Fastener_World_Magazine_No.220_Global Version by Fastener-World

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COVER STORY

PPG Alltech Celebrates 20th Anniversary Electrocoating Leads the Trend of Green Sustainability Renowned for advanced coatings for over a century with operations and R&D sites in 70+ countries, PPG entered Taiwan over 40 years ago. Recognizing Taiwan's growing fastener manufacturing base, PPG established PPG Alltech in Kaohsiung in 2006, the first engineered coatings center in Asia. PPG Alltech introduced the most advanced coating processes and equipment from the U.S., aiming to increase the added value of its coatings and expand the application of its products in the fastener field. Its flexible production and industry-leading technical expertise have not only enabled Alltech to meet customers' customized coating needs for the past 20 years but also made it a key part in PPG’s global coating market strategy. Alltech's annual output has increased nearly tenfold to 20 million kilograms over the past 20 years.

“20 years ago, PPG made a bold decision by establishing Alltech Engineered Finishes in Kaohsiung, our very first foothold in Asia. It was more than an expansion. It was a commitment to Taiwan's fastener industry and the beginning of a partnership that would reshape quality, reliability, and performance across the region. PPG brought with it decades of electrocoating leadership. Alltech became the bridge that connected this technology to Taiwan's fastener manufacturers, helping elevate product value, consistency, and global competitiveness. Alltech has been more than a facility. It has been a trusted partner to Taiwan's fastener supply chain,” said Kevin Wozniak, GM of PPG’s Coating Services business unit.

Cutting-Edge Technology Helps Customers Build Core Competitiveness PPG's high-performance coatings and diverse product range greatly assist customers in providing top quality products in the industrial, construction, and automotive markets. PPG Alltech provides fastener testing, prototyping, and verification services in conjunction with customer development. Electrocoating demonstrates significant advantages over traditional surface treatments, including a uniform smooth coating, less recess clogging and paint buildup, lubricating properties for less torque in installation, and excellent chemical and corrosion resistance. This provides users with comprehensive fastener protection and time- and labor-savings. In terms of actual data, PPG's electrocoating passes 2,000+ hours of salt spray testing and 30+ Kesternich test cycles, which is equivalent to years of corrosion resistance. PPG also helps customers enhance their international presence and leads the industry in ESG environmental sustainability through technologies such as low VOC, Cr-free, RoHS, REACH, PFAS-free, and Prop 65 compliance.

Electrocoating Eliminates the Hydrogen Embrittlement Risk and Ensures Safety The combination of PPG phosphate coating and electroplating eliminates the risk of hydrogen embrittlement and fracture failure common in electroplated fasteners, while offering excellent corrosion resistance, making it ideal for applications where safety

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COVER STORY is a primary concern, such as automotive and high-end industrial structural fasteners. Its uniform coating, high corrosion resistance, PPG Taiwan Business Director low recess clogging rate and excellent workability meet end users’ Clark Tsai said that production lines multifunctional demands. PPG is also actively collaborating with will inevitably become more diversified, customers to develop more high-performance and sustainable and PPG will continue to develop products innovative coating technologies, helping them navigate fierce meeting customer expectations by combining global competition. Through resource sharing within the AI to drive energy efficiency and carbon reduction. group, PPG is enhancing its local services and fulfilling its Business Manager Roger Chen said that diversified role as a crucial tech platform in Asia. products and compact processes are the future trend, Plant Manager Josh Chuang said that under PPG's five visions, we hope to help customers achieve their established goals. Business Manager Ofelia Chiu said that PPG provides solutions tailored to customer needs, and its pace in regulatory compliance and green sustainability is faster than competitors.

Ofelia Chiu

Business Manager

Josh Chuang

Clark Tsai

Plant Manager

Steven Hung

Business Manager

and PPG's global factory network can help customers obtain certified products and shorten development time. Business Director Gary Wu said that customers' export capacity is the cornerstone of our development, and we hope to help customers expand their markets with our products. Business Manager King Chiu said that PPG can support global customers' off-site production strategies by providing services through local locations.

Business Director

Julia Lin

Business Director

Business Director Julia Lin said that PPG's edge as a paint manufacturer and its technology being in sync with US environmental regulations allows them to provide green and low-pollution electrocoating with various performance levels to meet customers’ product needs. Water-based, organic, pollution- and PFAS-free, self-lubricating, Prop 65 compliant, and low chip loss upon impact are all advantages that PPG can offer. Business Manager Steven Hung said that high-quality is PPG’s spirit, and they look forward to continuing to develop products that mee t the needs of toda y 's generation, helping customers reduce costs and create lasting value they can trust.

King Chiu

Business Manager

Gary Wu

Business Director

Roger Chen

Business Manager

As Alltech looks toward its next 20 years...

PPG Contact: Kayenne Huang, Sales & Service Representative Email: kayenne.huang@ppg.com

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Value Solution Provider Best choice for pre-coating

TSLG 耐落是全球扣件預塗膠首選品牌

NYLOK

precote®

高雄廠 : 高雄市湖內區中山路二段二巷 53 弄 9 號 TEL: 886-7-6996777 / FAX: 886-7-6998999 / E-mail:tslg.kh@tslg.com.tw 耐落系台灣耐落股份有限公司註冊商標 precote®系德國 omniTECHNIK 公司註冊商標 NYLOK®系美國NYLOK公司註冊商標

www.tslg.com.tw

COMPANY FOCUS

Diverse Pre-coating Locking Technology Enables Global Localized Services

TSLG’s contact: Eva Hsieh Email: eva_hsieh@tslg.com.tw

TSLG currently operates 9 factories and 2 offices. In addition to its facilities in Yangmei, Taichung, and Kaohsiung in Taiwan, the company has established factories in Kunshan, Dongguan, Wenzhou, and Chongqing in China. Following the official establishment of the Tỉnh Bắc Ninh factory in Vietnam in 2023 and the Chon Buri factory in Thailand (slated for mass production in 2025), TSLG’s total factory area has reached 124,506 square meters. Driven by the concerted efforts of over 2,000 employees, its 624 professional production lines are capable of processing approximately 87 billion fasteners annually. By strengthening its presence in Southeast Asia, TSLG has further solidified its standing among global pre-coated fastener brands. Its service reach extends to high-precision automation fields, including automotive, 3C electronics, bicycles, smart manufacturing, intelligent mobility, and even artificial intelligence (AI). To satisfy customer demands, TSLG actively implements advanced information management and fully automated quality monitoring systems, while continuously enhancing its pre-coating technology and engineering application integration capabilities.

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Forward-looking Solutions to Expand the Deployment of AI Servers and Emerging Applications In recent years, TSLG has actively expanded its high-end fastener application footprint. In response to customers' growing investments in industries such as AI servers and automotive components in Vietnam and Thailand, TSLG has successfully applied for and secured local IATF system certifications. By establishing robust process and engineering laboratory testing capabilities, TSLG has significantly enhanced its local service and rapid supply capabilities for pre-coated fasteners. In the field of AI servers, which operate under extreme environments of high heat and high-frequency vibration, TSLG's pre-applied adhesive screw-locking solutions significantly enhance the connection reliability of key components and heat dissipation modules, thereby reducing the risk of poor contact and short circuits. Simultaneously, TSLG is extending its reach into the low-altitude economy and embodied intelligence. The company is actively advancing its aerospace system certifications, providing premium NYLOK and precote locking and sealing solutions, as well as Nyshield and TSLG 15 insulation solutions tailored for emerging industries that utilize diverse lightweight materials, such as carbon fiber, aluminum, magnesium, and titanium. To meet the demands for lightweight and weather-resistant electronic products, TSLG continuously refines its micro-fastener processing technology, now possessing the advanced capability to apply Nylok patches to titanium microscrews down to M1.4. In the new energy vehicle sector, TSLG focuses on lightweighting, locking, sealing, and insulation, providing solutions such as preapplied locking adhesives for aluminum screws, as well as Nylok Seal and Nyshield insulating protective coatings for steel screws. This innovative vision and advanced technology have enabled TSLG to successfully transition from a traditional fastener pre-coating supplier into a high-value-added, forward-looking solution partner.

SLG, a professional expert in pre-coating locking for screws and advanced sealing, thread protection, anti-seize, insulation, and lubrication technologies, is deeply rooted in Taiwan and has a global reach. With operations spanning Taiwan, China, Vietnam, and Thailand, TSLG continuously delivers globally competitive pre-coating locking solutions to its clients. For years, it has served as the designated partner for pre-coating technology research, testing, and application for numerous internationally renowned brands, including Nylok, Precote, and Loctite.

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SPECIAL FEATURE

Editorial-

The Era of Diverse Competition Has Arrived: Finding Your Strengths Amid Challenges The “China and Taiwan+1”, drastic supply chain changes, corporate upgrade and transformation, the EU’s CBAM and PPWR regulations, U.S. steel and aluminum tariffs, market competition, the business environment, and int’l marketing have been the key factors in recent years that have determined whether fastener manufacturers can overcome challenges and secure a competitive edge in this era of intense competition. Many manufacturers have devised various strategies to address these challenges. However, since each fastener manufacturer differs in terms of capital scale, HR, technological capabilities, business models, and competitive conditions, a one-size-fits-all approach is difficult to implement. Blindly following others’ lead is by no means a wise strategy. Only by assessing their own circumstances to identify suitable solutions, coupled with the support of government initiatives, can companies build irreplaceable competitive strength.

Taiwan’s Fasteners Represent Quality and Good Service It has become self-evident over time that “China and Taiwan+1” is a false issue that has been grossly exaggerated. According to Taiwan Customs, Taiwan’s total exports exceeded US$400 billion in H1 2026, representing a YoY increase of 47.1%. Exports of fasteners also surpassed US$2 billion. The additional US$200 billion in investment in Taiwan by major foreign companies further demonstrates that Taiwan offers a secure investment environment conducive to sustainable business operations. Int’l buyers should have confidence in Taiwan’s supply chain. Over 90% of the products supplied by Taiwan can be found in other markets; however, Taiwanese fastener industry’s irreplaceable value lies in its decades-long reputation for quality, its market share recognized by customers, and its ability to serve global buyers. Of course, this does not rule out the possibility of manufacturers expanding overseas to seek more opportunities; investing in and establishing factories in regions such as Southeast Asia is by no means out of the question. However, this must be considered holistically in light of each manufacturer’s own cash flow and longterm business strategy. If a company has the capacity and its clients are willing to form a JV or place long-term orders spanning 3–5 years, this is certainly a way to strengthen cooperative relationships.

Affordable & Practical Solutions, AI, and Green Energy Trends Take Shape This year, Fastener World participated in numerous trade shows in Southeast Asia and observed that many automotive supply chains are rapidly shifting toward a trend of “affordable and functional” products. Meanwhile, advancements in AI and a growing focus on green sustainability are also driving accelerated changes in the supply chain. To survive, manufacturers must adopt new-era approaches. One approach is to leverage AI management, for example, by integrating AI into process and cost control. In particular, pricing is the first challenge manufacturers face when competing on the front lines. If AI management can be used to reduce costs driven up by factors such as materials, electricity, and labor, it will undoubtedly enhance global competitiveness. On the other hand, manufacturers can also explore AI applications in fields such as military defense, aerospace, and drones to elevate the industry’s development level. If they can secure government support and funding, Taiwanese manufacturers will undoubtedly have great potential. Expanding into new areas does not mean manufacturers must abandon their existing markets; if they can continue to refine their expertise and create niche markets in familiar fields, they will have twice the opportunities. Japan’s YKK, which insisted on developing new materials to consolidate its existing market share, is a prime example.

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SPECIAL FEATURE PPWR Has Come into Force Since August The new regulation applies to almost all packaging and requires non-EU companies to appoint one authorized rep in each member state where “packaging is delivered to the end user.” This rep is responsible for handling the registration of packaging producers, reporting the weight of packaging, and paying Extended Producer Responsibility (EPR) fees. PPWR also require online platforms to verify the compliance of non-EU companies exporting products to the EU. PPWR requirements include: 1. Minimizing packaging while maintaining product safety, hygiene, transportability, and functionality; 2. Design for recyclability; 3. Certain plastic packaging must contain a minimum percentage of post-consumer recycled (PCR) plastic; 4. The EU will establish a uniform system for packaging material and classification labeling; 5. Setting limit values for hazardous substances; and 6. Reusability and Extended Producer Responsibility (EPR). It is recommended that businesses establish bills of materials (BOMs) by SKU ASAP, request compliance data from packaging suppliers, avoid high-risk packaging, and convert shipping data into the EPR reporting format.

The Unfriendly Business Environment Still Needs to be Addressed The cumulative costs of raw materials, labor, utilities, and CBAM remain a source of concern for Taiwanese manufacturers’ int’l competitiveness. As a key pillar supporting the fastener industry, nearly 90% of which is export-oriented, Taiwan CSC should perhaps consider the market situation and open imports for steel products that are no longer competitive, while developing other high-end steel products to create room for industry players to compete. After all, amid the labor shortage, companies can only attract talent by increasing the proportion of foreign workers or offering higher wages. The question of whether CBAM-related costs should be borne by customers or manufacturers, along with concerns that U.S. tariffs on steel and aluminum may rise further, also increase the difficulty of sustaining business operations. Coupled with continuously rising costs for green energy, hydropower, and overseas labor, these adverse conditions have placed immense pressure on Taiwanese manufacturers.

Is Fastener Manufacturing Still Profitable in Taiwan? It Depends. An industry player once asked, “Is it still profitable to manufacture fasteners in Taiwan?” Well, there is no standard answer, as production equipment and target markets vary depending on the type of fastener. Looking at Taiwan’s OTC fastener companies in H1 this year and taking small screws as an example, the avg. unit price of China was USD 1.96/kg, while Taiwan was USD 3.64/kg. Combined with the fact that the NTD has remained ~32 to the USD in recent years, most companies have generally been profitable. Of course, as market demand has shrunk, the days when overtime of 2-4 hours was necessary are long gone. Upstream parent companies have taken back orders to produce by themselves, and downstream associate factories have been significantly impacted by order cuts. Some traders have opted to source directly from overseas factories in Southeast Asia and export, thereby reducing cost pressures. Looking back over the past 20-30 years, Taiwanese fastener manufacturers have generally remained profitable; success depends on whether companies are committed to their operations and maintain competitiveness by passing down technical expertise and experience. If U.S. tariffs on steel and aluminum are reduced in two years, profit margins for Taiwanese products should increase.

Thanks to TIFI’s and Government’s Support, IFE 2026 is Expected to Yield Positive Results With strong support from Taiwan’s ITA, TIFI, EDB of Kaohsiung, and MIRDC, this year’s IFE will feature 100+ Taiwanese exhibitors. With the U.S. dollar exchange rate currently at its best, the U.S. being Taiwan’s largest export market, and the U.S. economy booming, the show organizers have gone to great lengths to promote the exhibition in hopes of attracting more buyers from the Americas. We are confident that the Taiwanese delegation’s performance at this event will once again be a resounding success. In this era of diverse competition, we hope manufacturers will not give up due to short-term market pressures. Traditional industries play a vital role in the development of all sectors, affecting the livelihoods of tens of thousands of people and serving as a crucial foundation for national strength. We look forward to the government’s continued support in helping these industries maintain their competitiveness.

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INDUSTRY FOCUS

Observations on

Shifts in the Automotive Fastener Supply Chain in 2026 Introduction: When the Automotive Supply Chain Begins to Focus on Risk, Not Just Cost Taiwan’s fastener exports account for up to 94% of its total production, with automotive fasteners representing nearly 40% of that total. However, after the orders that had temporarily surged in 2022 due to the pandemic were fully fulfilled, the export of major global automotive fastenerproducing countries has not shown any significant explosive growth. Behind these market figures, the procurement strategies of OEMs and T1 suppliers are quietly shifting. Over the past 2 decades, the global automotive industry has largely organized its supply chains according to the logic of global optimization, with procurement decisions primarily centered on 3 key indicators: price, quality, and lead time. Component production has also gradually become concentrated in regions offering advantages in terms of cost, production capacity, and industrial clusters. Under this model, supply chain efficiency has been a key source of corporate competitiveness. However, events such as escalating geopolitical risks in the postpandemic era, adjustments to trade policies, and supply chain disruptions during the pandemic have prompted many automakers to reevaluate their supply chain strategies. Compared to the past practice of pursuing the lowest-cost procurement model, the importance of supply chain resilience and risk management is rapidly increasing. Taking the N. American market as an example, some automakers and parts suppliers have been gradually increasing the proportion of “Local for Local” production, hoping to reduce the uncertainty caused by crossborder logistics, tariffs, and policy changes through local supply chains. Meanwhile, European automakers are reevaluating the possibility of diversifying their supply sources amid energy price volatility, supply chain security concerns, and pressure to transition to EVs.

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For the automotive fastener industry, such changes may not be immediately reflected in order volumes, but they are likely to first manifest in pricing strategies, supplier selection criteria, and requirements for production l o c a t i o n p l a n n i n g. F o r ex a m p l e , s o m e customers have begun requiring suppliers to provide plans for overseas production facilities, details on raw material sources, and even an assessment of their ability to secure alternative supply sources. In other words, a company’s competitiveness is no longer determined solely by price and quality, but by its ability to help customers mitigate supply chain risks. Therefore, this article will first examine the export and production of major global automotive fastener-producing countries in H1 2026 to observe development trends in markets such as Japan, Taiwan, Thailand, and Indonesia; it will then use the Mexican market, which has rapidly emerged in recent years due to the impacts of nearshoring and the USMCA, as a case study to explore how adjustments in automakers’ production layouts affect supply chain configurations; Finally, it’ll further analyze the future opportunities and challenges t he fastener i ndust r y may face a mid t he development of EVs, smart vehicles, and highvalue-added application markets. What truly deserves attention in the current market may no longer be just the shift in production capacity, but rather the changing rules of the game in the global automotive

INDUSTRY FOCUS supply chain. As automakers begin to redefine the importance of supply security and supply chain resilience, the competitive landscape for the automotive fastener industry will also be reshaped. It is worth noting that, although automotive production capacity has gradually expanded to regions such as Mexico and Southeast Asia in recent years, the technical capabilities, certification systems, and customer relationships within the global automotive fastener supply chain remain largely in the hands of companies from Europe, the U.S., and Japan. Therefore, before examining the shifts in the automotive fastener industry, it may be prudent to first revisit the global automotive supply chain system itself and examine its market landscape and current state of development.

An Overview of the Global Automotive Fastener Supply Chains a. From HS 7318 to HS 8708: Potential Blind Spots in Automotive Fastener Market Statistics Traditionally, the fastener industry has primarily used HS Code 7318 (screws, bolts, nuts, washers, and other iron and steel fasteners) as the key indicator for assessing market size and trade flows. Consequently, analyses of the global fastener industry, comparisons of export competitiveness among countries, and industry research reports are typically based on data from HS Code 7318.

However, I have found that if one focuses on the automotive fastener market, examining trade data under HS 7318 alone may not fully reflect the actual state of the industry. According to U.S. CBP and relevant customs practice guidelines, automotive bolts, nuts, and fasteners are generally classified under HS 7318; however, in actual applications, demand for automotive fasteners is often highly correlated with the business cycle of the automotive components i ndust r y. T herefore, usi ng t rade f lows under HS 8708 (automotive Table 1. Export Value and Market Share for the Top 15 Markets components) as a supplementa r y Unit: US$ 0.1 bn indicator reveals a higher degree of in the Global Automotive Fastener Supply Chain consistency between the rankings of 2025 Market Rank Market 2021 2022 2023 2024 2025 exporting countries and the global Share distribution of major automotive Germany 1 644.7 615.3 675.6 643.6 627.3 13.90% fastener suppliers, t hereby more China 2 455.7 497.3 533.3 566.9 590.5 13.10% effectively reflecting the automotive USA 3 357.3 407.3 474.9 450.8 432.8 9.60% industry clusters and supply chain distribution on which demand for Mexico 4 305.3 379.8 405.7 410.8 400.4 8.90% automotive fasteners depends. 5

Japan

325.5

290.9

272.3

258.8

242.6

5.40%

Poland

142.5

150.6

182

191.5

202

4.50%

S. Korea

192.7

199.2

194.3

188.1

178.1

3.90%

Czech

147

144.8

169.2

165.1

176.6

3.90%

Italy

150.5

148.1

162.6

149.3

159.8

3.50%

France

138.5

130.7

148.6

137.8

136.8

3.00%

Canada

109.1

128.2

134

131.5

125.9

2.80%

Spain

101.2

101.8

120

111.8

118.7

2.60%

Thailand

86.7

84.2

86.1

88.4

98.5

2.20%

Hungary

77.8

93.5

94.1

91.1

2.00%

Türkiye

57.8

65.4

72.3

82.8

1.80%

In other words, HS 7318 reflects t he “product ma rket,” wh i le HS 8708 reflects the “demand market.” Therefore, this study uses HS 7318 as the basis for assessing the scale of the global fastener industry, while crossvalidating the findings with trade flows of automotive components under HS 8708 to more accurately reflect the actual competitive landscape of the global automotive fastener supply chain.

Source: ITC (June, 2026)

Table 1 lists the top 15 markets in the global automotive fastener supply chain, with 3 key observations. (1) Although the European automotive supply chain is well-established, Chinese automakers are making a strong push into the market. First, Europe remains the world’s most comprehensive automotive parts manufacturing hub. Looking at HS 8708 (automotive parts), Germany’s market share reached 13.9% in 2025, maintaining its position as the global leader; If we further include major European countries in the automotive supply chain—such as Poland (4.5%), the Czech Rep. (3.9%), Italy (3.5%), France (3.0%), Spain (2.6%), and Hungary (2.0%)—their combined market share reached 33.4%, accounting for around 1/3 of the global total. These figures indicate that even with the rapid rise of China’s automotive parts exports, Europe continues to maintain the world’s largest and most comprehensive automotive parts supply chain system, supported by traditional automotive industry hubs such as Germany, France, and Italy, as well as nearshore manufacturing bases in Central and Eastern Europe. This structure also helps explain why the global automotive fastener industry remains highly concentrated in Europe. Companies such as German Kamax, Swedish Bulten, and French LISI have long served European automakers and T1

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INDUSTRY FOCUS suppliers, accumulating technical expertise and certification advantages in areas such as high-strength bolts, chassis fasteners, powertrain fasteners, and structural fasteners. In other words, the competitiveness of Europe’s leading automotive fastener manufacturers does not stem from the capabilities of any single company, but rather is built upon Europe’s vast, comprehensive, and highly specialized automotive supply chain ecosystem. It is worth noting that while Germany remains the world’s largest exporter of automotive components, China has been rapidly catching up in recent years. By 2025, China’s exports had reached US$59.05 bn, narrowing the gap with Germany’s US$62.73 bn to US$3.68 bn. This shift not only reflects China’s growing capacity to export automotive components but is also closely linked to the rapid expansion of China’s EV supply chain. In recent years, Chinese automakers have developed a strong competitive edge in battery technology, electronic control systems, software integration, and cost control, putting European and U.S. automakers under unprecedented price and technological pressure. Ford CEO Jim Farley has described the situation as a “do-or-die battle” for Western automakers against Chinese EV competition, noting that the progress made by Chinese EVs in terms of cost and product competitiveness has forced traditional automakers to reevaluate their engineering designs and supply chain efficiency. As can be seen, the fact that China is rapidly closing the gap with Germany in exports under HS Code 8708 is not merely a change in trade figures, but a concrete sign that the center in the global automotive supply chain is gradually shifting from the traditional European, U.S., and Japanese systems toward China’s EV supply chain. (2) The N. American supply chain is highly integrated, and the USMCA is robust Second, the N. American market N. American is characterized by a high degree of regional integration. In 2025, the combined market share of the U.S., Mexico, and Canada under HS Code 8708 (automotive parts) reached 21.3%, indicating that a tightly integrated N. American automotive supply chai n has been established u nder the USMCA framework. Regional Value Content (RVC) is one of the criteria used to determine origin eligibility in FTAs; it refers to “percentage of value added.” The USMCA raises the RVC requirement for passenger cars and light-duty trucks to 75%, requiring automakers and parts manufacturers to increase the proportion of their procurement within N. America, thereby further strengthening the allocation of production capacity and supply chain linkages among the U.S., Mexico, and Canada. This trend is particularly significant for automotive fastener manufacturers. Mexico is no longer merely a low-cost assembly base for U.S. automakers; it has become a key manufacturing hub in the N. American automotive supply chain. According to data from the U.S. DoC, Mexico’s automotive parts industry comprises 2,135 companies, of which more than 700 are T1 suppliers, indicating that a significant cluster of parts manufacturers supplying directly to automakers has formed

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in Mexico. For automotive fasteners, demand comes not only from the automakers themselves but also from T1 system suppliers such as those specializing in brakes, chassis, body, seats, battery enclosures, and electronic control modules. Therefore, Mexico’s rising prominence in the N. American supply chain also means that demand for the procurement, certification, and local service of automotive fasteners will simultaneously shift toward Mexico. In other words, when examining the N. American market through the lens of HS 8708, Mexico’s high ranking is no coincidence but rather the result of the combined effects of USMCA rules of origin, nearshore production, and the clustering of T1 suppliers; for Taiwanese automotive fastener manufacturers, Mexico has become an indispensable strategic base for entering the N. American automotive supply chain. (3) The rise of the East Asian automotive sector, with the center of the Japanese supply chain gradually shifting overseas (See Table 1) It is worth noting for Taiwanese automotive fastener manufacturers that the value of Japan’s automotive parts exports declined from US$32.55 bn in 2021 to US$24.26 bn in 2025—a decrease of US$8.29 bn over 4 years, representing a 25.5% drop. This makes it the major market with the steepest decline among the top 15 exporting countries. However, Japan’s overall automotive industry has not experienced a decline of the same magnitude, indicating that this shift is not due to shrinking market demand but rather reflects Japanese automakers’ continued push in recent years toward overseas production and localized procurement strategies. T he ma i n reasons a re labor shor t ages i n Japa n, r isi ng manufacturing costs in Europe, stricter tariffs and rules of origin in the U.S., and increased uncertainty in China’s supply chains, prompting automakers to reevaluate their production layouts and supply chain strategies. A prime example of this is Toyota’s 2026 announcement that it would produce the Noah and Voxy models at the Taoyuan plant in Taiwan and export them back to the Japanese market. In the past, vehicles sold in the Japanese market were mostly produced locally in Japan; the current arrangement, in which vehicles are manufactured in Taiwan and then re-exported to Japan, is quite rare. The reason behind this is not the geopolitical factor, but rather reflects the challenges facing the Japanese automotive industry including labor shortages, rising production costs, and production capacity allocation, which have prompted automakers to rethink their production and supply chain flexibility within the Asian region. Consequently, as the ASEAN, N. American, and Chinese markets have gradually emerged as global hubs for automotive production, Japanese automakers such as Toyota, Honda, and Nissan have been gradually shifting part of their production capacity and supply chains to Thailand, Indonesia, Mexico, and China, among other locations, thereby establishing a global operational model centered on R&D in Japan and overseas production. This trend has also led to a decline in the share of automotive parts exported from Japan, while the importance of overseas production bases continues to grow.

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INDUSTRY FOCUS A closer look at the market structure reveals that Japan (5.4%), S. Korea (3.9%), and Thailand (2.2%) collectively hold a market share of 11.5%, surpassing that of the U.S. (9.6%) and forming a supply chain cluster with economies of scale. For Taiwanese fastener manufacturers, in addition to the Japanese market, they should also pay close attention to development opportunities in Thailand and the ASEAN supply chain.

b. Market Opportunities Within the 3 Major Automotive Supply Chain Systems Current global demand for automotive fasteners is primarily concentrated in the 3 major supply chain systems in Europe, N. America, and Asia (See Table 2- Major Automotive Supply Chain Systems).

Table 2. Major Automotive Supply Chain Systems Supply Chain

Major Markets Major Carmakers

Benchmark Fastener Companies

Main Competitiveness

Opportunities for Taiwanese Companies

Europe

Germany, France, Italy, Poland, the Czech Rep.

Volkswagen, BMW, MercedesBenz, Stellantis

High-value, highstrength fasteners; Kamax, Bulten, LISI OEM-certified; high technical entry barriers

High-Value Products, Specialized Processes, Joint Development

N. America

The U.S., Mexico, and Canada

GM, Ford, Tesla

ITW, MacLeanFogg...etc

USMCA, Nearshoring, Local for Local, Supply Chain Resilience

Deployment in Mexico, Secondary Supply Sources, Local Services

East Asia

Japan, S. Korea, Thailand

Toyota, Honda, Nissan, Hyundai, Kia

Meidoh, Aoyama, Sungwoo...etc

R&D in Japan, Overseas Japanese Supply Chains, ASEAN Production, Regional Expansion, and Overseas Division of Labor Production Partnerships Source: public info of each company (June, 2026)

However, upon closer examination of HS 7318, which covers steel screws, bolts, nuts, rivets, and similar fasteners, it becomes evident that this tariff code encompasses fasteners that are indispensable in all basic industries. Widely used in int’l trade across sectors such as automotive, machinery, and construction, this category reveals distinct characteristics in terms of product structure, customer demand, and competitive dynamics across different regional supply chains, making it worthy of closer scrutiny. (1) Europe: Highest Value-Added Potential and Most Stringent Certification Requirements Europe remains a key market for high-end automotive fasteners worldwide. Companies such as Kamax, Bulten, and LISI have long been deeply embedded in the supply chains of European automakers including BMW, Mercedes-Benz, Volkswagen, and Stellantis, and possess a strong technical foundation in high-strength bolts, chassis

Table 3. Observations on Recent Changes in Unit Prices in Unit: USD/kg the European Fastener Market European Market Germany

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

8.7

9.1

9.6

9.7

9.8

Italy

5.6

6.3

6.2

France

Netherlands

3.3

3.5

3.4

U.K.

Switzerland

Poland

4.4

4.6

4.8

4.9

Austria

9.8

Czech

4.7

5.3

Belgium

5.5

6.3

6.7

6.6

Source: ITC (June, 2026)

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c o m p o n e n t s , p owe r t r a i n systems, and body structural components. Compa red to price competition, the European market places g reater emphasis on quality, reliability, and the ability to obtain automaker cer tifications; therefore, high-value-added products remain the primary focus of competition.

Europe

As shown in Table 3, the average export unit prices of major European fastener-producing countries have generally remained at a high level. In particular, Germany’s average export unit price rose gradually from US$8.7/kg in Q1 2025 to US$9.8 in Q1 2026; Poland, the Czech Rep., and Belgium also showed a steady upward trend, indicating that the added value of European fasteners continues to increase. On the other hand, prices in traditional automotive fastener powerhouses such as France and Italy remained relatively stable, reflecting their established, mature product structures focused on high-value-added items. It is worth noting that the average export unit prices for the UK and Switzerland reached US$26/kg and U$21/kg, respectively—significantly higher than those of other countries. It is presumed that their exports consist primarily of high-value-added fasteners for the aerospace, high-performance, medical device, and other specialized industrial sectors, rather than large volumes of standard automotive fasteners.

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INDUSTRY FOCUS (2) N. America: USMCA Drives Regional Supply Chains The USMCA promotes “Local for Local” regional production in North America, enabling Mexico to gradually transition from a low-cost assembly hub to a key node in the N. American automotive supply chain. It is worth noting that, although Mexico is one of the most important manufacturing hubs in the restructuring of the N. American automotive supply chain, its statistical data on HS 7318 fasteners is relatively incomplete, making it difficult to directly assess its product mix based on export unit prices.

North America

For fastener manufacturers, the real change goes beyond production locations; it involves OEMs and T1 suppliers reevaluating their suppliers’ local supply capabilities, second source, and supply chain resilience. As a result, the focus of competition in the N. American market will gradually shift from price to regional presence and local service capabilities. As shown in Table 4, the average unit price of U.S. fastener exports rose from US$11 kg in Q1 2025 to US$13/kg in Q1 2026, showing an overall steady upward trend. This indicates that U.S. fastener exports continue to be dominated by highvalue-added products, reflecting the high technical and quality thresholds required in the automotive, aerospace, defense, and high-end industrial application sectors. In contrast, the average unit price of Canadian 7318 series fastener exports rebounded from US$0.4/kg to US$2.4/kg, but remained significantly lower than that of the U.S., indicating that the structure of its export products differs from that of the U.S.

Table 4. Observations on Recent Changes in Unit Prices in the N. American Fastener Market Unit: USD/kg

N. American Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Markets USA

11.0

12.0

13.0

Canada

0.4

0.6

2.6

1.2

2.4

(3) Asia: Japan’s Overseas Expansion Drives Regional Division of Labor As shown in Table 5, there is a clear tiering in export unit prices across the major fastener markets in East Asia. Japan has long maintained a price of a round US$8/ kg, ra n king first among major Asian markets, indicating that its primary competitive advantage remains in highprecision, high-reliability, a nd h ig h-va lue -adde d automotive fasteners; S. Korea, meanwhile, has maintained a price of around US$4.7-US$4.8, falling between Japan and Taiwan, reflecting its stable supply capacity for mid- to high-end fasteners in the automotive and electronics industries. Taiwan’s average export unit price rose from US$3.4 to US$3.6, showing steady growth and indicating a continued shift toward higher-value-added products in recent years. On the other hand, Thailand’s export unit price is around US$3, while India’s and Malaysia’s are around US$2.4—relatively low figures that suggest these countries continue to focus primarily on standardized products and serve as manufacturing hubs.

Asia

Table 5. Observations on Recent Changes in Unit Prices in the Asian Fastener Market Unit: US$/kg

Asian Market Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Taiwan

3.4

3.5

3.6

Japan

8.0

8.2

8.0

7.9

8.0

S. Korea

4.7

4.8

4.7

4.8

India

2.4

Thailand

2.8

2.9

3.0

Malaysia

2.4

2.5

2.4

Source: ITC (June, 2026)

Note: Mexico has not submitted statistical data for several consecutive years; data is unavailable. Source: ITC (June, 2026)

Conclusion In recent years, the global automotive fastener market has not experienced explosive growth; instead, the rules of competition have gradually shifted due to geopolitical factors, regionalized production, and the transition to EVs. In this context, Europe continues to rely on high-value-added products and automaker certifications as its core competitive advantages; N. America, influenced by the USMCA and nearshoring, is accelerating the establishment of regionalized supply chains; East Asia, driven by Japanese automakers’ overseas expansion, is gradually forming a regional production network centered on Japan, S. Korea, and Thailand. Therefore, for Taiwanese automotive fastener suppliers, the key concern is whether the existing supply chain will face reconfiguration following adjustments to production bases. When changes occur in vehicle manufacturing bases, automakers and T1 suppliers often reassess suppliers’ cross-border supply capabilities, delivery reliability, country-of-origin requirements, and ability to plan for secondsource alternatives, which in turn influences future procurement strategies and supplier lists.

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惠達特搜全球新聞

FASTENER WORLD NEWS

Association News

IFI Kevin Vollmert Prioritizes Talent and Industry Advocacy Kevin Vollmert has begun his term as Chairman of the Industrial Fasteners Institute (IFI), bringing nearly 20 years of experience at ITW Shakeproof, where he led commercial, applications engineering and innovation teams. Over the next 12 months, Vollmert will focus on strengthening member value, workforce development and regulatory advocacy while advancing the IFI’s strategic roadmap through 2027. Key priorities include expanding membership, increasing engagement and enhancing technical training through the institute’s committees and educational programs. Addressing the industry’s persistent labor shortage is another major focus. The IFI’s registered apprenticeship program, developed with Marshall University, currently has five member companies onboarding apprentices, with another 18 in the pipeline. The program aims to build a stronger workforce of skilled cold heading and threading operators. Vollmert also highlighted the importance of coordinated trade advocacy amid tariff pressures, including Section 232 measures affecting steel, aluminum and copper. With IFI membership now reaching 200 companies, Vollmert is encouraging more manufacturers to experience the organization’s resources and industry network firsthand. He said stronger connections among members, committees and staff will help build a more resilient and influential fastener industry.

Tariff Frontline

Supply Chains Under Tighter Origin Scrutiny as White House Names Over 40 Countries as Facilitating Chinese Transshipment

How Chinese goods circumvent high tariffs to enter the U.S. has long been a major concern for the U.S. government. In its report The Great Transshipment Scam, the White House alleges that China has established a “shadow transshipment network” spanning more than 40 countries, enabling Chinese products to acquire a different “national identity” through third countries before entering the U.S. at lower tariff rates. The report places Taiwan, Canada, the EU, India, Japan, Mexico, and South Korea in the first tier of major economies associated with transshipment risks. However, this does not mean that Taiwan has been identified as an accomplice in illegal origin laundering. Rather, these economies have extensive links with Chinese supply chains, well-developed industrial bases, and substantial export capacity to the U.S., making illicit transshipment easier to conceal within large volumes of legitimate trade.

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FASTENER WORLD NEWS Figure 1. Statistics on the Value of China's Fastener Exports to Various Countries 120.00

Unit: USD 100 Million

Data from the General Administration of Customs of China (Figure 1) also point to an apparent expansion of Chinese fastener exports beyond the U.S. market. Over the past 5 years (2021-2025), China’s global fastener exports increased by 10%, rising from 9 to 10 billion USD. From January to July this year, exports grew by 6% year-on-year to US$6.1 billion. Exports to the United States increased by only 3%, while exports to the EU declined slightly by 1%. In contrast, exports to ASEAN, Japan, South Korea, and India surged by 14%, while exports to other markets rose by 5%. Non-U.S. regions accounted for as much as 87% of China’s fastener exports, leaving the U.S. with only 13%.

80.00

40.00

0.00

ASEAN NonThe U.S. Department of Commerce has long +Japan/ Other U.S. World U.S.A EU+UK imposed antidumping and countervailing duties S. Korea/ Countries Regions on steel threaded rods from China. It has also India made clear that even if such products are sent to 2021 90.90 12.57 21.40 23.43 33.50 78.33 a third country for cutting, chamfering, coating, 2022 109.36 16.48 21.67 30.60 40.61 92.88 packaging, or assembly with other components, they may still be considered Chinese products if 2023 91.39 12.27 17.06 25.57 36.50 79.12 the processing is insufficient to fundamentally 2024 95.64 13.54 18.97 24.86 38.27 82.10 alter their essential character. A U.S. Customs 2025 100.43 12.61 19.86 27.03 40.92 87.81 and Border Protection ruling issued last year Jan-July 2025 58.34 7.62 11.64 15.58 23.50 50.72 provides a representative example. In that case, wire rod sourced from China or Vietnam Jan-July 2026 61.84 7.86 11.46 17.78 24.73 53.98 was shipped to Malaysia, where it underwent Data from the General Administration of Customs of China straightening, cutting, chamfering, and fullthreading before being exported. CBP determined that these processing operations did not constitute a “substantial transformation,” and that the country of origin continued to depend on the origin of the wire rod. In other words, sending Chinese materials to a third country for further processing, assembly, repacking, relabeling, or documentation changes will not make the product "Made in Malaysia". For Taiwan’s fastener industry, perhaps the warning is not that Taiwan was named in the White House report. Rather, it is that the U.S. has elevated country-of-origin enforcement to a new policy level. Customers and customs authorities may increasingly scrutinize the origin of steel, the locations where cold forming and thread rolling take place, heat treatment and surface finishing processes, supply chain records, and actual manufacturing activities. White House trade adviser Peter Navarro has also indicated that the U.S. is beginning to use AI tools to strengthen product-origin identification. Complete material traceability, production records, and origin documentation will no longer be merely part of quality management—they may become the next “passport” for maintaining access to the U.S.. As the tariff war shifts from comparing duty rates to verifying product identity, those that can demonstrate where their products are genuinely made will stand a better chance of earning customer trust amid the global supply chain restructuring.

Canadian Counter-Tariffs Raise Construction Cost Concerns, ICBA Says Canada’s new counter-tariffs on U.S.-origin goods could increase construction costs, with hundreds of products commonly used on jobsites included in the federal government’s retaliatory measures, according to the Independent Contractors and Businesses Association (ICBA). The association said the tariff list covers around 400 product lines and is scheduled to take effect Sept. 8. Construction-related products potentially affected include steel and aluminum materials, structural sections, pipes, wire products, fasteners, lumber, plywood, electrical equipment, HVAC products, tools and heavy machinery. ICBA Chief Economist Jock Finlayson warned that the measures could add to existing cost pressures for Canadian companies and consumers while placing further strain on integrated North American supply chains. Of particular relevance to the fastener industry, the affected products include nails, screws, bolts, nuts, rivets, washers, anchors and aluminum fasteners, along with steel wires, chains and wire ropes.

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FASTENER WORLD NEWS The tariffs apply only to products classified as U.S.-origin. ICBA is urging contractors to verify product origins with suppliers, review procurement pipelines and identify shipments that could be in transit when the tariffs take effect. Contractors are also advised to reassess pricing and review tariff, change-in-law and price-escalation provisions in fixedprice contracts. ICBA cautioned that the retaliatory measures could ultimately increase the cost of construction across Canada.

Industry Development

From Standard Fasteners to SemiconductorGrade Solutions: A New Market Opportunity for Taiwan’s Fastener Industry For years, the semiconductor industry was regarded by many Taiwan fastener manufacturers as a high-tech market that was difficult to reach. Beyond the high technical barriers, many suppliers were unfamiliar with the stringent requirements of semiconductor equipment and uncertain about how fasteners could enter its supply chain. New technical insights, however, are helping bridge that gap by highlighting the critical role of fasteners in semiconductor fabrication. Fasteners used in semiconductor processing equipment are far more than simple mechanical components. They may be exposed to vacuum conditions,

plasma, corrosive process gases, elevated temperatures and repeated chemical cleaning. Unsuitable materials can generate particles, corrosion products or outgassing, potentially affecting equipment performance and wafer yield. This creates opportunities for fastener manufacturers capable of supplying high-purity, corrosion-resistant and thermally stable products. Nickel-based alloys such as Hastelloy® C276, C22, Inconel® 600 and 625 can provide different combinations of chemical and hightemperature resistance, while specialty stainless steels may meet less aggressive applications. Material selection must be matched to the actual process environment rather than relying on a single “best” material. Fastener design is equally important. Vented socket head cap screws can provide gas escape paths during vacuum evacuation, while captive fasteners and vented washers can support assembly reliability in evacuated chambers. Cleanroom processing, including ultrasonic or IPA cleaning and controlled packaging, can also distinguish semiconductor-grade fasteners from conventional industrial products. For Taiwan’s fastener industry to enter this market, manufacturers need to demonstrate more than machining capability: alloy traceability, contamination control, cleanliness protocols, dimensional consistency, inspection, testing and production history can all become part of the qualification process. The key opportunity lies in working with equipment manufacturers and engineering teams at the design and qualification stages. By understanding the process chemistry, temperature, vacuum level, mechanical loading and cleanliness requirements, fastener suppliers can develop application-specific solutions rather than simply offering standard screws.

Aerospace Fastener Dispute Puts Trademark Protection Under the Spotlight A trademark dispute between two U.S. fastener companies is raising an important question for the industry: when does a distinctive fastener design become a trademark, and when is it simply a functional feature? The case involves Long-Lok, LLC, an aerospace fastener engineering company, and Safety Socket, LLC, a former supplier of high-strength fasteners. For more than 50 years, Long-Lok has engineered selflocking fasteners for aerospace applications, often modifying standard fasteners supplied or sourced for its customers. The dispute centers on Safety Socket’s “Banded Knurl Mark,” a distinctive double-band knurl design on socket-head fasteners. Safety Socket claimed trademark rights in the design and, in 2025, sent Long-Lok a cease-and-desist letter alleging that Long-Lok’s modification, distribution and sale of its fasteners infringed those rights. Long-Lok responded by asking the U.S. District Court for the Southern District of Ohio to cancel the trademark. It argued that the knurling was functional because the two bands provided a better grip when fastening components and therefore should not be protected exclusively as a trademark. Long-Lok also claimed that Safety Socket had abandoned the mark after moving away from manufacturing in 2023. In an August 21, 2026 ruling, the court allowed the functionality claim to proceed, finding that factual disputes remained over whether the design provided a meaningful utilitarian benefit. However, the court dismissed the abandonment claim without prejudice because Long-Lok’s own complaint indicated that fasteners bearing the mark remained in commerce. Long-Lok was given 14 days to amend its complaint, leaving the trademark dispute unresolved.

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Companies Development

Sheh Fung’s Dual-Plant Strategy Drives Q2 Revenue to Five-Quarter High Taiwanese screw manufacturer Sheh Fung Screws reported consolidated revenue of NT$547 million for the second quarter of 2026, up 0.25% quarter over quarter and 11.53% year over year, marking its highest quarterly revenue in nearly five quarters. Firsthalf revenue reached NT$1.092 billion, an increase of 2.79% from a year earlier. June revenue rose 11.82% year over year to NT$179 million, extending annual growth for the fourth consecutive month. Sheh Fung said recovering orders from customers in Europe and the U.S., combined with greater supply flexibility from its Taiwan and Vietnam production bases, supported the improvement in operating momentum. The Americas and Europe accounted for 52.36% and 24.97% of Q2 revenue, respectively, while shipments from its Vietnam plant increased to 10.70% of total supply, supporting expansion in the European market. The company continues to pursue a strategy centered on market diversification, multi-location production and higher-value products. It is expanding customer development in Europe and Southeast Asia while improving efficiency and workforce capabilities at its Vietnam facility. Sheh Fung is also developing specialty fasteners, new screw products and automotive fasteners, while strengthening quality and certification capabilities. Looking ahead to Q3, the company remains cautiously optimistic, with potential order growth depending on the successful validation and initial shipments of products for new customers.

Spec Products Enters Volvo EX60 Supply Chain with Waterproof Bolts Set for 2H26 Production Taiwanese specialty fastener maker Spec Products has entered the supply chain for Volvo’s new EX60 electric vehicle, working with Stanley to develop waterproof bolts for the battery assembly chassis. Spec Products is reportedly the only Taiwanese supplier approved to manufacture the products, with annual exports expected to reach at least 240 metric tons of high-margin fasteners. President Zephyr Chang said customized automotive components account for more than 80% of the company’s development projects. For the EX60 program, Spec Products uses a digital mold design support system combined with sixdie, six-blow forming technology, shortening development time by 30% and reducing total development costs by more than 10%. Spec Products posted NT$1.256 billion in first-half revenue, up 3.67% year over year. Net income attributable to the parent company reached NT$116 million, rising about 298.5%, while EPS increased to NT$2.55. North America accounted for more than 60% of second-quarter revenue, with Europe contributing about 30%. Looking ahead, Spec Products plans to reduce its reliance on standard fasteners and focus on EV battery sealing components, multi-process specialty products, assemblies and patented products, while evaluating overseas investment, acquisitions and strategic alliances.

Strong U.S. Aluminum Demand and AI Infrastructure Support Ta Chen International’s Growth Ta Chen International is maintaining strong operating momentum, supported by a supplydemand gap in the U.S. industrial aluminum market and continued investment in AI infrastructure. The company has reported monthly revenue above NT$10 billion for five consecutive months. Ta Chen International said the U.S. continues to face a shortage of aluminum coil and sheet supply, while tariff policies have created an import barrier, keeping demand ahead of supply and supporting stable demand for its products. The expansion of AI servers and related infrastructure is also driving demand for stainless steel, aluminum coil and sheet, screws and fasteners, further supporting Ta Chen International’s shipments. Analysts believe that if U.S. economic conditions and tariff policies remain stable and AI infrastructure investment continues, the company’s profitability could maintain its growth momentum. Ta Chen International reported July revenue of NT$12.618 billion, up 5.97% month over month and 46.12% year over year, marking a record monthly high. Revenue for the first seven months reached NT$79.814 billion, up 32.56% year over year. Secondquarter gross margin was 30.49%, an increase of 6.15 percentage points year over year, while net income rose 399% to NT$4.786 billion, with earnings per share of NT$1.93.

BBI Benefits from U.S. Factory and Data Center Demand as Fastener Orders Stay Strong BBI reported record monthly revenue in June, supported by strong purchasing demand from U.S. customers. The company expects robust procurement momentum to continue through November and December, while anticipating

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FASTENER WORLD NEWS further fastener demand from overseas companies investing in U.S. manufacturing facilities and data center construction. BBI mainly supplies carbon steel, alloy steel and stainless steel fasteners, with the U.S. as its primary market. The company operates around 20 warehouses across the country, with U.S. sales accounting for approximately 90% of total revenue. Customer purchasing has recently increased from about US$3 million to US$3.5 million per day, with industrial fasteners showing particularly strong growth. The company said investment in U.S. manufacturing facilities and data center projects is driving demand for basic construction screws and structural fasteners. Although around 4,300 data centers have been approved for construction in the U.S., only about 160 have been completed, indicating significant potential demand ahead. BBI posted June revenue of NT$2.632 billion, up 12.88% month over month and 36.57% year over year. First-half revenue reached NT$14.073 billion, increasing 18.86% year over year.

Singapore Fastener Distributor Sin Lian Seng Targets US$28M Nasdaq IPO Singapore-based fastener and solar solutions provider Sin Lian Seng has filed with the U.S. Securities and Exchange Commission (SEC) for an initial public offering that could raise up to US$28 million. The company plans to offer approximately 6.3 million shares at an estimated price of US$4 to US$5 each. At the midpoint of the proposed range, Sin Lian Seng Construction would have an implied market capitalization of about US$73 million. The company intends to list on the Nasdaq under the ticker ININ. Founded in 1986, Sin Lian Seng Construction supplies bolts, nuts and other industrial components to customers in the construction, mechanical and electrical, maritime and manufacturing sectors. The company expanded beyond its traditional fastener business in June 2025 through the acquisition of Lumenx Energy, entering Singapore’s solar photovoltaic engineering, procurement and construction market. Sin Lian Seng Construction reported approximately US$6 million in revenue for the year ended December 31, 2025. The company initially filed its IPO registration confidentially on December 19, 2025, marking a potential new milestone for the Singaporebased fastener distributor as it seeks access to U.S. capital markets.

Vossloh To Deliver Rail Fastenings For Two New HSR Lines

Sundram Fasteners Plans to Invest Rs 400 Crore

Vossloh has secured two contracts worth around EUR 60 million to supply rail fastening systems for new high-speed rail (HSR) lines in the Chinese province of Shandong. The company is supplying System 300 fastening systems for slab track on the 269 km Jinan – Zhaozhuang line and the 109 km Qingdao – Zhucheng line. Both new lines are designed for speeds of up to 350 km/h. Deliveries will begin in 2027, with production taking place at the Kunshan plant of the subsidiary Vossloh Fastening Systems China. The Jinan – Zhaozhuang link connects the provincial capital to the southern economic regions and also provides access to important tourist destinations such as Qufu. The Qingdao – Zhucheng line links the deep-sea port of Qingdao with industrial centres towards Jinan as well as destinations in the south of the province.

Manufacturer and supplier of engineering products, Sundram Fasteners Ltd (SFL) has plans to invest Rs 400 crore this fiscal year to expand manufacturing capacity across automotive and industrial segments. The investment will fuel the expansion required to meet demand across the internal combustion engine (ICE), plug-in hybrid electric vehicle (PHEV), and electric vehicle (EV) segments. Rs 250 crore will be deployed in the fasteners division to expand capabilities for the wind energy, space, and aerospace sectors. Rs 100 crore will be invested in the cast and machined assemblies business to enhance the production of high-value precision-engineered assemblies. This investment comes as the firm is looking to diversify its business.

Optimas Identifies Up to 50% Fastener Savings for Diesel Engine Manufacturer Optimas International has helped a manufacturer of high-performance diesel outboard engines identify potential fastener cost savings of up to 50% without compromising product performance or reliability. The project focused on threaded fasteners made from A4-80 stainless steel, which can help reduce the risk of thread galling but are not commonly held in standard inventory. Because these fasteners often require bar-turning to order, they can involve higher costs and extended lead times. Optimas reviewed the customer’s standard operating procedure (SOP) bill of materials and assessed threaded

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FASTENER WORLD NEWS assemblies throughout the engine. The company identified applications where A4-70 stainless steel could be safely substituted for A4-80 without requiring the additional performance margin. Each proposed change was presented with the original specification, allowing the manufacturer to compare cost, lead time and performance on a like-for-like basis. By optimizing fastener specifications at the component level, Optimas identified savings of up to 50% while reducing supply-chain and lead-time risks associated with specially produced A4-80 fasteners.

NT Fasteners Opens Major New Darwin Facility, Realizing a Family Vision NT Fasteners has officially opened a new 1,000-square-meter warehouse and showroom in Darwin, Australia, marking a major milestone for owner Tony Halikos and fulfilling a long-held vision shared with his late father, company founder John Halikos. Located on Berrimah Road, the new facility is more than 12 times larger than the company’s previous premises. The project, unveiled on June 18, represents the culmination of a journey spanning nearly two decades. Built entirely with local businesses, trades and materials, the development reflects the company’s long-standing commitment to supporting the Darwin community. Tony Halikos said the investment was designed to strengthen NT Fasteners’ role as a reliable local supplier and position the company for future generations. The project also marked Tony’s first business collaboration with his wife, Nicki. Its completion follows years of delays caused by economic conditions. The opening was attended by Northern Territory Treasurer Bill Yan, who said the investment demonstrated confidence in the region’s economic outlook as several major industrial and infrastructure projects move forward.

Würth Group Reports 4.3% Sales Growth in H1 26 as Digital Business Expands Germany-based Würth Group, the world’s largest fastener products distributor, reported solid financial growth for the first half of 2026 despite continued economic challenges across global markets. The group generated €10.9 billion in sales, up 4.3% year over year, or 5.2% on a currency-adjusted basis. Operating profit increased 8.4% to €515 million. Digital sales continued to strengthen, with Würth’s eBusiness accounting for 25.3% of total first-half sales, following the company’s first full-year result above 25% in 2025. Würth cited elevated energy costs, geopolitical uncertainty and weak industrial activity, particularly in Germany, as ongoing pressures on its markets. However, the company reported strong performance from its Electronics eiSos and Chemicals businesses, while its fastening technology segment, Arnold Group, showed signs of recovery. Eastern Europe and South America also contributed positive growth momentum. Würth said recent order intake provides confidence for continued business performance through the remainder of 2026. The group ended June with approximately 86,700 employees, including around 44,000 sales staff, maintaining a workforce level broadly unchanged from the previous year.

Gersan Elektrik Explores Strategic Partnership with SmartBolts Türkiye-based company Gersan Elektrik Ticaret ve Sanayi A.Ş. has signed a non-binding statement of intent with U.S.-based SmartBolts to explore potential strategic cooperation in the manufacture, commercialization, distribution, financing and development of products and technologies. The discussions remain exploratory and are subject to legal, technical, financial, regulatory and commercial reviews, due diligence and further negotiations. No partnership, joint venture or other binding commitment has been established at this stage. SmartBolts develops tension-indicating fasteners featuring a visual system designed to show bolt tension, helping improve installation reliability, inspection efficiency and maintenance visibility in critical bolted connections. Gersan said the discussions form part of its broader internationalization strategy and could complement its existing industrial capabilities and market expansion efforts. The announcement follows Gersan’s recent application to have its shares cross-traded on the OTCQX Market in the United States. Chairman Erkan İzgi said the two initiatives represent complementary steps toward increasing the company’s international visibility in both capital markets and industrial business channels. Any future cooperation would require definitive agreements and approvals from both parties and their respective advisors.

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4137

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3946

YAOWAY ASSOCIATES CO., LTD.

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European News

Provided by: Fastener + Fixing Magazine www.fastenerandfixing.com

UK and EU Introduce Tougher Steel Import Measures The UK and European Union have introduced major new steel trade measures, marking one of the most significant shifts in European steel policy in recent years as governments seek to protect domestic producers from surging imports and global overcapacity. Both regimes came into force on 1st July 2026, replacing long-standing safeguard measures with strengthened tariff rate quota (TRQ) systems designed to support local steel production while maintaining access to essential imported materials.

1 UK Cuts Tariff-Free Import Quotas by More Than Half The UK government's new steel trade measure reduces tariff-free steel import quotas by 51% compared with the previous safeguard system. Imports exceeding the revised quotas will now be subject to a 50% tariff, replacing the safeguard arrangements that expired on 30th June. The measures apply to steel products that can be manufactured in the UK and form part of the government's wider Steel Strategy, first announced in March. Ministers say the policy is designed to strengthen domestic steelmaking, safeguard critical supply chains and bolster industries including construction, infrastructure and defence. The UK government reports that the new system follows months of consultation with steel producers, downstream manufacturers, and international partners, including the European Union. Officials argue the changes are necessary because of persistent global overcapacity in steel production, which has led to large volumes of lower priced imports entering international markets. The UK says maintaining a viable domestic steel sector is vital for national resilience and security.

Alongside the revised quotas the UK government has introduced exemptions for certain specialist steel products that are not manufactured domestically, helping manufacturers that rely on imported materials unavailable from UK producers – removing 11 individua l c ommodity c odes. The principal bar, rod and wire categories used by the fastener industry remain within scope. A transitional arrangement will also protect businesses importing steel under contracts signed before 14th March 2026, allowing qualifying shipments to enter without the new tariff until the end of September.

European Union Adopts Revised Steel Trade Framework At the same time, the European Commission has introduced a new steel trade measure to replace the EU's safeguard regime, with the aim of strengthening the resilience and competitiveness of the European steel sector. The new framework reduces tariff-free import quotas to approximately 18.3 million tonnes per year, representing a 47% reduction compared with the previous system. Steel imports exceeding those quotas will also face a 50% duty. According to the Commission, the measure is intended to address the continuing challenge of global steel overcapacity, which has resulted in increasing volumes of diverted imports entering the European market. The new rules cover 30 categories of steel products, including wire rod, stainless wire rod, stainless wire, cold draw wire, alloy bars, as well as stainless bars, and introduce strengthened origin requirements through the 'melted and poured' principle, helping to ensure imported products cannot circumvent the measures by undergoing limited processing in third countries before entering the EU. The Commission said the revised system seeks to strike a balance between protecting European steel producers from unfair market pressures while preserving access to imported steel for traditional trading partners and downstream manufacturing industries.

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EUROPEAN NEWS 3 A Coordinated Response Although introduced separately, the UK and EU measures reflect a common approach to addressing the challenges facing the steel industry. Both systems significantly reduce tariff-free import quotas while increasing tariffs on volumes exceeding those allocations. Both also cite persistent global overcapacity, market distortion caused by lower priced imports and the strategic importance of maintaining domestic steel production for critical supply chains. For downstream sectors, including the fastener industry, the measures are expected to encourage greater use of domestically produced steel where available, while increasing the importance of careful procurement planning as quota allocations become more limited.

UK-based DC Iron is a distributor of wrought iron components, key clamps, handrailing and fencing for fabricators, engineering companies, and building contractors, across the UK – with net sales of GB£14.8 million (€17.3 million) in 2025 and an operating profit margin significantly above Bufab’s profitability target. Based in Newcastle upon Tyne, DC Iron has achieved excellent growth and profit in recent years. Johan Sandberg, group director region UK & Ireland at Bufab, comments: “DC Iron operates in an attractive and resilient niche market with a broad and multi-faceted product range that spans across many applications and has a business model similar to Bufab’s. We welcome the DC Iron team to Bufab and look forward to supporting them in their continued growth journey.”

Bufab Acquires DC Iron In-line with its strategy of acquiring profitable companies in attractive niches within C-parts and technical components, Bufab Group has entered into an agreement to acquire 100% of the shares in D.C. Handrails and Ironwork Parts Limited (DC Iron) – completed during July 2026.

Scott Collins, who will remain managing director at DC Iron, adds: “We are pleased to become part of Bufab. Throughout this process Bufab demonstrated a clear strategic vision and a strong appreciation for our culture, our people, and the relationships we have built over the years. I believe that being part of Bufab will provide opportunities to further develop the business, expand into new markets and continue creating value for our customers and employees. I would like to thank our employees, customers, suppliers and advisers who have supported us throughout this journey. This transaction represents not an ending, but an exciting new chapter.”

Q2 CBAM Certificate Price Released with Minor Decrease The European Commission has published the Q2 price of CBAM certificates for 2026, set at €75.28 per tCO2e – slightly down from the Q1 price of €75.36 per tCO2e. For 2026 CBAM certificate prices will be determined on a quarterly basis. Therefore, there will be four prices in 2026 (one per quarter). Each price will only apply to emissions in CBAM goods imported into the Union during the quarter it relates to. “Each quarterly price will be calculated by the Commission as the average of EU Emissions Trading System (EU ETS) auction clearing prices,” comments the European Commission. “This ensures a fair and consistent alignment with the EU carbon market. From 2027 onwards, the Commission will calculate and publish weekly prices.” Although authorised CBAM declarants will only begin purchasing CBAM certificates from February 2027 (covering their 2026 imports) the Commission hopes that early publication of these costs will enhance transparency, provide stakeholders with timely information and reduce the risk of inconsistent or unofficial price estimates circulating in the market. You can keep track of the latest certificate prices here: www. fastenerandfixing.com/ industry-news/latest-cbam-certificate-prices

Hilti Q1 Sales Grow In the first four months of 2026 Hilti Group increased sales by 4.7% in local currencies. Due to the ongoing appreciation of the Swiss franc, against all major currencies, the negative currency effect rose to 6.2 percentage points. In Swiss francs, total sales reached CHF 2.068 billion (€2.243 billion).

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EUROPEAN NEWS In the Americas, Hilti Group increased sales by 9.6% in local currencies. In Europe, given the continued soft construction market, growth was at 0.8% in local currencies. In the Middle East/ Africa region, sales grew at a double-digit rate (+17.5% in local currencies). Asia-Pacific recorded growth of 6.6% in local currencies in what remained a heterogeneous environment. For the remainder of 2026 Hilti Group expects low to mid single-digit sales growth in local currencies in the current uncertain global environment.

Management Buyout of Anochrome Group Private equity firm Endless LLP has supported a management buyout of the Anochrome Group, a UK headquartered surface finishing and coatings specialist. The transaction represents a transition from long-standing family ownership and the start of a new phase for the business. Anochrome, which has its headquarters in Wolverhampton, has been trading for over 80 years – providing high-quality surface coatings, corrosion protection and threadlocking sealants services to a diverse customer base across a range of sectors, including automotive, construction, industrial fixings, motor sports and renewables. It operates from sites in the UK, Poland and Czech Republic and is recognised for its technical expertise, strong customer relationships and commitment to quality and service. The business will continue to be led by its existing senior management team, headed by Mark Jones, who will partner with Endless to deliver Anochrome’s growth strategy. Long serving team members Steve Norman, Kev Walton and Pawe� Jagustyn will support Mark in overseeing the six companies within the Group: Anochrome Limited, Anotec, Inlex Locking, Wolverhampton Electro Plating, Anocote CR and Anocote PL.

continue delivering long-term innovation and growth across the Group.” He continues: “On behalf of the entire team at Anochrome, I’d like to thank outgoing owner Rob Gray for his exceptional leadership and personal commitment to the business over the last 35 years. I, alongside the senior leadership team, are committed to building upon the proud legacy and reputation of the business for many years to come.”

Mark Jones, group chief executive of Anochrome, comments: “This transaction represents not a change in direction, but an exciting new chapter built upon strong foundations. With the support of Endless, we are exceptionally well positioned to accelerate future investment, strengthen our capabilities and

Rob adds: "It's been a privilege and honour to lead the business. It's been a fantastic journey and my huge thanks go to every single person who has been a part of it. The management team I leave behind is absolutely fantastic. I know the business is in safe hands and I wish the new ownership every success for the future."

Bulten Wins Administrative Court Ruling in Customs Dispute Bulten Group has secured a favourable ruling from the Administrative Court in Stockholm in its dispute with the Swedish Customs over anti-dumping duties on imports of materials from China. The court upheld Bulten’s appeal and annulled the customs authority’s decision covering SEK 35 million (€3.17 million) of duties for the 2022 – 2024 period. The judgment means, if it becomes legally binding, that Bulten will receive a refund of previously paid and expensed customs duties as well as interest, totalling approximately SEK 35 million. “This is a pleasing and welcome announcement from the Administrative Court. The judgment confirms our view that we have classified our products correctly in accordance with the applicable regulations,” says Axel Berntsson, president and CEO at Bufab. The Swedish Customs are able to seek leave to appeal the judgment.

Bulten to Divest Chinese Manufacturing Operations Bulten has entered into an agreement to divest 100% of its shares in Bulten Fasteners (Tianjin) Co Ltd to a local investor group led by Kaikai Chen, as part of the organisation’s ongoing work to focus on selected core operations. The purchase price amounts to RMB 1 million (€129,000). For the financial year 2025, Bulten Fasteners (Tianjin) generated revenue of approximately RMB 88 million (€11 million). The divestment supports Bulten’s ambition to reduce complexity and capital intensity while strengthening focus on activities with higher long-term value creation potential. The transaction is subject to customary closing conditions and regulatory approvals in China and was intended to be completed no later than the end of August 2026.

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AMERICAN NEWS ASTM Honors King with Merit Award ASTM International honored Bill King, retired technical sales manager at Brighton-Best Int’l, with the 2026 Award of Merit for contributions to its F16 fasteners committee. An ASTM member since 1995, King has previously been honored by the committee with the 2007 Fred F. Weingruber Award. King’s career focus has been fastener quality, quality management, testing, lab accreditation and management, and applications engineering. Prior to 1994, King served in various roles in quality assurance for aerospace and defense companies. In addition to ASTM, he has contributed to the American Society of Mechanical Engineers (ASME), the Society of Automotive Engineers (SAE), and the British Standards Institution fastener committees.

MWFA Names '26 Hall of Fame Class The Mid-West Fastener Association (MWFA) announced its 2026 Hall of Fame class, recognizing seven individuals and two companies for their contributions to the fastener industry and the association. Individual inductees include: Robert Baer, Abbott Interfast; Rich Cavoto, Metric & Multistandard Components; Joe L. Davis Jr., ISSCO, Inc.; Paula Evitts, Avante Imports; David Gawlik, Stelfast; Becky Russo-Botti, Sems & Specials; and Nick Viggiano, Brighton-Best International. Companies inducted are Sems & Specials Inc. and SWD Inc. The Hall of Fame Awards has been presented during FSTNR Week ’26 on September 2 at the MWFA’s 80th anniversary.

SFS Acquiring Heartland Precision Fasteners Switzerland-based SFS Group has agreed to acquire Kansas-based Heartland Precision Fasteners Inc., a manufacturer of specialized fasteners for aircraft structures and engines. Terms of the deal were not disclosed. With this acquisition, SFS enters the North American aerospace market, giving the Swiss group access to an important market for its high-performance components. Founded in 1994, Heartland employs 70 people to manufacture precision fasteners for civil and military aerospace applications. The company reported sales of US$30 million in 2025. The deal is expected to close by the end of September 2026.

Novaria to Acquire Avantus Aerospace

Arcline Investment Management has agreed to acquire Avantus Aerospace Group from Inflexion for an undisclosed sum. The deal adds a manufacturer of engineered shims and specialty fasteners to Arcline’s aerospace and defense portfolio and further expands the capabilities of Novaria Group. Avantus and its operating companies will become part of Novaria Group, Arcline’s Texas-based aerospace components business purchased for US$2.2 billion cash in 2025. The acquisition strengthens Novaria’s position in the global aerospace supply chain by adding highly engineered products that are integrated into virtually every major commercial, business jet and defense aircraft currently in production.

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Avantus serves more than 1,600 customers worldwide and delivers over 25 million components annually across a portfolio of more than 37,000 active SKUs. UK-based Avantus manufactures engineered shims, solid fillers, detail parts and specialty fasteners that play critical roles in aircraft assembly. For Novaria, the transaction broadens its portfolio of niche engineered aerospace components while expanding manufacturing capabilities across both Europe and North America. The company supplies specialized products and manufacturing services to more than 3,000 aerospace and defense customers and has pursued acquisitions to strengthen its position throughout the aerospace supply chain. Novaria CEO Bryan Perkins said Novaria’s “operational discipline, deep customer relationships, and leadership positions in shims and specialty fasteners are a natural complement to our capabilities.”

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AMERICAN NEWS Avantus will continue operating through its eight established brands, which include Lamsco, Attewell, Bolsan, ShimCo and PSC Global in engineered shims and detail parts, along with Fastener Technology Corporation, Fastener Innovation Technologies and CalScrew in engineered fasteners. The acquisition underscores continued private equity investment in aerospace and defense suppliers as aircraft manufacturers increase production rates and defense spending supports demand for highly engineered components. Suppliers with specialized manufacturing capabilities, long qualification cycles and embedded positions on major aircraft platforms have become attractive acquisition targets because of their recurring revenue profiles and strategic importance to original equipment manufacturers. Arcline manages more than US$30 billion in assets and focuses on building long-term industrial platforms through acquisitions and operational improvements. The addition of Avantus further expands Novaria’s scale and product breadth, positioning the business to capitalize on sustained demand across commercial aviation and defense markets.

Distribution Solutions Group Going Private Distribution Solutions Group has agreed to be taken private by its controlling shareholder, LKCM Headwater Investments, four years after DSG was assembled as a publicly traded specialty distribution platform. LKCM currently owns approximately 79% of DSG’s common stock, and will acquire all outstanding shares for US$35 per share in cash. Upon completion, DSG will become wholly owned by LKCM and its affiliates. The agreement values DSG at approximately US$2.4 billion, with LKCM expected to pay roughly US$500 million for the remaining stake it does not already own. DSG formed in April 2022 through the combination of Lawson Products, Gexpro Services and TestEquity, spanning MRO supplies, OEM supply-chain services and industrial technology products.

MW Components Sold to UK Investment Firm MW Components has been sold to UK investment firm Rosebank Industries for $950 million. North Carolina-based MW Components operates 24 manufacturing facilities in the U.S., employing 1,750 people to produce fasteners, springs, and precision metal components for aerospace & defense, electronics, semiconductors, medical, energy, agriculture, and other industrial markets. MW generated revenues of $500 million in 2025, with a 15% operating margin. The company was acquired by American Securities in 2017.

Supply Technologies Automates duplication, streamlining product flows and supporting growing demand from emerging markets such as AI data centers — a segment that has expanded from virtually no revenue two years ago to approximately US$150 million annually. Supply Technologies announced a US$50 million investment in infrastructure, systems and automation, including robotics. Included is a new 375,000 sq ft distribution center in Ohio, which supports Supply Technologies’ global network of more than 70 locations, including 46 in North America, by reducing inventory

The new facility will be the company’s flagship location, with advanced warehouse operations, labs, and an innovation center. Warehouse processes are also being modernized, with a shift from paper-based ticket-picking to digital tools, including scanning and voice-directed systems. Ohio-based Supply Technologies is a Park-Ohio Holdings Corp. company providing supply chain management for fasteners and class-C parts to OEMs on three continents.

GI Unveils 360-Degree Inspection System General Inspection, LLC announced the launch of the Gi-307, a powerful new fastener inspection and sorting platform designed to redefine quality control for manufacturers producing mission-critical screws and bolts. Built for applications where failure is not an option, the Gi-307 provides 360-degree inspection using a revolutionary combination of sequenced front and back lighting with seven high-speed inspection cameras.

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AMERICAN NEWS Unlike conventional inspection systems that struggle to balance dimensional accuracy with reliable surface defect detection, the Gi307 performs both simultaneously — at production speeds up to 300 parts per minute. The system inspects every critical fastener feature, including threads, diameters, lengths, angles, radii, and straightness, while also detecting visual defects such as cracks, plating failures, corrosion, metal chips, and porosity. The Gi-307 also incorporates an on-axis inspection camera to analyze fastener head recesses, allowing manufacturers to detect defects and dimensional issues in slotted, Torx®, and Phillips® drive systems.

New Hires for AFC Industries and EFC International

AFC Industries hired Joseph Czaja as VP of Sales for its Aerospace & Defense Group. Czaja’s experience includes positions at Apollo Aerospace Components, ERIKS and Grainger. Ohio-based AFC provides supply chain management for fasteners, tooling and assembly components. EFC International hired Tim Billingsley as Senior VP of Commercial & Industrial Markets. Billingsley’s experience includes executive positions with LGG Industrial, 2J Supply Company, and Grainger. Founded in 1983, EFC is a global supplier of specialty engineered metal and plastic fasteners and other component parts to OEMs and distributors. Missouri-based EFC has locations in North America, Europe and Asia.

Hillman Solutions Agrees to Acquire Kanebridge

Hillman Solutions Corp., Cincinnati, OH, USA,, a leading provider of hardware products and merchandising solutions, entered a definitive agreement to acquire Kanebridge Corporation, a leading master distributor of industrial fasteners for US$315 million, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses. Kanebridge supplies more than 44,000 commercial and military-grade fastener SKUs to distributors throughout the USA and Canada from its warehouses in Illinois and California, selling exclusively to distributors in commercial and industrial channels. Following completion of the acquisition, Kanebridge will operate as part of Hillman’s commercial and industrial business.

Vamp Screw Products Joins Fastener Industries

FDH Aero Opens New Facility

FDH Aero opened a sales and distribution facility in Montreal. The new location will serve as a hub for FDH Aero’s expanding business in Canada. “Opening our Montreal facility is an important milestone in our ongoing global expansion and strengthens our position as the leading independent, scaled supply chain solutions partner worldwide,” said vice president Ian Locke. California-based FDH Aero supplies C-class components that include hardware, electrical, chemical and consumable products and services for OEMs and Aftermarket customers. FDH’s 12 companies include three specializing in fasteners: Aircraft Fasteners International, Blue Sky Industries and Calco Aerospace.

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Berea, OH, USA-based Fastener Industries, Inc. announced that Vamp Screw Products Company, Trenton, MI, USA, joined Fastener Industries as a wholly owned subsidiary. Vamp joins the company of employee-owned companies that includes Buckeye Fasteners, Modern Fasteners, The Ohio Nut and Bolt Co., Ohio Nut & Bolt of Canada, Ltd., Brainard Rivet, Joseph Industries, Inc. and Die Co., Inc. Founded in 1942, Vamp Screw Products is a supplier of high-quality fasteners to distributors throughout the Midwest, including Buckeye Fasteners Co., Fastener Industries’ primary distribution company. Bob Perry, Fastener Industries CEO, commented, “Vamp has been a reliable and trusted supplier to Buckeye Fasteners for more than 25 years. The company’s name is well known as a high-quality supplier of nuts in the fastener industry. It makes perfect sense to welcome them as our latest acquisition.” Vamp Screw Products was founded by Paul and Mary Topolewski, together with their sons, Vincent and Albert Topolewski. All of the current employees will be retained, and the firm will continue operating under the Vamp Screw Products name.

AMERICAN NEWS Margiotta Named CEO of MW Fasteners MW Fasteners, Charlotte, NC, USA, announced James Margiotta as its new Chief Executive Officer (CEO). The company said Margiotta brings extensive leadership and manufacturing experience to the position, including several years as general manager of Accurate Screw Machine, where he focused on operational excellence, customer needs and business growth. Margiotta assumes the role as the MW Fasteners continues investing in its workforce, expanding its U.S.-based manufacturing operations and increasing production capacity and technical capabilities for customers. The company reports that it is installing new and modernized manufacturing equipment across its facilities as part of what it described as one of the largest capital investment programs in its history. MW Fasteners manufactures precision machined, cold-headed, NAS/MS/AN and custom fasteners for aerospace, defense, medical, electronics and other demanding industries.

Field Fastener Expanding Tyler Center of Excellence

Optimas, Wood Dale, IL, USA, moved its Lockbourne, OH, USA, distribution center to a new facility in Grove City, OH, USA. The new distribution center is a 44,385 ft2-site close to major transportation routes. The move also gives Optimas the chance to build the new site around 5S principles. Work areas, inventory locations and material flow have been set up to support safer and more efficient operations. The current Optimas team is running the new Grove City facility. This helps keep site knowledge in place, supports a smooth move and helps maintain service levels for customers and partners. News provided by: John Wolz, Editor of FIN (globalfastenernews.com) Mike McNulty, FTI VP & Editor (www.fastenertech.com)

The Tyler Economic Development Council (TEDC), Tyler, TX, USA, reports that Field Fastener plans a US$2.875 million expansion and modernization project at its Tyler Center of Excellence in Tyler, TX, USA. The project is expected to retain 26 existing jobs and create 10 new full-time positions. Plans also call for the renovation of approximately 16,000 ft2 of facility space. TEDC says that the investment reflects Field Fastener’s long-term commitment to the Tyler and Smith County regions in Texas. The project was supported through a collaboration between Field Fastener, Smith County and Smith County Emergency Services District No. 2 (ESD2). Field Fastener leaders Anthony Ellis and Chris Pauli were recognized by TEDC for their roles in advancing the project and the company’s continued investment in its operations, workforce and the future growth of the region. Field is a full-service, data-driven, on-demand fastener supply and engineering partner.

Optimas Strengthens Distribution Network with Move to Facility

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INDUSTRY FOCUS

Hyperion campus

Hudson Tunnel

Speed Rail

Building America: Four Megaprojects

Key Bridge Rebuild

Reshaping U.S. Fastener A Demand

cross the United States, a new generation of infrastructure and construction projects is moving from planning into active procurement and installation. The headline figures are enormous: multibillion-dollar rail corridors, tunnels, bridges and data centers. For the fastener industry, however, project value alone does not reveal the opportunity. The more useful questions are what is being built, which construction phase is underway, what specifications apply and how products reach the jobsite.

Four projects illustrate the range of demand now emerging. California HighSpeed Rail is advancing from civil structures toward track and electrical systems. The Hudson Tunnel Project combines underground, marine and rail construction. Baltimore's replacement of the Francis Scott Key Bridge will require years of demanding structural and marine work. Meta's Hyperion data-center campus in Louisiana represents a different market altogether: rapid, repeatable construction with extraordinary mechanical and electrical density. Together, they show why U.S. fastener demand is likely to broaden, while becoming more specialized.

California’s High-Speed Rail

California's high-speed rail program is already one of the country's largest active civil works programs. According to the California High-Speed Rail Authority's July 2026 status report, 65 of 92 structures in the first construction packages were complete by the end of May, with 26 underway. The authority also reported 89 of the first 119 guideway miles complete. Bridges, viaducts, trenches, grade separations and utility relocations have generated demand for structural bolts, anchor rods, formwork hardware, concrete anchors, guardrail fasteners and many other construction products. The next opportunity is different. The authority has awarded contracts for long welded rail, concrete ties and overhead contact system poles, while additional procurements cover cable troughs, electrical components and fiber-optic systems. As work shifts toward track and systems, demand will increasingly favor rail clips and assemblies, pole and bracket connections, cable-support hardware and vibration-resistant products. This phase can also create openings for international fastener manufacturers with specialized technology, competitive scale or products that are not readily available within required schedules. Buy America and Build America, Buy America rules limit the direct use of imported material, but they do not exclude foreign companies from the supply chain. Overseas manufacturers can participate through U.S.-based production, partnerships with compliant domestic processors and distributors, or, in limited cases, project waivers when suitable domestic capacity is unavailable. For foreign suppliers, the opportunity therefore lies less in exporting standard products and more in localizing production, documenting origin, meeting U.S. rail specifications and filling capacity or technology gaps in the American market.

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INDUSTRY FOCUS New York’s Hudson Tunnel

The US$16 billion Hudson Tunnel Project will add a new two-tube rail tunnel between New Jersey and Manhattan and rehabilitate the existing North River Tunnel. In July 2026, the Gateway Development Commission reported that the first construction package was complete and six more were in progress. Work includes access shafts, concrete casing, riverbed stabilization, marine construction and preparations for tunnel-boring machines.

Fastener demand will be distributed across many systems rather than concentrated in one visible steel structure. Likely applications include embedded anchors, threaded rod, structural connections, tunnel and rail hardware, cable supports, pipe restraints and equipment mounting. Marine and underground exposure place a premium on coatings, corrosion resistance and long service life. Just as important, a project of this complexity rewards suppliers that can manage submittals, certifications and precisely scheduled deliveries. The opportunity may therefore be measured less by commodity tonnage than by the value of engineered, traceable products supplied across a long construction cycle.

Maryland’s Key Bridge Rebuild

The replacement of Baltimore's Francis Scott Key Bridge offers the clearest example of traditional heavy structural demand. Permanent foundation pile installation and temporary trestle construction are underway, and the new bridge is expected to open in late 2030. The cable-stayed design will provide at least 230 feet of vertical clearance and will require major pylons, marine foundations, approach spans and a new main span.

Those elements point to the demand of high-strength structural bolts, large-diameter anchor rods, bearing and expansion-joint hardware, bridge-rail connections and hot-dip galvanized or otherwise corrosion-protected fasteners. Fastener demand will begin well before crews assemble the permanent bridge. Temporary access trestles, crane platforms and construction bracing all require substantial connection hardware. Demand should then rise again as work advances to the main span and marine approaches later in the construction schedule. For fastener suppliers, early qualifications with steel fabricators and major subcontractors may be more valuable than waiting for material to reach the jobsite procurement stage.

Meta’s Data Center Build in Louisiana

Meta's Hyperion campus in Richland Parish, Louisiana, broadens the picture beyond public infrastructure. Announced as a US$10 billion investment, the four-million-square-foot campus is being built on approximately 2,250 acres, with construction expected to continue through 2030. Meta reported that the project supported 3,700 construction workers during its first year and was expected to reach a peak workforce of about 5,000 in 2026.

A data center does not use the same concentration of massive structural connections as a cable-stayed bridge, but its fastener piece count can be immense. Concrete anchors, threaded rod, strut fittings, self-drilling screws, roof and wall-panel fasteners, cable-tray connections, equipment anchors, pipe supports and HVAC hardware are repeated across vast buildings. Speed is crucial because individual halls are often delivered in phases and standardized designs are replicated. Suppliers able to provide kitted assemblies, vendor-managed inventory and rapid replenishment can become integral to productivity. The project also drives indirect demand through new power, road, water and wastewater infrastructure surrounding the campus.

These four megaprojects support a positive outlook for U.S. fastener consumption, but the gains will not be evenly distributed. Bridges favor larger, high-strength and corrosion-resistant products. Rail construction adds specialized fastening systems and electrical-support hardware. Tunnels require engineered anchors and dependable documentation. Data centers generate high volume demand for smaller commercial and MEP fasteners, with exceptional emphasis on availability and installation speed. Demand also passes through different channels: steel fabricators may purchase bridge bolts, rail-system contractors may control track hardware and data-center equipment manufacturers may source connections before assemblies ever reach the site. The common thread is rising value beyond the fastener itself. Domestic-content compliance, material certifications, lot traceability, protective coatings, job-specific packaging and dependable delivery are becoming decisive capabilities. Manufacturers and distributors that understand the project schedule—and position themselves before each fastener-intensive phase begins—stand to benefit most. America's megaproject pipeline is not simply calling for more bolts. It is calling for the right fasteners, documented and delivered at exactly the right time. Copyright owned by Fastener World / Article by Sabrina Rodriguez

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News

News provided by: Daiki Goto News Writer of Kinsan Fastener News www.neji-bane.jp

Eto Plans 3.2% Sales Growth as It Accelerates Overseas Expansion Eto (Yokohama, Kanagawa Prefecture; President Toshiyuki Amano) is targeting sales of ¥18.9 billion for the fiscal year ending March 2027, up 3.2% from the previous fiscal year. The company plans to strengthen its sales capabilities by establishing a new sales promotion division while accelerating overseas expansion, including the establishment of its first sales office in India and expansion of its operations in Vietnam. The initiatives are aimed at building a stronger foundation for medium- to long-term growth. Eto recorded sales of ¥18.3 billion in fiscal 2025, ended March 2026, slightly below its initial target. Operations in China and ASEAN were affected by production adjustments at automakers, while demand for residential equipment in North America remained weak amid inflation and high interest rates. By market, automotive demand in Japan remained largely flat, while overseas markets were challenging. Sales to the construction machinery sector remained firm, supported by resilient market conditions. Demand for industrial machinery, particularly robotics-related products, recovered throughout the previous fiscal year and is expected to remain strong in the current year. In the electronics sector, demand from some semiconductor manufacturing equipment customers remained solid, and sales are expected to remain at roughly the previous year's level. In the medical sector, Eto handles finished medical devices and is working to develop the business into a new core revenue source. In Japan, the company is strengthening its production capabilities at its Kagoshima plant. In addition to its traditional brass products for residential equipment, the plant is expanding into steel and stainless steel products, enhancing its ability to respond to a wider range of customer demand. Overseas, Eto's Vietnamese subsidiary opened a sales office in Ho Chi Minh City in March, adding to its existing base in Hanoi. In India, the company has previously dispatched employees to conduct market research. It now plans to establish its first Eto sales office in India by the end of this year in Gurgaon, where its parent company, Kyokuto Boeki Co., Ltd., also has an office. President Amano describes India as an essential market for Eto's long-term strategy. "India is a market we cannot overlook when considering our business development over the next 10 years," he said. With trade regulations increasing the importance of local sourcing for manufacturers, the company is also considering establishing local production capabilities. "We will continue studying the possibility of developing manufacturing functions there," Amano said. On March 31, Shinji Sakuma stepped down as representative director and president of Eto and became representative director and president of its parent company, Kyokuto Boeki Co., Ltd., on April 1. Amano succeeded Sakuma as president and has established a new sales promotion division starting this fiscal year.

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President To shiyuki

Amano

"Separate from our sales offices, we have established an organization focused on marketingdriven, proactive sales. We will strengthen both relationships with existing customers and the development of new customers," Amano said. Amano was born on December 18, 1966. He joined Eto in 1986 and was initially assigned to the company's Yamagata Sales Office. He subsequently spent two periods stationed in Thailand, working in overseas operations for a total of 12 years. After returning to Japan, he held positions in domestic sales and the international business division before becoming a director responsible for overseas operations in June last year. He became president and representative director in April this year. Drawing on his extensive experience in Southeast Asian markets, Amano will lead the company's efforts to further expand its overseas business.

JAPANESE NEWS Ohashi Technica Posts Higher Sales and Profits, Expands Global Production Capacity Ohashi Technica (Minato-ku, Tokyo; President Masaya Hirose) reported higher sales and profits for fiscal 2025, ended March 2026. Consolidated sales rose 2.3% year on year to ¥40.918 billion, while operating profit increased 36.1% to ¥2.426 billion. Ordinary profit rose 25.6% to ¥2.966 billion, and net income increased 36.9% to ¥2.084 billion.

U.S. manufacturing facility Although production cuts by some major automotive customers in Japan, China and ASEAN affected results, sales of newly awarded products expanded across the company's operating regions. Profitability also improved due to price revisions and higher productivity in manufacturing operations. Sales increased in both Japan and overseas markets. While the China business continued to post losses due to lower sales, overall operating profit increased as higher revenue, improved gross profit margins from price revisions and manufacturing productivity gains, and lower selling, general and administrative expenses, particularly overseas, contributed to earnings. By region, Japan posted higher sales despite the impact of production cuts by major automotive customers, supported by increased sales of newly awarded products. In the Americas, new orders, price revisions, higher manufacturing productivity and lower SG&A expenses significantly improved profitability. China, however, recorded lower sales as production by Japanese automakers continued to decline amid intensifying price competition among local manufacturers. SG&A expenses fell following structural reforms implemented in the previous fiscal year, but the decline in sales had a greater impact, resulting in another loss. The loss, however, was smaller than in the previous fiscal year. In ASEAN, sales increased despite production cuts by major customers, supported by higher sales of newly awarded products and foreign-exchange translation effects. Profit also increased on the back of improved manufacturing productivity. Europe also achieved a significant increase in profit, driven by new orders, price revisions, lower procurement costs and reduced SG&A expenses. For fiscal 2026, ending March 2027, Ohashi Technica forecasts sales of ¥43.0 billion, up 5.1% year on year, operating profit of ¥2.55 billion, up 5.1%, and ordinary profit of ¥3.0 billion, up 1.1%.

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★ Expanding Production for Hybrid Vehicle Components As part of its growth investments, Ohashi Technica has secured global orders for multiple suspension-related components for hybrid vehicles that Japanese automakers plan to produce in North America and ASEAN. To meet this demand, the company has expanded its U.S. manufacturing facility. The expansion has now been completed, increasing the plant's floor area to approximately 4,200 tsubo, or about 13,900 square meters. The company has also installed 15 new CNC lathes, bringing the total to 26 machines. A dedicated machining line consisting of the 26 CNC lathes will be brought online in stages through 2028, with production expected to increase accordingly. Products for the ASEAN market will be manufactured by Ohashi Giken, a Japanese subsidiary based in Aichi Prefecture. The company aims to strengthen its global supply system and provide components with consistent quality across production regions.

★ Three New Automated Machining Lines in Thailand At its manufacturing facility in Thailand, Ohashi Technica is preparing for mass production after receiving orders for fuel-piping-related components for diesel engines used in pickup trucks produced by a Japanese automaker. The company is installing three fully automated machining lines, each consisting of nine CNC lathes and other equipment. Production is scheduled to begin in the second half of fiscal 2026. The order reflects the company's expertise in achieving high-precision machining through both cold forging and cutting processes. Thailand plays an important role as an export base for the ASEAN market. Ohashi Technica plans to further expand its business by introducing advanced manufacturing technologies and putting its new sales office in Si Racha into operation.

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JAPANESE NEWS UNYTITE Accelerates Offshore Wind Expansion and Global Digital Transformation with AI UNYTITE (Kobe, Hyogo Prefecture; President Atsushi Hashimoto) is accelerating its expansion into offshore wind power, a promising growth market, while promoting global management reform through the development of an AI-powered digital platform. The company will build on its core businesses in bolts, nuts and forged components. UNYTITE serves five major markets: construction and civil engineering, construction machinery, shipbuilding and heavy electrical equipment, automobiles, and wind power generation. In fiscal 2025 (ended March 2026), the construction and civil engineering market remained sluggish. Construction capacity was constrained by regulations limiting working hours and a chronic shortage of skilled workers, resulting in lower construction activity. Demand for structural steel also remained weak, reducing demand for the company's mainstay high-strength and torque-shear bolts. The impact of demand related to the Osaka-Kansai Expo was also limited.

imoto tsushi Hash President A

Demand for construction machinery recovered, while sales to the shipbuilding and heavy electrical equipment sectors increased. However, these gains were insufficient to offset the decline in construction and civil engineering, resulting in sales slightly below the previous fiscal year. Profitability was also pressured by higher material, energy and auxiliary material costs. In the current fiscal year, the company plans to improve earnings through a review of its pricing and higher production efficiency.

personnel reductions. Going forward, UNYTITE plans to reduce its dependence on Japanese customers and expand into higher-margin businesses. For the current fiscal year, the company is targeting a 4.5% increase in sales from the previous year.

★ Offshore Wind Power as a Growth Market

★ Four Priorities for the Next Stage of Growth

Offshore wind power is one of UNYTITE's key growth areas. The industry faces numerous challenges, including how to reliably fasten large M72-and-larger bolts and nuts, as well as transportation and post-installation maintenance at offshore sites. UNYTITE aims to address these issues through integrated system solutions. As part of its maintenance solutions, the company is already co-developing a wireless monitoring system with a company from another industry. The system monitors the tightening condition of bolts equipped with built-in strain gauges. President Hashimoto aims to deepen the company's solution-based business by focusing not only on selling physical products, but also on providing services and solutions that address customers' operational needs.

★ U.S. Business Set for Record Sales UNYTITE's overseas operations showed contrasting results in the United States and China. In the United States, the company operates two locations: UNYTITE, INC. (Illinois; UIL), a manufacturing operation, and FASTENER LINK, INC. (Texas; FLI), a trading company. Before becoming president of UNYTITE, Hashimoto spent 12 years stationed at UIL and has served as its president since 2020. Both U.S. operations are expected to post record-high sales. While sales were largely flat in fiscal 2025 (ended December 2025), business conditions improved in fiscal 2026. In addition to the impact of price adjustments, the U.S. construction and civil engineering market is benefiting from strong demand for data center construction and other projects. UIL's business model also makes it relatively resistant to tariff impacts. The company manufactures products locally using U.S.-sourced materials and supplies them to the U.S. market. Demand for domestically manufactured products is also increasing. FLI plans to leverage UIL's existing customer network to develop new business opportunities. At the same time, rising labor costs and difficulties in securing workers remain challenges in the United States. The company will respond by upgrading labor-saving equipment and strengthening operational capabilities at its production sites.

★ China Operations Face Weak Japanese Auto Demand In China, UNYTITE has operated two locations: Foshan Yuren Precision Co., Ltd. (FUP) and Foshan Yuyi Precision Forging Co., Ltd. (FUF), both in Foshan, Guangdong Province. However, weak performance among Japanese automakers, which account for a large portion of sales, has weighed on the business. At the end of 2025, the two operations were consolidated onto FUF's site, accompanied by difficult

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UNYTITE has identified four priority initiatives: (1) creating a safer workplace, (2) developing a long-term vision for the next 10 years, (3) fostering a workplace with active communication, and (4) establishing systems to reduce dependence on individual employees. In developing its long-term vision, the company plans to incorporate the perspectives of both experienced employees in their 60s and younger employees in their 30s to clarify its direction for the next generation. The company has also begun individual meetings with all employees and monthly communications from the president by email.

★ Expanding CADDi Across the Global Group One of the company's key initiatives is the development of an AI-powered digital platform. UNYTITE plans to expand throughout the group its use of CADDi, an AI data platform for manufacturers developed by CADDi Inc., which was first introduced at its U.S. operation. Hashimoto aims to create an environment in which employees and expatriate staff in Japan and the United States can share information on a common platform across language barriers by using the same system at both locations. Previously, drawings, equipment information and management methods were stored separately at each location. Going forward, UNYTITE plans to standardize not only drawing management, but also maintenance parts information, work instructions and other operational data through CADDi. The company will leverage accumulated data to promote the sharing of its entire portfolio of data assets and is considering a system that will enable employees to use knowledge and expertise across domestic and overseas operations.

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INDUSTRY FOCUS

TÜV Nord Taiwan CSO KP Huang

Avoiding Blind Spots and Pitfalls in CBAM Reporting: Establishing a Comprehensive Monitoring Plan TÜV NORD Taiwan has identified several common pitfalls faced by Taiwanese manufacturers when filing CBAM declarations and has proposed corresponding solutions: Since the EU’s CBAM mandatory repor ting requirement officially took effect on January 1, 2026, it has accelerated carbon reduction efforts in high-emission industries such as fasteners and steel. However, due to the numerous regulations and complex implementation procedures, many manufacturers have encountered significant difficulties in actually collecting carbon emissions data and submitting subsequent reports. According to CBAM requirements, all carbon emissions reported for 2026 must be verified by an EU-accredited third party and subject to on-site audits. In addition, CBAM certificates will be for sale starting in February 2027, and manufacturers must report and submit the corresponding certificates for imports in 2026 before September 30, 2027. Currently, only manufacturers with shipments weighing less than 150 kilograms per consignment or with an annual total import volume of less than 50 metric tons are exempt from CBAM reporting. To help manufacturers quickly familiarize themselves with the CBAM reporting process and key considerations, a special seminar titled “Preparing for CBAM: Strategies and Readiness for the Fastener Industry,” organized by the MIRDC and co-hosted by TÜV NORD Taiwan, was held at Taiwan Steel University of Science and Technology in late July. Unlike ISO 14064-1, which assesses an entire cor porate facility, does not mandate the inclusion of outsourced processes as precursors, and requires data on annual total energy consumption, the CBAM assesses goods of a single specification, mandates the inclusion of outsourced processes as precursors, and requires precise, allocated data for specific production lines. This seminar specifically highlighted common pitfalls encountered during CBAM reporting, urging manufacturers to pay close attention. It also provided guidance on establishing a comprehensive monitoring plan to reduce the risk of manufacturers facing high carbon taxes due to incorrect carbon footprint calculations or incurring substantial fines resulting from verification findings that do not reflect actual conditions.

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•

Blind Spot: Incorrectly defining system boundaries based on ISO 14064-1 standards, resulting in inventory data that does not correspond to EU CN code products.

Solution: Define system boundaries based on the actual production flow of CBAM goods.

Blind Spot: Excessively including nonprocess-related emissions (e.g., refrigerants from office air conditioning, employee commuting) during the audit. Solution: Exclude carbon emission sources not directly related to production.

Blind Spot: The misconception that having an ISO 14064-1 inventory is sufficient to meet verification requirements, leading to the rejection of the application by the verification body due to a lack of documentation regarding data flows and quality control systems. Solution: Prepare an English-version monitoring plan that covers the 22 statutory minimum requirements.

Blind Spot: Relying on carbon footprint statements or general invoices provided by suppliers as evidence of emissions, but the supplier’s data is deemed invalid, resulting in a failure to calculate precursor carbon emissions. Solution: Strictly review the qualifications of upstream suppliers’ verification bodies to ensure they are CBAM-approved.

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• » •

•

Blind Spot: Treating secondary data or EU default values as substitutes for missing data increases the risk of overestimating carbon tariffs. Solution: Ensure that valid actual data is available for all core precursors and processes.

Blind Spot: Focusing on a factory’s total annual GHG emissions in metric tons, but incorrect allocation distorts carbon emissions data for individual products, making it impossible to verify. Solution: Establish an accurate attribution model, link production orders with energy meters, and implement product-level allocation.

Blind Spot: Assuming that a trading company can prepare data or establish a monitoring plan on the factory’s behalf, which leads to a lack of authorization for the factory’s actual operations and results in the plan being rejected during the substantive verification phase. Solution: Ensure that the factory assumes compliance responsibility in accordance with the regulations, and manages the data flow and develops the monitoring plan by itself.

In addition, TÜV NORD Taiwan highlighted several major pitfalls that manufacturers must pay close attention to, including: unit conversion errors resulting in extremely high carbon emissions figures; data quality control systems remaining in the planning stage rather than the implementation stage; mistakenly including scrap or offcuts in the denominator for qualified production when calculating carbon emissions per unit; claiming to use low-carbon green electricity without supporting evidence such as a compliant Power Purchase Agreement (PPA); failure to correctly allocate thermal energy when multiple product specifications share the same heat treatment or production line; citing supplier precursor data without verifying whether the reporting period aligns with the production date of the final goods; arbitrarily substituting missing data with averages when measurement instruments malfunction; and unauthorized changes to data sources or calculation formulas at different times.

The accuracy of data sources is critical for carbon emissions reporting. According to TÜV NORD Taiwan, using carbon emissions per metric ton of steel fasteners (tCO2e) as an example, purchasing certified “green steel” can reduce the risk of carbon emissions premiums by more than 38% compared to purchasing standard steel without emissions reporting. The aforementioned monitoring plans that factories are required to develop on their own will also serve as the basis for audits, particularly regarding system boundaries (the covered physical and chemical processes), ca rbon em ission sources, data on precursors such as wire rods, and error-proofing and cross-checking mechanisms for data flow activities. The MIRDC stated that monitoring plans must cover 6 major categories (including 22 key verification points) and clearly specify: 1.

2. 3. 4. 5. 6.

Basic facility information and system boundaries

Information on produced goods, nonCBAM goods, and precursors Monitoring methodologies and calculation parameters

Special energy sources and emission streams Treatment of electricity and indirect emissions

Data quality and internal control systems

TÜV NORD Taiwan emphasizes: “An accurate monitor ing pla n is the cor nerstone of CBA M compliance and a key factor in fastener companies’ competitiveness when securing orders in the EU market. We remind companies to ensure they are fully prepared before formal verification begins in 2027.”

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Key Guidelines on

CBAM Regulations and Carbon Emissions Reporting CBA M af fects many i ndustr ies. A lthough the of f icial implementation period begins in 2026, many timelines and implementation details are still subject to change and adjustment. To address this, Taiwan Institute of Economic Research (TIER) and European Fastener Distributor Association (EFDA) held a CBAM briefing in August to summarize the key points regarding CBAM and carbon emissions calculations for the fastener industry.

Key CBAM Process Guidelines Under the CBA M regulations, fasteners are classif ied as products for which carbon emissions from thermal/cold energy related precursors (direct emissions) and electricity consumption during the manufacturing process (indirect emissions) must be calculated. However, direct emissions do not include electroplating, cutting, welding, and finishing. If the manufacturing process takes place at a secondary facility or is outsourced but the processed products are subsequently returned to the main facility, it is treated as having been carried out at the main facility. The EU published draft rules on carbon fee offsets in the second quarter of this year and updated the default reporting values in July of the same year. In the future, it will also issue formal technical guidelines for third-country manufacturers and verification bodies, as well as publish detailed rules on reporting formats and procedures. Furthermore, to prevent carbon leakage in downstream products, the EU aims to expand the scope of covered products by 2028 to include automotive bodies and chassis/metal furniture subject to steel and aluminum products as well as composite metal items. Manufacturers are required to provide EU fastener importers with an English carbon emissions report verif ied by a body recognized by the EU or compliant with Regulation (EU) 2018/2067. On-site verification is required in the first year (and at least once every two years thereafter); subsequent verifications may be conducted virtually, provided there are no significant changes. The first batch of EU-accredited bodies is expected to be announced in the second half of 2026. Non-EU verification bodies may apply for accreditation from EU accreditation bodies that offer cross-border services.

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EU impor ters, acti n g on beha l f of manufacturers, must file declarations with EU customs through the CBAM platform (the initial declaration and purchase of CBAM certificates must be completed by September 30, 2027). The information provided by manufacturers must include an annual monitoring plan (though no standardized template is currently available), and starting in 2028, manufacturers must complete registration on the CBA M platform so that verification bodies can generate reports from the system and EU importers can directly select and apply.

INDUSTRY FOCUS

Key Points for Calculating Carbon Emissions When calculating carbon emissions, the year of import is generally used as the basis for determining the product’s carbon emissions; however, if there is sufficient evidence to identify the product’s production date, the actual production date shall be used. Currently, the EU has made several adjustments to its regulations regarding precursors, including: the concept of “relevant precursors” is no longer used; the reporting period is defaulted to the year of manufacture for complex products; for precursors used at the same facility and falling under the same CN code that span multiple reporting periods or involve multiple suppliers, a weighted average is generally applied; precursors produced in the EU and exempt regions may be subject to zero-emission calculations following verification and may use country-specific default values; and default values and actual values may be used in combination. EU default values are set by country; if no default value exists for a specific country, the default value for “Other Countries and Regions” applies. Furthermore, these default values will be subject to annual markups of 10%, 20%, and 30% during the 2026–2028 period, respectively. Additionally, to ensure fair competition in terms of carbon costs, the EU is also phasing out free emission allowances for industry. TIER recommends that manufacturers follow four key steps when filing reports in accordance with CBAM regulations. First, estimate the carbon content of products for the formal phase (calculate the costs based on both actual and default values). Second, launch a monitoring plan to integrate CBAM regulations into management processes (the plan must include 22 specific items, such as facilities and products within the monitoring scope, monitoring methods, precursor/heat and electricity f lows, exhaust gas and CO2 treatment, and quality control systems). Third, identify a verification body and plan for verification. Finally, monitor and calculate data, and complete the emissions report.

Which Items does the CBAM Simplify? 1.

Importers whose annual cumulative net weight of imported CBAM products does not exceed 50 metric tons are exempt from CBAM obligations.

2. Reporters may freely choose to use actual values or default values. 3. The sys tem boundar y of the whole manufacturing process must align with the EU ETS coverage boundary, excluding processes with lower emissions.

4. The deadline for declaration and CBAM certificate submission has been extended to September 30, 2027. 5. Authorized declarants are permitted to delegate their CBAM reporting access rights to third parties, such as consultants or environmental experts.

6. When calculating the embedded emissions of CBAM products, the emissions of their precursors produced in the EU whose carbon cost have been paid will be set to be zero.

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Eliminate the requirement to verify embedded emissions calculated using default values.

8. Only products calculated using actual emissions require verification. 9.

When reliable data from the exporting country is unavailable, the default value shall be based on the average of the top 10 exporting countries with the highest emission intensity.

10. Certified verification bodies must complete registration in the CBAM system.

11. The obligation for EU importers to purchase CBAM certificates is extended to February 1, 2027. (Declaration is still required in 2026, and the price of the certificate is the quarterly aver age price of EU E T S allow ance s . In the second quarter of 2026, the price per certificate was 75.28 euros.) 12. Carbon cost offsets are expanded to include carbon costs paid in any third country. If the default value is used in declaration, only the annual default carbon cost (expected to be announced in 2027) can be referenced.

INDUSTRY FOCUS

Alexander Kolodzik, Secretary General of EFDA, noted that the cost of CBAM must already be factored into fastener imports in 2026, with the relevant carbon fees due by 2027 and annual declaration required to be completed by September 30, 2027. However, to maintain optimal competitiveness, it is recommended that manufacturers strictly avoid using default values for reporting and instead provide verified actual carbon emission data. This will not only prevent EU importers from bearing the burden of inflated carbon emission costs but also allow Taiwanese manufacturers to remain competitive. All relevant process carbon emission data within the system boundary provided by manufacturers (including fastener manufacturers themselves and precursor manufacturers) must be certif ied by an EU-accredited body, and the 2027 verification must be conducted on-site (the entire process typically t a ke s b et ween 2 week s a nd 3 months). Data ver i f ication for each CN code is subject to a 5% tolerance; any deviation exceeding this tolerance will result in the automatic application of default values. Currently, EFDA has made si g n i f ica nt prog res s rega rd i n g cer t a i n a s pect s of t he CBA M r e g u l a t ion s, b u t wor k i s s t i l l ongoing in other areas (such as limiting CBAM costs to precursors, cor recti n g def au lt va lues, and allowing the use of actual emission data after 09/30/2027). I n r e s p o n s e t o a t r a d e r ’s question about whether they, like manufacturers, must register on t he CBA M platf or m by 2028, Alex stated that this requirement still needs to be confirmed. Some traders expressed concerns that sharing information about their m a n u f a c t u r i n g p a r t n er s w i t h E U i m p o r t e r s m i g h t i n vo l v e disclosing trade secrets. Alex said he understood these concerns but noted that transparent information sharing is a core principle of the CBAM. He suggested that if traders could shift their mindset and view data transparency as an integral part of their product quality, this might also serve as a way to foster long-term partnerships with their customers. Copyright owned by Fastener World Article by Gang Hao Chang, Vice Editorin-Chief 惠達雜誌 Fastener World no.220/2026

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ISO 14001:2026 Guide for Taiwanese Fastener Companies Part 1: Background to the Revision and Key Challenges Against the backdrop of the global sustainability drive and supply chain restructuring, the revision of the ISO 14001:2026 Environmental Management System standard is more than a technical update; it represents an international trend that companies must respond to. The revision will bring both new challenges and opportunities to industries across the board, particularly Taiwan’s export-oriented fastener industry. In recent years, sustainable development, carbon neutrality, and ESG reporting have become international requirements that companies must address. European and U.S. markets, as well as international customers, are placing increasing emphasis on the environmental responsibility of supply chains, requiring suppliers to provide carbon inventory data, netzero commitments, and sustainability strategies. Taiwan’s carbon fee began to be levied in 2025, while the EU’s CBAM officially entered its charging phase in 2026. Sustainability is therefore no longer merely a matter of brand image; it has a direct impact on export competitiveness. The revision of ISO 14001:2026 is designed to respond to these trends by integrating environmental management systems more closely with ESG reporting, enabling companies to address international market expectations through a standardized approach. The new standard also incorporates the 2024 Climate Ch a n ge A mend ment (A md.1:2024), br i n g i n g cl i m ate change, biodiversity, and resource avai labi lity into its core requirements. When managing environmental issues, companies are now required not only to control pollution but also to comprehensively assess climate risks, ecosystem health, and resource sustainability, and translate these considerations into measurable objectives. For example, companies may analyze carbon emissions and energy efficiency, assess threats posed by extreme weather to their supply chains, determine whether their operating sites involve sensitive habitats and establish protective measures, while also considering the scarcity of water, energy, or raw materials and incorporating these factors into risk management and strategic planning.

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The integration of these three major dimensions not only enhances management maturity but also demon str ates a company’s competitiveness i n sustainable development and international markets. In addition, the 2026 edition renames the “High-Level Structure (HLS)” as the “Harmonized Structure (HS)” and reorganizes certain clauses to create a clearer framework and maintain consistency with standards such as ISO 9001 (Quality Management) and ISO 45001 (Occupational Health and Safety). This harmonization of the structure makes it easier for companies to integrate multiple management systems, reduce duplication in documentation and processes, and improve management efficiency. The specific structural adjustments in ISO 14001:2026 are shown in Table 1: The revision of ISO 14001:2026 is not merely a technical adjustment; it represents an important m i les tone i n t he evolution of env i ron ment a l m a n a gement s y s tem s towa rd “per for m a nce orientation” and “sustainability integration.” The new edition introduces signif icant changes in its structure, content, and management requirements. The following f ive core changes will have farreaching implications for corporate environmental management strategies and supply chain sustainability. 1.

Mandator y Inclusion of Env ironmental Conditions: In previous versions, issues such as pollution levels, resource availability, climate change, biodiversity, and ecosystem health were largely addressed in annexes or presented as recommendations. In the 2026 edition, however, these environmental conditions have been formally elevated to “core requirements” and must be comprehensively considered in the analysis of the organization’s environment

INDUSTRY FOCUS (4.1), the needs of interested parties (4.2), and the determination of the EMS scope (4.3). This means that when planning an environmental management system, companies can no longer focus solely on “pollution control”; instead, they must demonstrate how they systematically analyze climate risks, ecosystem health, and resource sustainability. For example, if a company is located in a water-scarce region, water resource availability must be regarded as a significant environmental condition and incorporated into risk management and objective setting. This approach brings environmental management more closely in line with global sustainability issues and makes it highly compatible with ESG reporting requirements. 2.

New Management of Change (6.3): ISO 14001:2026 introduces “Management of Change” as an independent clause for the first time, requiring organizations to conduct a risk analysis before implementing any change that may affect the EMS. This requirement is aligned with the quality management philosophy of ISO 9001 and emphasizes the preventive principle of “assess first, change afterward.” Changes may originate internally, such as organizational restructuring or the introduction of new technologies, or externally, such as regulatory updates or supply chain disruptions. Companies must establish systematic procedures to ensure that, before any change takes place, its potential impact on environmental aspects, risks, and opportunities has been thoroughly assessed and that appropriate control measures are incorporated into daily operations. This not only enhances the integrity of the EMS but also helps prevent compliance gaps or environmental incidents resulting from organizational changes.

Life Cycle Perspective Made More Specific: In Clause 6.1.2, the new standard clearly identifies seven stages of the life cycle: raw material acquisition, design, production, transportation/delivery, use, end-of-life treatment, and final disposal. Companies must identify carbon footprints and resource efficiency at these stages and incorporate them into environmental management. This more specific requirement transforms the life cycle

Clause / Section

Table 1. Structural Revisions in ISO 14001:2026 Specific Adjustment

Significance of the Revision

Clause 4 — Environment Analysis of the Organization (4.1)

Adds five mandatory environmental conditions to be considered: pollution, resource availability, climate change, biodiversity, and ecosystem health

Requires organizations to comprehensively analyze external environmental factors and incorporate sustainability issues into the foundation of EMS planning.

Clause 4 — Needs and Expectations of Interested Parties (4.2)

Strengthens the identification and assessment of interested parties' needs. Needs beyond legal requirements are converted into compliance obligations only when the organization decides to comply with them.

Ensures that organizations can accurately respond to the sustainability expectations of different interested parties, including customers, investors, and government authorities.

Clause 4 — Determining the Scope of the EMS (4.3)

Requires environmental conditions and the needs of interested parties to be taken into account when determining the scope.

Makes the EMS scope more closely aligned with actual operations and external sustainability challenges, avoiding a merely formal or superficial approach.

The general requirements of former Clause 6.1.1 have been reorganized in a more systematic manner. In the new edition, “risks and opportunities” are separated into an independent clause, renumbered and adjusted as Clause 6.1.4, while the original “planning actions” has been renumbered as Clause 6.1.5.

Places greater emphasis on systematic risk management and incorporates climate and resource-related risks into the core of the management system.

Adds a new independent Clause 6.3, “Management of Change.”

Requires risk analysis to be conducted before organizational changes are implemented, ensuring the integrity and continued applicability of the EMS.

Clause 9 — Performance Evaluation

The 2026 edition has been adjusted in line with the comprehensive harmonization of the ISO Harmonized Structure (HS), with the original sections clearly numbered as independent subclauses (9.3.1/9.3.2/9.3.3), making the structure clearer and facilitating auditing and cross-referencing.

Creates a clearer structure and ensures that management can systematically review both inputs and results.

Clause 10 — Improvement

Streamlined into Clauses 10.1 and 10.2, with continual improvement incorporated into the overall improvement process.

Highlights the performance-oriented principle, emphasizing that improvement is not merely a procedural requirement but a core element of continuously enhancing environmental performance.

Clause 6 — Planning

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INDUSTRY FOCUS perspective from an abstract concept into an actionable management tool. For example, in the fastener industry, companies need to consider the high energy consumption and carbon emissions associated with steel extraction during the raw material acquisition stage; introduce low-carbon materials at the design stage; improve product durability during the use stage to extend product life; and strengthen recycling and reuse during end-of-life treatment. By adopting life cycle thinking, companies can reduce their overall environmental impact while strengthening the sustainability and resilience of their supply chains. 4.

Expanded Supply Chain Responsibility: ISO 14001:2026 expands the scope of controls under Clause 8.1 from “outsourced processes” to “externally provided processes, products, or services related to the intended outcomes of the EMS.” This means that external suppliers involved in contracted services, logistics, and material procurement must all be incorporated into the scope of environmental management. This change ref lects the global trend toward greater supply chain transparency. International customers are increasingly requiring suppliers to provide carbon emissions data, environmental permits, and sustainability commitments. Companies that are unable to monitor the environmental performance of their supply chains will face a competitive disadvantage in the market. For Taiwan’s fastener industry, this change is particularly important because the industry is highly dependent on international supply chains for its export markets. Without being able to demonstrate environmental responsibility throughout the supply chain, Taiwanese fastener companies will find it increasingly difficult to meet the sustainability requirements of European and U.S. customers.

Stronger Performance Orientation: The new standard shifts the focus of audits from “document conformity” to “improvements in environmental performance.” Internal audits (9.2.2) must establish clear audit objectives and use measurable performance indicators as the basis for evaluation. This means that companies can no longer focus their audits merely on whether “procedural Figure 1. Export Value of Taiwan’s Steel Fasteners documents exist”; instead, they (HS 7318), 2021-2025 must demonstrate tangible environmental performance, 7,000,000 such as the percentage reduction in carbon emissions, 6,000,000 the percentage improvement in energy efficiency, and the 5,000,000 ex tent of improvements in recycling rates. Management 4,000,000 r e v i e w s (9.3) a l s o r e q u i r e analysis of trends in inputs 3,000,000 and chan ges i n ex ter na l issues, ensur ing that sen ior 2,000,000 management can ef fectively oversee and dr ive continual 1,000000 improvements in environmental performance.

Challenges Facing Taiwan’s Fastener Industry Against the backdrop of the ISO 14001:2026 revision, the challenges faci n g Taiwan’s fastener i ndustr y stem not only from the requirements of the new standard itself, but also more profoundly f rom changes in global supply chains and the evolving competitive landscape. Three major challenges are particularly significant: export pressure, requirements from i nter nationa l cu stomer s, and the reshaping of the competitive landscape.

Year

USD 1,000

2021

2022

2023

2024

2025

5,319,169

6,140,351

4,599,738

4,373,848

4,200,762

Figure 2. Export Weight of Taiwan’s Steel Fasteners (HS 7318), 2021-2025 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Year

2021

Weight (Ton) 1,610,697.606

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Fastener World no.220/2026 惠達雜誌

2022

2023

2024

2025

1,607,481.345

1,230,933.32

1,250,321.77

1,199,821.374

INDUSTRY FOCUS 1. Export Pressure: A Dual Decline in Both Volume and Value Taiwan’s fastener industry has long relied heavily on exports as its primary business model. However, in recent years, both export weight and value have shown a downward trend. According to Taiwan’s customs export statistics, the total export weight and value of HS 7318 products—including iron and steel screws, bolts, nuts, automotive screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers), and similar products—from 2022 to 2025 are shown in Figures 1 and 2. Taiwan’s fastener expor t weight declined f rom 1,610,697 metric tons in 2021 to 1,199,821 metric tons in 2025, representing a 25.5% decrease over four years. Export value also fell from US$5.319 billion to US$4.201 billion, a decline of approximately 21% over the same period. These f igures indicate that Taiwan’s export competitiveness has come under significant pressure. The decline not only ref lects weakening market demand but also suggests that Taiwan’s share of the international market is gradually being taken by other countries. According to the export statistics in Table 2, Taiwan’s fastener exports from January to July 2026 declined by US$146.678 million in value compared with the same period in 2025, representing a 20.19% decrease. Export weight decreased by 79,551.51 metric tons, or 10.95%. This indicates that Taiwan’s fastener products continued to lose ground in international markets in 2026.

T he underly i n g causes of the ex por t pressure facing Taiwan’s fastener industr y are multiple and interconnected. First, in terms of cost competitiveness, countries such as China continue to expand their exports by leveraging economies of scale and lower production costs, squeezing the market space available to Ta i wa ne s e f a s t ener m a nu f a c t u r er s. Second, f luctuations in market demand are another important factor. Demand for fasteners in European and U.S. markets has become increasingly volati le due to industrial relocation and policy adjustments, affecting Taiwan’s export performance. Third, the trend toward supply chain restr ucturing cannot be overlooked. Global supply chains are gradually shifting toward emerging markets, challenging Taiwan’s position within international supply networks. In addition, geopolitical factors have further intensified export pressure, with uncertainty surrounding regional security directly or indirectly affecting the export environment for Taiwan’s fastener products. Overall, the export pressure facing Taiwan’s fastener industry is not attributable to a single factor, but rather results from the combined effects of costs, demand, supply chain restr ucturing, and geopolitics. This dual decline in export weight and value is forcing Taiwanese fastener companies to seek new competitive strategies. Otherwise, they risk continued erosion of their market share. This also highlights the need for Taiwan’s fastener manufacturers to maintain international competitiveness through sustainability certifications, quality enhancement, and strategic transformation. 惠達雜誌 Fastener World no.220/2026

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INDUSTRY FOCUS Table 2. Taiwan’s Metal Fastener (HS 7318) Export Statistics, January–July 2025 vs. 2026 Month

2025 Value (US$ Thousand)

2025 Weight (Tons)

2026 Value (US$ Thousand)

2026 Weight (Tons)

January

371,990

108,282

345,048

93,965

February

304,911

91,159

324,669

88,804

March

401,566

118,142

341,050

93,578

April

313,873

91,013

315,939

86,695

May

403,659

114,199

348,825

95,176

June

347,872

100,259

334,212

91,474

July

362,229

103,314

349,679

97,122

Total

2,506,100

726,367

2,359,422

646,816

2. International Customer Requirements: Sustainability Certification Becomes Essential Against the global trend toward ESG and carbon neutrality, international customers in European and U.S. markets are imposing increasingly stringent sustainability requirements on their supply chains, creating new challenges for Taiwan’s fastener industry. Specifically, customers require suppliers to provide comprehensive carbon inventory data and demonstrate concrete carbon reduction plans to ensure supply chain transparency and credibility. At the same time, companies must establish clear netzero emissions commitments and implement them throughout their supply chains in order to meet the sustainability expectations of international markets. Therefore, ISO 14001:2026 certification has become a basic threshold for entering international markets. If Taiwanese fastener manufacturers are unable to obtain the new certification, they may permanently lose opportunities to work with European and U.S. customers. More importantly, customers are no longer demanding merely “compliance,” but also “transparency”—companies must be able to provide verifiable environmental performance data. However, traditional ISO 14001 environmental management practices have often placed greater emphasis on documentation and record-keeping than on performance data. This presents

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INDUSTRY FOCUS another major challenge for Taiwanese companies, forcing them to transform from a document-oriented approach toward a sustainability management model centered on data and performance.

3. Reshaping Competitive Landscape China has long dominated the global fastener market through its low costs and enormous production capacity. Particularly in the mid- and low-end standard fastener segment, China has leveraged economies of scale and price advantages to become the world’s largest fastener producer and exporter, continuously expanding its market share. At the same time, the competitiveness of emerging markets such as Vietnam has risen rapidly, driven primarily by the anti-dumping duties imposed by Europe and the United States on Chinese fastener products, as well as the “China + 1” supply chain strategies adopted by multinational corporations. These companies have gradually shifted part of their production bases to Vietnam, India, and other locations, resulting in significant growth in exports from these emerging production hubs and gradually eroding the market share traditionally held by established suppliers. To maintain their competitiveness, Taiwanese fastener manufacturers must differentiate themselves through sustainability certification and quality enhancement. Therefore, adopting ISO 14001:2026 will not only enable Taiwanese fastener companies to meet international customer requirements, but also demonstrate their maturity in sustainability management, establish differentiation from low-cost competitors, and maintain a solid market position amid the ongoing restructuring of global supply chains. Overall, Taiwan’s fastener industry is facing three major challenges: export pressure, growing sustainability requirements from international customers, and the reshaping of the competitive landscape. The decline in both export weight and value indicates a gradual contraction in market share, while international customers are imposing stricter supply chain requirements amid the global shift toward ESG and carbon neutrality. This makes ISO 14001:2026 certification an essential requirement for entering European and U.S. markets. Taiwanese fastener manufacturers must proactively adopt the new ISO 14001:2026 standard, establish carbon inventory and sustainability data management systems, and strengthen quality and supply chain collaboration to maintain their competitiveness amid the ongoing restructuring of global supply chains. The upcoming second part, “Practical Steps and Methods for the Revision,” will further explain the specific steps and implementation methods that companies can adopt during the transition, helping fastener manufacturers turn these challenges into opportunities to enhance their competitiveness. Copyright owned by Fastener World Article by Dr. Wayne Sung

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Fastener World no.220/2026 231

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FASTENER POLAND TAIWAN EXHIBITORS PREVIEW

Rising Demand in Central Europe Drives Momentum for

FASTENER POLAND 2026

波蘭克拉科夫螺絲展

Vertex

Sun Jau Yeou Ray Fu Through

Sen Hong An Chang Sheng Chiao

San Yung

Keyuse

SRC TIFI Mao Chuan Taiwan Precision

Vertex

San Yung

Joker Homn Reen Kheiron

Sen Hong An Chang Sheng Chiao

Keyuse

SRC TIFI Mao Chuan Taiwan Precision

Linkwell

Joker Homn Reen

L&W Sheng Qian

Kheiron

L&W Sheng Qian

Boss

Hoplite C & H

Linkwell

Tai Huei

Boss

Hoplite C & H

Dar Yu

Tai Huei

Chien Tsai

Chite

TAIWAN PAVILION

SYMAS / MAINTENANCE TRADE FAIR

出入口 RECEPTION

出入口

Taiwan Pavilion Sponsor

D092

NO.

FASTENER WORLD INC. www.fastener-world.com

foreign@fastener-world.com.tw

Established in 1987, Fastener World Inc. is a worldrenowned marketing media for fasteners, hardware, and industrial components industries. With a team of over 30 years of experience in offering the global industry the most effective marketing solutions and the combination of printed magazines, online B2B platform, representation of leading int’l trade shows, and instantaneous business info service, Fastener World provides the industry with diversified marketing approaches to promote their brand awareness and boost order intake.

234

Sun Jau Yeou Ray Fu Through

Home Soon

he FASTENER POLAND® trade fair has been the most important meeting for the fastener Dar industry, where key purchasing decisions Yu are made. During the last edition, over 170 exhibitors from 17 countries presented their products. Among the Chien Tsai products on display at the booths were high-tensile screws, structural rivets and double-ended fasteners, riveting tools, optical screw measurement systems, and fasteners for the Chite automotive industry. Last year's event attracted 3,054 visitors from 36 countries. The largest representation of companies from outside Poland was made up of entrepreneurs from the Czech Republic, Slovakia, Italy, Germany, and Romania. Guests from as far away as Saudi Arabia, Japan, and South Korea were also present.

Taiwan Agent，

October 14th-15th 2026 EXPO Krakow

Home Soon

Fastener World no.220/2026 惠達雜誌

D133

NO.

TAIWAN INDUSTRIAL FASTENERS INSTITUTE - TIFI www.fasteners.org.tw

tifi.tw@msa.hinet.net

Participating in government public projects and undertaking com m issioned ser vices for gover n ment agencies a nd organizations. Organizing delegations to attend international fastener trade exhibitions, assisting members in expanding global business opportunities. Publishing a monthly fastener journal that provides domestic and international production and sales information for members’ operational reference.

FASTENER POLAND TAIWAN EXHIBITORS PREVIEW

D148

D095

www.an-chiao.com.tw

www.dreihner.com

AN CHIAO MOLDS CO., LTD.

KHEIRON CORP.

D094

D115

www.screwboss.com

www.lwfasteners.com.tw

BOSS PRECISION WORKS CO., LTD.

L & W FASTENERS COMPANY

D113

D117

www.chtaiwan.com.tw

www.linkwell.com.tw

C & H INTERNATIONAL CORP.

D076

CHIEN TSAI MACHINERY ENTERPRISE CO., LTD. www.jiancai.com.tw

D075

CHITE ENTERPRISES CO., LTD. www.chite.com.tw

D077

LINKWELL INDUSTRY CO., LTD.

D135

MAO CHUAN INDUSTRIAL CO., LTD. www.maochuan.com.tw

D155

RAY FU ENTERPRISE CO., LTD. www.ray-fu.com

D130

DAR YU ENTERPRISE CO., LTD.

SAN YUNG ELECTRIC HEAT MACHINE CO., LTD.

D127

D150

www.dar-yu.com.tw

www.sanyung.com

HOMN REEN ENTERPRISE CO., LTD.

SEN CHANG INDUSTRIAL CO., LTD.

D131

D116

www.homnreen.com

www.senchang.com

HOME SOON ENTERPRISE CO., LTD.

SHENG QIAN CO., LTD.

D149

D132

www.homesoon.com.tw

HONG SHENG CO., LTD. www.fastener-world.com/zh/ supplier/hongsheng

D114

HOPLITE INDUSTRY CO., LTD. www.hoplite.com.tw

D154

JAU YEOU INDUSTRY CO., LTD. www.jauyeou.com

D128

www.sheng-sy.com/

SPECIAL RIVETS CORP. www.srcrivet.com

D153

SUN THROUGH INDUSTRIAL CO., LTD. www.sunthrough-industrial.com

D093

TAI HUEI SCREW INDUSTRY CO., LTD. www.taihuei.com

D129

JOKER INDUSTRIAL CO., LTD.

TAIWAN PRECISION FASTENER CO., LTD.

D147

D152

www.keyuse.com.tw

www.vertexprecision.com.tw

www.joker-fastener.com

KEY-USE INDUSTRIAL WORKS CO., LTD.

www.taiwan-precision-fastener.com

VERTEX PRECISION INDUSTRIAL CORP.

惠達雜誌 Fastener World no.220/2026

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EXHIBITION- Thailand / Vietnam

METALEX Celebrates 40th Anniversary with “Infinite Possibilities”

Date: 11/18-21, 2026 Venue: BITEC

ETALEX, the No. 1 Machine Tools and Metalworking Event in ASEAN, organized by the region’s leading exhibition organizer RX BITEC, will mark its 40th anniversary under the theme “Infinite Possibilities,” bringing together the region’s metalworking community to explore new technologies, solutions and opportunities. For 40 years, METALEX has built a strong legacy among metalworking professionals across the region and beyond, serving as a platform for innovative machinery, the latest equipment and cutting-edge solutions from thousands of leading global brands. This year, the event will occupy 55,000 square meters across Halls 98–104 of the Bangkok International Trade and Exhibition Centre (BITEC), bringing together more than 3,000 brands from leading technology providers and over 100,000 industry professionals from more than 50 countries over four days. Alongside live demonstrations and showcases covering machine tools, sheet metalworking, robots, welding, wire and tube, metrology, tools and tooling, factory automation, AI, pump and valves, as well as equipment and accessories, METALEX 2026 will introduce four special highlights to mark its 40th anniversary: • FUTURE TECH @ METALEX: Witness the next-generation innovations transforming the manufacturing industry, reinforcing METALEX’s position as the No. 1 metalworking exhibition in ASEAN. • METALEX NETWORKING GALA: An exclusive networking event bringing together industry professionals and representatives from invited organizations to foster stronger relationships and meaningful business collaborations. • METALEX TOMORROW: A series of high-impact, interdisciplinary seminars featuring insights and forward-looking perspectives from international speakers. • ASEAN COMMUNITY: A special business-matching service designed to connect METALEX exhibitors with buyers and industry associations from ASEAN member countries. METALEX 2026 will take place from 18–21 November 2026, 10:00–18:00 hrs., at BITEC, Bangkok. Exhibit space is now open for booking. To explore infinite possibilities of doing business in Thailand and ASEAN, visit www. metalex.co.th or contact metalex@rxbitec.com

Date: 12/03-05, 2026 Venue: Saigon Exhibition and Convention Center (SECC)

Vietnam International Hardware & Hand Tools Expo 2026 T

he 11th Vietnam International Hardware & Hand Tools Expo 2026 (VHHE 2026) will take place from December 3–5, 2026 at Hall B, Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City.

Building on the success of previous editions, VHHE continues to affirm its position as one of the leading specialized exhibitions in the mechanical engineering and supporting industries in Vietnam. The event serves as a vital bridge connecting industry players, promoting domestic consumption, expanding opportunities to participate in global supply chains, and spreading the DIY trend among consumers. In 2025, the exhibition welcomed many renowned domestic and international brands. The event featured 348 exhibitors with over 455 booths and attracted 21,026 visitors from 65 countries and territories. VHHE is a comprehensive trade event covering the full value chain—from manufacturing, repairing, assembling, and construction to personal device usage (DIY). The exhibition continues to support the development of Vietnam’s mechanical engineering industry. With an expected scale of over 450 booths across 6,000 sqm, the show will highlight five key product groups: Tools, Power Tools, Fasteners, Building Hardware, and Personal Protective Equipment (PPE). These categories serve a wide range of industries, including engineering, manufacturing, construction, and DIY applications. The event will be held concurrently with the 24th Vietnam Expo HCMC 2026, organized by VINEXAD—one of Vietnam’s leading exhibition organizers. With an estimated 1,000 booths from over 20 countries and territories, the combined event is expected to welcome approximately 25,000 trade visitors over three days.

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Fastener World no.220/2026 237

INDUSTRY FOCUS

Global Major

Infrastructure and Construction Projects with Great Fastener Demand

Which Megaprojects can Genuinely Open New Markets for Fastener Suppliers?

Global construction demand is not rising evenly. In October 2025, the World Steel Association estimated global steel demand at about 1,749 million tonnes for 2025 and initially forecast 1,773 million tonnes for 2026. By April 2026, it had revised the 2026 outlook to 1,724 million tonnes, representing growth of only 0.3%. The message for fastener executives is clear: waiting for a broad market boom is a weak strategy. Growth must be found in concentrated pockets of investment where tunnels, bridges, rail systems, stations, airports and energy facilities create years of specification-driven demand. Major infrastructure projects attract fastener manufacturers for an obvious reason: scale. A new railway, airport, tunnel or power plant can require millions of structural bolts, anchors, rail fastenings, threaded components, support-system fixings and specialised connection products.

An Executive Comparison

Table 1 considers the attractiveness of each project for an established international fastener manufacturer. It is not a ranking of project size. It evaluates the wider market that each project could unlock. The table reveals an important distinction. The largest potential markets are not necessarily the easiest or most profitable to enter. India offers enormous repeat potential but demands localisation. The United States offers scale but imposes formidable domestic-content and qualification barriers. Nuclear power promises high-value business but excludes most conventional fastener manufacturers. The correct opportunity depends on the supplier’s existing capabilities, capital and appetite for long-term investment.

North America:

Hudson Tunnel as a Localisation Decision

But scale can be deceptive. A large project may generate substantial orders without helping a supplier build a sustainable market position. A manufacturer can spend years qualifying, win one contract, deliver the products and still have no local distribution, no access to the next project and no recurring business. For CEOs, therefore, the critical question is not: How many fasteners will this project consume? It is: Can this project give our company access to a larger and repeatable market?

The Hudson Tunnel Project is constructing nine miles of new passenger railway between New York and New Jersey, including nearly five miles of tunnel boring beneath the Hudson River. The programme comprises ten construction packages, seven of which are in progress or will be completed by mid-2026. The new tunnel is expected to enter service in 2035.

A megaproject becomes strategically valuable when it leaves the supplier with assets that remain after construction ends: certification, local production, relationships with major contractors, access to system manufacturers, a recognised technical reference and an aftermarket position.

The project is expected to generate US$19.6 billion in economic activity and an average of US$87 million per month in purchases of goods and services. The Gateway Development Commission also explicitly states that it prioritises purchases from American businesses. That final point determines the market-entry strategy.

Seven major projects across seven regions illustrate very different market-entry opportunities. They should not be treated equally.

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INDUSTRY FOCUS Table 1.

Project and Region

Wider Market Entry Difficulty Potential

Localisation Pressure

RepeatBusiness Potential

Best Suited to

Mumbai–Ahmedabad High-Speed Rail, India

★★★★

★★★

★★★★

Technology-led manufacturers prepared to localise

Al Maktoum International Airport, Dubai

★★★

★

★★★★

Construction, façade, MEP and system-fastening suppliers

Rail Baltica, Europe

★★★

★

★★★★

Approved or technically differentiated rail suppliers

Sydney Metro West, Australia

★★★

Suppliers offering labour and lifecycle savings

São Paulo Metro Line 6, Brazil

★★★

★★

★★★

Partnership-oriented manufacturers

Hudson Tunnel Project, United States

★★★★

Suppliers prepared to invest in a US operating structure

El Dabaa Nuclear Power Plant, Egypt

☆

★★★★★

★★★

★★

High-integrity and nuclearcapable suppliers

Selective: ☆ Medium: ★ Medium-high: ★★ High: ★★★ Very high: ★★★★ Extremely high: ★★★★★

For foreign fastener manufacturers, Hudson Tunnel is not primarily an export opportunity. It is a test of whether the US infrastructure market is large enough to justify localisation. US transportation procurement has moved toward stronger domesticcontent requirements. In 2025, the Federal Highway Administration finalised changes ending the general Buy America waiver for manufactured products used in federally supported highway and bridge projects. Although individual rules differ across transport programmes and contracts, the direction of policy is unmistakable: foreign manufacturers relying entirely on imported finished products face increasing disadvantages. A supplier serious about this market should use Hudson Tunnel as the business case for acquiring or partnering with a US manufacturer, establishing domestic finishing and testing, or licensing proprietary fastening technology to a qualified local producer. That structure could later serve rail projects across the Northeast Corridor, as well as bridges, metros, airports and utility infrastructure. The upside is enormous. The risk is equally clear. Establishing a US operation for one speculative contract would be reckless. The investment makes sense only when the company has a differentiated product and a wider five-to-ten-year infrastructure pipeline. Hudson Tunnel is attractive for companies ready to become American suppliers. It is a poor target for companies seeking occasional export orders.

Latin America: São Paulo Line 6 as an Ecosystem Entry

São Paulo Metro Line 6–Orange represents more than R$19 billion of committed investment. Once completed, the line will extend 15.3 kilometres and include 15 stations, ventilation structures, a control centre, maintenance facilities and train-stabling areas. The first six stations have begun commercial operation since 2 July 2026.

Its wider strategic value lies in the Brazilian supply ecosystem surrounding the project. The line includes rolling stock, stations, tunnelling, electrical systems, platform equipment, maintenance infrastructure and long-term operation. Alstom’s 22 six-car trains are being produced at its Taubaté plant, demonstrating the importance of Brazil’s domestic rail-manufacturing base.

A foreign fastener manufacturer will struggle to build a serious Brazilian position by shipping irregular container loads through a general importer. Customers require Portuguese-language support, local stock, assistance with approvals and the ability to respond when installation problems occur. The better strategy is to use Line 6 to enter the network of Brazilian rolling-stock producers, steel fabricators, tunnel-equipment companies, maintenance contractors and rail-system integrators. A specialist manufacturer could contribute corrosion-resistant anchors, locking systems, structural assemblies or application knowledge, while a Brazilian partner provides production, finishing, inventory and customer access.

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INDUSTRY FOCUS The project’s concession structure also creates an aftermarket opportunity. Construction supply can lead to inspection, replacement and maintenance business during the operating period. Suppliers that record installation locations, product batches and expected service lives can move from selling components to managing fastening performance. The danger is entering through a weak distributor with no influence over specifications. That produces lowmargin sales and little strategic control. Brazil is suitable for manufacturers prepared to build a genuine local partnership. It is not suitable for companies that confuse exporting with market entry.

Europe: Rail Baltica as a Qualification Passport

Rail Baltica is planned as an approximately 870-kilometre railway connecting Estonia, Latvia and Lithuania to Poland and the wider European network. The estimated cost of the first implementation phase is €15.3 billion. In April 2026, the organisation published a consolidated procurement plan covering the three Baltic states, while procurement of major superstructure materials continued to advance.

Middle East: Al Maktoum Airport as a Regional Product Platform

Al Maktoum International Airport is planned on a 70-square-kilometre site with 19.4 million square metres of built facilities, five runways and 400 contact gates. At ultimate capacity, it is designed to handle nearly 260 million passengers and 12 million tonnes of cargo annually. It forms the centre of the wider Dubai South aviation and logistics development. The scale is extraordinary, but size is not the main strategic attraction. Airport contractors, façade specialists, baggage-system companies, passenger-bridge manufacturers, mechanical contractors and automated-transport suppliers commonly operate across several Gulf states. Approval by one of these groups can therefore generate repeat business in Saudi Arabia, Qatar, the UAE and neighbouring markets. The supplier should not approach Al Maktoum with a catalogue containing thousands of unrelated fasteners. That positioning is weak and replaceable.

For fastener manufacturers, Rail Baltica’s greatest value is not the Baltic market alone. It is the possibility of creating a recognised European rail reference. European railway buyers do not change critical components simply because a challenger offers a lower price. They evaluate fatigue life, interoperability, installation performance, electrical behaviour, coating durability, traceability and long-term maintenance consequences. That makes initial qualification difficult. But the same barrier protects a supplier once it has been approved. A manufacturer of rail clips, sleeper screws, anchor systems, turnout fasteners or electrification fixings should aim to become part of a complete railway system rather than remain an isolated component vendor. The key customers may be sleeper producers, turnout manufacturers, electrification companies and track-system integrators—not the project owner itself. If the supplier’s component becomes incorporated into an approved system, the system manufacturer can carry that product into future European projects. Rail Baltica is particularly attractive for companies with a measurable technical advantage: longer fatigue life, reduced maintenance, faster installation, improved insulation, better traceability or lower embodied carbon. A commodity supplier with no railway approvals and no technical differentiation will burn money pursuing this opportunity. Rail Baltica offers exceptional qualification value. It should be targeted by companies that want a long-term European rail position, not by producers seeking a onetime volume order.

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A stronger approach is to create an airport fastening platform: corrosion-resistant façade fixings, fire-rated anchors, vibrationresistant mechanical connections, traceable baggage-system fasteners and packaged assemblies for passenger bridges or automated transport. The objective is to make the package reusable by contractors on other airports and complex buildings. Dubai Aviation Engineering Projects require new contractors to complete prequalification before becoming eligible to tender. However, direct qualification with the owner is only one route. For many fastener producers, approval by specialist subcontractors and equipment manufacturers will create more repeatable business. The Gulf also rewards availability. A regional warehouse and technical-support capability can serve airports, data centres, hotels, metros, logistics centres and industrial projects from the same base. The main risk is intense competition. A supplier offering nothing beyond acceptable quality and a low price will be treated as interchangeable. Al Maktoum is one of the best regional channel-building opportunities, especially for companies that can turn products into application-specific fastening systems.

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INDUSTRY FOCUS Asia: India’s High-Speed Rail as the Strongest Long-Term Growth Bet

The Mumbai–Ahmedabad High-Speed Rail corridor extends 508 kilometres, with around 90% of the alignment elevated. It combines viaducts, steel bridges, stations, overhead systems, noise barriers, ballastless track and a 21-kilometre tunnel section near Mumbai. Construction reached major milestones throughout 2025 and 2026. The project alone is important. The pipeline behind it is much more important. India’s 2026–27 Union Budget announced seven additional high-speed rail corridors. Government analysis placed their combined length at nearly 4,000 kilometres and their potential investment at approximately ₹16 lakh crore. This changes the strategic calculation. Qualification on the first corridor could become a foundation for an entire generation of railway investment. However, India’s objective is not to remain dependent on imported technology. It intends to develop domestic manufacturing and engineering capability. A foreign supplier that wins an early order but refuses to localise may educate the market and then be replaced. The strongest strategy is therefore to combine proprietary technology with Indian production. Suitable models include licensing, a joint venture, a technical partnership or a majority-owned local operation. The company should retain control of the critical knowledge—design, materials, heat treatment, coating or quality processes— while progressively localising manufacturing and service. Products with potential include fatigue-resistant bridge assemblies, ballastless-track components, vibration-control solutions, electrification fasteners and digitally traceable safety-critical connections. The opportunity is not limited to high-speed rail. The capabilities established could transfer into metro systems, freight corridors, conventional railway upgrades and bridge construction. India offers the strongest long-term growth potential in the group. But it requires commitment. Companies unwilling to transfer capability, invest locally and develop Indian management should stay out.

Africa: El Dabaa as a Quality-System Transformation

Egypt’s El Dabaa Nuclear Power Plant will contain four VVER-1200 units with a combined capacity of 4.8 GW. The reactor pressure vessel for Unit 1 was installed in November 2025, followed by installation of the 330-tonne Unit 2 vessel in July 2026. By late 2025, approximately 55% of contract and subcontract orders had reportedly been localised in Egypt.

For most fastener companies, direct pursuit of nuclear safety-class applications would be a bad strategy. Nuclear supply demands rigorous material control, traceability, inspect ion, process qua l if icat ion, non-con for ma nce management and long-term record retention. A conventional construction-fastener manufacturer cannot create these capabilities through marketing claims. El Dabaa should instead be viewed as a qualification ladder. A supplier can begin with non-safety buildings, conventional mechanical systems or balance-of-plant applications. It can then use those projects to strengthen documentation, train employees and demonstrate controlled production. The resulting quality capability can open markets beyond nuclear power, including oil and gas, petrochemicals, desalination, power generation and high-integrity industrial construction. In that sense, the most valuable outcome may not be nuclear revenue. It may be transforming the company into a supplier capable of serving industries where failure is expensive and traceability is mandatory. The risk is obvious: qualification costs can consume years of management attention, while the addressable product scope may remain narrow. El Dabaa is not a mass-market fastener opportunity. It is a strategic capability-building opportunity for technically mature manufacturers only.

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Oceania: Sydney Metro West as a Contractor-Network Entry Point

Sydney Metro West is a 24-kilometre underground railway connecting Westmead, Parramatta and central Sydney. Four major contracts were awarded at the end of 2025. The linewide package includes 60 kilometres of track and the installation of ventilation, power, communications, fire systems, cross-passages and a major stabling and maintenance facility. The surrounding market is substantial. Infrastructure Australia’s 2025 report placed the country’s five-year Major Public Infrastructure Pipeline at A$242 billion, 14% higher than the previous outlook. Transport represented A$129 billion of that pipeline. Australia is therefore attractive, but price-led exporters frequently underestimate its barriers. Customers expect documented compliance, dependable local support, safe installation procedures and products that reduce wholelife project risk. The strongest fastener proposition is not lower component cost. Australian labour is expensive, so products that reduce installation time, rework, inspection or maintenance can create far more value. Examples include preassembled fastening kits, visual torque verification, faster anchor systems, longer-life coatings and traceable connections. The strategic target should be the national contractor, not only the individual project. Large contractors reuse qualified suppliers across transport, energy, water, mining and public-building projects. An accepted product on Sydney Metro West can therefore become an Australian reference that travels between projects and states. The main risk is entering without local engineering and inventory support. A distant overseas factory cannot resolve urgent site problems fast enough. Australia is attractive for technically disciplined suppliers whose products save labour or lifecycle cost. Commodity manufacturers will find the market expensive and frustrating.

Conclusion

There is no universally best project. There is only the project that matches the company’s capability and strategic ambition.

A megaproject should not be treated as an oversized purchase order.

For a technology-led manufacturer prepared to localise, India offers the strongest long-term growth case.

It should be treated as a market-entry investment.

For a supplier seeking access to multiple countries through contractors and integrators, Dubai offers the strongest regional channel opportunity. For a company already close to European rail standards, Rail Baltica offers the greatest qualification and reference value. For manufacturers with labour-saving systems and strong technical documentation, Australia offers an attractive repeat-project market. For firms willing to develop local industrial partnerships, Brazil can provide construction and aftermarket growth.

The winning supplier is not the company that sells the greatest number of bolts during construction. It is the company that remains in the market and continues winning business long after the ribbon has been cut. References 1.

For compa n ies prepa red to i nvest subst a nt ia l ly i n domest ic manufacturing or processing, the United States offers unmatched scale but the highest localisation barrier.

For suppliers with high-integrity quality systems, El Dabaa can create a route into nuclear and other critical industrial markets. For ordinary fastener producers, it is a distraction.

The wrong way to select a megaproject is to rank projects by construction value and chase the largest one. The correct method is to ask five harder questions: 1.

Will project qualification remain valuable elsewhere?

Can we establish a repeatable channel beyond the project?

Are we willing to meet the localisation requirement?

Do we possess a technical advantage worth protecting?

Will the first project lead to a second, third and tenth customer?

6. 7. 8. 9.

10. 11. 12. 13.

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Gateway Development Commission, Hudson Tunnel Project Overview and Procurement Information, 2025– 2026. Gateway Development Commission, Economic Impact of the Hudson Tunnel Project. US Department of Transportation, Buy America Requirements for Manufactured Products, January 2025. ACCIONA, São Paulo Metro Line 6 Project Progress and First Stations, 2025–2026. Alstom, Line 6–Orange Rolling Stock and Brazilian Manufacturing, 2025–2026. Rail Baltica, 2026 Procurement Plan and Superstructure Materials Procurement. Rail Baltica, Updated Cost-Benefit Analysis and FirstPhase Investment. Dubai Aviation Engineering Projects, Al Maktoum International Airport Masterplan. National High-Speed Rail Corporation Limited, Mumbai– Ahmedabad High-Speed Rail Project Overview and 2026 Progress. Government of India, Press Information Bureau, HighSpeed Rail Corridors Announced in the 2026–27 Budget. Rosatom, El Dabaa Nuclear Power Plant and Unit 2 Reactor Vessel Installation, 2026. Sydney Metro, Sydney Metro West Project Overview and 2026 Contract Progress. Infrastructure Australia, 2025 Infrastructure Market Capacity Report.

INDUSTRY FOCUS

Tariffs and the AI Boom:

Fastener Business Opportunities in N. America and Strategies for Taiwanese Manufacturers in 2026

n Oct/2026, the IFE will be held in Phoenix for the first time. It is the largest and most representative B2B exhibition in N. America’s fastener industry. This year’s U.S. market warrants closer scrutiny than ever before: tariffs continue to shift, AI infrastructure is reshaping demand, and traditional orders from the automotive, construction, and aerospace sectors are each moving at their own pace. This article offers insights from 3 perspectives: What exactly happened in the U.S. fastener market during H1 this year? From which industries is demand emerging? And what strategies should Taiwanese manufacturers adopt when approaching the N. American market?

Reshuffling of the Global Fastener Market: Market Changes as Seen Through U.S. Imports/Exports in H1 2026 1. U.S. import demand has cooled, but its status as the world’s largest market remains unchanged

As shown in Table 1, the U.S. remains the world’s largest fastener import market, with imports totaling US$3.52 billion in H1 2026. Even though this represents a 14% decline from US$4.10 billion recorded during the same period in 2025, the market size is still 1.25 times that of 2nd-ranked Germany (US$2.81 billion, up 6.4% year-overyear) and more than double that of China (US$1.36 billion) and France (US$1.23 billion), and the gap is equally significant when compared to other top-ten markets such as Canada, the UK, Poland, the Netherlands, Italy, and Thailand. It is worth noting that among the world’s top ten import markets, only the U.S. and Canada posted negative growth (–14.0% and –1.1%, respectively), while the remaining eight countries all recorded positive growth, with Thailand (12.6%) and Italy (11.5%) showing the fastest growth. In fact, the decline in U.S. import value reflects weaker demand and purchasing momentum in H1 this year; however, given the import volume of US$3.52 billion, the U.S. status as the world’s largest fastener import market remains unchanged. What truly warrants further observation is how tariff policies and changes in end-user demand will affect the procurement and supply sources in H2 this year. Tables 2 and 3 show the value and quantity of US imports from their respective sources. From the supply side, the US fastener import market cooled significantly in H1 2026. China and Taiwan remained the 2 major supply sources, but import volumes for both declined compared to the same period last year. The US imported 305,000 tons from China, accounting for 28.6% of total imports, still ranking 1st among all countries, but this was a significant decrease of 23.8% compared to the same period last year; imports from Taiwan were 275,000 tons, accounting for 25.8%, a YoY decrease of 11.3%. Together, these two countries accounted for 54.4% of US fastener imports, indicating that Taiwan and China still control more than half of the US import demand. However, Taiwan's volume decline was only about half that of China, demonstrating better relative resilience in this market contraction.

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INDUSTRY FOCUS L o o k i n g a t i m p o r t va l u e s , Taiwan's importance becomes even more prominent. In H1 2026, the US imported US$990 million worth of fasteners from Taiwan, accounting for 28% of total imports, remaining U.S. largest fastener import source; imports from China amounted to US$600 million, accounting for 17.1%, ranking 2nd. Compared to the same period last year, US imports from Taiwan decreased by 15.2%, while imports from China declined by 22.4%. Other major source countries also mostly showed declines, with Japan down 8.5%, Canada down 16.3%, S. Korea down 18%, and Mexico experiencing a significant decrease of 30.9%. From both volume and value perspectives, the weakening US fastener imports is not concent rat ed i n a si ngle source, but rather reflects a market adjustment faced by most major suppliers. However, t he impact va r ied across countries. Germany was a notable exception, with US imports from Germany increasing by 40.5% year-on-year in volume and 4.2% in value; imports from Italy increased by 3.3% in value, while imports from Thailand and Vietnam increased by 7% and 9.6% respectively. These changes indicate that even with weakening overall fastener demand in the US, individual sources may still experience growth due to differences in product structure, customer needs, or market layout, warranting further observation. For Taiwan, while its H1 2026 result will inevitably be affected by the cooling U.S. demand, the decline in both U.S. impor t volume and value from Taiwan is less than that of China, and Taiwan will still maintain its position as the largest U.S. fastener import source with a 28.0% market share by value. As the market shifts from pursuing supply volume to placing greater emphasis on supply stability, quality, and application needs, Taiwan's ability to maintain its existing market share and further capture new demands from industries such as automotive, construction, electrical and electronic equipment, aerospace, and AI infrastructure will be a crucial aspect to observe in the next phase of the N. American fastener market.

Table 1. Import Value of the World's Top 10 Importers Importers USA Germany China France Canada UK Poland Netherlands Italy Thailand

H1 2026 35.2 28.1 13.6 12.3 11.4 9.3 8.3 8.0 7.9 7.0

H1 2025 41.0 26.4 12.7 11.8 11.5 9.2 8.1 7.8 7.0 6.3

Unit: US$ 0.1 bn

Same Period Ratio -14.0% 6.4% 7.5% 4.8% -1.1% 2.0% 2.8% 2.9% 11.5% 12.6%

Source: ITC

Table 2. Value of the Top 10 U.S. Import Sources Import Sources Taiwan China Japan India Germany Canada Italy S. Korea Mexico Thailand

H1 2026 9.9 6.0 2.9 2.1 1.9 1.8 1.6 1.6 1.0 1.0

H1 2025 11.6 7.8 3.2 2.2 1.8 2.1 1.5 1.9 1.5 1.0

Same Period Ratio -15.2% -22.4% -8.5% -3.1% 4.2% -16.3% 3.3% -18.0% -30.9% -2.5%

Unit: US$ 0.1 bn

Market Share in 2026 28.0% 17.1% 8.2% 6.0% 5.4% 5.1% 4.5% 4.5% 2.9% 2.8%

Source: ITC

Table 3. Volumes of U.S. Top 10 Import Sources Unit: 10,000 tons

Import Sources China Taiwan India Japan Thailand Canada S. Korea Malaysia Germany Vetnam

H1 2026 30.5 27.5 9.5 5.2 5.3 3.7 3.7 2.5 2.5 2.2

H1 2025 40.0 31.0 9.8 6.3 5.0 4.6 4.3 2.6 1.8 2.0

Same Period Ratio -23.8% -11.3% -2.9% -17.5% 7.0% -20.0% -15.4% -4.4% 40.5% 9.6%

Market Share in 2026 28.6% 25.8% 8.9% 4.9% 5.0% 3.5% 3.5% 2.4% 2.3% 2.1%

Source: ITC

2. Taiwan's Position: While Exports to the US are Booming, Different Fastener Markets Show Various Conditions Taiwan's exports to the US showed strong performance in H1 2026, with the trade surplus exceeding US$100 billion for the first time in a 6-month period. However, this growth was primarily driven by AI-related ICT products. Graphics cards and servers were the main export products, further concentrating Taiwan's export structure towards the electronics and ICT industries. While this data reflect the increasing trade relations between Taiwan and the US for traditional manufacturing, it cannot be directly interpreted as a simultaneous increase in US orders across all sectors. Fasteners are the most obvious example. Looking at US fastener imports for H1 2026, the US imported US$990 million worth of fasteners from Taiwan, still holding the top market share at 28.0%, but down 15.2% year-on-year; import volume was 275,000 tons, down 11.3% year-on-year. In 惠達雜誌 Fastener World no.220/2026

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INDUSTRY FOCUS contrast, US imports from China were 305,000 tons, still higher than from Taiwan, but down 23.8% year-on-year, with import value also declining by 22.4%. This shows that the US fastener market is currently facing cooling demand and divergent performance from different suppliers, while Taiwan, although unable to escape market contraction, has remained relatively resilient overall. Therefore, what Taiwanese fastener manufacturers truly need to focus on is not just whether Taiwan's exports to the US continue to grow, but how US tariffs, manufacturing investment, and demand from end-user industries will affect procurement in the next stage. By 2026, Taiwan-US trade relations have gradually moved from tariff negotiations at the beginning of the year into the implementation phase. Taiwan's reciprocal tariffs have been reduced to 15%, without the addition of MFN treatment rates, and Section 232 preferential treatment for some auto parts has also taken effect. On the other hand, the US continues to examine manufacturing capacity and supply chain issues through tools such as Section 301. For fastener manufacturers preparing to enter or deepen their presence in the US, policy risks have not disappeared; rather, the focus has shifted from simply being on the level of tariffs to how to reassess product and market strategies under the new trade conditions.

Where do Orders Come From? 5 Major Industry Demands Redefine Fastener Business Opportunities

U.S. fastener demand has never been driven by a single market, but rather dispersed across the automotive, construction, electrical/electronic, aerospace, and various industrial equipment sectors. The difference in 2026 lies in the simultaneous changes in tariffs, manufacturing investment, and AI infrastructure, requiring fastener manufacturers to seek the next growth opportunities from end-applications.

1. Automotive: With improved tariff terms, competition has returned to supply capacity

The automotive industry and automotive components have always been an important application market for Taiwanese fasteners. Following the Taiwan-US tariff negotiations in 2026, the combined MFN tariff rate and Section 232 tariff for certain Taiwanese automotive components exported to the US have reduced to a maximum of 15%. Compared to the previous tariffs, the competitive conditions for Taiwanese suppliers to enter the US market have improved. However, tariff reductions do not automatically translate into a return of orders. The real hurdles in the automotive supply chain remain consistent quality, product certification, batch traceability, delivery management, and the ability to support automated assembly. As automotive manufacturing moves towards smart factories, automated fastening, and zero-defect management, fasteners are no longer simply standard parts produced according to drawings. Torque control, anti-loosening design, material properties, and the traceability of process data are all increasingly becoming part of supplier competition. For Taiwanese companies, tariffs offer an opportunity to re-compete; ultimately, securing orders still depends on product quality and manufacturing capabilities.

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2. Construction: Shifting focus from construction boom to infrastructure investment Construction has consistently been one of U.S. largest fastener application markets, but the market outlook for 2026 cannot be summarized solely by "continued investment in infrastructure." The investment cycles for residential, commercial real estate, public works, roads & bridges, and data centers are not consistent, and interest rates, government spending, and private capital expenditure will also have different impacts. For fastener manufacturers, identifying niche markets with continued investment momentum is more important than predicting the overall construction market's growth or decline. Roads, bridges, energy facilities, and large industrial buildings have a long-term demand for structural bolts, anchors, and high-strength fasteners. Meanwhile, the rapid expansion of data centers is transforming some of the demand previously categorized as electronics into actual construction and electromechanical engineering needs. For Taiwanese companies with capabilities in high-strength materials, surface treatments, and related certifications, these markets are more worthy of attention than simply competing in the general construction screw market.

3. Electric/Electronic: Behind AI lies an initial investment in power equipment

AI is driving demand for more than just chips and servers. The rapid expansion of data centers necessitates a corresponding increase in power supply, distribution, backup power, cooling, and server rack equipment, leading to a spillover of AI investment into the traditional electronics, electrical engineering, and metal manufacturing supply chains. From a fastener perspective, the real focus isn't on semiconductors themselves, but rather on switchboards, transformers, UPS backup systems, cabinets, cooling equipment, and related electromechanical engineering. These products heavily utilize metal structural components and mounting elements, and as equipment power and reliability requirements increase, suppliers must possess not only cost-effectiveness but also the ability to deliver consistently, manage quality, and respond quickly to customized needs. This is a more pragmatic path for traditional fastener manufacturers to enter the AI market.

4. Aerospace and Unmanned Systems: Highbarrier market extends from aircraft to drones and space

Compared to other end markets, one of the biggest characteristics of the aerospace industry is its longer demand visibility and higher

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INDUSTRY FOCUS supply barriers. In commercial aviation, the 2 major manufacturers, Boeing and Airbus, have a combined backlog of approximately 15,000 aircraft, which, at the current delivery rate, is equivalent to more than 10 years of production demand. This does not mean that the aerospace industry is immune to economic cycles, but the large existing order book still makes its demand visibility significantly higher than that of many general durable property industries. On the other hand, the growth momentum of the N. American aerospace market is gradually extending from commercial aircraft to drones, defense, and commercial space. In recent years, the U.S. has continuously strengthened cybersecurity, sourcing, and NDAA compliance requirements for drones and key components through systems such as Blue UAS. Supply chain security and component traceability have become important conditions for government procurement. For the fastener industry, the opportunity may not only lie in the number of screws used in the drone itself, but also in the fact that as the entire drone develops towards nonred supply chains, modularization, and trusted sources, material sourcing, process records, and quality consistency may become basic capabilities that component suppliers must possess. Commercial space and LEO satellites present another opportunity for highvalue production. Satellites and launch systems have high requirements for weight, reliability, vibration resistance, temperature variation, and material properties. The fasteners used often prioritize lightweight, high strength, special materials, and complete traceability. As LEO satellites, commercial space stations, and related space infrastructure continue to develop, the supply chain is gradually evolving towards modularization, commercialization, and local manufacturing, creating new opportunities for suppliers with precision machining, specialized processes, and small-batch high-value production capabilities. Whether it's commercial aviation, defense drones, or LEO satellites, these markets share a common characteristic: not large-volume, low-price sales, but rather high reliability, high certification thresholds, and long-term supply capabilities. From materials, heat treatment, and surface finishing to specialized processes, suppliers must establish rigorous quality management and traceability systems. For Taiwanese fastener manufacturers hoping to move beyond price competition in standard components, the aerospace and unmanned systems market may not be a quick way to secure large orders, but it could represent a high-value-added application worth investing in for the long term.

5. AI Infrastructure: AI-powered structures can't function without fasteners AI is definitely a hot keyword for N. American manufacturing this year, but for the fastener industry, instead of forcing itself to find "AI-specific screws," it's better to return to where AI investment can truly be implemented. Global cloud service providers continue to expand their capital expenditures on data centers, but data centers must ultimately be transformed into physical facilities such as factories, cabinets, power, cooling, piping, and backup equipment. Therefore, the opportunities that AI brings to the fastener industry are more like an outward-spreading demand chain. From server racks and cooling systems to transformers, power distribution equipment, power generation and energy storage equipment, and even the steel structure and electromechanical engineering of data centers themselves, fasteners and precision metal components of different specifications will be used. Among them, the heat dissipation system deserves the attention of fastener manufacturers: As the power and heat density of AI servers continue to increase, the heat dissipation architecture is gradually evolving from The heat dissipation t raditiona l a ir cooling to cold plates, system deserves the l i q u i d c o o l i n g, a n d m o r e e f f i c i e n t thermal management systems, raising the attention of fastener performance requirements of related metal manufacturers components and fasteners. From radiators, cold plates, and racks to CDU coolant distribution units, pumps, pipes, and joints,

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fasteners are not only responsible for structural fixation, but may also affect contact pressure, sealing performance, and long-term operational reliability. Especially in environments with repeated temperature rises and falls, the differences in thermal expansion between different materials can cause variations in preload. Therefore, t he selection of fastener mater ia ls, a ntiloosening designs, corrosion resistance, and locking consistency become even more crucial. Liquid cooling systems further increase the requirements for sealing and maintenance reliability. For Taiwan's fastener industry, the opportunities brought by AI are not just about the need for more screws in server racks, but also about the potential increase in market demand for high-reliability, precision locking, a nd fasteners made of specia l mater ia ls following upgrades in heat dissipation and power equipment. This demand also forms a more direct link with Taiwan's existing heat dissipation, metal processing, and precision manufacturing supply chains.

From Export Products to Market Operations: What's Next for Taiwan Fasteners? 1. Taiwan's edge must be transformed from manufacturing capacity to supply capacity

Ta iwa n's f a st e n e r i n d ust r y h a s lo ng accumulated a complete manufacturing cluster, possessing a certain foundation in mold making, forming, heat treatment, surface treatment, and small-batch, high-variety production. However, as low-end general-purpose fasteners continue to face price competition, and raw material, energy, and labor costs are unlikely to return to previous levels, simply emphasizing "better quality than others" is no longer sufficient to create a clear market segmentation. The challenges posed by the US market are particularly evident. Besides price, customers also need to consider tariffs, inventory, delivery time, quality risks, and supply sources. A Taiwanese manufacturer located thousands of km from its customers, even with excellent product quality, may still lose out to local competitors whose product conditions may not be better if they are slow to quote prices, have long delivery times, lack local inventory, or cannot quickly resolve customer issues. This has shifted the focus of Taiwan's fastener industry from "how to export products to the U.S." to "how to truly operate in the U.S. market."

INDUSTRY FOCUS 2. Ta Chen and BBI: What we should learn from them is not their scale, but how close they are to their customers The cases of Ta Chen and BBI offer valuable lessons for Taiwan's fastener industry. They have long cultivated the N. American market through M&A, distribution channels, warehousing, and digital systems. Ta Chen, through its BBI, has established extensive fastener distribution channels and product supply capabilities, while Ta Cheng has built a N. American sales and warehousing network in the stainless steel and aluminum sectors. The greatest significance of this model lies not only in selling Taiwanese products to the U.S., but also in moving inventory, pricing, delivery, and customer service to the market end. For most small and medium-sized fastener manufacturers in Taiwan, directly replicating the M&A and warehousing scale of large groups is not practical, but the underlying business logic is worth considering: the shorter the distance between exporters and end markets, the greater the opportunity to grasp the real demand and the less uncertainty customers face while waiting for cross-border supplies. Localization isn't lim ited to factor y setups or M&A. Deepening partnerships with local agents, establishing regional inventories, sharing warehousing, forming strategic alliances with distributors, and even improving digital pricing, inventory tracking, and small-volume rapid delivery capabilities are all options for businesses of different sizes. The key isn't for every Taiwanese fastener manufacturer to become another Ta Chen, but rather to find a way that suits their own products and capital to shorten the distance to their U.S. customers.

3. The EU is Taiwan's 2nd market and another fulcrum for diversifying risks associated with a single market The U.S. remains Taiwan's most important single export market for fasteners, but the more important the market, the more important it is to manage concentration risk. Therefore, the EU should still be an important 2nd market for Taiwanese companies, but it is not a simple substitute for the U.S. market. CBAM, AD measures, and increasingly stringent environmental and product regulations have made the European market a costly entry point. On the other hand, Taiwanese fastener manufacturers have already built a solid customer base in Europe. If they can translate carbon management, product certification, and high-value-added capabilities into competitive barriers, the EU can become a crucial fulcrum for diversifying their reliance on a single market. True risk management is not about withdrawing from the U.S., but about cultivating a strong presence in the U.S. while maintaining the ability to secure orders in other major markets.

Conclusion: Heading to Phoenix, it's not just about showcasing products

In H1 2026, while the U.S. fastener import ma rket cooled down, the performance of different supply sources showed significant divergence. On the other hand, adjustments to automotive tariffs, infrastructure investment, aerospace orders, and AI-driven data center and power equipment construction are creating new demand directions. However, not all fasteners can share in these growth opportunities, so it is crucial to identify application areas where demand is still increasing and Taiwan has the necessary conditions to enter the market.

This is also the most important thing for everyone attending the IFE this year to consider: instead of just looking at what new products are available, pay more attention to what buyers are discussing, what suppliers are emphasizing, and how topics such as AI manufacturing, sma r t assembly, zero defects, and crossborder outsourcing are ultimately reflected in procurement terms. When price is no longer the only criterion for customers to evaluate suppliers, the manufacturing capabilities accumulated by Taiwan's fastener industry over the years can be transformed back into value in terms of quality, delivery time, engineering collaboration, and supply stability. What Taiwanese manufacturers really need to demonstrate this year is "what problems we can solve for customers." The real watershed moment in the next round of competition in the N. American fastener market will be the shift from product exporters to global market operators.

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INDUSTRY FOCUS Core SLA Metrics for the Construction Fastener, Hardware and Metal Components Industry When establishing core SLA metrics, many factors need to be taken into consideration, including:

• Using metrics to motivate performance. • Selecting metrics that can be easily collected and quantified. • Establishing appropriate benchmarks as the basis for contract implementation. • Trying to reach consistent quantity and quantification using manageable metrics. Too many indicators can make monitoring difficult. • Ensuring that all metrics are defined clearly and unambiguously. For products in the construction fastener, hardware, and metal components industry, the core SLA metrics focus on response and lead times, product yield, construction or installation, repair and maintenance, contractual liability, and compensation mechanisms. Taking screw and fastener products as an example, common core SLA metrics include:

• Order Lead Time: Usually divided into the lead time for standard products and the lead time for customized or special-specification fasteners. • Quality Yield: The agreed quality acceptance criteria. • Customer Complaint and Nonconformity Response Time: The initial response time after receiving notification of a product defect, as well as the deadline for submitting corrective and preventive action reports. For building hardware products, common service and delivery indicators include: • Delivery Time: Standard delivery days after order confirmation or performance against project-specific

construction site delivery schedules.

• Response Time: The response time for customer inquiries, on-site inspections, or customer complaints. • Spare Parts Availability: Inventory availability and allocation speed for commonly used hardware components and replacement parts. • Product Yield: The durability, corrosion-resistance standards, and specification conformity of hardware products leaving the factory. • Warranty and Repair Services: On-site construction or installation, repair or maintenance, and completion time in the event of product failure or damage. • Quality Standards: Compliance with relevant building hardware installation specifications and construction inspection and acceptance standards.

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The above core SLA metrics should also appropriately consider the following characteristics:

• Service Availability: For example, measuring service during specified operating hours or evaluating an e-commerce platform that accepts orders around the clock. • Error Rate: The allowable range of errors defined by the relevant SLA metric. • Safety: Product safety during construction, installation, repair, or maintenance of construction fasteners and hardware components. • Response-Time Allowance: For example, time-zone differences in international markets.

Using SLAs to Turn Report Data into Customer-Retention Leverage An SLA is a company's written commitment to service speed and quality. In a customer service context, it translates into specific figures that answer two fundamental questions: “How quickly will we respond?” and “How quickly will we resolve the issue?” Common indicators include First Response Time, Average Response Time, Resolution Time, and SLA Compliance Rate. These metrics are particularly applicable to B2B and B2C construction fastener and hardware companies, as well as trading and service providers that want to use data-driven management to improve product and service team performance and increase customer retention. Given the division of responsibilities within an industry supply chain, SLAs can also serve as a tool for monitoring supplier and supply-chain performance. End users can periodically evaluate supply-chain suppliers over a fixed period. Through data analysis and statistical evaluation of core SLA metrics, companies can identify when it may be necessary to replace upstream or downstream suppliers, or determine whether suppliers that continuously fail to meet requirements should retain their qualification to provide construction fastener and hardware products, construction or installation services, repair, or maintenance services. Most core SLA metrics for construction fastener and hardware products are closely related to actual construction, installation, and on-site delivery operations. They cannot necessarily be achieved simply through customer-service reception or the introduction of AI-powered instant responses. Therefore, when companies establish SLA metrics internally or jointly define and confirm them with customers or supply-chain partners, three key principles should be considered:

1. Align Expectations and Avoid Misunderstandings An SLA requires service providers to clearly define the services they will provide, allowing customers to know exactly what they can expect to receive. This eliminates ambiguity, reduces quality-related disputes, and prevents customers from feeling that they have been misled.

INDUSTRY FOCUS

U.S. Fastener Tool Trade in Q1 2026: An Analysis of the Americas' Leading Trading Partners Data note: The data for this article is derived from the US Census trade statistics. US Census trade statistics analyze imports across all modes of transportation. The value is calculated in CIF USD or FOB USD. The HS Codes represented in this article are 820411, 820412, 820420, 820540, 820570, and 8207. The U.S. fastener tool market remained closely tied to global manufacturing supply chains during the first quarter of 2026, with imports continuing to play a critical role in supporting domestic demand across the automotive, construction, industrial equipment, and retail sectors. While official U.S. Census trade statistics provide the broad picture of import and export activity, shipment-level trade data offers additional insight into the companies and supply chains moving the greatest volumes of fastener tools into the United States. Together, these datasets illustrate both the scale of U.S. trade and the commercial relationships that underpin the market. The broader industrial distribution sector also continued to show healthy demand entering 2026, reflecting ongoing investment across manufacturing and industrial end markets.

Key Trade Trends from Q1 2026 During the first quarter of 2026, the United States imported US$1.042 billion worth of fastener tools within this product category, representing a year-over-year decrease of less than 1% compared to Q1 2025. This relatively f lat performance indicates a stable import market despite ongoing shifts in global trade and supply chain dynamics.

U.S. Fastener Tool Import 1.2

US$1.05 bn

US$1.042 bn

2025 Q1

2026 Q1

1.0 0.8

decline less than 1%

0.6 0.4 0.2 0.0

▼ United States - Import by Country (2025Q1 vs 2026Q1) 2025 - Q1 Country of Origin

General Total Value CIF (USD)

2026 - Q1

Volume Change

General Total Value CIF (USD)

China

228,476,881

21.75

155,785,650

14.95

-72,691,231

-31.82

Taiwan

172,390,888

16.41

149,503,104

14.35

-22,887,784

-13.28

Japan

83,377,812

7.94

144,691,933

13.88

61,314,121

73.54

Germany

120,786,025

11.50

126,587,135

12.15

5,801,110

4.81

Vietnam

50,105,442

4.77

70,462,052

6.76

20,356,610

40.63

S. Korea

44,312,285

4.22

63,671,050

6.11

19,358,765

43.69

Canada

95,400,817

9.08

47,765,975

4.59

-47,634,842

-49.94

Thailand

22,368,227

2.13

38,736,551

3.72

16,368,324

73.18

Italy

29,358,241

2.80

32,084,987

3.08

2,726,746

9.29

India

35,280,040

3.36

28,437,039

2.73

-6,843,001

-19.40

Total

1,050,702,703

100.00

1,042,453,724

100.00

-8,248,979

-0.79

China remained the leading source of U.S. fastener tool imports, accounting for nearly 15% of total import value. Taiwan and Japan followed closely, each contributing approximately 14%, while Germany represented 12% of total imports. Germany's position among the leading suppliers is consistent with its advanced manufacturing sector, particularly its automotive and industrial machinery industries, where precision tooling plays a critical role.

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INDUSTRY FOCUS U.S. Fastener Tool Source

Monthly import activity peaked in March 2026, reaching US$386 million, the highest monthly value of the quarter. During March, Japan and Taiwan emerged as the leading trading partners, while January—the second strongest month of the quarter—was led by China, Taiwan, and Germany. These monthly shifts highlight the dynamic nature of global sourcing and production schedules while reinforcing the consistent importance of these major supplier markets.

15%

China Taiwan Germany

14%

Japan

Looking at product categories, HS 820730 (tools for pressing, stamping, or 12% 14% punching) represented the largest share of imports, accounting for nearly 24% of total import value during Q1 2026. This was followed by HS 820750 (tools for drilling) at approximately 14% and HS 820420 (socket wrenches) at 9.5%. These three categories also ranked as the leading imports during Q1 2025, demonstrating continued demand for core industrial tooling products. While the overall product mix remained relatively consistent, several categories experienced notable year-over-year changes. Imports of HS 820750 declined by nearly 6%, while HS 820420 increased by approximately 12%. HS 820790 (interchangeable tools not elsewhere specified) recorded a 17% decrease, whereas HS 820719 (interchangeable tools for hand tools) experienced the strongest growth of any category, increasing 46% compared to the first quarter of 2025.

▼ United States - Import by Category (2025Q1 vs 2026Q1) 2025 - Q1 HS Code (6)

2026 - Q1

Volume Change

General Total Value CIF (USD)

820730 - Tools For Pressing, Stamping Or Punching, And Parts Thereof, Of Base Metal

212,968,030

20.27

249,251,151

23.92

36,283,121

17.04

820750 - Tools For Drilling, Other Than Rock Drilling, And Parts Thereof, Of Base Metal

154,264,771

14.69

145,308,994

13.94

-8,955,777

-5.81

820420 - Socket Wrenches With Or Without Handles, Drives And Extensions, And Parts Thereof, Of Base Metal

111,119,336

10.58

98,023,019

9.41

-13,096,317

-11.79

820790 - Other Interchangeable Tools, And Parts Thereof, Of Base Metal

110,336,396

10.51

91,332,279

8.77

-19,004,117

-17.23

820770 - Tools For Milling, And Parts Thereof, Of Base Metal

78,574,463

7.48

80,204,677

7.70

1,630,214

2.08

820411 - Spanners And Wrenches, Hand-Operated, Non-Adjustable, And Parts Thereof, Of Base Metal

83,921,652

7.99

75,559,250

7.25

-8,362,402

-9.97

820719 - Interchangeable Tools For Handtools, Whether Or Not Power-Operated, Or For MachineTools, Including Rock Drilling Or Earth Boring Tools; Base Metal Parts

48,274,915

4.60

70,764,876

6.79

22,489,961

46.59

820570 - Vises, Clamps And The Like, And Parts Thereof, Of Base Metal

44,860,802

4.27

46,410,803

4.46

1,550,001

3.46

820540 - Screwdrivers, And Parts Thereof, Of Base Metal

47,384,959

4.51

43,663,437

4.19

-3,721,522

-7.86

820740 - Tools For Tapping Or Threading, And Parts Thereof, Of Base Metal

44,184,078

4.21

35,718,119

3.43

-8,465,959

-19.17

820412 - Spanners And Wrenches, Hand-Operated, Adjustable, And Parts Thereof, Of Base Metal

37,716,156

3.59

30,946,584

2.97

-6,769,572

-17.95

820713 - Rock Drilling Or Earth Boring Tools With Working Part Of Cermets, And Parts Thereof

27,604,497

2.63

26,781,192

2.57

-823,305

-2.99

820760 - Tools For Boring Or Broaching, And Parts Thereof, Of Base Metal

20,970,037

2.00

20,320,230

1.95

-649,807

-3.10

820720 - Dies For Drawing Or Extruding Metal, And Parts Thereof, Of Base Metal

19,081,853

1.82

19,928,971

1.92

847,118

4.44

820780 - Tools For Turning, Of Base Metal

9,440,758

0.90

8,240,142

0.80

-1,200,616

-12.72

1,050,702,703

100.00

1,042,453,724

100.00

-8,248,979

-0.79

Total

General Total Value CIF (USD)

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On the export side, the United States shipped approximately US$526 million in fastener tools during Q1 2026. Canada and Mexico remained the country's dominant export destinations, together accounting for roughly 40% of total export value, u nder scor i n g the i mpor t a nce of Nor th A mer ica n m a nu f a c t u r i n g s u p pl y ch a i n s . T h e Un it e d K i n gdo m and Germany followed as secondary export markets, each representing approximately 4% of total exports.

0.6

US$0.556 bn

US$0.526 bn

0.5 0.4

decline less than 5.33%

0.3 0.2 0.1 0.0

The leading export categories were HS 820720 (dies for 2025 Q1 2026 Q1 drawing or extruding metal) and HS 820719 (interchangeable tools for hand tools), each accounting for approximately 19% of total export value, followed by HS 820750 (tools for drilling) at 10%. Despite remaining among the largest export categories, several products experienced notable declines compared to Q1 2025. Exports of HS 820740 (tools for tapping or threading) fell by 24%, while HS 820720 declined by 28%, suggesting softer demand within these product segments during the quarter.

▼ United States - Export by Country (2025Q1 vs 2026Q1) Country of Origin

2025 - Q1 FOB Value (USD)

2026 - Q1

Volume Change

FOB Value (USD)

Canada

162,894,795

29.29

161,805,089

30.73

-1,089,706

-0.67

Mexico

104,509,027

18.79

104,732,346

19.89

223,319

0.22

U.k.

20,888,572

3.76

22,711,500

4.32

1,822,928

8.73

Germany

22,542,329

4.06

22,618,921

4.30

76,592

0.34

China

12,894,550

2.32

15,116,728

2.88

2,222,178

17.24

Australia

12,988,119

2.34

13,116,347

2.50

128,228

0.99

Netherlands

11,004,045

1.98

12,710,342

2.42

1,706,297

15.51

Saudi Arabia

11,739,282

2.12

11,849,695

2.26

110,413

0.95

Japan

17,965,677

3.23

11,085,464

2.11

-6,880,213

-38.30

India

7,529,314

1.36

9,059,284

1.73

1,529,970

20.33

Total

556,216,819

100.00

526,577,382

100.00

-29,639,437

-5.33

▼ United States - Export by Category (2025Q1 vs 2026Q1) HS Code (6)

260

2025 - Q1

Volume Change

FOB Value (USD)

104,036,709

18.71

102,902,417

19.55

-1,134,292

-1.10

820719 - Interchangeable Tools For Handtools, Whether Or Not Power-Operated, Or For MachineTools, Including Rock Drilling Or Earth Boring Tools; Base Metl Parts

121,648,165

21.88

102,411,077

19.45

-19,237,088

-15.82

820750 - Tools For Drilling, Other Than Rock Drilling, And Parts Thereof, Of Base Metal

49,934,879

8.98

52,441,766

9.96

2,506,887

5.03

820790 - Other Interchangeable Tools, And Parts Thereof, Of Base Metal

52,393,732

9.42

45,911,732

8.72

-6,482,000

-12.38

820411 - Spanners And Wrenches, Hand-Operated, Non-Adjustable, And Parts Thereof, Of Base Metal

42,456,111

7.64

40,638,714

7.72

-1,817,397

-4.29

820770 - Tools For Milling, And Parts Thereof, Of Base Metal

33,244,216

5.98

38,737,733

7.36

5,493,517

16.53

820713 - Rock Drilling Or Earth Boring Tools With Working Part Of Cermets, And Parts Thereof

31,726,223

5.71

31,190,939

5.93

-535,284

-1.69

820570 - Vises, Clamps And The Like, And Parts Thereof, Of Base Metal

21,640,325

3.90

21,722,485

4.13

82,160

0.38

820420 - Socket Wrenches With Or Without Handles, Drives And Extensions, And Parts Thereof, Of Base Metal

19,969,545

3.60

21,603,912

4.11

1,634,367

8.19

820730 - Tools For Pressing, Stamping Or Punching, And Parts Thereof, Of Base Metal

Fastener World no.220/2026 惠達雜誌

FOB Value (USD)

2026 - Q1

FOB Value (USD)

INDUSTRY FOCUS ▼ United States - Export by Category (2025Q1 vs 2026Q1) HS Code (6)

2025 - Q1 FOB Value (USD)

2026 - Q1 %

FOB Value (USD)

Volume Change %

FOB Value (USD)

820760 - Tools For Boring Or Broaching, And Parts Thereof, Of Base Metal

17,090,182

3.08

17,109,106

3.25

18,924

0.12

820412 - Spanners And Wrenches, HandOperated, Adjustable, And Parts Thereof, Of Base Metal

11,279,446

2.03

12,518,225

2.38

1,238,779

10.99

820740 - Tools For Tapping Or Threading, And Parts Thereof, Of Base Metal

16,187,630

2.92

12,360,293

2.35

-3,827,337

-23.65

820720 - Dies For Drawing Or Extruding Metal, And Parts Thereof, Of Base Metal

17,077,778

3.08

12,204,791

2.32

-4,872,987

-28.54

820540 - Screwdrivers, And Parts Thereof, Of Base Metal

9,933,777

1.79

8,048,619

1.53

-1,885,158

-18.98

820780 - Tools For Turning, Of Base Metal

7,598,101

1.37

6,775,573

1.29

-822,528

-10.83

556,216,819

100.00

526,577,382

100.00

-29,639,437

-5.33

Total

Supply Chains Continue to Reflect Industrial Demand Shipment data for the quarter indicates that trade remained concentrated among large industrial distributors, retailers, and automotive manufacturers. Companies such as Apex Tool Group, The Home Depot, and Toyota ranked among the leading U.S. importers by shipment activity, reflecting the diverse industries that depend on fastener tools. On the supplier side, manufacturers including Apex Tool facilities in China, Toyota in Japan, and Toyo Sun Machinery in Japan accounted for a significant share of shipments entering the U.S. Rather than representing shifts toward a single supplier or geography, these rankings reinforce the continued importance of established manufacturing networks across Asia. Automotive manufacturers, in particular, remain prominent participants in fastener tool trade as specialized tools move alongside broader vehicle production and maintenance supply chains. The presence of suppliers from China and Japan, alongside importers spanning industrial distributors, retailers, and automotive manufacturers, illustrates that sourcing strategies remain diversified rather than concentrated in a single market. Many manufacturers continue to balance cost, manufacturing expertise, quality requirements, and lead times when selecting suppliers, particularly for specialized industrial tools.

Tariffs and Trade Compliance have Become Increasingly Complex Tariffs remain an important consideration for companies importing industrial tools and components. While shipment data alone cannot determine whether sourcing decisions were driven by tariff policies, manufacturers continue to evaluate supplier locations alongside landed costs, customs duties, logistics expenses, and overall supply chain resilience. Beyond pr ici ng and avai labi l ity, i mpor ter s must navigate an i ncrea si n g ly complex tr ade compl ia nce env i ron ment. P roduct classification, country of origin determinations, customs valuation, sanctions screening, and evolving import regulations all play an important role in ensuring shipments move efficiently through customs while minimizing compliance risk.

Automotive Continues to Influence Trade Patterns The prominence of automotive manufacturers among both importers and exporters highlights the sector's ongoing influence on fastener tool demand. Vehicle production relies heavily on precision fastening equipment throughout manufacturing, maintenance, and aftermarket operations, making automotive supply chains a consistent driver of international trade volumes. Industrial distributors and home improvement retailers also remain significant participants, serving professional contractors, manufacturers, and consumers through extensive distribution net work s . T he m i x of i mp or ter s ob s er ved du r i n g Q1 2 02 6 demonstrates that demand extends well beyond any single industry, reflecting the essential role fastener tools play across manufacturing, infrastructure, and commercial construction. 惠達雜誌 Fastener World no.220/2026

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The automotive sector continues to be a major consumer of fastening tools throughout vehicle manufacturing, assembly, maintenance, and aftermarket operations. As vehicle production evolves, including the growth of electric vehicles and advanced manufacturing techniques—the demand for specialized tooling remains an important driver of international trade. As manufacturers continue to balance cost, availability, regulatory requirements, and geopolitical uncertainty, trade data will remain an important indicator of how sourcing strategies evolve. Monitoring both official trade statistics and shipment-level activity provides a more complete picture of where demand is growing, which suppliers are expanding their presence, and how global supply chains continue to adapt. Copyright owned by Fastener World / Article by Sabrina Rodriguez

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Taiwan Should Seize India's Growth with 3 Core Strengths From “Giving Up” to Re-engaging: A New Golden Era for the Indian Market "There was a time when we had almost given up on the Indian market." Reflecting on India's transformation, AHung Chen, President of Gwo Lian Machinery Industry, does not shy away from discussing past frustrations. He recalled that years ago India had made an impression as a market requiring substantial investment with only limited returns. Local customers frequently requested quotations, technical data, and factory details, while multiple rounds of discussions often failed to materialize into actual business. As a result, many Taiwanese companies became increasingly refrained from investing in India. Today, however, President Chen sees a very different landscape. "India is gradually changing," he said. A new generation of business leaders is placing greater emphasis on integrity, contract fulfillment, and international collaboration, bringing their management mindset closer to global business standards. Meanwhile, government initiatives—including tariffs, industrial protection measures, and manufacturing policies—have significantly strengthened India’s manufacturing environment. Combined with global supply chain restructuring, U.S.-China trade dynamics, and the impact of Trump tariffs, increasing numbers of European and American orders are finding their way to India, creating unprecedented opportunities for Indian manufacturing. "India is no longer simply a market with potential—it is becoming a market where real opportunities are emerging," said the President.

Rising Demand from Construction and Automotive Industries to Drive the Next Growth Cycle During Fastener Fair India 2026 in Greater Noida, he observed that India's fastener industry is entering a rapid growth phase. "Many Indian companies are still taking their first step toward modernization by purchasing second-

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ft) hen (le Hung C A t n e sid ery Pre Machin n ia L o Gw

hand machinery," he explained. "Taiwanese machinery enjoys an excellent reputation locally thanks to its reliability and durability. Although India is capable of making screw-manufacturing machines and wire drawing equipment, there remains a noticeable gap in terms of technology, precision, and long-term stability." Throughout the exhibition, construction fasteners—including self-tapping and self-drilling screws—as well as automotive fasteners attracted significant buyer interest, reflecting robust demand driven by India's expanding infrastructure projects and automotive sector. He pointed to the ongoing development surrounding Delhi International Airport as a clear example. Numerous new hotels, commercial complexes, and transportation projects are under construction, demonstrating that India has entered a new stage of urban development. Supported by favorable demographics, massive infrastructure investment, and continued industrial expansion, many Indian manufacturers believe

COMPANY FOCUS

Gwo Lian Machinery’s contact: Sales Department Email: sales.dept@gwolian.com

The World's First Lights-out Unmanned Factory AI Intelligence Wire Drawing Smart Factory the country's fastener industry will continue growing over the next two decades, benefiting suppliers of machinery, materials, and technical services alike.

Mid- to Low-End Products Still Dominate, While High-Value Manufacturing Offers Significant Upgrade Potential Despite the optimistic outlook, he cautioned that India's fastener manufacturing remains concentrated on the mid- and low-end segments, leaving substantial room for improvement in both material application and manufacturing processes. Although certain products closely resemble international counterparts in appearance, the materials used often differ. For example, some socket head cap screws are manufactured using alternative steels rather than alloy steel, resulting in lower product performance. Nevertheless, he believes this also highlights India's enormous upgrade potential. As more high-end products begin to be manufactured domestically and import protection measures remain in place for selected product categories, international brands—including Taiwanese suppliers of premium equipment—will have opportunities to participate in India's industrial upgrade.

Taiwan's True Competitive Edge Lies in Integration and Systemlevel Thinking On Taiwan's strengths, "the first one is the ability to master one's own expertise," he explained. "The second is cross-disciplinary integration." Rather than focusing solely on equipment automation, manufacturers must integrate materials engineering, manufacturing processes, quality management, production control, and business operations into one cohesive system. This includes robotics, automated guided vehicles, PLCs, MES, ERP, WMS, and other digital management platforms to establish highly efficient manufacturing systems. Copyright owned by Fastener World / Article by Dean Tseng

"Within 5 years, Taiwan will no longer have traditional but only AI industries" AI has become the focus across global manufacturing. However, President Chen believes many so-called "AI factories" today have merely achieved logistics automation or information transparency. "A truly intelligent factory powered by generative AI should function like the human nervous system," he said. "It should be capable of autonomously connecting data, analyzing information, making decisions, and continuously learning and optimizing itself—not simply linking different software systems together." The intricate handling of detail in “connecting the dots”, he noted, is most intellectually demanding but represents Taiwan's third essential competitive edge. In his view, the greatest transformation in the future will not simply involve upgrading machinery, but fundamentally reshaping management philosophies and corporate culture. Gwo Lian Machinery is currently developing an AI Wire Drawing Smart Factory incorporating 26 patented inventions, with the goal of building an intelligent manufacturing model that combines these 3 competitive strengths. Whether manufacturing fasteners or equipment, he believes companies that leverage AI to improve operational efficiency and supply chain integration will become key players in the AI era.

Building Industrial Resilience Together to Keep Taiwan Competitive Looking ahead, President Chen encourages Taiwanese companies to continue toward higher-value-added products while strengthening their presence in mature markets such as Europe, North America, and Japan. At the same time, they should prepare for emerging opportunities arising from the future reconstruction of Ukraine as well as growing demand in neighboring countries such as Türkiye and Poland. He also called on the Taiwanese government and larger enterprises to continue supporting small and medium-sized businesses, emphasizing that the fastener and machinery industries remain fundamental pillars of Taiwan's industrial competitiveness. Finally, on succession, he stressed that younger generations bring strengths in digital technology, AI applications, and innovative thinking, while senior generations contribute invaluable industry knowledge and market insight. "True succession is not about handing over authority," he concluded. "It is about integrating experience with innovation." Only through mutual respect and collaboration between generations, he believes, can Taiwan's manufacturing sector continue upgrading and seize the next wave of global industrial opportunities.

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Dr. Fastener

Bolt Failure and Prevention How do bolts fail?

A: To answer this, you must first understand that the bolt (or threaded fastener) is not a stand-alone item, but rather a part of a much more complicated system, which I will call the “Bolted (or Fastened) Joint”. The Bolted Joint as a system is comprised of multiple variables which include the fastener components (bolt, nut, washers, etc.), the clamped materials, the applied loads, and the surrounding environmental conditions. When an engineer is designing the joint, they must take all these factors into consideration to ensure that the joint is robust and will not fail. If they get something wrong though, then the fastener components or the clamped materials can fail resulting in joint failure and potentially a failure of the larger system for which the joint is a part. So, how do joints fail? We can categorize failures into six different possible causes.

re Causes

Bolt Failu

The joint is under designed for the service environment that it must withstand.

The joint loses preload.

The fastener has a defect.

The material is susceptible to a specific failure mode.

The fastener can be abused.

The fastener is improperly installed.

1. The joint is under designed for the service environment that it must withstand. A couple of simple examples of this would be when a low strength bolt is used instead of a high strength bolt or a zinc plated steel part is used when stainless steel is needed. Common fastener failures resulting from this cause are overload and corrosion.

4. The material is susceptible to a specific failure mode. Examples of this might be materials that undergo creep and stress rupture behavior when exposed to elevated temperatures for long periods of time or fasteners that are susceptible to hydrogen embrittlement.

2. The joint loses preload. There are multiple reasons why a joint might lose preload, but more common reasons include relaxation from “soft joint” conditions and fastener embedment. When a joint loses preload, it becomes vulnerable to self-loosening or progressive failures like fatigue.

5. The fastener has a defect. Of course, defects are not limited to the bolt or fastener components but could be any part or component of the system. In the context of bolt or fastener failure, manufacturing and workmanship defects of the fastener components can contribute to failure. Common fastener defects that lead to bolt failures include thread laps, cracks, bursts, folds, and “unclean” raw material.

3. The fastener is improperly installed. In this case a fastener may be either “over” or “under” tightened. Over tightened fasteners usually fail by overload during installation, although embrittlement failures may be triggered by over installation. Under tightening possibly leaves a joint without sufficient preload and makes it vulnerable to fatigue or shear overload.

6. The fastener can be abused. This is not common, but should the system be abused by improper usage or maintenance it can lead to an overload or progressive failure like fatigue. 惠達雜誌 Fastener World no.220/2026

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Is one of these causes more common than the others?

A: I am not aware of any studies or data that have explored this question in detail. In my past life, when I worked for a fastener manufacturer, I became conditioned to believe that most bolt (fastener) failures were the result of some sort of manufacturing defect. However, this is simply not true. In fact, I came across a statistic fifteen years ago that emphasizes this fact. It states that ninety-five percent (95%) of all fastener failures are due to poor selection or improper installation. If this is accurate, and I believe that it is, it means that 95% of failures can be attributed to lack of proper knowledge or execution of a robust bolted joint.

What is an overload failure?

A: Simply stated, an overload condition is where the applied stress on the fastener component is greater than it can handle. Fasteners are commonly overloaded in tension, shear, and torsion. When the bolt is installed and tension is generated, the bolt will begin to stretch. Initially the relationship between elongation (stretch) and generated tension is linear. We say that the bolt is behaving elastically in this region. It cannot continue behaving this way indefinitely and eventually will reach its Elastic Limit. Once the bolt exceeds the Elastic Limit it will begin to exhibit permanent plastic deformation. If the Elastic Limit is greatly exceeded the bolt may reach its Ultimate Strength and fracture. This is tension overload. When loads perpendicular to the bolt’s axis exist and are extreme the bolts may be “cut” into two. This is shear overload. When the installation torque is very high, parts may overload and fracture in torsion. Overload failures can be a mixed blessing. If overload occurs during installation the effect of the failure is likely to be minimal, either requiring a replacement of the broken fastener or scrapping of the product. Obviously, such actions have negative cost implications but at this stage they are unlikely to be very high. The unfortunate side of overload failures, however, emerges when they fail in-service. Overload normally occurs when unexpected stresses are acting on the system. Examples of this are when the joint absorbs an impact or collision, joints unexpectedly must share loads from surrounding joints due to a progressive failure of another component nearby, or an extreme and unexpected natural event like an earthquake or tornadoes on the system. In these cases, the joint may fail rapidly and without warning. In the worst case, these overload failures result in fatalities and excessive property damage.

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Fastener World no.220/2026 惠達雜誌

What is fatigue failure?

A: According to the ASM handbook, “Fatigue is the progressive, localized, and permanent structural change that occurs in a material subjected to repeated or fluctuating strains at nominal stresses that have maximum value less than (and often much less than) the static yield strength of the material.” Unpacking that a little, it means this is a failure that happens over a period of time, often a very long period when parts that are vulnerable to fatigue are exposed to ongoing dynamic loading. The fatigue failure mechanism consists of three stages; 1. Crack Initiation, 2. Propagation, and 3. Fast Failure. For fatigue failure to occur, a crack must be initiated. This usually happens at the site of a stress riser or small surface defect like a crack or thread lap. Once a crack initiates it will propagate with each load cycle- it will progress forward when the load is on and stop when the load is off. It continues to do this until the crack has progressed far enough that the remaining undamaged material is no longer able to support the load and the part will fail quickly in overload.

Can anything be done to prevent fatigue failure?

A: There are many things that can be done to fasteners to help reduce the risk of fatigue. The absolute best way to prevent bolt fatigue is to properly design the joint and make sure that the applied preload is sufficiently greater than the sum of all the service loads. However, additional manufacturing actions such as producing the part with high degrees of workmanship, rolling threads after heat treatment, rolling the filet radius after heat treatment, increasing radii, utilizing UNJ or MJ threads, and smoothing the thread runout transition are all means of reducing fatigue risk.

How do I prevent generating so much tension that the bolt breaks in overload?

A: The simple answer is to understand the torque tension relation and execute installation properly. There is a relationship between torque and tension, given by the equation T=kdP where T is the torque, d is the fastener diameter, P is the preload (or tension), and K is a constant called the Friction Factor. The Friction Factor is a function of all the frictional variables in the joint. Although some books reference values for K, the reality is that it will be different for each situation, so that the only way to have an accurate understanding of the actual relationship is to experimentally determine the K value. If the torque tension relationship is accurately understood, then an installation process can be developed to consistently and accurately use a tightening torque value to achieve the desired preload. This is not necessarily hard but does take intentionality.

Do rusting parts pose a problem?

A: In small degrees, probably not, but parts that are fully engaged and corroding are a big risk. The part that is corroding is a little like a tooth with a progressing cavity. Once there is enough decay, the mechanical integrity of the part is compromised, and it will become vulnerable to a failure mode like fatigue or overload. Prevention of this problem is to employ an effective plating or coating, or when the environment is very severe to use a material better suited to the severity, such as stainless steel or a nickel alloy.

SPECIAL FEATURE What is hydrogen embrittlement?

A: When a part has failed by hydrogen embrittlement it is often labeled as the root cause. This is incorrect. Hydrogen Embrittlement is only a failure mechanism. The root cause of hydrogen embrittlement will always be material susceptibility. Hydrogen embrittlement is a permanent loss of ductility in a metal or alloy caused by hydrogen in combination with stress, either externally applied or internal residual stress. Unpacking that a little, a material that is susceptible when provided a source of atomic hydrogen and tensile loaded above a critical value can have the hydrogen embrittle the grain boundaries in a vulnerable area of the part resulting in part fracture. Hydrogen embrittlement takes two forms, Internal Hydrogen Embrittlement (IHE) where the hydrogen source is introduced during manufacture, usually an electroplating process and Environmental Hydrogen Embrittlement (EHE) where the hydrogen source is introduced during service, usually by an active corrosion cell.

Is Hydrogen Embrittlement preventable?

A: Yes, but it takes understanding and deliberate execution to prevent the problem. First, it is important to distinguish between high risk and standard risk situations. Any part that has a hardness above Rockwell 39 is automatically considered a susceptible material and should be treated very carefully. High risk parts must be identified, and they should be properly baked for a sufficient length of time, undergo sustained load testing, and be processed with a plating process that has excellent process controls in-place.

Wrap-up

The questions addressed here provide a good basic overview of this topic, however, they just scratch the surface. Manufacturers and suppliers should have staff that are educated and knowledgeable about these fa ilu re mecha n isms a nd how t hey may successfully lower the risk or prevent them from occurring entirely.

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INDUSTRY FOCUS

Challenges and Solutions for Fastener and Fastening Tool Manufacturers in Implementing AI I. Introduction: From AI Blueprint Vision Back to the Factory Site As AI is gradually adopted in traditional manufacturing such as fastening tools and fasteners, its applications encompass intelligent pricing, drawing recognition, mold adjustment, forging force monitoring, metallographic analysis, intelligent scheduling, and inventory forecasting, demonstrating benefits in shortening operation time, increasing equipment uptime, reducing missed inspections, and improving inventory turnover. However, in practice, the fastening tool and fastener industry often experiences a gap between the feasibility of a "Proof of Concept" (PoC) and the difficulty in sustaining operation on actual production lines. A more pragmatic approach is to start with measurable, lowrisk, and clearly beneficial areas, such as metallographic analysis,

mold adjustment guidance, intelligent pricing, dynamic scheduling, or inventory forecasting, and then gradually connect data and solidify judgment logic, transforming on-site experience into usable models and knowledge assets. However, traditional production lines still commonly suffer from problems such as inconsistent equipment interfaces, insufficient process data, rush orders, manual scheduling, and cross-departmental information gaps. Many critical judgments still heavily rely on the experience of master craftsmen, making AI adoption face challenges in hardware, data, processes, and organization. This article will analyze the main challenges of AI implementation from a factory practice perspective, and propose actionable improvement strategies and future development directions.

II. Four Major Implementation Challenges for Traditional Businesses in Adopting AI The implementation difficulties encountered by traditional fastening tool and fastener manufacturers in adopting AI are summarized in Table 1 and explained in detail. ▼ Table 1. Four Major Implementation Challenges for Traditional Businesses in Adopting AI Perspective

Common Situations Old equipment lacks network connectivity and has insufficient signal.

Why AI Doesn’t Work Unable to monitor and issue early warnings in real time

How to Improve External sensors, AOI, standalone pilot tests

Data

Paper-based, Excel, and ERP systems coexist

Incomplete annotations and difficulty in stable training

Field standardization, tags and knowledge base

Process

Small quantities of various types of goods, urgent orders

Scheduling rules are often interrupted by ad-hoc events.

Dynamic scheduling, material shortage simulation

Organization

Resistance to change, talent gap

The system has low usage and is difficult Quick Win, KPI management and to distribute. training

Hardware

Note: “Quick Win” refers to projects or strategies that yield quick results, characterized by low investment, low risk, and short execution period.

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INDUSTRY FOCUS 1. Hardware Challenges: Outdated Equipment Lacks Digitization a. Machine offline and process signal breakpoints: The bottleneck of traditional fastener production lines is the lack of real-time digital acquisition capabilities of the equipment. If the heading, thread rolling, heat treatment, and surface treatment equipment do not have standard interfaces, AI will find it difficult to reliably obtain signals such as pressure, temperature, cycle time, vibration, and operation. It can only identify defective results but cannot trace the formation process. Therefore, practical implementation usually starts with singlemachine signal acquisition, mold monitoring, or online visual inspection, rather than assuming that directly building a whole-plant central control system completes the hardware construction. b. Black-box equipment and real-time interpretation are limited: even if data is obtained, effective interpretation is not guaranteed. Image recognition must first solve the problem of "seeing" before proceeding to "judgment"; optical conditions determine signal quality, while the model is responsible for interpretation. If lens position, lighting, ROI (Region of Interest), judgment threshold, and anomaly rules are not integrated into the design, even if YOLO (You Only Look Once) or AOI (Automated Optical Inspection) is introduced, it will be difficult to form a reliable on-site judgment.

2. Data Dilemma: Low Data Quality and Difficulty in Structuring Experience a. The experience of technicians is difficult to translate into data: Traditional production lines rely on experienced technicians' judgment of mold wear, heat treatment abnormalities, metallographic structures, and equipment noise. However, this knowledge cannot be clearly broken down into labelable and traceable data fields. Practical cases show that the key is not just model identification, but to first establish an image database, interpretation rules, and quality monitoring indicators. This can reduce inspection time from 1-2 hours to 15-30 minutes and reduce the need for inspection manpower by 70-80%.

b. Inconsistent records make it difficult for models to be stable: If abnormal records lack standardized classification, and photos, batch numbers, process conditions, equipment status and reasons for rejection are scattered across paper, Excel, or different production management systems, the data is difficult to correspond to each other, and AI will also have difficulty correctly learning the characteristics and judgment rules of various abnormalities from these scattered data.

3. Process Challenges: Urgent Orders Being Placed in Advance Cause Scheduling Failures a. Small-batch, high-variety production causes static scheduling to quickly become distorted: Fastener scheduling must simultaneously consider the arrival of wire rod, mold availability, upstream and downstream capacity, external supplier schedules and delivery commitments, and cannot be operated solely based on first-in, first-out (FIFO). Once urgent orders are inserted, materials are scarce, or processes are abnormal, scheduling will quickly become distorted and directly affect material availability, on-time delivery rate, and production line utilization.

b. Manual order modifications weaken model stability: Many factories rely on on-site coordination and manual order modifications by production managers. While this offers flexibility, it also hides scheduling logic and decision-making rules within individual experience. If Gantt chart rules, process constraints, material conditions, and production rules are not structured beforehand, AI, relying solely on scheduling results, cannot adequately grasp the decision-making logic, thus reducing model stability and sustainability.

4. Organizational Dilemma: Grassroots Resistance and Shortage of Cross-Domain Talent a. Anxiety about AI replacing jobs: Frontline staff remain concerned about being replaced by AI. For example, QC personnel worry that AOI will replace manual inspections, production control personnel worry that intelligent scheduling will weaken their professional judgment, and technicians worry that their process experience will be replaced by the system. Therefore, training in generative AI, automated collaboration, cross-departmental applications, and non-programmed visual inspection is fundamental to reducing resistance. b. Lack of cross-domain technology and management: When industries face problems such as insufficient digital infrastructure in the supply chain and a shortage of technical talent, the key deficiency is the lack of cross-domain talent who can understand process, data structure, equipment logic and field management at the same time. As a result, AI systems will find it difficult to move from PoC (proof of concept) to field deployment, maintenance and improvement mechanisms.

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INDUSTRY FOCUS III、Four Solutions for Successful AI Implementation 1. Lightweight Digital Transformation a. Establishing digital visibility using add-on sensors and vision modules: A pragmatic approach is not to completely replace equipment, but to supplement the process signals of existing equipment through add-on sensors, industrial cameras, AOI, and standalone data acquisition. After obtaining stable images and process data, visual AI can be further introduced to support tasks such as classification, detection, segmentation, and tracking. On-site, the focus can start with high-speed inspection of controlled areas, defect identification, and quality screening. b. Improving equipment uptime and decision-making efficiency: Production line images and multiple real-time process signals can be used for inference directly on the production line via Edge AI, reducing data transmission latency and synchronizing judgment results with the process. In addition to model accuracy, the effectiveness of implementation should be evaluated by assessing end-to-end KPIs such as false negative rate, false positive rate, inference latency, and equipment cycle time to support real-time rejection, alarms, downtime, or parameter tuning suggestions.

2. Digitalization of Human-Machine Collaboration Experience Transfer a. First, the judgments of experienced craftsmen are transformed into labeling rules: digitizing the transmission of experience does not replace senior craftsmen, but rather structures their judgment logic. For example, the criteria for crack rejection, the conditions for metallographic structure re-judgment, the wear characteristics of molds, and the mold adjustment sequence can be transformed into anomaly codes, image tags, equipment conditions, and handling rules, forming data that can be used for AI training and verification, thus standardizing the process knowledge that originally relied on oral transmission and intuition.

b. Building AI as a tool for technology transfer and decision support: AI is suitable for first handling SOP queries, historical data comparison, anomaly alerts, and preliminary diagnosis, and then for on-site personnel to make the final judgment. By combining a knowledge base with RAG (Retrieval-Augmented Generation), process specifications, mold adjustment experience, anomaly handling, and quality judgment can be centralized in the knowledge base management, and relevant process judgments can be made based on the content.

3. Establishing a Dynamic and Flexible Scheduling Mechanism a. AI provides scheduling suggestions first, and then production management makes decisions: AI scheduling should not directly replace production management. Instead, it should integrate orders, materials, equipment capacity, molds, working hours and outsourcing schedules to generate feasible scheduling suggestions. Then, production management can make fine adjustments based on urgent orders, customer needs and on-site conditions to achieve a human-machine collaborative model that can take into account both the data analysis of the algorithm and the practical judgment of production management personnel.

b. Incorporating material shortages, anomalies, and rush orders into the simulation: The value of intelligent scheduling lies not only in generating Gantt charts, but also in responding to exceptional situations such as material shortages, equipment malfunctions, urgent orders, and outsourcing delays. By integrating orders, material requirements, delivery dates, inventory baselines, and equipment status, the priority of work orders and start times can be dynamically adjusted, taking into account material availability, inventory turnover, equipment utilization, and ontime delivery rate. This transforms scheduling from static planning to a real-time production decision-making mechanism. Table 2 compares the maturity of AI application implementation and priority activation scenarios in a fastener factory.

▼ Table 2. Comparison of AI Application Implementation Maturity and Priority Launch Scenarios in Fastener Manufacturers Solution Lightweight transformation Digitalization of experience transfer Dynamic scheduling Agile Transformation

Priority Launch Scenario KPI Indicator AOI, forging force, stand-alone Missed detection rate, downtime rate, monitoring and utilization rate Metallographic analysis, mold Testing time, learning time, hit rate adjustment, and SOP inquiry Wire inventory, complete materials, Inventory days, on-time delivery rate, and rush order simulation material availability rate AI-powered pricing, customer service, Response time, customer complaints, and predictive maintenance and maintenance costs

Suitable Maturity Low to medium Medium Medium Low to medium

4. Agile Transformation and Profit-sharing Mechanism a. Find successful scenarios through Quick Wins: AI transformation should prioritize "Quick Win" projects with clear benefits and low risks, such as smart pricing, AI customer service, forging force monitoring, and quality inspection. By shortening processing time, improving yield, and reducing defects, the benefits of implementation can be quickly verified, on-site trust can be established, and then gradually expanded to other processes and management links.

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INDUSTRY FOCUS b. Measure effectiveness and promote cross-departmental AI applications with clearly defined KPIs: AI implementation should be based on quantifiable KPIs, such as quote delivery time, customer complaint resolution time, yield rate, missed inspection rate, equipment utilization rate, inventory turnover, and manpower hours. Continuously review effectiveness through production and operational metrics, transforming AI from an IT project into a decision-making support tool used jointly by sales, production, quality assurance, and equipment departments, and serving as a basis for subsequent expansion and resource allocation.

IV. Future Prospects for AI in the Fastener Industry 1. AI-powered energy management and carbon emission prediction a. Establishing energy data management for high-energy-consuming processes: AI applications in the fastener industry can extend from quality and scheduling to energy management. Heat treatment, surface treatment, compressed air systems, and large forming equipment are all major energy-consuming processes. Energy data for substations and sub-machines should be established, connecting electricity consumption, equipment status, process parameters, output, and rework rate as the data basis for analyzing process energy efficiency and product carbon footprint.

b. Extending from carbon management to cost and order competitiveness: By linking energy data with production batches, process conditions and equipment status, AI can be used to predict carbon emissions, provide early warnings of abnormal energy consumption and optimize energy, and incorporate energy consumption into scheduling and cost analysis, thereby improving energy conservation and carbon reduction, product carbon footprint management and cost estimation capabilities, and strengthening pricing and order competitiveness.

2. From Single-Point AI to Industry Chain AI a. Similarities and differences between fasteners and fastening tools: Both fasteners and fastening tools can utilize drawing recognition, AOI inspection, intelligent scheduling, knowledge retrieval, and inventory management, but their process focuses differ. Fasteners emphasize process monitoring and quality assessment of cold forging, thread rolling, heat treatment, and surface treatment; fastening tools, on the other hand, emphasize part identification, assembly consistency, torque correction, functional testing, and lifespan management. The former prioritizes process parameters and micro-quality, while the latter focuses on assembly, performance testing, and product traceability. The differences in processing characteristics and AI foundations between fasteners and fastening tools are summarized in Table 3 below. b. Upgrading from smart factories to smart supply chains: AI's overall benefits are limited if applied only to single machines or in-plant systems. In the future, it can be gradually integrated with upstream materials, molds and die plates, midstream forming and processing, and downstream heat treatment, surface treatment, and logistics information to establish a cross-process and cross-plant data collaboration mechanism. Through supply chain information sharing and AI analysis, efficiency in anomaly response, delivery coordination, and resource allocation can be improved, propelling smart manufacturing from single-point applications to a smart supply chain. ▼ Table 3. Similarities and Differences Between Fasteners and Fastening Tools Perspective

Fastener Fastening Tool Same AI Foundation Forming, thread rolling, heat treatment, Parts machining, assembly, torque and Visual recognition, data integration, and Process Core surface treatment functional testing traceability Metallography, dimensions, surface Correct assembly, abnormal torque and Quality Focus AOI, early warning, knowledge base defects lifespan Management Scheduling, material availability, wire BOM, parts version, after-sales Quotation, scheduling, customer Focus rod and associate suppliers maintenance service, inventory

V. Conclusion: Data Flow Speed Determines Future Competitiveness 1. AI does not replace traditional manufacturing, but rather enhances manufacturing experience: AI does not completely replace on-site personnel, but rather transforms long-accumulated process experience into digital capabilities that can be inherited, traced, and sustainably applied through digitization and AI tools; applications such as metallographic inspection, mold adjustment, SOP query and intelligent quotation show that the core value of AI lies in systematizing the experience and knowledge scattered among personnel and processes, thereby improving the efficiency of technology transfer and production decision-making. 2. The fastener industry should gradually adopt this approach in small-scale, low-risk settings: Starting with measurable single-point applications and then gradually expanding to entire production lines, factories, and the supply chain. This is currently the most suitable path for traditional fastener manufacturers. This method reduces implementation risk and is also the easiest way to build trust on-site. 3. Future competitiveness will depend on data, models, and organizational responsiveness: Differentiation in the future fastener industry will not only lie in equipment or price, but also in who can quickly create a closed loop connecting data flow, decision flow, and feedback flow. When data flow is faster than competitors, AI will truly translate into long-term advantages in delivery time, quality, cost, and service, as well as a competitive edge in the industry.

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