Denis Manturov, Industry and Trade Minister, said during the industry forum “Innoprom”.

Strategy for Development of the Automotive Industry Until 2025 is Approved 2025年前俄羅斯汽車產業發展方針確立 Strategy for development of the automotive industry until 2025 is approved by the Order of the Russian Federation Government on April 28, 2018 (hereinafter - the Strategy). The Strategy is a continuation of the Strategy for development of the automotive industry for the period to 2020 (approved by the Order of the Ministry of Industry and Trade of the Russian Federation in 2010) and contains new actual priorities for the industry development in the context of the changed parameters of macroeconomic development and the development trends of the automotive market. The strategy identifies the following objectives: • satisfaction of 80-90% of domestic demand for the modern automotive equipment by the Russian manufacturers; • growth in exports of automotive equipment and components; • upbuilding technological competencies of national manufacturers of automotive equipment and components by deepening the localization of manufactured cars to 70-85%; • bringing to the market the products with fundamentally new properties in the field of electric driving, autonomous driving, connected vehicles, gas engine equipment, incentives for such equipment, the organization of after-sales service and the creation of the necessary engineering and transport infrastructure. As one of the key mechanisms of upbuilding productive and scientific potential, it is envisaged the creation of technological consortiums.

At the 3rd International Forum of Engine Building the Details Made of New Alloys were Presented 第三屆國際引擎打造論壇探討採用新型合金等議題 "All-Russian Institute of Light Alloys" and "United Engine Building Corporation" presented their joint developments at the 3rd International Forum of Engine Building, which was held in Moscow at VDNH from April 4 till 6, 2018. At the stand of "VILS" the visitors could see the workpieces for the advanced aviation and marine gas turbine engines. The semimanufactures were made of the series granulated heat-resistant EP741NP alloy and new granulated alloys of the "VVP" class. This was reported by the press service of JSC "RT-Project Technologies". At the moment, "VILS" conducts research work on the order of “ODK”. The work is aimed at the creation of a scientific and technical reserve for the production of details of the modern aviation turbojet engines and the development of new high-temperature granulated nickel alloys. "In addition, the technology for the production of fasteners with an increased level of performance for the new engine “PD-14” will be developed", - it is said in the report.

114

Emerging Fastener Markets News

Confirmed Increase in Brazilian Automotive Production and Licensing 巴西汽車生產及掛牌數上升 In a press release, the Brazilian national automakers association (Anfavea) reported that the domestic automotive production reached 431.6 thousand units of vehicles in Feb./Mar. 2018, which is 15% up from the 375.1 thousand units in the same corresponding period of 2017. At the same time, 338.2 thousand units of vehicles were licensed in the domestic market, which means an increase of 19.5% from the record of 282.9 thousand units in February/March last year. The export showed a growth of 7.2% as well: 112.7 thousand units against 105.1 thousand units in 2017. In the production of trucks and buses, it ended with 14.5 thousand units of trucks in the two months, 47.8% higher than the 9.8 thousand units produced in the same corresponding period last year.

Brazilian Fastener Export Shows Growth in Feb./ Mar. 2018 2018年二三月巴西扣件出口呈現成長 According to the Ministry of Industry, Foreign Trade and Services (MDIC) of Brazil, Brazilian companies exported US$ 18.29 million worth of fasteners in Feb./Mar. 2018, 41.5% up from the total value recorded in the same corresponding period of 2017. 4,064.45 tons (an 89.2% increase) of bolts, screws, nuts and similar articles were sold to other countries. The average FOB price was US$ 4.50 per KG, a fall of 25.2%. In terms of import, the result was superior, which shows US$ 112.47 million worth of products were bought (an increase of 11.1%). Among these products, fasteners represented more than 20.8 thousand tons, an increase of 20.8%. The FOB price was US$ 5.38 per KG, dropping by 8.2%.

Brazilian Fastener Import Grows 9.2% in 2018 2018年巴西扣件進口成長9.2% The effects caused by a strike of the transport sector occurred last May are, of course, not considered. However, the activities in Brazil continue oscillating, but on a growing trend. Whoever disagrees, consult our source, the Ministry of Industry, Foreign Trade and Services (MDIC). As it produces more, the country consumes more, which expands activities for all, including the consumption of fasteners, whether produced domestically or imported. The monthly average of fasteners imported in 2018 exceeds the figure recorded in 2017 by 9.2% in ton, and the same thing happened in monetary value, with a 13.98% increase of purchases in US dollars. Dividing the total registered by the MDIC, in 2017 a little over US$ 595.55 million (US $ 49.6 million/month) was destined for this importation segment, corresponding to 112,192 tons (9,349 tons/month). From January to May 2018, the MDIC recorded US$ 282.85 million (US$ 56.57 million/month), corresponding to 51,061.192 tons (10,212 tons/month). The upcoming audits will show how much the transport strike has rocked the market. Historically, the second half of a year in Brazilian economy is often better than the first half, and if the scenario keeps so, it will be so good, especially if we compare the clouded and recent times.

Update for Taiwan’s Fastener Export in Q1 2018 台灣2018第1季扣件出口統計快報 According to the statistics of Taiwan Customs, in Q1 2018 the main product categories in Taiwan’s fastener export were: Other Screws & Bolts (7318159000), Nuts (7318160000), Selftapping Screws (7318140000), Wood Screws (7318120000) and Iron Nails (7317009010). Except for the category of iron nails showing a significant decline of 23.80%, other top 4 categories all showed a growth between 7-9%. The total export volume of Other Screws & Bolts (7318159000) and Nuts (7318160000) represented more than 70% of the total export volume (about 0.4 million tons) of Taiwanese fastener industry to the world in Q1 2018. If viewed by export destination, in Q1 2018 the top 5 destinations for Taiwan’s fastener export were: USA, Germany, the Netherlands, Japan and Canada. More than 40% (about 0.16 million tons) of Taiwanese fasteners were exported to USA in the period.

Emerging Fastener Markets News

Taiwan Fastener Export to USA Over 106 Thousand Tons in the First 2 Months of 2018

Avg. Price of Taiwan’s Fastener Export to Europe in Q1 2018 Increases by 17.37% YoY

2018前兩個月台灣螺絲銷美餘10.6萬噸 Taiwan fastener industry exported 46 thousand tons of screws to USA in the first 2 months of 2018. Although the volume is less than the volume in January 2018, it still shows growth if compared to the same corresponding period of 2017. Plus, the avg. price for Taiwan’s screw export to USA increased by 13.28% to USD2.743/KG (compared to 2017). The total volume of screws Taiwan exported to USA in the first 2 months of 2018 reached 106 thousand tons. The volume and the price both show significant growth. On the other hand, with U.S. economic growth being continuously stable and USA being the biggest screw export destination for Taiwan, it is expected that Taiwan will continue to perform really well in its screw export to the whole world this year.

115

2018第一季台灣螺絲銷歐價格較去年同期上升17.37% According to the statistics of Taiwan Customs for fasteners in Q1 2018, this March Taiwan exported nearly 50,000 tons of fasteners to Europe, which shows a two-digit growth if compared to the same corresponding period last year or this Feb. If reviewed by the whole quarter, Taiwan exported 137,866 tons of fasteners to Europe in total, up 5% from the same corresponding period last year. The average export price per KG reached 2.8 USD, up 17.37% from the same corresponding period in 2017.

Taiwan’s Fastener Export to Iran in Q1 2018 Slumps 2018第一季台灣螺絲銷伊朗大幅下滑 According to Taiwan Customs’ import/export statistics, from 2014 to 2017, Taiwan exported roughly 10,000 tons of fasteners to Iran per year (It exported 9,014 tons in 2014 with the avg. price of 2.057 USD per KG; it exported 10,264 tons of fasteners in 2015 with the avg. price of 1.95 USD per KG; it exported 10,087 tons of fasteners in 2016 with the avg. price of 1.813 USD per KG; it exported 10,013 tons of fasteners in 2017 with the avg. price of 2.034 USD per KG). However, in Q1 2018, Taiwan only exported 1,663 tons of fasteners (avg. price:2.18 USD/KG) to Iran, a significant slump of 73.4% from last year’s corresponding period. Plus, after USA withdraws from the nuclear agreement with Iran, the economy of Iran may be negatively influenced. As a result, many Taiwanese companies do not think that they could reach the same level of 10,000 tons this year in the export to Iran and the export to Iran is not promising in the short term.

Kamil Başaran has Become the CEO of Norm Holding Kamil Başaran先生接任土耳其Norm集團新任最高執行長 Norm Holding, the leader of fasteners market of Turkey with over two thousand employees and annual production capacity of approximately 94 thousand tons, has assigned Kamil Başaran, one of the experienced directors, to the CEO position. Fatih Uysal, the Chairman of the Board of Directors of Norm Holding said, “ Kamil Başaran has been in the automotive sector for most of his professional life. We, as a group of companies working with automotive giants of the Word, wish to extend our market more in this sector. We have every confidence in Mr. Başaran in carrying Norm Holding to future targets.”

India Continues to Show Strong Demand for Taiwanese Screw Forming Machines 印度對台螺絲成型機台採購需求續強 According to relevant statistics, in Jan. and Feb. of 2018 Taiwanese machine tools were mainly exported to Indian customers (total export value to India: USD 26 million; YoY ratio: up to 98%), making India the biggest purchasing country of Taiwanese machine tools. The 2nd biggest purchasing country of Taiwanese machine tools was Italy (total export value to Italy: USD 17 million; YoY ratio: 45.1%). Some machinery suppliers said that the market for Taiwanese small screw forming machines in China has been nearly saturated and the amount China purchased from Taiwan is only half the amount India purchased from Taiwan. As a result, it is expected that India may become a dark horse in the fastener industry in a couple of years.

116

Emerging Fastener Markets News

EFC Accelerates Growth Into Mexico 美國EFC加速成長布局墨西哥 EFC International, a leading supplier of engineered fasteners, with their corporate office in St. Louis, Missouri, continues to expand their global presence with the establishment of their office and warehouse in Mexico, EFC Global, S de RL de CV. “Our recently established legal entity and operations in Mexico, including a warehouse in Querétaro, outside sales engineers, customer service and support staff in Mexico, enables EFC to enhance our service level in the region. We’re able to respond more quickly and hold inventory in closer proximity to our customer base. We also are positioned to act as a key channel partner into Mexico for our strategic partner suppliers. With our locations in the United States, Mexico, Germany, China and South Korea, EFC truly has become a global leader in the supply of engineered fasteners and components. EFC enables multi-national OEM customers and suppliers to utilize our services on multiple continents, taking advantage of our global network to mitigate supply chain risks and improve local service,” said Mary Becker, Vice President of North American Sales. Expanding its global footprint and investing in key strategic global markets, EFC ensures both supplier and customer needs are met. EFC’s robust international growth is a tribute to the EFC team and to the strong international reputation of the world-class manufacturers who they have partnered with. These partnerships ensure customers receive the high-quality service they’ve come to expect from EFC – anywhere in the world.

Bossard China Signed a Research Cooperation agreement with Shanghai University of Engineering Science Bossard中國分公司與上海工程技術大學簽署研究合作協定 Bossard China signed a research cooperation agreement with Shanghai University of Engineering Science. Bossard China will provide "Scholarship" & internships, jobs for the students and also will support students accomplish their graduation project and other work. Prexy Cai introduced the foundation of cooperation to the teacher and student delegates, she said the professional skill of Bossard on the engineering application is a very important support for mechanical engineering department. Secretary Mao’s speech affirmed the strategic significance of the cooperation. Shanghai University of Engineering Science and Bossard signed a strategic framework agreement which covers education base "industry-university-institute" cooperation, off-campus practice base and scholarship. This will make a solid foundation for product and technology development, student education and training as well as enterprise employment. Bossard China looks forward to working with students and professors of Shanghai University of Engineering Science.

Best Lightweight Solutions Innovation Award for Bossard China

Vossloh Wins €30 Million Order for Rail Fastening Systems in China 德國Vossloh獲中國3,000萬歐元鐵道扣件訂單

柏中緊固件(上海)獲頒最佳輕量化緊固方案創新獎

With its Group company Vossloh Fastening Systems China Co. Ltd., Kunshan, Vossloh has won another tender for the supply of rail fastening systems in China. The order amounts to a converted volume of about €30 million, underscoring the continued strong market position of Vossloh with rail fastening systems in the highspeed segment in the focus market China.

Bossard China was honored with the “Best Lightweight Solutions Innovation Award” at the 8th China International New Energy Vehicle Forum 2018. May 17-18, 2018. Nearly 800 professionals including vehicle manufactures, electric control companies, battery manufacturers, component suppliers, core technology providers and government agencies from around the world attended the forum, discussed the challenges, opportunities and countermeasures in depth and constructively. Since the weight of the car has a direct impact on its fuel efficiency, the automotive industry seeks advanced materials and technology to reduce vehicle weight. However, traditional fastening solutions are difficult to use with new materials. Bossard's regional engineering & business development manager spoke about lightweight fastening solutions bigHead® Lean Bonding & ecosyn BCT®. These solutions won “Best Lightweight Solutions Innovation Award.”

A sub-section of the route currently under construction from Zhengzhou, in eastern China, to Wanzhou, a district of the megacity Chongqing, located southwest of Zhengzhou, is to be equipped. Deliveries for the so called “Zheng Wan Chongqing section” project are primarily scheduled for 2019. Vossloh has been present in China since 2006. Kunshan-based Vossloh Fastening Systems China Co. Ltd. is one of the locally leading providers of rail fastening systems for use on high-speed lines. In China, the world’s largest and most modern rail network is located. Since the end of 2017, more than 23,000 kilometers of track for high-speed trains have been in operation. Additional high-speed projects are under construction and should expand the rail network to 38,000 kilometers by 2025.

Emerging Fastener Markets News

Sundram Fasteners (Zhejiang) Limited Inaugurates a New Forging Plant in Haiyan

117

桑德蘭緊固件(浙江)海鹽新鑄造廠舉行開業典禮 On April 26th, Sundram Fasteners (Zhejiang) Limited inaugurated its new forging plant located in Haiyan Province of China. Important officials and the management from the local government, The Consulate General of India in Shanghai, and Sundram Fasteners all made their presence in the grand ceremony. The construction of this forging plant was started in March 2017 and was completed in April 2018. The total investment value was around USD 13 million and the manufacturing site spans the area of 19,600 sq m in total. The annual capacity of various forged parts is planned to be 20,000 tons. After the inauguration, the management from Sundram Fasteners also led all attending guests to visit the new forging plant.

More Than 100 Thousand fischer Anchors were Used at the Construction of a Stadium in St. Petersburg 聖彼得堡足球場建設使用超過10萬支fischer錨栓 Football stadium "Saint Petersburg" was designed by the Japanese architect Kisho Kurokawa. The arena is equipped with a sliding roof with a diameter of 286 meters and a retractible field weighing 8,400 tons. Stability and reliability of the innovative construction worth 43 billion rubles are provided by a great amount of steel and chemical anchors of fischer. The injection molding fischer FIS EM and FBN II anchor bolts are used to fasten the metal structures of the sliding roof and reinforce the grillages. " The choice in favor of the fischer systems for fixing the stadium structures was made primarily due to the proven technical efficiency of the fischer systems and their ease of installation. At the moment Arena is the most innovative stadium in Russia, therefore it is especially important the fasteners to guarantee the high reliability of the facilities”, - Andrey Egorov, General Director of “Fisher Fixing Systems Rus” comments.

Japanese Fastener & Hardware Trader Eto Opens Offices in China and Vietnam 日本扣件五金貿易商衛藤在中國與越南開設事務所 To open up its world market, Eto Co., Ltd. set up bases in Dongguan City of China and Hanoi City of Vietnam that have started operation since April. The Guangdong office is titled Eto (Shanghai) International Trading Co., Ltd. Dongguan Officee. The Hanoi office is titled "The Representative Office of Siam Eto Co., Ltd. in Hanoi City".

BSW Exports to 118 Countries 白俄羅斯BSW出口突破118國 In the four months of 2018, BSW exported $384 million worth of metal products, which is 36 percent more than the value recorded in the similar period of 2017. In total, it has shipped more than 596 thousand tons of metal products. Since the beginning of this year, BSW has not only increased its export, but also has expanded its presence in the steel world market. Its wire rod has been shipped to the 118th country – Guatemala, absolutely new for BSW export. With new kinds of metal products for specified period BSW also has entered the markets of Denmark and Mali. The markets of Europe, the USA and the CIS all shared significant values in BSW export during the 1st quarter of 2018.

BSW Has Shipped Million Tons of Goods Made in the Hardware Workshop BSW五金廠出貨量達百萬噸 The workshop №2 of Belarus Steel Works shipped for export the first million tons of metal rolling. Now BSW in workshop №2 is producing over 50 types of bars, 27 - types of wire-rod, 5 types of reinforcing. More than 75 % of metal rolling is going for the export to over 30 countries. Among customers of these goods are companies, which produce accessories for leading automobile concerns.

3M Company Begins Retail Sales of Industrial Adhesive Tape in Russia 3M公司開始在俄羅斯販售工業用黏著膠帶 3M™ VHB™ tape has appeared in the stores of "VseInstrumenti.ru" network. Previously, the industrial adhesive tapes of 3M were available mainly for wholesale orders of industrial enterprises, now they can be purchased at retail for the needs of small businesses and household needs. "Now 3M products, which have proved themselves at the world market, will become more accessible to the Russian consumers. We are confident that they will be in demand among buyers”, - Gleb Trofimenko, director of the 3M industry business group, commented. The trademark VHB ™ was registered in the Russian Federation in 2017. VHB tapes are widely used in Russia.

118

Emerging Fastener Markets News

Steelworks Unit Reactivated at Mogi das Cruzes After Recession 因應市場回溫位於Mogi das Cruzes 的鋼品工廠將再度重啟 The Gerdau Group announced the unit in Mogi das Cruzes, a town located in the metropolitan region of São Paulo, has been in operation since earlier this March, which also immediately opens 110 direct new jobs. Driven by the recovery of the local automotive production, the steelworks has an installed capacity to make 375 thousand tons of special steels per year. Also, Gerdau has two other special steel mills: one in Pindamonhangaba town (SP state) and another in Charqueadas town (Rio Grande do Sul state), totaling an annual installed capacity of 1.4 million tons, with full conditions to meet the expanding demand of the automotive industry. In 2015, there were around 350 direct employees in this unit, in which around 250 were laid off later and the furnaces were turned off, keeping just 100 employees to work in other divisions, such as maintenance and commercial operations. However, in the end of 2017, the company scheduled the restart under the trust on a new economic phase in Brazil. Ultimately, not just in Gerdau, several industries and automakers have also begun to hire new employees as a routine. In the second week of March 2018, the industrial plant of Mercedes-Benz in São Bernardo do Campo city - SP, announced the opening of 400 jobs to assembly lines for trucks and buses.

VW Announces Recall Due to Improper Fastening of Ball Joint 因部件不恰當接合福斯汽車巴西分公司宣布召回特定車款檢修 Earlier this March, the subsidiary of Volkswagen in Brazil announced a recall involving the compact models Gol, Voyage and Up, year/model 2018, to a maintenance service due to improper attachments on front suspensions. The service will take about 30 minutes. According to the automaker, there is a possibility of ball joint loosening and evident risk of accidents. However, the recall this time involves only 15 units.

Risk of Wheel Bolts Loosening Results in Recall of Ford Fusion Imported to Brazil 輪胎螺栓潛在鬆脫風險導致進口至巴西的福特Fusion車款進行召回 More than 32 thousand units of Ford Fusion “made in Mexico” during 20142018 sold to Brazil, are involved inside the same big recall that hit around 1.4 million from this model and another similar model, the Lincoln MKZ, in USA. According to the Automaker, the technical reason is the possibility to cause a loss of fastening force of the bolt that keeps the steering wheel to the steering column of the vehicle securely. In this situation, the driver will initially notice a vertical oscillation of the steering wheel and, in case of prolonged use of the vehicle; the steering column steering wheel could detach. The repair and replacement of the bolt is fast and will take just 20 minutes.

Chin Well to Make Vietnam Focal Point for Fastener Ops 馬來西亞晉緯控股公司將越南定為扣件事業發展的重點 Vietnam will play a key role in Chin Well's plans to grow its fastener business. Group executive director Tsai Chia-ling said that Vietnam is where the group would focus its resources as the country offered cheap labour who could be trained cost effectively. Tsai said the group is now planning for its Vietnam operations to produce more do-it-yourself (DIY) and other types of fasteners. “In July, the Vietnam facility will start to manufacture a new range of fasteners for South-East Asian market. “These new fasteners will be used to connect reinforced concrete bars used in high-rise buildings,” she said. According to Tsai, the group will also raise the production volume of DIY fasteners at its Vietnam plant in the third quarter. She said it is talking to a big DIY customer in the United States who could take up about 15% of the group’s annual output of fasteners in Vietnam. “We have plans to tap into the European market with our DIY fasteners. Currently, the Vietnam facility produces about 60,000 tonnes of fasteners per year. “We foresee the operations in Vietnam to contribute about 50% to Chin Well revenue in two years, compared to 30%-40% now,” she added. Moving on, the group expects to perform better in the financial year ending June 30, 2018 compared with the previous year. “This is due to the higher prices of hot-rolled coil, which hovers between US$650 and US$750 per tonne now, compared to US$500-$600 per tonne a year ago,” she said. The group is forecasting an output of 140,000 tonnes for the financial year ending June 30, 2018.

Japanese OTC Enhances Coating Service at Thailand Plant 日本OTC公司強化泰國製造廠的塗佈加工服務 OKUYAMA Technical Center Co., Ltd has a manufacturing plant in Thailand that is highly rated within the industry for its coating that exerts excellent antiloosening and sealing performance. In light of this, the Thailand plant will expand the applicantion range of its coating service in 2019 by adding a coating line for products of small diameters to increase productivity. After the addition, there will be two coating lines in total to provide better contracted coating service.

Industry Focus 119

Global Major Carmakers Sales Statistics & Ranking 全球各大車廠銷量統計與排行 by Dean Tseng, Fastener World

The emerging markets see an upturn in the automotive market in 2018, and Taiwan as well as many automotive fastener makers are going in one after another, setting up bases in emerging countries. Focus2Move, which is an automotive statistical analyzer, recently published the ranking of major carmakers for the first half of 2018. The editors of Fastener World have compiled statistics from Focus2Move as well as regional sales figures from carmakers’ financial reports into the following sales charts, through which you can overview the sales condition of global carmakers during 2017 and the first half of 2018.

2017 Global Car Sales by Manufacturer (Adapted from the statistics table made by Focus2Move website; Unit in Vehicles) Rank 2017

Group

Sales 2017

Sales 2016

Variation 2017

Share 2017

Share 2016

2017 Regional Retail Sales Europe: 4,731,000, up 2.0%

Volkswagen Group

10,377,478

10,030,440

3.5%

11.0%

10.9%

10,176,362

10,007,207

1.7%

10.8%

10.9%

10,075,185

9,504,725

6.0%

10.7%

10.3%

North America: 992,000, up 2.4% South America: 526,000, up 24.9% Asia: 4,527,000, up 3.6%

2 3

Toyota Renault Nissan Alliance

Americas: 1,185,000, up 3.1%. 4

Hyundai-Kia

7,246,003

7,940,022

-8.7%

7.7%

8.6%

General Motors

6,861,601

6,834,317

0.4%

7.3%

7.4%

AMEA: 1,020,000, down 0.5%. China: 785,000, up 14.6%. Europe: 767,000, up 0.8%. Americas: 3.4 million, up 3%

Ford

6,243,891

6,345,109

-1.6%

6.6%

6.9%

Middle East & Africa: 0.1 million, down 50% China: 1.2 million, down 7.6% ASEAN: 0.1 million, up 0% Japan: 668,000

Honda

5,323,537

4,950,068

7.5%

5.7%

5.4%

8 9 10 11

F.C.A. P.S.A. Suzuki Mercedes Benz

4,791,661 4,106,791 3,155,619 2,638,826

4,776,789 4,274,662 2,826,964 2,452,026

0.3% -3.9% 11.6% 7.6%

5.1% 4.4% 3.3% 2.8%

5.2% 4.6% 3,1% 2.7%

North America: 1,970,000 Europe: 184,000 Asia: 1,964,000

Europe: 1,101,800, up 0.8% 12

BMW

2,456,511

2,385,085

3.0%

2.6%

13 14

Geely Group SAIC Motor

1,925,955 1,803,877

1,406,112 1,722,743

37.0% 4.7%

2.0% 1.9%

1.5% 1.9%

Americas: 451,100, down 2.0% Asia: 848,800, up 13.5%

Japan: 203,000, down 12.5% 15

Mazda

1,575,796

1,529,757

3.0%

1.7%

16 17 18

ChangAn Dongfeng Motor BAIC Fuji Heavy Industries GM-SAIC-Wuling

1,426,965 1,090,215 1,083,021

1,400,812 1,052,679 1,228,695

1.9% 3.6% -11.9%

1.5% 1.2% 1.1%

1.5% 1.1% 1.3%

1,056,929

1,011,567

4.5%

1.1%

1,017,662

760,292

33.9%

1.1%

0.8%

North America: 429,000, down 2.0% Europe: 262,000, up 1.9% China: 292,000, up 24.2%

19 20

120

Industry Focus Rank 2017

Group Great Wall Motors Tata Chery Automobile GAC Group Jac Motors

21 22 23 24 25

Sales 2017

Sales 2016

Variation 2017

Share 2017

Share 2016

1,006,322

1,090,841

-7.7%

1.1%

1.2%

828,240

759,989

9.0%

0.9%

0.8%

648,390

689,401

-5.9%

0.7%

510,048 444,657

392,856 598,094

29.8% -25.7%

0.5% 0.5%

0.4% 0.6%

2017 Regional Retail Sales

Volkswagen tops sales chart for 2017 at 10.37 million vehicles sold, accounting for 11% of the global share, closely followed by Toyota at the second place and Renault Nissan Alliance at the third place. The top three’s sales all break the one million mark with respective market shares at above 10%. Hyundai-Kia, General Motors, Ford, and Honda have their sales ranging within 5 to 7 million vehicles with market shares between 5% and 8%. The 20th place in the chart, namely GM-SAIC-Wulings has the largest growth margin at around 34%, followed by Geely at 37% and GAC at nearly 30%. In the top twenty five, 70% of the carmakers show positive growth, having their sales above the level of previous year. However, their global market shares have less obvious changes between 2016 and 2017 with growth margins within plus and minus 1%. Interestingly, 9 out of the top 25 carmakers come from China and they take up the most places in the chart. If we count in GM-SAIC-Wuling which involves Chinese investment, the number of Chinese carmaker in the chart will increase to 10.

2018 Jan.-May Global Car Sales by Manufacturer (Adapted from the statistics table made by Focus2 Move website; Unit in Vehicles) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Brand Toyota Volkswagen Ford Nissan Honda Hyundai Chevrolet Kia Renault Mercedes Peugeot BMW Audi Maruti Mazda Jeep Fiat Suzuki Geely Changan Buick Skoda Mitsubishi Citroën

Sales 2018 3,543,827 2,903,068 2,388,522 2,063,453 2,020,648 1,805,983 1,659,036 1,200,121 1,105,928 1,092,761 922,802 857,335 795,014 751,520 699,655 670,956 666,806 619,163 597,221 592,938 548,388 538,435 510,513 479,683

Variation 2018 0.8% 6.2% -5.9% -0.7% -0.3% 3.7% 5.1% 9.2% 3.2% 5.2% 6.8% 0.6% 4.6% 14.0% 8.3% 18.6% -7.3% 6.1% 32.5% -6.0% -1.8% 10.2% 25.6% 9.1%

Share 2018 9.0% 7.4% 6.1% 5.3% 5.2% 4.6% 4.2% 3.1% 2.8% 2.8% 2.4% 2.2% 2,0% 1.9% 1.8% 1.7% 1.7% 1.6% 1.5% 1.5% 1.4% 1.4% 1.3% 1.2%

Wuling

476,827

-9.9%

1.2%

The brand ranked the 1st place in the first 5 months of 2018 is currently Toyota at 3.54 million vehicles over Volkswagen’s 2.9 million. The third to fifth places are Ford, Nissan and Honda at the level of around 2 million. The sixth to tenth places have their sales between 1 and 2 million. The one with the largest growth margin is Geely at over 30%, followed by Mitsubishi at around 25%. Similar to 2017, 70% of the top 25 show positive growth in the first 5 months of 2018. What is different is that the number of Chinese carmakers that have made into the top 25 decreases from 9 to 3. The European carmakers take up the most places in this chart.

What Could We Know from the Figures Overall, we cannot overlook the rise of Chinese carmakers in 2017. For the last 3 years the Chinese government has been backing the domestic automotive technology involving IoT, electric cars, and car sharing. The business models of “IoT as a service” and “service as a product” boost the domestic car demand in China which may well compete on equal terms with the American and European carmakers in the future. That is why the American and European carmakers took the initiative to focus on developing electric cars and intelligent web-based connectivity. As gas engines will gradually be replaced with lightweight components in future cars, the automotive fastener industry should think about how the automotive supply chain will change the fastener supply chain and then react in advance.

122

Industry Focus

An Analysis of Russia’s Fastener Import and Export Statistics in Full Year 2017 2017俄羅斯扣件進出口數據剖析 by Shervin Shahidi Hamedani

Russia is the largest country in the world and its economy is the world's elevent h-la rgest. T h is cou nt r y still continues to play an important role in the global economy as one of the major global contributors. After a period of recession, this country succeeded to return to growth last year in spite of Western sanctions, which continuously decreased the purchasing power of this country. The Russian manufacturing sector watched sig ns of en ha ncement a nd st r e ng t h e n i ng c on f id e n c e i n 2 017. The perception of the current Russian industry state as well as its views on the future outlook is dominated by positive projections. Although the players in manufacturing vary in sectors, the positive outlook of certain sub-groups such as steel, automotive, aircraf t, and ship manufacturing is expected. Consequently, these growing sectors will be increasing the demand for fasteners in this country. There are robust opportunities for fa st ener ma rket i n se ctor s such a s construction and automotive in Russia. The automotive market, for instance, began to improve in 2017 and it has exposed a wide-ranging improvement in the country’s economy and its future looks promising. The increasing localisation of automotive component production facilities in Russia will also increase the demand for fasteners. An increase in consumption and spending as well as the government support are the major growth drivers of this market. This emerging trend could have a direct impact on the fastener industry, which consist of the local manufacturing development and fastener imports. The potential of the Russian market for fasteners is substantial. High import duties in Russia and high demand for quality products make excessive motivations for local manufacturing to invest, advance st a nd a rds a nd ra ise ma nu fact u r i ng efficiency.

Both value and quantity of imported and exported fasteners of Russia in 2017 rose significantly. Based on the data from ITC Trade Map, trade statistics for international business development, the value of Russia’s imported and exported fasteners in 2017 summed up to 806.5 million US dollars, up about 23% from year 2016, while the quantity of the country’s imported and exported fasteners last year totalled about 379 thousand tons, up 12% from its previous year. (Unit: 1,000 USD)

2013

2014

2015

2016

2017

Import Value

841,490

756,993

546,496

593,078

720,798

Export Value

103,796

82,452

65,038

64,320

85,673

Total Trade

945,286

839,445

611,534

657,398

806,471

The import value in 2017 was near 721 million US dollars, up 22% and the export value was drastically low (about 86 million US dollars), but surprisingly up 33% from year 2016. The trade deficit was about 635 million US dollars in 2017, an increase of about 20% compared to its previous year. (Unit: Tons)

2013

2014

2015

2016

2017

Import Quantity

403,832

365,177

311,457

310,258

346,786

Export Quantity

22,648

22,935

21,982

27,778

32,188

Total Trade

426,480

388,112

333,439

338,036

378,974

It is notable that all the trade statistics in this article and a list of supplying markets for a product imported by and exported to Russian Federation belong to the product category under HS code 7318, which includes screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers, spring washers, and similar articles, of iron or steel. By studying Russia’s quarterly import value of fasteners in 2017, we could see that the import value in Q2-2017 records the highest amount of imports with about 197 million US dollars while Q1-2017 records the lowest value of imports with about 153 million US dollars. On the other hand, the export value shows that Q2-2017 has the lowest value of export with only 19.5 million US dollars while Q4-2017 registers about 21.5 million US dollars of fastener export in 2017. Some other statistics about Russia’s fastener quarterly imports and exports are stated in the following tables. (Unit: 1,000 USD)

Q1-2017

Q2-2017

Q3-2017

Q4-2017

Export Value

21,326

19,478

23,449

21,420

Import Value

151,527

196,767

192,392

180,112

Total

172,853

216,245

215,841

201,532

Industry Focus 123 (Unit: KG)

Q1-2017

Q2-2017

Q3-2017

Q4-2017

Export Quantity

5,898,442

9,123,882

11,043,742

6,122,195

Import Quantity

76,819,497

105,233,156

91,844,619

72,888,775

Total

82,717,939

114,357,038

102,888,361

79,010,970

The top three trade partners, based on Russia’s export value in 2017, were Kazakhstan, Belarus, and India. The value of fasteners exported from Russia to these three countries accounted for about 58% of the total export value of Russia in 2017. The Western sanctions on Russia with no doubt have impacted significantly on Russia’s exports. Export Value (Unit: 1,000 USD)

2013

2014

2015

2016

2017

Kazakhstan

18,315

17,137

14,144

13,936

20,059

Belarus

21,360

17,914

12,837

16,206

17,579

India

20,001

14,064

12,902

7,223

12,006

On the other hand, Russia’s trade partners in relation to its fastener import value were China, Germany, and Taiwan. The value of fasteners exported to Russia from these three partners registered for about 58% of the total import value of Russia in 2017. Import Value(Unit: 1,000 USD)

2013

2014

2015

2016

2017

China

330,933

297,337

228,525

256,974

276,575

Germany

95,978

90,057

53,143

69,980

98,840

Taiwan

59,943

41,829

32,204

29,570

38,735

Amongst all fasteners (of iron or steel) imported to Russia, threaded screws and bolts, selftapping screws and nuts were the major imports in 2017 with the total value of 517 million US

dollars. Accordingly, the total quantity of imports for these three types of fasteners in 2017 was 270,739 tons. T he product t ypes for Russia’s fastener exports, in terms of quantity, were almost the same as its fastener imports with the slight changes as threaded screws and bolts, self-tapping screws and th readed ar ticles were the major exports in 2017. The total quantity of fastener exports for these product categories in 2017 was only about 25k tons and the value was less than 60 million US dollars. At the end, we should highlight that as it has been seen in the above statistics, Russia is expected to see more development in trade turnover with Asian countries, such as China and Taiwan. That is, within Russian foreign trade, the share of Asian countries in its revenue will be expected to increase in the next few years. Particularly, this growth should be observed both i n fast ener expor t s a nd i mpor t s. Consequently, China, which is the largest trading partner in Asia for Russia will increase its share in Russian fastener imports and exports.

124

Industry Focus

Stamped Parts Market Review in India and Mexico

印度和墨西哥沖壓件市場分析 by Behrooz Lotfian

HS Code 820730 belongs to interchangeable tools for pressing, stamping or punching. Based on the statistics the value of this HS code is between 6.5 billion USD (world imported statistics) to 7.3 billion USD (world exported statistics). The main importers of these products are: Values in thousand USD World USA China Germany Mexico Others

2017 6,544,164 1,236,768 789,044 703,428 688,364 3,126,560

The main exporters of the products in this HS Code are: Market Share 18.9% 12.1% 10.7% 10.5% 47.8%

Values in thousand USD World Japan Germany China S. Korea Others

2017 7,269,344 1,118,812 1,051,646 1,050,079 992,845 4,213,382

Market Share 15.4% 14.5% 14.4% 13.7% 58.0%

Mexico Import section Mexico has bought 10.5% of the total produced stamped tools in the world and it is ranked as the 4th biggest importer in the world. Mexico is the main market of USA, South Korea, China, Germany, Japan and Canada. 92% of the used stamped tools in Mexico has been bought from these 6 countries. Values in thousand USD World

USA S. Korea China Germany Japan Canada Others

2013 595,938 184,553 31.0% 53,486 9.0% 65,762 11.0% 41,046 6.9% 119,969 20.1% 86,416 14.5% 44,705 7.5%

2014 546,957 159,529 29.2% 71,735 13.1% 72,511 13.3% 40,288 7.4% 117,193 21.4% 37,811 6.9% 47,889 8.8%

2015 598,977 232,874 38.9% 87,735 14.6% 74,635 12.5% 18,545 3.1% 66,605 11.1% 75,797 12.7% 42,785 7.1%

2016 728,216 246,491 33.8% 133,678 18.4% 92,396 12.7% 46,264 6.4% 89,757 12.3% 71,737 9.9% 47,892 6.6%

2017 688,364 188,506 27.4% 120,622 17.5% 90,664 13.2% 86,352 12.5% 78,905 11.5% 68,483 9.9% 54,831 8.0%

The graph reveals that 45.0%

After 2 years of constant market share in Mexico, USA increased its market share by about 10% in 35.0% 2015 but it has lost its market in Mexico since 2015. 30.0% USA and Mexico enjoyed a unique and flourishing relationship over the past decades. They were both 25.0% looking for new ways to strengthen their ties in order 20.0% to make North America the most prosperous and 15.0% competitive region in the world. Throughout the 2016 presidential campaign, “alternative facts” regarding 10.0% trade with Mexico or the dynamics along US common 5.0% border along with a toxic anti-Mexican narrative — 0.0% potentially changing the accepted rules of engagement 2013 2014 2015 2016 2017 in U.S. political discourse and public policy toward USA S.Korea China Germany Japan Canada Others its southern partner — have seriously damaged the economic situation between these two countries and its fact have been seen clearly in the statistics. President Trump and Mexican leaders have been in disagreement since the first moments of Trump’s presidential campaign, when Trump accused Mexico of using the United States as a dumping ground for criminals; he went on to campaign on building a wall, imposing a tariff, and revising NAFTA. It has caused the economic relation between these two countries to become worse and the statistics to drop sharply. 40.0%

% in Mexico's Total Import

Mexico-USA

Industry Focus 125 Mexico-S. Korea Mexico is Korea’s largest trading partner in Latin America, while Korea stood as Mexico’s sixth biggest trading partner and its second largest source of Asian foreign direct investment. Based on this experiences Korean stamped parts producers could compensate the lack of stamped tools in Mexico market because of damaged relationship between USA and Mexico. 2017 was the year that South Korea has engaged the presidential issues and it was affected to the internal and external business sector of S. Korea and it is the reason that the market share of S. Korea dropped in 2017 in Mexico. Mexico-China Chinese stamped parts exporters also gained due to the damaged relation between USA and Mexico, but their market share increased very slowly (0.2% increase in 2016 and 0.5% increase in 2017). Mexico-Germany German suppliers suffered in Mexico market in 2015 because of the good relations among North American countries. They lost more than 4% of their market share in Mexico in 2015. They could compensate during 2016 and 2017. They also could cover the problem of S. Korea in the Mexico market in 2017. Mexico-Japan Japanese suppliers’ market share decreased sharply. They were the 2nd biggest exporter to the Mexico market till 2014, but their market share dropped very sharply in 2015 and they couldn’t return to their position till 2017. Mexico-Canada The story of Canada is the same as USA, after America left NAFTA agreement. The relationship in the North America has changed and Canadians also lost their market share in Mexico sharply.

Export Section

(Unit: 1,000 USD)

Mexico's Export to the World

80,000 60,000 40,000

Mexico is not an important stamped tools producer in the world. It produced just 1% of the whole produced stamped tools in the world and its main market is USA. It sent more than 83% of its tools to the USA.

20,000 0 2013

The right graph shows that Mexican producers have increased their production annually since 2014. Values in thousand USD World

USA others

2013 43,044 34,409 79.9% 8,635 20.1%

2014 37,892 32,007 84.5% 5,885 15.5%

2014

2015

2016

2017

Export to the world

2015 44,119 38,244 86.7% 5,875 13.3%

2016 56,178 49,690 88.5% 6,488 11.5%

2017 63,922 53,454 83.6% 10,468 16.4%

India India’s Import Sector India is not a big player in the stamped tools market. It just bought 0.07% of the whole world production and 55% of its demand was supported by S. Korean suppliers. Exporter (Values in thousand USD) World S. Korea

2013

2014

2015

2016

2017

7,837 5,343

9,542 5,427

10,073 4,772

7,908 4,161

4,770 2,645

India’s Export Sector India provides about 0.007% of the whole stamped tools in the world. USA represents 26% of its market and Germany is its 2nd biggest market. India sent 18.4% of its products to the German market. The following table shows the detail of India’s exports. Importer (Values in thousand USD) World USA Germany

2013

2014

2015

2016

2017

495 115 45

1,010 35 72

368 57 32

523 49 113

478 125 88

126

Industry Focus

土耳其汽車生產及對扣件需求影響

Car Manufacturing in Turkey and Its Influence on Fastener Demand by Sharareh Shahidi Hamedani

Introduction

Fastener and Automotive Industries

The statistics show that Turkish manufacturers have increased their production capacity since 2012 annually. Turkey became the 14th biggest car manufacturing country in the world in 2017. Motor vehicles play a significant part of the Turkish economy and they account for 6.6% of Turkish industrial production.

Turkey imported more than 750 million USD worth of fasteners in 2017. 20% of the imported fasteners came from China, 15.4% of the imported fasteners were made in Germany, and France; Japan, Taiwan and Italy were ranked in the next levels (see the following table). The following table shows the detailed data:

The following table elaborates the annual Turkish car production: Year

2017

2016

2015

2014

2013

2012

Unit of 1,695,731 1,485,927 1,358,796 1,170,445 1,125,534 1,072,978 vehicles YoY(%)

14.1%

9.4%

16.1%

4.0%

4.9%

―

Based on ICCT statistics, more than 17 million cars exist on Turkish roads, which means every 1,000 passengers have 118 vehicles. This ratio is about 20% of the ratio of developed countries. For example, the number in Germany is 548. Each year 0.6 million units of passenger cars are newly registered in Turkey. About 73% of the total registrations are imported from abroad (about 438,000 units of cars), while the other 27% of the total registered new cars (about 162,000 units of cars) are produced locally in Turkey. It is concluded that 90% of the total 1.7 million units of cars produced in Turkey in 2017 were exported. Based on Atlas media statistics, the top export destinations of Turkish cars were Germany, UK, Iraq and Italy. The following table shows the detail of the sold foreign car brands in Turkey in 2017: Brand

The Total Units Sold in Turkey in 2017

Renault

48,780

36,710

Fiat

26,650

Hyundai

22,500

Opel

18,790

Ford

18,490

Unit: 1,000 USD

Exporter

2013

2014

2015

2016

2017

World

617,139

626,212

663,758

703,832

753,358

China

181,508

185,196

191,724

177,439

151,893

Germany

98,145

107,647

99,907

103,081

115,762

France

63,414

55,046

56,046

59,062

64,421

Japan

29,830

31,536

29,642

39,246

63,724

Taiwan

42,230

47,283

59,246

66,143

54,285

Italy

34,143

34,112

43,738

47,246

52,667

Others

167,869

165,392

183,455

211,615

250,606

The left table for imported cars shows that the main car exporters to Turkey were from France, Germany, and Japan, while Italy, USA and Romania were ranked in the 4th to 6th levels. On the other hand, instead of China, Germany, France and Japan were the main fastener exporters to Turkey. Comparing imported fastener statistics with imported car brands shows that car exporters and fastener exporters in a certain country could work closely together in terms of export. China is the biggest fastener exporter to Turkey and the biggest advantage that Chinese fastener producers have is their low-price productions. In terms of export, the value of Turkish exported fasteners was more than 365 million USD, the main buyer of Turkish fasteners was Germany, which bought about 40% of the total Turkish exported fasteners. France and Italy were in the 2nd and 3rd places respectively (see the following table).

Dacia

17,150

Toyota

15,560

Importer

2013

2014

2015

Honda

12,750

World

260,935

307,773

287,406

308,656 365,639

Peugeot

12,710

Germany

84,981

109,018

102,807

117,081 145,507

Total

230,090

France

12,021

13,413

12,512

11,474

13,469

Other brands

415,000

Italy

7,872

8,854

8,148

9,931

12,801

156,061

176,488

163,939

Others

2016

2017

170,170 193,862

Industry Focus 127 Statistics show that the main markets for Turkish car export were Germany, UK, Iraq and Italy, and the main importer of Turkish fasteners was Germany, too. Italy also exists in both lists (for main car importers and fastener importers). So, in terms of export both lists are almost synchronized.

It is Time to Invest in the Fastener and Automotive Industries in Turkey Alt hough, about one-fou r t h of Tu rk ish people, i n comparison with developed countries (like Germany), use cars, for Turkey strong growth is expected in future years. Turkey statistics

2013

2014

Produced Car (unit)

2015

2016

Imported Fasteners (500 $)

2017

Exported Fasteners (250 $)

Turkey has a large number of vehicle manufacturing plants (almost 24), with a majority of the local vehicle production being exported abroad. As a result of this strong dependence of the Turkish economy on the automotive industry, it is of particular importance for them to ensure that this industry sector is ready to meet current and future challenges, such as local air pollution, climate change, and energy security, by offering innovative vehicles that can compete on the global market. For following reasons, it seems that it is a good time to invest in Automotive and Fastener industries in Turkey. • High level of integration into the global automotive industry and it is the 14th major automotive producer in the world. • The advantage of vehicles of Turkish origin holds the leading position among the vehicles coming from the outside of EU. • Turkey is a production, export, and engineering hub of global brands for the international market. • Quality products with high export rates. • Strong economic growth with increasing income per capita and a bourgeoning middle-class. • Favourable demographics with a dynamic, young, and skilled labour force supporting the industry. • Cost-competitive labour and energy prices. • Giants of global automotive value chain benefit from Turkey’s location, cost, and competitive advantages. • Because of their profitable business in the country, companies in Turkey continue to invest in the country’s future.

128

Industry Focus

Introduction According to the United Nations, Northern European countries are Denmark, Estonia, Finland, Iceland, Ireland, Latvia, Lithuania, Norway, Sweden and the United Kingdom. The following table shows that the detail of total cars that move on the roads of each countries. Country

Population

UK Sweden Finland Norway Denmark Ireland Lithuania Estonia Latvia

66,181,585 9,910,701 5,523,231 5,305,383 5,733,551 4,761,657 2,890,297 1,309,632 1,949,670

Total Cars on the roads 34,348,242.62 5,153,564.52 3,656,378.92 3,098,343.67 2,752,104.48 2,442,730.04 1,618,566.32 623,384.83 621,944.73

The right table shows that more than 66% of Finnish people have a car, making Finland ranked in the first place, and about 32% of Latvian people have a car, making Latvia ranked in the last place. The right graph shows a harmony in the North European countries, 50% to 60% of people in the most countries in this region have a car.

Car Manufacturing in N. Europe and Its Influence on Fastener Demand 北歐汽車生產及對扣件需求影響

by Behrooz Lotfian

Country Finland Norway Lithuania Sweden UK Ireland Denmark Estonia Latvia

Vehicles for 1000 people 662 584 560 520 519 513 480 476 319

Vehicle for 1000 people 700 600 500 400 300 200 100 0 Finland Norway Lithuania Sweden

U.K

Ireland Denmark Estonia

Latvia

Vehicles for 1000 people

Car Manufacturing Countries in North Europe UK, Sweden and Finland are three main car manufacturing countries in this region. Ranking in the world 40 32 13

Country Finland Sweden UK

2017 91,598 226,000 1,749,385

Percentage of car owners in total population 80% 70% 60% 50% 40% 30% 20% 10% 0% -10%

2017

2016

2015

-20% -30% Finland

Sweden

2016 55,280 205,374 1,816,622

2015 69,053 188,987 1,682,156

2014 45,035 154,173 1,598,879

Unit in vehicle 2013 7,703 161,080 1,597,433

UK Automotive Industry Based on SMMT.co.uk statistics, the automotive industry is a vital part of the UK economy accounting for more than £77.5 billion turnover. With some 169,000-people employed directly in manufacturing and in excess of 814,000 across the wider automotive industry, it accounts for 12.0% of total UK export of goods and £4 billion investment each year in automotive R&D. More than 30 manufacturers build in excess of 70 models of vehicles in the UK supported by 2,500 component providers and some of the world’s most skilled engineers. On the other hand, 1.75m cars built in the UK in 2017, a decline of 4.0% with production for domestic demand down 9.8%. UK car exports remain at a historically high level, down just 1.1% with 1.34m shipped worldwide – 79.9% of total production. British engine manufacturing at record-ever levels, with 2.72m produced, up 6.9% from 2016. SMMT restates need for urgent clarity on Brexit transition, as new calculations show over 10% of exports could be at risk on 30 March 2019 unless we secure all current trading arrangements.

Industry Focus 129 Swedish Automotive Industry Finnish Automotive Industry

Based on fkg.sk statistics, The Swedish automotive industry is an essential part of Sweden’s economy. It generates half a million jobs of which about 136,400 are employed directly. 82,400 of them are found in the supply chain, which constitute almost 30% of Sweden’s engineering industry. In total, it is estimated that the exports of the Swedish automotive industry are worth 180 billion Swedish kronor, which is equivalent to 12% of its total exports. Internationally, Sweden is also a unique country which, despite its modest size, has three vehicle manufacturers who are in many ways leading both in manufacturing and development- Scania, Volvo and SAAB. More than 350 subcontractors in the automotive industry are represented by the Scandinavian trade association FKG; the Scandinavian Automotive Supplier Association.

Vehicle manufacturing industry and related areas employ almost 7,000 persons in Finland. Valmet Automotive in Uusikaupunki produces new passenger cars and Sisu-Auto Oy in Karjaa produces heavy trucks. Additionally, there are several smaller companies manufacturing buses, taxis, trailers and special vehicles. Finland depends on imports of cars and other vehicles.

The Fastener Industry in North European Region The following table shows the volume (unit: 1,000 USD) of fasteners traded in the 3 main car manufacturing countries in N. Europe. It is predictable that UK is the biggest market for fastener trade and in 2017 its market size (export + import) was over 2 billion USD. In the same period Sweden’s market size was about 854 million USD and Finland’s market size was more than 213 million USD. Country Finland Sweden UK

2013 187,792 827,276 2,110,895

2014 207,890 904,979 2,306,052

2015 174,698 763,534 2,124,299

2016 170,173 740,536 2,035,233

UK Fastener Industry

2017 213,386 844,656 2,026,437

15.00%

UK export in the fastener sector is 35% lower than its import, which means UK fastener producers cannot support their local needs. The right graph shows that the growth trends of sectors (imported fasteners and exported fasteners) are both negative.

10.00%

Negative 5.00%

0.00%

Unit: Thousand USD Export Import UK Export / Import

2013 796,626 1,314,269

2014 891,927 1,414,125

2015 803,905 1,320,394

2016 766,624 1,268,609

2017 794,446 1,231,991

60.6%

63.1%

60.9%

60.4%

64.5%

2014

2015

2016

2017

-5.00%

-10.00% Exp. Growth

Swedish Fastener Industry

Import Growth

15.0%

Sweden’s export in the fastener sector is 28% lower than its import, which means Sweden fastener producers, like their counterparts in UK, cannot support their local needs. The right graph shows that the growth trend of imported fasteners is almost constant, and on the other hand, the growth trend of exported fasteners is negative.

10.0%

Negative 5.0% 0.0% 2014

2016

2015

2017

-5.0%

Unit: Thousand USD Export Sweden Import Export / Import

2013 355,804 471,472 75.5%

2014 396,462 508,517 78.0%

2015 326,253 437,281 74.6%

2016 322,777 417,759 77.3%

2017 356,229 488,427 72.9%

Finnish Fastener Industry

-10.0%

Almost constant -15.0% Exp. Growth

25.0% 20.0%

Finland export in the fastener sector is 63% lower than its import, which means Finland’s fastener producers, like their counterparts in UK & Sweden, cannot support their local needs. The statistics show that their imported fastener value is about 3 times bigger than their exported fastener value which means Finland is still a country depending on foreign import in this sector. The right graph shows that the growth trends of imported fasteners and exported fasteners) are both positive, which can be translated to the growth in Finland’s car manufacturing sector. Unit: thousand USD Export Finland Import Export / Import

Import Growth

2013 53,585 134,207 39.9%

2014 56,294 151,596 37.1%

Positive

15.0% 10.0% 5.0% 0.0% -5.0%

2014

2015

2016

-10.0% -15.0% -20.0% Exp. Growth

2015 46,303 128,395 36.1%

2016 44,853 125,320 35.8%

Import Growth

2017 58,070 155,316 37.4%

2017

130

Industry Focus

Threading and Tapping Machines Market Review: 印度與墨西哥搓牙與攻牙機市場

India and Mexico by Shervin Shahidi Hamedani

Introduction

In this article we provide some market insights and trade statistics about threading and tapping machines in the global fastener market with the focus on the Indian and Mexican markets. Such machines are mainly heavy, even non-portable, power-driven equipment enabling manufacturers to mass produce and shape numerous fasteners and metal components. The focus in this article is more on the machines labelled with the HS code of 45970 as a subsector of metalworking machines. In general, metalworking machines use a combination of techniques including forming, cutting, threading, tapping, or even physio-chemical processing to design, shape and manufacture several types of fasteners and components. One of the major factors driving the growth of metalworking and fastener machines demand is the increasing need to enhance efficiency of manufacturing processes. Additionally, growing demand for reducing manufacturing costs has resulted in implementing of metalworking machines in various industries and sectors related to fasteners. Those machines provide ideal use of raw materials and minimizes wastage of raw materials due to errors. In addition to that, with the rising costs of labour across the world, those machines offer a viable solution to the manufacturing sector to reduce production costs with capabilities of working in any environment including high temperature, pressure, and processes. Regardless of vast benefits of those machines and their applications, growth of the machinery market faces a few obstacles pertaining to its high initial costs. The required capital investment could make it difficult for manufacturers to switch from traditional methods. With the vast capabilities of metalworking machines, this market has become lucrative in recent years. In the last five years, private investment in this market has steadily improved in many countries. For instance, in the US, numerous players and manufacturers have invested heavily to design and develop such machinery and made this market worth $35bn in 2017 and experienced solid revenue growth with 1.9% annual growth rate. In 2017, in the metalworking machinery manufacturing market, India and other countries in the Asia Pacific region, in total, registered their names as the largest region with 52% of the global market share. The second largest region in this market was Western Europe accounting for around 25% of the market share. Mexico and other countries in the South America region was the smallest region accounting for around 1% of the market share.

Threading and Tapping Machines Market There has been an increasing demand for threading and tapping machines which is further driving the growth of metalworking machines market. Manufacturers in this market conduct research and development activities to identify and cater to various unique manufacturing processes. With massive growth opportunities in countries including China, Germany, Canada, France, Italy, India, South Korea, Japan, United States, Mexico and Thailand, numerous players seek to develop and manufacture innovative machines. As manufacturing industries expand their production capacity due to increasing use of their products, demand for threading and tapping machines, as one of the major subsets of the global metalworking machinery market, becomes steady for industry operators. Significantly, the demand from the automotive and construction sectors has helped drive revenue growth in this market. This trend is projected to continue over the next five years and therefore industry revenue is expected to rise. The international trade in this sector is considerable because of the high value of the products. In the last few years, global imports were largely from Russia, Thailand, US, Malaysia, and China while the major exporters in the last five years were US, China, Korea, Japan, and Taiwan.

India

The exports of threading and tapping machines from Indian manufacturers have been drastically reduced in 2017 compared with their exports in 2016. In 2017, India exported about USD780,000 machines while in 2016 exports value was about USD 1.6 million. Indian fastener manufacturers still purchase most of their required threading and tapping machines from overseas countries. As illustrated in the right chart, the value of imports in 2017 was slightly more than USD 5 million, which is significantly higher than its exports value in the same year. India Trade Value - Threading and Tapping (Unit: 1,000 USD)

Machines for Metals (HS Code: 845970)

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2013

2014 Imports

2015

2016 Exports

2017

Industry Focus 131 The value of imports registered by Japanese manufacturers alone was about USD 1.8 million in 2017 which is much higher than the value of exports from Indian manufacturers into the global market. In addition to Japan, China, Italy and US are ranked as the major machines exporters into the Indian market. India Imports Value (USD mil) Threading and Tapping Machines for Metals

Top 5 Exports Destinations in 2017 Value in USD

Taiwan

Kenya

USA

Algeria

Italy

China

UAE

Japan

Philippines

0.00

0.50

1.00

1.50

2.00

50,000

100,000

150,000

200,000

250,000

300,000

Mexico

Despite the recent challenges between Mexico and US, Mexico is still a strategic market for U.S. manufacturers. As recorded in 2017 Mexico trade statistics, more than 50% of threading and tapping machines were imported from US. The total value of imports in 2017 was about USD 4 million, and the total imports from US manufacturers was about USD 2.2 million. Interestingly, almost 90% of total threading and tapping machines manufactured in Mexico were shipped to US; however, the value of exports is much lower than imports. The right table below shows that the trade balance between US and Mexico in the last 5 years. The export destinations of threading and tapping machines from Mexican manufacturers were limited to a few countries with the value of about USD 784,000 in 2017. This amount is very close to the total exports value of Indian exporters in this sector, USD 778,000, as stated earlier. On the other hand, there are several exporters who ship their threading and tapping machines to Mexico other than US. China, India, Korea, and Taiwan are the other major exporters of threading and tapping machines into Mexican market. The right chart exhibits the value of imports by Mexican fastener manufacturers from these top 5 exporters. The last word, the profitability of individual manufacturers like many other sectors in this market depends on the complexity of their product designs and their manufacturing efficiency. While, large companies have the resources to make complex, automated machinery, small companies have a chance to compete in this market successfully by making specialty products, replacement parts, or related accessories.

Mexicoâ&#x20AC;&#x2122; s Threading and Tapping Machines Market Value in 1,000 USD 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2013

2014

2015

Exports to US

2016

2017

Imports from US

Imports Value (1,000 USD) in 2017 Taiwan Korea India China US World 0

500

1,000

1,500

2,000

2,500

3,000

Sources: Metalworking Machine Market: Global Industry Analysis and Forecast 2015 â&#x20AC;&#x201C; 2021, Persistence Market Research. Metalworking Machinery Manufacturing - US Market Research Report, IBS World. Trade statistics for international business development, ITC Trade Map.

3,500

4,000

4,500

132

Industry Focus

Spotlight on

Small Screws and Washers Markets of India and Mexico

Image provided by CHU WU INDUSTRIAL CO., LTD.

剖析墨西哥和印度小螺絲及墊片市場

by Sharareh Shahidi Hamedani

Although HS codes have not been categorized based on sizes of products, my research shows that small screws and washers have been categorized under HS Code number 73181500 by the countries’ Customs. In this article, I will study HS Code 73181500 in Mexico and India. It should be mentioned that in this category the total value in the import section in the world is about 18 billion USD. The import value of USA is 2.2 billion USD; Germany has imported 1.8 billion worth of these products; China’s import value is 1.5 billion USD. These 3 countries have bought more than 30% of small fasteners in the world and they are ranked as the biggest three markets for this sector. On the other hand, in export, the total value in the world shows 18 billion USD. Germany with 2.5 billion USD worth of export is the biggest exporter; China with 2.1 billion USD and Taiwan with 1.9 billion USD export value are respectively ranked in the 2nd and 3rd place. These 3 countries have produced more than 36% of these type of screws and washers in the world.

Mexico

Import S

ection

In the import section, the market scale of Mexico is about 8% of the whole world. The biggest seller in the Mexico market is USA, which supports more than 50% of Mexican consumption. Taiwan shares 13% of Mexico market and China shares 10.4% of this market. The 4th biggest exporter to Mexico is Japan and its market share in Mexico is 8%. USA: U.S. suppliers lost their market share almost annually; however, their sales value increased, which means Mexico market was getting bigger and US suppliers could not get an appropriate share. Taiwa n: Taiwa nese suppliers could increase their market share during the developing period of Mexico market. China: Chinese suppliers’ market share was almost constant, and their export value increased as well. Japan: Japan’s market share in Mexico increased sharply in 2014, and after then its growth speed slowed in 2015 and it became negative in 2016 and 2017.

Values are in thousand USD

2013

2014

2015

2016

2017

World

1,180,620

1,309,082

1,316,868

1,271,348

1,404,197

649,681

693,714

712,222

669,260

719,812

USA Mexico's Import

Taiwan China Japan

55.0%

53.0%

54.1%

52.6%

51.3%

139,162

151,240

168,481

164,121

182,182

11.8%

11.6%

12.8%

12.9%

13.0%

126,383

157,221

140,762

139,629

145,932

10.7%

12.0%

10.7%

11.0%

10.4%

75,973

113,967

118,794

111,963

113,111

6.4%

8.7%

9.0%

8.8%

8.1%

Export Section In this sector, the export value of Mexico is about 0.5% of the whole world. The main market of Mexico in the screws and washers category is USA. About 80% of Mexico’s production was shipped to USA. Values are in 2013 2014 2015 2016 2017 thousand USD The right table shows that the market World 74,485 88,221 94,812 96,978 89,800 share of Mexico’s products in USA was Mexico's getting smaller and smaller annually after Export USA 62,601 71,995 80,963 80,450 71,651 2015 and Mexican producers must find other markets for their production. USA in Mexico 84.0% 81.6% 85.4% 83.0% 79.8% Total Export (%)

Industry Focus 133

India

Import Sectio

India’s import market in this category is about 1.7% of the whole world and the main players of small screws and washers in the India market are: 1- China-

2- Japan-

Values are in thousand USD

2013

2014

2015

2016

2017

World

265,107

292,263

322,409

331,412

297,794

44,094

47,275

57,557

59,650

54,153

16.6%

16.2%

17.9%

18.0%

18.2%

52,884

53,364

49,374

58,933

44,823

19.9%

18.3%

15.3%

17.8%

15.1%

33,961

41,650

45,849

46,520

43,844

12.8%

14.3%

14.2%

14.0%

14.7%

37,113

35,995

37,822

36,550

33,239

14.0%

12.3%

11.7%

11.0%

11.2%

China India's Import

Japan Germany

Chinese suppliers almost increased their market share annually. From 2013 to 2017 their market share in India increased about 2%.

S. Korea

Japanese suppliers’ performance was opposite to that of Chinese suppliers. They lost their market share in India by about 5% after 2013, and it seems that China already got a part of this market from Japan.

3- Germany- German suppliers had a constant market share after 2014. 4- Korea-

Korean suppliers also acted the same as their Japanese counterparts. They lost their market share in India by more than 1% after 2014.

Export Section India’s export shares about 1.1% in the world’s total export value. Statistics show that India’s export value decreased annually and it lost about 40% of its international market after 2013!! Germany is the biggest buyer of India’s screws, but it decreased its purchase by about 10% from 2013 to 2017! The Netherla nds is the 2nd biggest importer of India’s screws. It increased its trade with Indian producers after 2014.

Values are in thousand USD

2013

2014

2015

2016

2017

World

319,839

325,582

309,052

258,146

191,750

88,365

103,630

56,873

39,460

33,861

27.6%

31.8%

18.4%

15.3%

17.7%

20,873

10,899

40,918

44,386

27,110

6.5%

3.3%

13.2%

17.2%

14.1%

34,829

38,843

37,492

29,634

20,654

10.9%

11.9%

12.1%

11.5%

10.8%

28,877

28,174

26,740

22,726

17,191

Germany India's Export

Netherlands UK Italy USA

9.0%

8.7%

8.8%

9.0%

28,911

29,910

30,101

21,484

14,594

9.0% 9.2% 9.7% 8.3% 7.6% UK is the 3rd biggest market for India’s screws and washers. Its was a constant market for Indian suppliers. Approximately 11% of India’s products in the category were shipped to UK market. Italy is also a constant market for Indian suppliers and it bought about 9% of India’s productions after 2013. USA is the 5th biggest market for India’s production and it decreased its trade with Indian suppliers by about 1.5% from 2013 to 2017.

Last Word Mexico is a market dependent upon imported screws; its import value is 15.6 times its export value. So, it is a better market for fastener suppliers in comparison with tools and machines suppliers. India is a balanced country for small screws and washers. Its import value is 1.5 times its export value. Therefore, both suppliers (of tooling-machinery and fasteners) have the same chance for selling their products in this market.

134

Industry Focus

U.S Fastener Trade with Emerging Markets An analysis on fastener trade between the U.S and Emerging Markets during 2018第一季美國與新興市場扣件貿易概況 Q1 of 2017 and Q1 of 2018. By Sabrina Rodriguez

Data note: The data for this article is derived from the US Census trade statistics. US Census trade statistics analyzes import and export on all modes of transportation. That value is calculated in USD by general CIF for imports and FOB for exports. Fasteners in this article are defined as any product under HS Code 7318 (screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers and similar articles of iron or steel). The U.S is notorious for participating in global trade with virtually every market around the globe. U.S trade on products related to steel and iron have increased in recent history due to the heavy decline in U.S production of steel. During the 1960s, U.S steel mills began to decline causing the lowest production volumes of steel in the U.S since The Industrial Revolution. The decline in production was mostly due to the lack of technology as opposed to the lack of trading partners. The decline in steel production ultimately caused the U.S to seek trade partners for most of their steel imports. Since then, China has led the world in steel production, leaving the U.S to account for only about one quarter of the global production of steel. Fastener pieces are vastly produced for a variety of industries and are necessary elements for manufactured goods such as automobiles, airplanes and consumer products around the globe. In this analysis we will take a closer look at the US fastener trade with the emerging markets of Europe, Latin America, Russia and Southeast Asia.

US Imports of Fasteners from Emerging Markets Germany leads the continent of Europe with the highest exported volume of fasteners to the U.S. The value of German exported fasteners increased from Q1 2017 to Q1 of 2018 by over $10,500,000. It is no surprise that Germany manufactures a large volume of fasteners judging by the high number of automobile manufactures located within the country. Italy is the second largest exporter of fasteners to the U.S, and increased their exported value during Q1 of 2018 by comparison to Q1 of 2017 by 30%. The highest imported subcategory of fasteners in the U.S from Europe is Harmonized Tariff Code 731815, which is described as threaded screws and bolts, with or without nuts or washers, of iron or steel. Overall, Europe shows to have increased the value of fastener exports to the U.S by nearly $23,000,000 in Q1 2018. Within southeast Asia, Thailand leads the region for the highest value of exported fasteners to the U.S. U.S imports from Thailand increased by over $2,600,000 in Q1 of 2018 by comparison to the data of Q1 2017. Vietnam and Malaysia follow close behind, leaving The Philippines and Indonesia at the bottom of the list with the lowest volume of exports to the U.S. Harmonized Tariff Code 731815 leads as the highest imported fastener subcategory from the region to the U.S., and increased nearly $4,000,000 in Q1 2018 compared to the data in Q1 2017. U.S imports of fasteners from Mexico is the highest, likely due to the shared border between the U.S and Mexico making trade more feasible than with overseas trading partners. Mexico accounts for 90% of the exported fasteners within the Latin American market. The value of fasteners exported increased by over $2,300,000 in Q1 2018 from Q1 2017. Chile, Ecuador, Panama and Peru increased their exports to the U.S by a combined total of $24,000 in Q1 of 2018. Harmonized Tariff Code 731815 also appeared as the highest exported subcategory of fasteners to the U.S from the Latin American region. The U.S shows a monumental decrease of fastener imports from Russia, totaling a decrease of $50,000 in Q1 2018 by comparison to Q1 2017, which is an 88% decrease. Harmonized Tariff Code 731815 has consistently remained as the highest category being traded; however, there was a decline of over $28,000 in Q1 2018 from Q1 2017.

2017 US Imports – HS Code Subcategories of 7318 – Europe

Industry Focus 135

2018 US Imports – HS Code Subcategories of 7318 – Europe

2017 US Imports – HS Code Subcategories of 7318 – Russia

2018 US Imports – HS Code Subcategories of 7318 – Russia

2017 US Imports – HS Code Subcategories of 7318 – LATAM

136

Industry Focus

2018 US Imports – HS Code Subcategories of 7318 – LATAM

2017 US Imports – HS Code Subcategories of 7318 – SE Asia

2018 US Imports – HS Code Subcategories of 7318 – SE Asia

US Exports of Fasteners to Emerging Markets The U.S exports the highest volume of fasteners to the United Kingdom, and accounted for 27% of the total trade from the U.S to Europe in Q1 2018. The second highest trading partner in Q1 2017 and Q1 2018 is Germany, however, the value decreased in Q1 2018 from Q1 2017 by over $2,300,000. While Harmonized Tariff Code 731815 is the highest traded code in both Q1 2017 and Q1 2018, there was a 12% decrease from Q1 2017 to Q1 2018. Other subcategories of fasteners showed an increase in Q1 2018 in comparison to Q1 2017 such as 731829 (nonthreaded articles of fasteners) and 731819 (threaded articles of iron or steel). Singapore leads the southeastern Asian market, and showed an increase in fastener imports in Q1 2018 of over $4,000,000 by comparison to Q1 2017. Thailand shows a $262,000 growth in Q1 2018 from Q1 2017, which is a 21% growth in the total number of fasteners exported from the U.S to southeast Asia. The Philippines demonstrated the largest decline in Q1 2018 compared to Q1 2017 of over $1,300,000, which is a 44% decrease over the two quarters. Fastener subcategories 731815, 731816 and 731829 all appear to be on a steady incline when analyzing the growth from Q1 2017 to Q1 2018.

Industry Focus 137 It is no surprise that Mexico leads the Latin American region with the highest number of exports to the U.S and an increase of 7% in Q1 2018 from Q1 2017. Trailing Mexico is Brazil, which accounted for nearly 20% of all Latin American exports of fasteners to the U.S in Q1 2017, but decreased to a little over 5% in Q1 2018. Overall Brazil decreased in value by $68,000,000 in Q1 2018 by comparison to Q1 2017. Due to the increased level of political turmoil in Venezuela, the total number of fastener exports to the U.S from Venezuela decreased by 90% in Q1 2018 by comparison to the Q1 2017 data. The Latin American market of fasteners is led by subcategory Harmonized Tariff code 731815; however, there was a decline of 15% in Q1 2018 by comparison to Q1 2017. Russian imports of fasteners from the U.S have increased from Q1 2017 to Q1 2018 by 23%, and the highest trade subcategory of fasteners is 731815. Harmonized Tariff Code 731815 increased by 30% in Q1 2018 in comparison to Q1 2017. Other subcategories that have increased in Q1 2018 from Q1 2017 are 731829 and 731816.

US Exports Q1 2017 – HS Code 7318 Subcategories – Russia

US Exports Q1 2018 – HS Code 7318 Subcategories – Russia

US Exports Q1 2017 – HS Code 7318 Subcategories – LATAM

138

Industry Focus

US Exports Q1 2018 – HS Code 7318 Subcategories – LATAM

US Exports Q1 2017 – HS Code 7318 Subcategories – Europe

US Exports Q1 2018 – HS Code 7318 Subcategories – Europe

US Exports Q1 2017 – HS Code 7318 Subcategories – SE Asia

Industry Focus 139

US Exports Q1 2018 â&#x20AC;&#x201C; HS Code 7318 Subcategories â&#x20AC;&#x201C; SE Asia

Which Market Leads as the Top Importer/Exporter of Fasteners? Judging from Q1 of 2018 and Q1 of 2017, the values of U.S imports of fasteners is highest in the European region, followed by the Latin American region and southeast Asia. Russia trails on this list seeing as their values decreased from Q1 2017 to Q1 2018. Russia also shows an overall small portion of exports to the U.S. based on fasteners by comparison to the other emerging markets. Based on the data, the values of U.S exports of fasteners is highest to the Latin American region, followed by Europe and southeast Asia. Once again, Russia trails behind as the smallest emerging market in terms of their fastener imports from the U.S. Both quarters reveal similar information and trends; however, the Latin American region does show an overall decrease of 9% in Q1 2018 by comparison to Q1 2017. This decrease in partly due to the political turmoil occurring in Venezuela which decreased Venezuela exports to the U.S.

The Future of US Fastener Trade with Emerging Markets: Will the US Trade Policy Impact US Trade with Other Markets? Keeping a watchful eye on the changes in the U.S trade policies and agreements will be key in determining the future of trade. In recent news, President Donald Trump imposed a 25% tariff on U.S imports of steel for all countries in the European Union, Canada and Mexico. This was imposed on June 1, 2018; therefore, it is still too soon to tell if the tariff will affect the volume of imported steel products. Ultimately American consumers and small to mid-sized businesses will feel the effects as the price for steel increases. U.S steel importers could always procure steel from other countries such as China; however in that situation companies exporting to the U.S within the European Union, Mexico and Canada will lose the business with the U.S market.

141

142

143

144

145