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Index of 179
A
Advertisers B
310EXPRESS COMPANY (Japan) Security, Tamper Proof, Anti-theft Screws...
210
A-PLUS SCREWS INC Chipboard Screws, Customized Special Screws / Bolts...
290
ABC FASTENERS CO., LTD.
28
聯欣
秉鋒
BIING FENG ENTERPRISE CO., LTD.
2
得鈺
ABS METAL INDUSTRY CORP.
147
恒耀工業 大成
BRIGHTON-BEST INTERNATIONAL, INC.
Fastener Master Distribution Redefined 191
盛融
AIMREACH ENTERPRISES CO., LTD.
BOLTUN CORPORATION
Automotive Screws, Bushes, Conical Washer Nuts...
鉞昌
AEH FASTEN INDUSTRIES CO., LTD.
吉瞬
BI-MIRTH CORP
Carbon Steel Screws, Chipboard Screws, Concrete Screws...
Clevis Pins, Dowel Pins, Hollow Rivets... 66
凱壹
BESTWELL INTERNATIONAL CORP.
Blind Nut Formers, Multi-station Cold Forming Machines...
Elevator Bolts, Flanged Head Bolts, Floorboard Screws... 37
螺絲世界雙月刊
Sep., 2020
Eye Bolts, Flanged Head Bolts, Hanger Bolts... 254
Drop-in Anchors, Expansion Anchors, Wire Anchors... 303
98
184
No.
BÜLTE GmbH (Germany)
Plastic Bolts, Plastic/Rubber Materials, Precision Plastic Parts...
Stainless Steel, Flanged Head Bolts, Hexagon Head Bolts... 27
禾億
ALEX SCREW INDUSTRIAL CO., LTD.
Button Head Cap Screws, Button Head Socket Cap Screws... 221
ALLOY & STAINLESS FASTENERS, INC. (USA) ALZIN COATING SYSTEMS CO., LTD.
添福德
Surface Treatment And Related Equipment... 62
AMBROVIT S.p.A. (Italy) AMPLE LONG INDUSTRY CO., LTD. AN CHIAO MOLDS CO., LTD. ANCHOR FASTENERS INDUSTRIAL CO., LTD.
寬長
APEX FASTENER INTERNATIONAL CO., LTD.
安喬
ARK FASTECH CORP.
安拓
ARUN CO., LTD.
嵿峰
ATOTECH TAIWAN LIMITED
方舟
AUTOLINK INTERNATIONAL CO., LTD.
鉅耕
AVIOUS ENTERPRISE CO., LTD.
阿托
91
BCR INC.
浤爵
BEST QUALITY WIRE CO., LTD.
Stainless Steel, Carbon Steel, Alloy Steel Wire…
109
CHANGING SUN METAL CO., LTD.
長晉盛
60
吉宏
CHI HUNG RIVETS WORKS CO., LTD.
153
將運
CHIAN YUNG CORPORATION
258
CHIEN TSAI MACHINERY ENTERPRISE CO., LTD. 鍵財
85
CHIN LIH HSING PRECISION ENTERPRISE CO., LTD.金利興
126
CHIN TAI SING PRECISION MANUFACTORY
金泰興
Self-clinching Nuts, Brass Inserts... 艾伯斯
135
CHINA PNEUMATIC CORPORATION
中國氣動
Blind Rivet Assembly Machines, Torque Wrenches... 必鋮
Automotive Screws, Piston Pins, Weld Bolts (Studs)... 246
長益
CHANG YI BOLT CO., LTD.
Automotive Nuts, Brass Inserts, Bushes, Bushings...
Chipboard Screws, Drywall Screws, Flange Screws...
B
102
Thread Rolling Machines
Automotive Screws, Machine Bolts, Flange Nuts... 213
彰濱
CHANG BING ENTERPRISE CO., LTD.
SEMS Screws
Zinc Plated, ED Coating, Surface Treatment… 94
220
Blind Rivets, Hollow Rivets, Solid Rivets, Split Rivets...
Bi-metal Screws, Chipboard Screws, Drywall Screws... 289
全雄
CHAN HSIUNG FACTORY CO., LTD.
Blind Nuts / Rivet Nuts, Blind Rivet Studs, Rivets...
Multi-Station Cold Forging Bolts / Nuts... 90
長薔
CHAN CHANGE MACHINERY CO., LTD.
6 Cuts/ 8 Cuts Self Drilling Screws, A2 Cap Screws...
Nuts, Wing Nuts & Bolts, Turning Parts, Stamping Parts 273
CASHI COMPONENTS CORP. 俐業 Electric Screws, SEMs Screws, Standoff Parts, Machined Parts...
Hook Bolts, Holders / Hooks / Rings, Dowel Screws...
Drop-in Anchors, Expansion Anchors, Wire Anchors... 125
保力德
Wheel Bolts, Twelve Point Head Screws, Weld Screws...
Dies, Punch Dies, Carbide Quill, Punches, Pins... 310
252 54
Hollow Rivets, Drive Rivets, Semi-tubular Rivets... 269
CANATEX INDUSTRIAL CO., LTD.
Nuts, Turning Parts, Bolts, Plastic Injection Parts...
Screw Head Making Machines...
Chipboard Screws, Combined Screws, Machine Screws... 104
142 159
Bolts, Nuts, Studs, Sockets, Washers, Bent Bolts... 274
C
上冠品
250
CHING CHAN OPTICAL TECHNOLOGY CO., LTD. 精湛
Eddy Current Sorting Machines, Fastener Makers... 145
CHIN-TIEH SCREW CO.
Stainless Steel Screws, Carbon Steel Screws, Long Screws...
進鐵
184
No. 螺絲世界雙月刊
C
46
Sep., 2020 宗鉦
CHONG CHENG FASTENER CORP.
Cap Nuts, Coupling Nuts, Conical Washer Nuts... 107
F
雷堤
CHU WU INDUSTRIAL CO., LTD.
227 144
Combined Screws, Customized Special Screws/Bolts... 256 114
CHUN KAI MACHINERY CO., LTD. 駿凱 Straightening Machines, Straightness Measuring Instruments...
48
春雨
265
春日
76
CHUN YU WORKS & CO., LTD. CHUN ZU MACHINERY INDUSTRY CO., LTD.
國鵬
COPA FLANGE FASTENERS CORP.
149
冠誠
CPC FASTENERS INTERNATIONAL CO., LTD.
203
福凱
FU KAI FASTENER ENTERPRISE CO., LTD. FULIHDER ENTERPRISE CO., LTD.
富麗德
Secure Thread Locking Products 110
26
福輝
FU HUI SCREW INDUSTRY CO., LTD.
Precision Electronic Screws, Special Screws, Weld Screws...
Stainless Steel, Bi-metal Self-drilling Screws...
D
FRATOM FASTECH CO., LTD. 福敦 Hot Forming Tools, Punches & Sleeves, Dies, Machinery Accssories...
Automotive & Motorcycle Special Screws / Bolts...
Hex Nuts, Hex Flange Nuts, Combi Nuts, Weld Nuts... 122
鋒沐
FORTUNE BRIGHT INDUSTRIAL CO., LTD.
Cap Nuts, Dome Nuts, Nylon Cap Insert Lock Nuts...
Cold Headers, Header Toolings, Heading Machines... 185
宏盈
FONG YIEN INDUSTRIAL CO., LTD.
Eyebolts, Spindles...
Wheel Bolts, Chipboard Screws, Drywall Screws... 248
鋒汶
FONG WUNS CO., LTD.
Flange Nuts, Stainless Steel Nuts, Special Parts...
大楊
DA YANG ENTERPRISE CO., LTD.
甫商
FUSHANG CO., LTD.
Carbon Steel Screws, Chipboard Screws, Concrete Screws...
Special Automotive Nuts, Special Weld Nuts... 88
達宇
DAR YU ENTERPRISE CO., LTD.
Chipboard Screws, Drywall Screws, Screw Nails... 272
G
達旺
DA-WANG SCREW INDUSTRIAL CO., LTD.
285 261
Customized Parts 199
178
德慧
225
DELTEKS INDUSTRIES INC. 見承 Wheel Bolts, Bushes, Thread Forming Screws, All Kinds of Screws...
108
集財
260
DE HUI SCREW INDUSTRY CO., LTD.
DICHA SOMBRILLA CO., LTD.
鼎
Cover DIING SEN FASTENERS INDUSTRIAL CO., LTD. page Chipboard Screws, Corrosion Resistant Screws...
健業
287 208
喬邁
GWO LIAN MACHINERY INDUSTRY CO., LTD. 國聯 Handstand Type Wire Drawing Machines, Non-Stop Coilers... HAO CHENG PLASTIC CO., LTD.
皓正
HAO MOU NUTS MFG. CO., LTD.
豪茂
HAUR FUNG ENTERPRISE CO., LTD. 豪舫 External Tooth Washers, Long Carriage Bolts, Roofing Bolts... HEADER PLAN CO. INC.
Chipboard Screws, Collated Screws, Deck Screws...
敦發
DUNFA INTERNATIONAL CO., LTD.
Bushes, Spacers, Automotive Parts, Tubes, Turning Parts...
GOFAST CO., LTD.
Nuts and Spacers...
丞曜
DRA-GOON FASTENERS INC.
GINFA WORLD CO., LTD. 濟音發 Chipboard Screws, Countersunk Screws, Drywall Screws...
Plastic Box Maker for Fasteners 167
Chipboard Screws, Phillips Head Screws, TEK Screws... 58
89
龍昌
DRAGON IRON FACTORY CO., LTD.
Bi-metal Self-drilling Screws, Sheet Metal Screws... 84
H
登琳
DIN LING CORP.
Chipboard Screws, Drywall Screws, Furniture Screws... 82
GIAN-YEH INDUSTRIAL CO., LTD.
Open Die Parts, Stamping Parts, Assembly Parts...
Expansion Anchors, Sleeve Anchors, Nylon Nail Anchors...
38
蕙寶
Rivet Dies, Self-drilling Screw Dies, Screw Tip Dies...
Drywall Screws, Decking Screws, Self-drilling Screws... 131
GELA & COMPANY
Expansion Anchors, Eye Bolts, Hanger Bolts...
294
HO GUO ENTERPRISE CO., LTD.
合固
Sems Screw Washer, Spring Lock Washer
E
57
F
151
EASYLINK INDUSTRIAL CO., LTD.
易連
141
Automotive Nuts, Thread Forming Screws... 136 FAITHFUL ENGINEERING PRODUCTS CO., LTD. 誠毅
Anchors, Box Nails, Door/Window Accessories... 65
FALCON FASTENER CO., LTD.
4
FANG SHENG SCREW CO., LTD.
259
FAREAST METAL INTERNATIONAL CO., LTD.
143
FASTENER JAMHER TAIWAN INC.
92
33
FASTNET CORP.
56 150
俊鉞
Dowel Pins, Flange Nuts, Weld Nuts, 4 Pronged T Nuts... 120
豐鵬 Automotive Screws, Bi-metal Screws, Brass & Bronze Screws... FONG PREAN INDUSTRIAL CO., LTD.
鴻大裕
HOSHENG PRECISION HARDWARE CO., LTD.
和昇
HSIN HUNG MACHINERY CORP.
欣翃
Cap Nuts, Flange Nuts, Hexagon Nuts, Dome Nuts...
占賀
Automotive Nuts, Blind Nuts / Rivet Nuts, Bushings...
HONG TAY YUE ENTERPRISE CO., LTD.
Auto Parts, CNC Machined Parts, Bolts...
億萬年
Dowel Pins, Flanged Head Bolts, Flange Screws... 105
宏舜
Wire Straighteners, Hydraulic Clamping Machines...
芳生
Shoulder Bolts, Button Head Socket Cap Screws.. 276
HOME SOON ENTERPRISE CO., LTD.
Screwdriver Bits, Custom Bits, Bit Holders...
鉮達
Automotive & Motorcycle Special Screws / Bolts...
HO HONG SCREWS CO., LTD. 合鋒 Alloy Steel Screws, Button Head Cap Screws, Chipboard Screws...
HSIN JUI HARDWARE ENTERPRISE CO., LTD. 欣瑞 Bushes, Construction Bolts, Special Cold / Hot Forming Parts... HSIN YU SCREW ENTERPRISE CO., LTD.
新雨
Acme Screws, Hexagon Head Cap Screws... 87
HWALLY PRODUCTS CO., LTD.
Drop-in Anchors, Chipboard Screws, Anchors...
樺麟
Index of H
193
I
255
輝能
HWEI NEN CO., LTD.
Automotive & Motorcycle Special Screws / Bolts...
J
Advertisers
214 164
INFINIX PRECISION CORP.
英飛凌 39
恆鉅
INMETCH INDUSTRIAL CO., LTD.
Flanged Head Bolts, Locking Bolts, Stud Bolts... 86 173
INNTECH INTERNATIONAL CO., LTD. 建豪 All Kinds of Nuts, All Kinds of Screws, Automotive Special Screws...
K
237 189 187
299
J. T. FASTENERS SUPPLY CO., LTD.
金祐昇
J.C. GRAND CORPORATION
267
俊良 264
朝友 Chipboard Screws, Drywall Screws, High Low Thread Screws...
308
JERN YAO ENTERPRISES CO., LTD. JET FAST COMPANY LIMITED
肯特
KEY-USE INDUSTRIAL WORKS CO., LTD. 凱雍 Flanged Head Bolts, Milled Bolts, Rim Bolts, Round Head Bolts... KING CENTURY GROUP CO., LTD.
慶宇
KING YUAN DAR METAL ENTERPRISE CO., LTD.金元達 KUANG TAI METAL INDUSTRIAL CO., LTD.
廣泰
Stainless Steel Cold Heading Wire
JAU YEOU INDUSTRY CO., LTD.
271
正曜
KUO CHEN MOLD CO., LTD.
國鎮
Self-Drilling Dies
Multi-station Cold Forming, Parts Forming Machines... 32
KENT SCREWS CO., LTD.
Continuous Type Heat Treating Furnace
All Kinds of Screws, Chipboard Screws... 113
久可
Drop-in Anchors, Self-drilling Anchors, Sleeve Anchors...
Drop-in Anchors, Floating Nuts, Connecting Nuts... 10
JOKER INDUSTRIAL CO., LTD.
Automotive Nuts, Flat Head & Socket Head Cap Screws...
Independent laboratory services for fastener tests
J
晉營
Hollow Wall Anchors, Concrete Screws, Jack Nuts...
鼎誠
ITAC LABORATORY CO., LTD.
JIN-YINGS ENTERPRISE CO., LTD.
Special Custom Fasteners, Auto/Motorcycle Fasteners…
Customized Punches and Dies 80
璟鋒
JINGFONG INDUSTRY CO., LTD.
Hex Nylon Insert Lock Nuts, Wing Nuts with Nylon Insert...
74
捷禾
KWANTEX RESEARCH INC.
寬仕
Chipboard Screws, Drywall Screws, Furniture Screws...
Blind Nuts / Rivet Nuts, Aircraft & Aerospace Washers... 280
JIEN KUEN ENTERPRISE CO., LTD.
健坤
Hexagon Nuts, Nylon Cap Insert Lock Nuts, Square Nuts... 205
JIN SHING STAINLESS IND. CO., LTD.
Self-tapping Screws, Machine Screws, Chipboard Screws...
竣鑫
L
124
L & W FASTENERS COMPANY
金大鼎
Construction Fasteners, Flat Washers, Heavy Nuts... 201
LIAN CHUAN SHING INTERNATIONAL CO., LTD. 連全興
Weld Nuts, Special Parts, Special Washers, Flat Washers...
184
No. 螺絲世界雙月刊
L
304
Sep., 2020 連翔
LIAN SHYANG INDUSTRIES CO., LTD.
P
93
Nut Formers, Nut Tapping Machines 181
超傑
LINK-PRO TECH CO., LTD.
123
Customized Screws/Nuts, Pressing & Deep Drawing... 312 14
PS FASTENERS PTE LTD. (Singapore)
汎昇
Washers, Socket Set Screws, U Bolts, Alloy Steel Screws...
LINKWELL INDUSTRY CO., LTD. 順承 All Kinds of Screws, Automotive & Motorcycle Special Screws...
今湛
LOCKSURE INC.
Q
Custom Washers, Flat Washers, Automotive Screws... 15
PRO-VISA (LIN) INT'L CORP. 佾鼎 Self-drilling Screws, Stainless Steel Screws, Furniture Screws...
241 112
長隆順
LONG THREAD FASTENERS CORP.
Q-NUTS INDUSTRIAL CORP.
友俊
Flange Nuts, Weld Nuts, Special Nuts, Spacers... QST INTERNATIONAL CORP. 恒耀國際 Hexagon Head Bolts, Square Head Bolts, Weld Bolts (Studs)...
Bi-metal Self-drilling Screws, Chipboard Screws... 228
隆華
LONGHWA SCREW WORKS CO., LTD.
Chipboard Screws, Concrete Screws, Countersunk Screws... 121
LOYAL & BIRCH CO., LTD.
龍業百起
Construction Fasteners and Building Fasteners
M
R
8
S
6
連宜
Clinch Nuts, Clinch Studs, CNC Parts, Stamped Parts... SAN SHING FASTECH CORP.
三星
Automotive Nuts, Automotive Parts, Carbide Dies... 301
貿詮
106
永傑
305
SEN CHANG INDUSTRIAL CO., LTD. 昇錩 Customized Special Screws / Bolts, Socket Head Cap Screws...
289
MECHANICAL HARDWARES CO., 信順 Stamping Hardware, Bolts, Nuts, CNC Screw Machine Parts...
275
SHANG PENG CO., LTD. 上朋 Sharp Point Screws, Sandwich Panel Screws, Tri-lobular Screws...
183
MEJOR FASTENER SUPPLY INC.
承品
292
明徽
281
MING TANG MACHINERY CO., LTD. (WEN YANG)玟暘
176
MAC PRECISION HARDWARE CO.
Machine Parts, Industrial Components...
Turning Parts, Precision Metal Parts, Cold Forged Nuts... MAO CHUAN INDUSTRIAL CO., LTD. MASTER UNITED CORP.
Chipboard Screws, Drywall Screws, Furniture Screws...
MIN HWEI ENTERPRISE CO., LTD.
Button Head Socket Cap Screws, Chipboard Screws... 244
140
侑威 Stamping Hardware, Bolts, Nuts, CNC Screw Machine Parts...
174
崎鈺
279
MIT INDUSTRIAL ACCESSORIES CORP. MOUNTFASCO INC.
SHEH FUNG SCREWS CO., LTD.
世豐
SHEH KAI PRECISION CO., LTD.
世鎧
SHEN CHOU FASTENERS INDUSTRIAL CO., LTD. 神洲 SHI ZHAN SCREW CO., LTD.
世展
Self-Drilling Screws, Tapping Screws, Bi-Metal Screws...
昶彰
Tools for Fastening Anchors, Blind Nuts / Rivet Nuts...
SHANGHAI RIVET MANUFACTURE CO., LTD. 銳拓 Stainless Steel Rivet Nuts, Carbon Steel Rivet Nuts, Copper Rivet Nuts...
Button Head Cap Screws, Chipboard Screws... 166
NCG TOOLS INDUSTRY CO., LTD.
飛可斯
Bi-metal Concrete Screw Anchors, Bi-metal Screws...
All Kinds of Screws, Alloy Steel Screws, Automotive Screws... 96
SHANGHAI FAST-FIX RIVET CORP.
Chipboard Screws, Countersunk Screws, Wood Screws...
Screw Head Making Machines... 288
銳禾
Blind Rivets, High Shear Rivets, Closed End Rivets...
Precision Electronic Screws, OEM/ODM... 16
SCREWTECH INDUSTRY CO., LTD.
Machined Parts, Thumb Screws, Micro Screws...
Professional Stamping Manufacturer 36
SANSOAR ENGINEERING SALES, INC.
上碩
鑫瑞
99 235
N
REXLEN CORP.
30
SHIH HSANG YWA INDUSTRIAL CO., LTD.
新倡發
Flange Nuts, Flange Nylon Nuts With Washers...
ND INDUSTRIES, INC. 穩得 ND Pre-Applied Processes, Advanced Sealing Technologies...
168
262
NEW BEST WIRE INDUSTRIAL CO., LTD. 強新 Iron or Steel Wire Rod, Alloy Steel Wire & Rod, Stainless Steel Wire...
SHIN CHUN ENTERPRISE CO., LTD. 昕群 Automotive Screws, Chipboard Screws, Customized Screws...
155
134
鑫星 Hexagon Nuts, Square Nuts, Wood Screws, Chipboard Screws...
SHIN JAAN WORKS CO., LTD. 新展 Flanged Head Bolts, Long Carriage Bolts, Round Head Bolts...
103
64
NOVA. FASTENER CO., LTD.
SHUENN CHANG FA ENTERPRISE CO., LTD.
舜倡發
Long Screws, Concrete Screws, Machine Screws...
O
300
P
40
ON-SPRING INDUSTRIAL CO., LTD.
彩羽
268
SEMs Screws, Special Sc 165 PENGTEH INDUSTRIAL CO., LTD.
129 138
21
POL SHIN ENT. CO., LTD. 寶薰 Drywall Screws, Concrete Screws, Tapping Screws, Long Screws...
277
PRO POWER CO., LTD.
Screws, Bolts...
新豐
SPEC PRODUCTS CORP.
友鋮
Lincensee Fasteners, Turned/Machined Parts... 12
SPECIAL RIVETS CORP.
恆昭
Blind Nuts / Rivet Nuts, Blind Rivets, Air Riveters...
PPG INDUSTRIES INTERNATIONAL INC. 美商必丕志
Chromium-free Coating, ED Coating...
SIN HONG HARDWARE PTE. LTD. (Singapore)
Hexagon Nuts, Hexagon Head Bolts, Blind Rivets...
彭特
SEMs Screws, Special Screws, Binder Screws, PT Screws...
SHUN HSIN TA CORP. 順興達 Punches, Tungsten Carbide Nut Forming Dies, Special Dies…
139
STARBEST ENTERPRISE CO.,LTD.
展洋
Automotive Screws, Parts & Precision Electronic Screws...
鉑川 100
SUN CHEN FASTENERS INC. 展鴻鑫 Cup Washers, Flanged Head Bolts, T-head or T-slot Bolts...
Index of S
118
世暘
SUPER CHENG INDUSTRIAL CO., LTD.
Nuts & Auto Parts, Flange Bolts, Sockets & Threaded Rods... 41
T
三御
SUPER DPD CO., LTD.
Advertisers
217 18
All Kinds of Screws, Bi-metal Screws, Carbon Steel Screws... 133
43
Weld Nuts, Turning Parts, Long Screws, Spring Nuts...
T
TAIHO TOOL MFG. CO., LTD. (OSG CORPORATION)大寶 83
東佑典
TAIWAN NYLON WASHER CO., LTD.
成盈
TSENG WIN
Ceiling Anchors, Cut Anchors, Drop-in Anchors...
Cutting Tools, Rolling Dies, Machine Tools, Machine Parts... 157
東明
TONG MING ENTERPRISE CO., LTD.
Stainless Steel Fasteners, Wire Rods... 49
257
東徽
TONG HWEI ENTERPRISE CO., LTD.
A2 Cap Screws, Button Head Socket Cap Screws...
鑫程椿
SUPERIOR QUALITY FASTENER CO., LTD.
TONG HO SHING INTERNATIONAL CO., LTD. 桐和興
Hex Washer Head Screws, Indent Hex Head Screws...
TYCOONS GROUP ENTERPRISE CO., LTD. 聚亨 Chipboard Screws, Collated Screws, Deck Screws, Drywall Screws...
Rubber Washers, Silicone Washers, Plasterboard Nails... 161
TAIWAN PRECISION FASTENER CO., LTD.
Drywall Screws, Wood Construction Screws, Roofing Screws... 50
V
TAIWAN SELF-LOCKING FASTENERS IND. CO., LTD.台灣耐落
61 220
VERTIGO FORMING SOLUTIONS CO., LTD. 佛帝克 Punches, Dies, Trimming Dies, Toolings, Nut Taps, Flat Rolling Dies...
239
WAN IUAN ENTERPRISE CO., LTD. 萬淵 Punches/Dies of Various Nuts, Screws, Sleeves and Socket Boxes
Nylok®, Precote®, Nycote®, Nyplas®, Loctite®... 169
鏜安
TANG AN ENTERPRISE CO., LTD.
Customized Automotive Parts and Special Fasteners 20
英德
THREAD INDUSTRIAL CO., LTD.
W
Chipboard Screws, Flange Nuts, Heavy Nuts... 233
TIGGES TAIWAN BRANCH new
81
TONE DAR SEEN ENTERPRISE CO., LTD.
52
通達興
42
24
TONG HEER FASTENERS CO., SDN. BHD.
Stainless Steel Metric Screws, Stainless Steel Screws…
WE POWER INDUSTRY CO., LTD.
威力寶
WYSER INTERNATIONAL CORP.
緯聯
Cage Nuts, Cap Nuts, Clinch Nuts, Acme Screws...
TONG HEER FASTENERS (THAILAND) CO., LTD.
Hex Bolts, Stud Bolts, Socket Cap Screws, Hex Nuts…
華盛
Chipboard Screws, Concrete Screws, Drywall Screws...
Semi-tubular Rivets, Solid Rivets, Shoulder Rivets... 42
WATTSON FASTENER GROUP INC.
Clevis Bolts, 6 Cuts/ 8 Cuts Self Drilling Screws...
德商殷士諦
Connection Elements, Fasteners... 207
緯紘
VERTEX PRECISION INDUSTRIAL CORP.
6 Cuts/ 8 Cuts Self Drilling Screws, Barrel Nuts, Cap Screws...
Y
34
YI CHUN ENTERPRISE CO., LTD. 誼峻 Cap Screws, Socket Set Screws, Cage Nuts, Automotive Parts...
076 Fastener World no.184/2020
Fastener World no.184/2020
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Company Focus
Courageous Taiwanese Fastener Corporate Manager Super Cheng Industrial President Joe Cheng
President Joe Cheng (left) with his son Mike Cheng (right)
by Dean Tseng, Fastener World When it comes to Super Cheng Industrial President Joe Cheng, he is a corporate manager stemming from electronics into the fastener industry. Super Cheng Industrial has stood for over 38 years in Gangshan District of Kaohsiung City since 1982. It has acquired supplier certificates from renowned Fastenal (U.S.) and WĂźrth (U.S.), becoming one of the trusted high quality suppliers for American fastener purchasers. It has a high market share and reputation in the American automotive, construction and industrial fastener markets, along with over 90% of its product line sold to the U.S. and partially to Europe.
Background in Electronics Lays His Groundwork for Fastener Business Management Before entering the fastener industry, Joe used to work for a major Japanese telecommunication company and a Dutch electronics company as their local purchase representative in Taiwan. That was when he witnessed the Japanese well-arranged and prudent corporate management
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system, learned how the Japanese devote themselves to business, and realized the competitive edge of American and European management system is to make standard and international specifications for all products. This laid the groundwork for him to develop his maverick philosophy of corporate management. Joe says he built his English communication and corporate management skills from his experience in the electronics industry. After entering the fastener industry and taking the helm of the family business, he went alone straight to the U.S. and Canada out of courage and dare and found numerous direct clients for Super Cheng Industrial, opening up direct export for his company. When asked if he regrets entering the fastener industry, Joe says “never� because he knows the irreplaceable existence of fasteners as an extremely potential and critical industry that is indispensable to the world.
American/Japanese Management Systems Give Rise to Joe's Quality & Corporate Management Philosophy After taking over Super Cheng Industrial, he realized from the American and Japanese management systems that the chaotic
Contact person: President Joe Cheng E-mail: joesuper@superchengco.com
management system in conventional industries disrupts normal industry development. Soon he knew his company must catch up with global corporates and he engaged in a series of reform. The three cards he played that changed the fate of the company were: QA-oriented production system, standardization/digitization, personnel training. He came to understand that quality is of utmost importance to Super Cheng Industrial. The company’s QA team consists of up to 16 people. Every new employee and supervisor there started from quality assurance. They must take a 2-month training at the QA training center located within the company. The last course before the end of the training is for them to walk around the plant and check the whole manufacturing process, just like an unannounced inspector that can jump out of anywhere to conduct a check. If any data inconsistency is found within any part of the manufacturing process, the inspectors have to troubleshoot and solve problems on site. What Joe wants is to establish a QA system exceeding the level of international quality standards. As soon as he took over the company, he drew up a standard operation procedure which, dubbed as the “Bible” for his employees, has been updated daily since 30 years ago and become the cornerstone of employee training. Furthermore, all the data regarding the manufacturing process, inventory, lead time, and purchase orders are displayed on the internal operating system for all employees in the plant to be informed of the latest development. Additionally, Super Cheng Industrial supplies standard and customized parts. Once developed, the customized parts will immediately be standardized into a regular product of the company.
Company Focus
Eradicating Each and Every Blind Spot “Managing is to tackle blind spots invisible to others,” stresses Joe. The existence of mobile QA inspectors is to eradicate all blind spots in the manufacturing process. The same mindset is reflected on environment management. The company cleans and sanitizes the whole plant once a week and is rated as one of the most eco-friendly manufacturing plants in Ganshang Industrial Park. Joe also made a substitute system where every employee has an opportunity to fill in for others and train themselves to take on bigger responsibility, ensuring loophole-free customer service.
Joe’s Pocket Strategy Against the Pandemic With a background in Economics, Joe is optimistic looking at the rampant pandemic. “There is always rise and fall in economy, so it’s out of the question to say the economy will end up in a total breakdown.” His counterstrategy is to go the opposite way and “stock up” under market contraction. He increases the stock of Class-A items and diversifies his product line. He finds there have been many inquiries and requests for rush order, and figures that the American market demand will see an uptick in the fourth quarter. “We have deployed in advance and made all preparations. We keep the jobs and overtime available for our employees as this pandemic still continues. We still have many talents with more than 20 years of experience and continue to recruit young talents. We are well-equipped with a host of manufacturing and automated equipment, as well as a huge stockpile of materials and finished products, waiting for the uptick in market demand which is when we will go on full throttle!”
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Cover Story
Professional of Brass Inserts & Customized Parts
Chin Tai Sing Precision Manufactory by Dean Tseng, Fastener World
Chin Tai Sing
is a specialized fastener ma nu fact u rer i n cent ra l Taiwan with high sales records, providing automotive and electronics industry clients with standard and special brass inserts, metal clinching fasteners (clinching bolts and studs), as well as customized parts in stainless steel and aluminum. It is also an ISO and IATF 16949 certified premium automotive parts supplier.
OEM/ODM Service Available for Domestic and Overseas Clients The company has many senior technical specialists at the production unit. Each one of them has well over 20 years of experience in manufacturing inserts and machining metal parts to provide customers with excellent OEM and ODM service. The 2,480-square-meter plant contains well-aligned automated machines and well-trained production staff to ensure punctual delivery to clients. Furthermore, the company has a sales unit with export specialists for prompt communication in English, saving overseas clients the troubles from communication barrier. So far the company has sold products to the U.S., UK, Germany, Japan and other European and Asian countries.
Doubled Capacity & New Market Development General Manager, Johny, says Chin Tai Sing started its export to the U.S. at first, and then extended to Europe and back to Asia. Since the last few years, the company has been approached by Japanese clients looking to purchase. They account for 10% of the whole client base. It is obvious that Chin Tai Sing is recognized by American, European and Japanese clients for product quality. Johny says the company's monthly capacity has doubled from 1 million to 2 million pieces to serve more overseas customers.
Triple Quality Measures to Eradicate Defects Chin Tai Sing has a quality inspection room equipped with visual measuring instruments, optical sorting machines and automatic packaging machines among others. Johny says the products go through two manual checks (size and appearance inspection) by 15 quality inspectors, and then onto the third check during automated sorting and packaging in order to ensure product quality before shipping to clients. Additionally, all products are numbered by lot, and clients can back trace their orders for materials used and production/inspection/packaging status. Lastly, the employees take trainings every week where they discuss better solutions for quality anomaly, optimized manufacture and new product inspection.
Positive Outlook for the 2nd Half Year & Going for Higher Product Precision This year kicked off with an unprecedented challenge shared by the whole world. Chin Tai Sing is not intimidated and stays on its track going forward. Johny says the market bodes an uptick for the second half of this year. The company’s overseas sales have almost returned to the pre-pandemic level and is expected for a full recovery within a year according to his estimates. Before that happens, the company is stocking up regular items for purchase and working hard to develop high precision and high level products with a smaller tolerance ranging between plus and minus 0.01 for a full-on new market development. It is also supplying products to a portion of highend aerospace clients via OEM and ODM service. Chin Tai Sing is deploying ahead to be fully prepared for a future revitalized market! >> Contact: General Manager, Johny
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Email: inquiry@ctsp-insert.com.tw
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Company Focus
Professional Customized Screw Supplier Chin-Tieh Screw Co. by Dean Tseng, Fastener World
Transformed to Fastener R&D and Manufacture
In response to the drastic change in domestic and overseas markets, Chin-Tieh Screw is devoted to developing new screws based on profession and technique and maintaining great quality to provide clients with products of high added values and maximal profits.
Chin-Tieh Screw has been operating for more than 20 years in a 1,100 square meters manufacturing facility located in Dadu District of Taichung City, Taiwan. Starting off as an OEM, Chin-Tieh Screw was driven by market competition to successfully transform into a fastener developer and manufacturer specialized in construction screws, stainless steel screws, long screws, self-tapping screws, carbon steel screws, self-drilling screws and special screws. Besides screws, the company provides washers, nuts, pins, double end screws, and adjustable screws.
Customized Products as per Clients’ Requests Chin-Tieh Screw is well aware of thread performance and characteristics, knowing how to produce fast-tapping and high-torque screws that save time and costs. The company can also help develop special screws in accordance with clients’ drawings. Particularly its construction screws demonstrate excellent performance by achieving multi-point cutting, reduced friction, light loads, better chip discharge, and low rate of wood cracking. Chin-Tieh Screw can provide clients with the best balance catering to both costs and quality.
Automated Equipment & High Quality Control Chin-Tieh Screw purchased automated fastrunning fastener manufacturing machines to cope with clients' demand for mass production or small-batch customized production. The company strictly manages product specifications and quality throughout the whole manufacturing process from heading to packaging, in order to comply with domestic and overseas clients’ requirements. Within its facility is an inventory zone stocking finished products ready for shipping to responsively cater to clients’ purchase demands. Contact: Ms. Wu Yuh Ting E-mail: yintse@best-screw.com.tw Fastener World no.184/2020
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FINdex Rebounds Amid COVID-19
“Our automotive OEM business was the hardest hit. “Overall organic revenues were down 53% year-over-year, although we did see a significant uptick in June that is continuing in July. North America was down 62%, Europe down 59% and China was the bright spot with organic revenue up 6%.”
After tumbling 30.3% in the opening quarter of 2020, the FIN Fastener Stock Index rebounded in the second quarter, achieving a 26.7% gain during the period compared to a 19.6% gain by an index of related industrial stocks during the first full quarter of the pandemic.
Construction Products revenue, including fasteners, performed comparatively well, dropping only 11.3% to $376 million during the quarter. Segment operating income decreased 15% to $90 million, with operating margin rising to 23.7%.
Tree Island Steel achieved the greatest gain during Q2, more than doubling during the period.
Fastener stocks losi ng value du ri ng Q2 included Chicago Rivet (down 1.8%); Bisco Industries (down 5%); and Park Ohio (down 13.6%). However, during the first six months of 2020, the FINdex lost 11.5% of its value, compared to a 7.1% decline by an index of related industrial stocks. Carpenter Technology saw its share value decline 54% during the period. Other fastener companies with a share loss during the first half of 2020 included Chicago Rivet (down 19.4%); Dorman Products (down 11.4%): Bisco Industries (down 30.5%); Grainger (down 7.2%); ITW (down 2.7%); Lawson Products (down 38%); MSC Industrial (down 7.2%); Nucor (down 26.4%); Park Ohio (down 51.5%); Stanley Black & Decker (down 15.9%); and TriMas (down 23.7%). During 2019, the FINdex gained 33.7%, besting a 24.4% increase by an index of related industrial stocks. Bisco Industries achieved the highest percentage gain, improving 84% during the year.
COVID-19 Decimates ITW Fastener Sales ITW reported Automotive OEM revenue, including fasteners, fell 54% to $361 million in the second quarter of 2020. Automotive OEM operating loss totaled $28 million, while operating margin plummeted to -7.8%. “A s ex p e c t e d , g ive n t h a t m o s t of o u r automotive OEM customers in North America and Western Europe essentially shutdown in mid-March and only began to restart production in May, June,” stated CEO Scott Santi in a conference call transcribed by Seeking Alpha.
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Overall Q2 ITW revenue dropped 29% to $2.6 billion, with organic revenue down 27% and operating margin falling at 17.5%.
American News
Other fastener stocks gaining share value included Car penter Technology (up 17.3%); Dorman Products (up 21.3%); Fastenal (up 37%); Grainger (up 26.4%); ITW (up 23%); Lawson Products (up 20.7%); MSC Industrial (up 32.4%); Nucor (up 14.9%); Simpson Mfg. (up 36.1%); Stanley Black & Decker (up 39.4%); and TriMas (up 3.7%).
Six-month Automotive OEM revenue faired better, falling 32% to $1.06 billion, with operating income down 33.7% to $117 million and operating margin plummeting 1030 basis points to 11.1%. Construction Products during the first six months of 2020 dipped 4.6% to $766 million, while segment operating income slipped 7.1% to $181 million, producing an operating margin increase of 20 basis points to 23.6%. Consolidated ITW revenue declined 19% to $5.8 billion, while operating income fell 29% to $1.21 billion and net income slipped 27% to $885 million.
SWK Fastening Revenue Falls 35% Stanley Black & Decker reported Engineered Fastening organic revenues fell 35% in the second quarter of 2020 “due to lower global automotive light vehicle and general industrial production.” Industrial segment sales, including Engineered Fastening results, declined 20% to $ 517.5 million in Q2 as CAM acquisition (+10%) was offset by volume (-29%) and currency (-1%). Segment profit plummeted from $95.1 million to $5.1 million. Stanley Black & Decker agreed to acquire Consolidated Aerospace Manufacturing LLC (CAM) in February for as much as $1.5 billion cash. The deal is contingent on the Boeing 737 MAX returning to service and on Boeing meeting certain production goals. Brea, CA-based CAM, which manufactures aerospace fasteners and components, was launched by Tinicum in 2012 as a holding company for eight manufacturing firms active in aerospace component sector. Among CAM’s holdings are Bristol Industries, E.A. Patten, Aerofit, Voss Industries, 3V Fasteners, QRP and Moeller. Consolidated Stanley Black & Decker sales dropped 16% to $3.1 billion during the quarter. Operating income declined 45% to $280.7 million, with a margin of 8.9%. Net income slipped 33% to $238.7 million. Industrial segment sales during the first six months of 2020 dipped 8% to $1.1 billion, with segment profit more than halved to $72.9 million.
FDI Returns To Growth In June The seasonally adjusted Fastener Distributor Index improved to 56.9 in June vs. May (45), “consistent with an improvement in last month’s forward-looking indicator.” Last month marked FDI’s return to expansionary readings for the first time since February.
American News Additionally, the seasonally adjusted sales index showed very strong improvement, surging from 28.9 to 69.9 in June. “Sales trends were better than seasonally expected for a majority of respondents, the first time that has occurred since January,” R.W. Baird analyst David Manthey wrote. Pricing remained stable for most respondents. The Forward Looking Index continued to improve, increasing to 52.6 from 43.9 the previous month. “Respondents are on balance once again feeling more optimistic than pessimistic about the six-month outlook, while employment has also started to return to more normal levels,” Manthey wrote. These two factors primarily accounted for the month-to-month improvement in the Forward Looking Index. “With the FLI improving for three straight months and the US economy continuing to reopen, we believe the FDI could see steady improvement in the immediate term, albeit conditional on widespread government-mandated shutdowns not re-occurring,” according to Manthey. Hiring sentiment improved as well. The FDI employment index registered a 56.6 reading, also a significant improvement from last month (40.0). The percentage of respondents noting lower employment levels than seasonally normally decreased to just 11% vs. an average of 40% seen over the last three months. Respondent commentary remained uneven, however. “Although June seems to have been better than expected for most respondents, and momentum is clearly improving, many participants still characterize the recovery as slow and somewhat uneven to this point,” Manthey noted.
Optimas Solutions Promotes Supply Execs Optimas Solutions promoted Randy Nelson to VP of supply chain and strategic sourcing, and Matt Kubbinga to supply chain director. “The expertise and knowledge of Randy and Matt enables Optimas to embrace continuous growth and future innovation,” commented Marc Strandquist, president of the Americas. “These promotions reflect the incredible leadership and hard work of the supply chain team to fulfill on Optimas's commitment to being a best-in-class industrial distribution and service provider.” Fastener industry veteran Nelson has over 18 years of executive experience with Supply Technologies and Brighton-Best Intl. Kubbinga spent five years as demand planning manager at Univar Solutions. Glenview, IL-headquartered Optimas Solutions is a global industrial distributor of fasteners and c-class components. Optimas has 1,600 employees in 16 countries. Optimas has 3,500 suppliers to distribute 130,000 SKUs to 10,000 customers in automotive, heavy truck, high tech, lawn & garden, medical, offhighway, power generation, powertrain, transportation and tunneling industries. Optimas manufactures in Illinois and the UK.
One respondent commented: “Slow recovery but at least positive trend after the shutdowns in April and early May.”
International Fastener Expo (IFE) 2020 Cancelled Until 2021
Another commented. “Have experienced more customer demand [increases] but [some] don't believe our industry will see normal levels for some time. Too many variables especially related to the pandemic that can impact the economy.”
Morga n Wi lson , Show Manager, reports, “Since 1981, the I nter national Fastener Expo (IFE) has brought the entire fastener industry together in one place to see customers and vendors, network with colleagues and source new products and suppliers. However, driven by our responsibility to serve your best interests, we regret that we are cancelling this year’s International Fastener Expo, which was scheduled for September 28 to 30, 2020, at the Mandalay Bay Convention Center, Las Vegas, NV, USA. Recent developments have made it impossible to bring our community together safely and successfully. This is due to the ongoing progression of the COVID-19 pandemic including the latest government data, measures and guidelines on phased reopening plans in the USA; number of confirmed cases globally and domestically; current quarantines, containment areas, stay-at-home orders, and restrictions on gatherings imposed by states and other government and public
Attitudes about activity over the next six months compared to today are more positive than negative on balance, however, with 61% of participants expecting higher activity levels and just 11% expecting lower. T he F DI is a mont h ly su r vey of Nor t h American fastener distributors conducted by the FCH Sourcing Network, the National Fastener Distributors Association and Baird.
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American News health authorities; international travel restrictions and bans; and company-imposed travel restrictions. The health and safety of our customers, partners and employees remains of paramount concern to us. “Though we won’t get to see you in person this year, our team is committed to finding new ways to keep the industry connected and we are in the process of launching IFE Online Experience, a platform where you can virtually meet customers, have access to a proven match-making program and learn from industry leaders and about current trends. We are also confirmed to return to the Mandalay Bay Convention Center in Las Vegas next year from September 21 to 23, 2021. We are excited to welcome you to IFE 2021.”
Paul Sundstrom Named GM at ND Industries ND Industries, Clawson, MI, USA, has named Paul Sundstrom General Manager of its Nor thbrook a nd Rock ford, I L , USA facilities. He takes over the position from John Thramann, who has recently announced his retirement. Thramann has been at ND Industries since 1970 and has played an integral role in making ND one of the current leaders in the fastener locking and sealing industry. ND wishes John all the best in his retirement. For the past two years Sundstrom has been ND’s lead Sales Manager in Illinois.
IFI Elects New Chairman, Vice Chairman & Names Board Members and Division Chairs T he Industrial Fasteners Institute (IFI), Independence, OH, USA, held its Annual Meeting in Clearwater Beach, F L , USA , M a r c h 7 to 10, 2020. The new IFI Chairman for the period 2020 t o 2 0 21 i s Kev i n Johnson of Birmingham Fastener, Inc. and the newly elected Vice Chairman is Edward Lumm of Shannon Precision Fastener, LLC. In addition to Johnson and Lumm, the Board of Directors also includes: Manny DeSantis, Valley Fastener Group LLC; Pat Wells, The Young Engineers; Don Kubkowski, Sems and Specials; Paula Tognetti, MNP Corp.; Jeff Liter, Wrought Washer Mfg.; David Hebert, Freeway Corp.; Brian Stark, Rockford Fastener; Dan Curtis, MacLean-Fogg Co.; Richard Brittan, Tri Star Metals; and Wayne Drysol, 3V Fastening. 2020 Division Chairs for IFI are: Division I – Industrial Products: Steven Sherman, Industrial Rivet & Fastener; Division II – Aerospace Fastener Products: Pat Wells, The Young Engineers, Inc.; Division III – Automotive Industry Fastener Group: Gene Simpson, Semblex Corporation; and Associate Suppliers’ Division: Richard Brittan, Tri Star Metals. IFI is an association of the leading North American makers of bolts, nuts, screws, rivets, pins, washers and custom formed parts. compiled by Fastener World John Wolz, Editor of FIN (globalfastenernews.com) Mike McNulty, FTI VP & Editor (www.fastenertech.com)
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Shock Absorber Nuts Induce T-Cross for Recall
Brazilian Automotive Production: July Results Bode Recovery As one of t he most i mpor t a nt thermometers for the fastener industry, t h e B r a z i l i a n a u t o m o t i ve ve h i c l e production, in the first half of 2020, had a giant fall due to the pandemic, but the restart of industrial activities has returned some hope for the end of 2020 to be less disastrous than estimated in several economics analyses. Normally, the ideal way would be to show just the first half year, however it became essential to include July 2020 because it was the last complete month with normal activities in Brazil, since February. Of course, the Covid-19 impact hit everybody, and the last result has shown a partial recovery. That is not a miracle, but already is a light at the end of a tunnel.
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Regarding the motorcycles sector, in the first seven months of 2020 Brazil produced 490,137 units (628,818 units / down 22.06%), according to the Abraciclo (the Brazilian Motorcycle Industry Association).
Steel Production Decreased 17.9%
Brazilian News
A recall involving Volkswagen vehicles T-Cross, model 2020 started since July 2020. In a press release, Volkswagen Brazil reported that the possibility of fixing the upper nuts for fixing the belts on the front shock absorbers was found. T he looseni ng of t hese components causes noise in the suspension and, in the case of continual use in this condition, nu t s a n d b u ck le s c a n c o m e lo o s e , compromising the stability of vehicles causing physical harm and fatality to the occupants of vehicles. Such repair implies the replacement of nuts and application of chemical lock.
According to the Anfavea (the Brazilian Automotive Industry Association), the January-July 2020 period ended with 847,784 cars/light commercial vehicles produced (1,658,279 units in the same period of 2019 / down 48.8%); 41,617 trucks (66,314 units / down 37.25%); 10,211 buses (16,704 units / down 38.80%) and 24,691 agricultural/road machinery (30,875 units / down 20.03%).
The crude steel production in Brazil fell by 17.9% in the first half of 2020 compared to the same period in 2019, while domestic sales suffered about a 10.5% drop from January to June, the same decreasing percentage of apparent consumption (-10.5%). Exports decreased 8.1% and imports decreased 17.0%. The sector's negative performance in the 1st half of 2020 was likely due to the pandemic. However, the figures for June in relation to May were already the best, reflecting the beginning of a recovery path. Domestic steel sales in June showed an increase of 29.6% compared to the previous month, while consumption was below 29.4% and an increase of 14.5%. Steel production in June, however, fell by 5.0% over the previous month. Currently operating at only 48.5% of its installed capacity, that sector has 32 blast furnaces, but 10 of them are paralyzed. In the domestic market, the sector's expectation is that infrastructure and civil construction projects will be the main drivers for consumption of steel products.
Gerdau Gained Profit in Q2 Entering the 120th year from its founding (1901), Gerdau is the largest Brazilian steel producer and one of the main suppliers of long steel in the Americas and special steel in the world. Present in 10 countries with more than 30 thousand direct and indirect employees in all of its operations, Gerdau's shares are listed on SĂŁo Paulo (B3), New York (NYSE) and Madrid (Latibex) stock exchanges. The company ended the second quarter (Q2) 2020 with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) around R$ 1.3 billion, with an EBITDA margin of 15.1%. The result was influenced by the gradual recovery of steel consumption levels in Brazil, after the impacts caused by the Covid-19 pandemic. In Q2, the sales of long steel rose 10% over Q1, thanks to the resilience from building construction and exports.
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New Recall Involving Bicycle Cranks The Procon-SP (the local consumer protection entity) published in July 2020 a recall for failure in fastening on bicycle cranks, from Sirrus and Sirrus X models, sold between 2019 and 2020. The responsible company is Specialized Brazil, which must provide any clarifications that are necessary, as determined by the law. In the statement, the company informs that the cranks may not have been fastened according to the factory specifications, which may come loose and result in a sudden loss of control and cause accidents. compiled by Fastener World by Sergio Milatias, Editor, Revista do Parafuso (The Fastener Brazil Magazine) milatias@revistadoparafuso.com.br www.revistadoparafuso.com
BelZAN Entered a Large-scale Project
Frame Anchors for the Installation of Windows and Doors Began to be Produced in Russia
To implement it, it was necessary to sign an agreement with the "TREK-E Composite" company, and as a result, BelZAN will implement a full cycle of production of components for endoprostheses, medical bolts and instruments. "Today the enterprise is already 85% equipped with the necessary equipment. The production of components and fasteners in Russia will reduce the cost of prosthetics by 20%", - said Oleg Yevtushenko, executive director of "Rostec". Production of the first batch is scheduled for the end of this year. I n 2 0 21-2 0 22 , t he pla nt w i l l b eg i n t he development of components for knee prostheses, launch the production of zirconium pins for dental prosthetics and expand the range of fasteners and instruments for operations from various types of metals. The volume of production will amount to 100 thousand blanks of ball-shaped heads for endoprostheses and 3 million rod products per year. T h e g e n e r a l d i r e c t o r o f " RT- C a p i t a l", Kirill Fedorov, believes that this niche market is extremely promising, since the share of the domestic producers, that applies for it, does not exceed 7%. According to him, the capacity of the medical instrument market in Bashkiria itself exceeds 1 billion rubles.
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Russian News
T h e B el e b eyevs k y pl a n t "Av t o n o r m a l" ( B el Z A N ) w i l l s t a r t p r o d u c i n g p a r t s a n d components for endoprosthetics and traumatology. The implementation of the project will completely cover the needs of the national healthcare for such products within five years.
The most common fastener for installing wi n dows is a f r a me a n c h o r. U n t i l n o w, this fastener has been i m p o r t e d t o R u s si a from abroad. Currently, we can talk about the beginning of the process of import substitution in this segment of the fastening market. "VsV" company has mastered the production of a frame metal anchor for the installation of windows and doors.
MMK-METIZ Develops a New Type of Fasteners and Wire Thanks to the investment program of 20172020, new installed equipment will expand the range of fasteners and increase production capacity for the popular types of products. For exa mple, M M K-M ET I Z is cu r rently work i ng on t he development of a screw for ventilated facades and already made a pilot batch of 7x105 mm screws. There are no Russian manufacturers producing this type of fasteners. Advanced technology and highperformance cold-heading, hot-heading, thermal, galvanizing equipment make it possible to obtain fasteners with a strength class from 3.6 to 10.9, coated and uncoated. Also, the company started the production of high-strength bolt assemblies for the HR system according to EN 14399-1:2005 for pretensioning. The first batches of fasteners with a diameter of M20 and M24 with a bolt strength class of 10.9 were shipped to consumers. Currently, this high-strength fastener is in great demand in the assembly of metal structures and in bridge construction.
compiled by Fastener World Alexander Ostashov, editor of "Fasteners, Adhesives, Tools and..." Magazine Mariya Valiakhmetova, editor of "Metiz" Magazine
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Industry Focus
Analyzing the Fastener Markets: Sweden, Norway, and S W E D E N
Finland
by Behrooz Lotfian
Sweden’s economic freedom is the 22nd freest in the 2020 Index. Sweden is ranked 12th among the 45 countries in the European region. The Swedish economy has been rated mostly free for more than a decade. Its GDP growth has been solid but not noteworthy for the past five years. In 2019, its GDP was 542 billion USD with a 2.3% growth and its GDP per capita was 52,984 USD. The total value of exports and imports of goods and services equals 90.9 percent of its GDP. The average trade-weighted applied tariff rate (common among EU members) is 1.8 percent, with 637 EU-mandated nontariff measures reportedly in force. Sweden has an additional eight country-specific nontariff barriers. The investment regime is open and transparent. The number of foreign bank branches has increased. The state owns one bank, which mainly offers mortgage loans. The Sweden open market has caused the absorption of 11.1 billion USD worth of FDI.
- Fastener Trade of Sweden Sweden’s exported fastener value was 375 million USD and its imported fastener value was 516 million USD. These numbers put Sweden in the middle of fastener users in the EU zone. When a country is not the leader like Germany and it is not the 2nd or 3rd biggest country in that subject like Italy, then it must choose the flanking strategy for success. Most managers know about “offensive” and “defensive” are both strategies. The leader defends, and the 2nd and 3rd attack. So, what do others do? Flanking. For most managers, flanking warfare may seem like a military concept with no business applications. Not so. Flanking is the most innovative way to fight a business war. More than any other form of business warfare, flanking requires a knowledge of the principals involved and an ability to visualize how the battle will unfold after the attack is launched. A flanking move does necessarily require some element of newness or exclusivity in the product. The prospect must put them into a new category. Swedish fastener players can flank Germans with safety fasteners (Volvo is known as a safe car in the world and Swedish fastener players can cling to this reputation) which customers put into a new category. It might not be obvious, but the success of a flanking attack often hinges on Swedish ability to create and maintain a separate category. This is not always easy, especially since the defender can be expected to try to blunt the attack by denying the existence of the new category.
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Norway’s economic freedom is the 28th freest in the 2020 Index. Norway is ranked 15th among the 45 countries in the European region. The Norwegian economy has been rated mostly free for eight years. Its GDP growth, however, has poked along at less than 2 percent annually for the past five years. In 2019, its GDP was 395.9 billion USD with a 1.4% growth and its GDP per capita was 74,356 USD. The total value of exports and imports of goods and services equals 70.6 percent of its GDP. The average applied tariff rate is 3.1 percent, and 236 nontariff measures are in force. The investment code is efficiently administered. A new law that introduced control of acquisitions based on national security considerations was adopted in June 2018. The modern financial sector is competitive, although the country retains ownership in the sector. This new law has caused FDI in Norway to drop and made many foreigners withdraw their capital from Norway. Fastener World no.184/2020
F I N L A N D
Finland’s economic freedom is the 20th freest in the 2020 Index. Finland is ranked 11th among the 45 countries in the European region. The Finnish economy has benefited from gradually rising economic freedom over the life of the Index. Its GDP growth has been positive but modest. In 2019, its GDP was 256.5 billion USD with a 2.4% growth and its GDP per capita was 46,430 USD. The total value of exports and imports of goods and services equals 78.5 percent of its GDP. The average trade-weighted applied tariff rate (common among EU members) is 1.8 percent, with 637 EU-mandated nontariff measures reportedly in force. Finland has an additional nine countryspecific nontariff barriers. In general, government policies do not interfere significantly with foreign investment. The competitive financial sector provides a wide range of services. The FDI in Finland is 1.2 billion USD.
Industry Focus - Fastener Trade of Norway & Finland Norway’s fastener export value was 86 million USD and its imported fastener value was 250 million USD. On the other hand, Finland’s exported fastener value was 66 million USD and its imported fastener value was 160 million USD. These numbers put them in the middle of fastener users in the EU zone, which means they were respectively ranked the 14th and 16th biggest fastener trade countries in the fastener industry. How can these two countries be successful in the fastener industry? The leader should use the defensive strategy, while the 2nd and 3rd biggest countries should use the offensive strategy and attack to the leader. The 4th to 6th should use the flanking strategy. And, what should the others use? If a country has been ranked in the 7th place or after that (like Norway and Finland) they should use the Guerrilla strategy. A guerrilla has a reservoir of tactical advantages that allows the small countries to flourish in the land of the giants. Rolls-Royce, for example, is a high-priced guerrilla in the automobile business. It dominates the market for cars costing more than $100,000 USD. As a matter of fact, it owns the market. Nobody thinks of competing with Rolls-Royce because (1) the existing market is small and (2) Rolls-Royce, at least initially, would have an enormous advantage. The mathematics are on the side of Rolls-Royce. Base d on t h is expla nation, f i nd a small segment of t he ma rket t hat Norwegian/Finnish fastener players have enough resources to defend. It could be small geographically, in volume, or in some other aspects difficult for leading players to attack. Norwegian/Finnish fastener players should tr y to reduce the size of the bat t leg rou nd i n order to a ch ieve a superiority of force. In other words, tries to become a big fish in a little pond. My suggestion is Norwegian/Finnish fastener players should concentrate on a specific industry. For example, Norwegian fastener players should focus on oil and gas fasteners and Finnish fastener producers should focus on fasteners used in electronic industries because 21% of Finnish industries are electronics related (the largest industry segment in Finland). Reference: Marketing warfare, AL Ries, Jack Trout
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Industry Focus Gains in the aerospace equipment market have allowed for solid growth in Italian sales of aerospace-grade fasteners, predicted to rise by 24% from 2020 to 2025 or 4.8% annually, to reach US$260 million. A similar trend can be seen globally, with the industrial fastener market set to expand by 20% over the period 2020 to 2025, or 4% annually, to a total of US$99.5 billion by 2025. Europe will account for approximately one fifth of this, with sales forecast to reach $26 billion by 2025, compared to $22.7 billion in 2020. The global market for aerospace fasteners is expected to increase at a faster compound annual growth rate (CAGR) of 7.6% between 2017 to 2024, with a significant growth forecast in Europe. As a major exporter, Italian fastener shipments are forecast to rise by 2.8% per year over the period 2020 to 2025, to reach $3.7 billion, making Italy the fifth largest exporter in the world. The biggest foreign markets are Germany, France, Spain, Poland, and the UK. It ranks as the second largest producer in Europe, holding a 20% share in the European market, after Germany.
What Should Italy Do to Guarantee Its Success?
3
Italy is strong enough, so it should play an offensive war with the fastener leader in the EU zone (i.e., Germany). There are two principles to guide it for a successful offensive strategy.
1- The main consideration is the strength of the leader's position.
2- Find a Weakness in the Leader's Strength and Attack That Point.
Germany as the leader always focuses on its product quality, and therefore; Italy should focus its attention on the leader.
That's not a m ispr int. I mean "f inding a wea k ness in Ger many’s strength," not in its weakness. Of course, Germany has weak points that are just weak points and not an inherent part of its strength. It may have overlooked the point, considered it unimportant, or forgotten about it.
Managers in the Italian fastener industry should consider product quality, sales force, pricing and distribution channels of Germany instead of considering its own strengths and weaknesses (quality, sales force, pricing and distribution channels). Italy should consider that no matter how strong it is in the fastener industry, it cannot win if Germany is also strong. What Germany owns is the quality in the minds of the prospect. To win the battle of the minds, Italy must take away its position before it can be substituted for Germany. It's not enough for Italy to succeed; Getting the enemy to eat it is the key objective of offensive warfare. The morale factor can be decisive. The emphasis should be on destroying the morale of your opponent. But it's not easy for Italy to keep this concept in focus, so most marketing plans call for "increasing its share in the market." Italy should look at Germany and ask itself, "How can I decrease its share of the market?" We don't mean undermining leaders by dynamiting their plants or interdicting their rail centres. That's a physical way of looking at marketing warfare. They should never forget that marketing warfare is a mental exercise with the battleground being the human mind. All offensive operations should be directed at that target. Italy artillery is nothing but words, pictures, sounds.
For example, the high price of Germany’s fasteners is not an inherent weakness because Germany can decrease its price easily. Because of the scale of Germany’s production, it is predictable that it has the lowest manufacturing cost in the industry (compared to Italy or even the entire Europe, too). So, it’s dangerous for Italy to compete with Germany on price because it has the financial ability to make money at almost any price, no matter how low the prices are. However, Germany tends to set higher prices, as in the minds of many consumers, “made-in-Ger many” means high quality, and as a general rule consumers believe that high price equals high quality and vice versa. Germany cannot sell its production at low price, otherwise it will damage its image of “made-inGermany.” There is another kind of weakness, a weakness that grows out of its strength.
Where is Germany’s Strength? Germans are very good at making excellent products and meeting demand, but their economy has never quite reached that level of cutthroat competition where they have to really go out and sell. In a simple words, “the demand is so overwhelming that there is no need for Germans to sell their products."
In Which Part of Germany’s Performance Can Italy Find a Weakness? "In these days, when declining faith in many of Italian companies is reported because of COVID-19 (Quarantine has made so many factories’ growth negative, and their supply chains are in the trouble, so most managers and business owners have lost their confidence and faith about the future.), Italian fastener producers can explain how they have contributed to the society during the COVID-19 period. They can talk about “How they can help small fastener producers non-financially in this period”. Now Germany is the fastener product leadership (Product leadership is the leader of products, making innovative products, finding the consumers’ needs and designing new products (talk in the product level)), while Italian fastener companies can introduce themselves as business leadership (Business leadership is the leader in business. They can find new ways of business, make innovative ways of sales, and make new rules to facilitate the business (talk in the trading and policy level)). 3.
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<< Industry Update >>
reconstruction that drove explosive demand for steel distribution and brought up Asian steel prices.
South Africa Imposes ThreeYear Ad Valorem Safeguard Measures Against Certain Imported Iron and Steel Screws, Bolts and Hexagonal Nuts
In response to CSC Q4 and October steel price adjustments, Taiwan fastener industry is seeking tailored steel pricing from CSC to gain an edge in future order intake.
Below are the specific ad valorem duties for the 3 phases: Phase one: 54.04% (07/24/2020-07/23/2021) Phase two: 52.04% (07/24/2021-07/23/2022) Phase three: 50.04% (07/24/2022-07/23/2023)
Taiwan's CSC Raises Q4 Steel Prices; Fastener Companies Seek Tailored Pricing O n Au g u st 21st , Ta i w a n' s C h i n a S t e e l Corp (CSC) announced to raise Q4 and October steel prices by NTD 5001,000 per ton for each type of steel, up an average of 3.36% which set the largest single-quarter increase over the last two and a half years. CSC is expected to turn a loss into a profit after losses for 4 consecutive quarters. CSC President says given the status quo of the global market, there is room for further raising CSC steel prices. Considering the competitiveness of downstream clients, however, CSC seeks to take a steady price strategy to push the price upturn through the end of this year and onto Q1 2021. After the lockdown in China was lifted, the Chinese manufacturing industry was the first to resume manufacturing activities. The steel inventory in China is consumed at an accelerated pace. The steel export continues to drop and the import into China sees a drastic increase. The September hot/cold rolled steel prices in Baowu were raised by RMB200 to RMB260 per ton on average. Furthermore, the floods spurred
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Fastener World News
Accordi ng to t he latest a n nouncement of T he I nter national Trade Administration Commission of South Africa, since July 24, 2020, South Africa has launched 3 phases of ad valorem safeguard measures against certain imported screws, bolts, and hexagonal nuts of iron and steel from all countries (except for some developing countries such as Brazil, Mexico, Russia, Indonesia, Thailand, Turkey, Vietnam, etc.), effective for 3 years. The HS codes of products involved are: 7318.15.41, 7318.15.42, 7318.16.30. Taiwan will be also influenced by the measures.
Taiwan CSC’s Price Adjustments of Steel Products (Fastener Related Only) for Q4 2020: Item
Avg. Price Adjustment (NTD/Ton)
Wire Rod
+750
Automotive Materials
+800
USMCA Comes into Effect on July 1st A f t er 3 ye a r s of negot iat ion , articles revision, and Parliaments approval procedures in USA, Mexico, and Canada, the all-new United StatesMexico-Canada Agreement (USMCA) has officially become effective since July 1st, 2020. The purpose of this new Agreement is to exempt relevant tariffs and lift certain trade barriers in the N. American region to facilitate trade activities amongst USA, Canada, and Mexico and reinforce the competitiveness of businesses in these countries. The new Agreement includes specific requirements for the origins of certain automotive components and materials used, which clearly states that above a certain percentage of automotive components must be produced in USA, Canada, or Mexico, which could cause a significant impact on the automotive industry. Below are the detailed requirements: 1. At least 75% of certain automotive components assembled on a car must be produced in N. America. (The NAFTA period was 62.5%). 2. At least 70% of steel and aluminum materials used on a car must be produced in N. America. 3. Over 40-45% of automotive components produced in N. America must be produced by workers with the hourly pay of US$ 16 for each. The requirement stating “at least 75% of certain automotive components assembled on a car must be produced in N. America” was specifically formulated for 7 major automotive components, including chassis, engines, axles, transmissions, bumpers, sensors for steering wheels, and electric vehicle cells. If any of these items on a car is not produced in N. America, it won’t be considered “a car produced in N. America” and cannot enjoy the tariff-free benefit. With these requirements coming into effect, suppliers will be required to submit their origin documents and manufacturers will be also required to provide relevant copies. However, automotive fasteners are not included in the list of items subject to the requirements.
Taiwan's Fastener Export Shivers with 14% Slump for First Half 2020 The Covid-19 pandemic has triggered a decline in both Taiwan's fastener export volume and value for the first half of 2020. The volume
Fastener World News reached merely 687.7 thousand tons, down 14% over the last same period; The export value only landed on USD 1.979 billion, down 14.69%, the lowest half-year performance since the financial crisis. What is in contrast and rare is that China's import of fasteners from Taiwan grew 10.2%. Mr. Tu-Chin Tsai, Chairman of Taiwan Industrial Fasteners Institute, says the orders redirected to Taiwan were the result of the increased demand in China and the shutdown of a portion of Chinese fastener production lines. The Institute's survey reveals the fastener export in June nearing 110 thousand tons, higher than that in this April or May, but still 17% lower than the export volume last June. The export unit price for June was USD 2.88 per kilogram, down 0.28% from last June. Chairman Tsai thinks that the large decrease in fastener export was mainly due to the continuous spread of the pandemic in Northern America, which is the largest export destination for Taiwan's fasteners. In the first half of 2020, the American market declined 10.9% while the export to Germany and the UK also showed a decline of 21.3% and 32% respectively. He forecasts that the fastener demand in China for re-construction after the current great floods will increase exponentially and will boost the fastener export of many Taiwanese fastener companies.
<< Companies Development >> Chun Yu Turns Optimistic for Business in Q3 2020 Chun Yu's revenue in June was NTD 660 million, up 23.16% over May and down 13.3% over the same month last year. The consolidated revenue for the first half of 2020 was NTD 3.775 billion, down 18.35% over the last same period. Chun Yu says it took the brunt of the coronavirus impact in Q2. As the demand in Taiwan turns stable and overseas monthly sales pick up, the third quarter sales will gradually turn upwards. President Huei-Jeng Lin says domestic shipment of construction fasteners remains steady and robust while overseas demand is yet to be vitalized as a result of the pandemic. However, the company saw an uptick in overseas sales which pushed revenue in June up more than 20% over that in May. Lin says the revenue of the subsidiary in China bottomed up in May and went back on a growth track in June, gaining 7.1% over the last same month. Furthermore, work resumption after the reopening of economies in the U.S. and Indonesia brought the company's local revenues to increase over the ones in this April and May.
Lin has turned optimistic about the business in the third quarter. He says Taiwan's China Steel Corp. lowered the third quarter steel prices at the end of May which should improve order intake. The pandemic mainly impacted the company's business in Q2, but there is hope for a gradual upturn in Q3.
Sheh Fung's Q3 Sales Surged Due to Growing U.S. House Improvement Demand Amid the Pandemic Sheh Fung General Manager, Kent Chen, says the pandemic keeps U.S. residents indoors and makes them unable to find anyone for doing home improvement works. They have to do it by themselves and that in turn bumps up Sheh Fung's fastener shipment. Pressure from clients' incoming orders has been high lately and Sheh Fung already sees 3 months of pending orders ahead. The third-quarter revenue is expected to be a double-digit growth and the full-year revenue is very likely to land on the NTD 2 billion mark. Sheh Fung's fasteners are mostly used on wooden houses, iron roofs, wooden footway, and indoor renovation. The U.S. tops the sales of Sheh Fung by 64%, followed by Australia (12%), Asia (12%), and Europe (7%). The company is not much subjected to the pandemic this year because of the sales growth of highly profitable long screws. According to Sheh Fung, the gross margin of short screws is around 12%-17%, and long screws is 22%-27%. Long screws have just become the main requested category of customers since recently. They are used to enhance wooden house structures and are time-saving with a great growth potential. They have become an important profit driver for Sheh Fung by an increased sales proportion from 10% to 30%. Additionally, last year Sheh Fung decided to set up a base in Vietnam which will be launched in the first quarter of 2022 and focus on low-tomedium-profit screw manufacture.
Bulten Moves and Expands Its Manufacturing Facility in Taiwan Bulten has signed a lease contract on a manufacturing facility in Taipei through its subsidiary PSM Fasteners Taiwan Ltd (PSM Taiwan). The new location allows for a more efficient and sustainable operation and a base for further expansion. The current operation of PSM Taiwan will be moved to the new location during the fall of 2020. PSM Taiwa n was acqui red by Bulten in February 2020 and is today p r i m a r i ly p r o d u c i n g m a c h i n e d , smaller dimension fasteners for both a u t o m o t ive a n d n o n - a u t o m o t ive cu stomer s. I n l i ne wit h pla n s to make the production more efficient, as well as expand PSM Taiwanâ&#x20AC;&#x2122;s manufacturing capacity and provide a sustainable and attractive work environment for the employees, PSM Taiwan will transfer its operations from its current location to the new site, located approximately 30 minutes from the existing one. The larger floor space will make it possible to both in-source a portion of the components that are currently purchased from suppliers, and to utilize PSM Taiwan for production in Fastener World no.184/2020
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Fastener World News connection with new contracts. The new building is also more suitable for the operations and will allow for a range of desired improvements to be made. “We are continuing to move ahead with the plans we made in connection to the acquisition of PSM and this move will enable us to execute on synergies identified early on in that process”, says Anders Nyström, President and CEO of Bulten. The lease runs for a period of five years with optional extension. One-time transfer costs will be approximately 4 MSEK and the incremental recurring lease cost will be approximately 1.8 MSEK per year.
TR Formac Expands Presence in Thailand and Joins Electric Vehicle Association TR Formac, part of Trifast plc with corporate world headquarters in East Sussex, U.K. has expanded its global presence by moving into larger premises in Prawet, Bangkok, in response to strong growth across Asia and winning new business from global OEMs. The new facility provides around 3000 sq. ft. of space enabling the company to trade more efficiently and to help further strengthen its position in the growing EV market. Operations in Thailand are headed up by Country Manager David Ng, a knowledgeable and well connected individual who has witnessed the fast development of the automotive sector across
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the country. Chris Black, Global Director of Automotive Business Development, will be supporting David and the TR Formac team to increase their market share of the Automotive EV sector, sharing his experience and knowledge with the Thailand team. David Ng David commented; “There are huge growth opportunities in Thailand with key focuses on technology and innovation of electric vehicles. With this in mind, and to collaborate with other companies, we decided to join the Electric Vehicle Association of Thailand (EVAT) which the Thai government was instrumental in launching.
ARaymond to Close Its Brunswick Plant at Year’s End In an effort to further enhance the efficiency of its operations, ARaymond in the process of optimizing its North American metal footprint and streamlining its available manufacturing capacity. As part of this strategy, it made the difficult decision to close its Brunswick, OH plant and transfer the work to its other Nor th American facilities. According to ARaymond, “We deeply regret having to make this decision, because of the long-standing and excellent relationship we have had with our employees and the Brunswick community. While we have continued to persevere throughout a challenging economic climate, the time has come for us to take additional measures in order to advance the future sustainability
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Fastener World News of the company. This realignment is aimed at accelerating our cost competitiveness and better serving the needs of our customers. We remain a committed strategic partner to our customers, vendors and suppliers, with a focus on collaborative long-term success, just as we have for the past 155 years.â&#x20AC;?
Continuing on the NFDA Board are Don Haggerty, Craig Penland of Eurolink FFS (Greer, South Carolina), Scott Somers of Mid-States Bolt & Screw (Flint, Michigan), Jodie Thinnes of Copper State Bolt & Nut (Phoenix, Arizona), and Bryan Wheeler of Star Stainless Screw (Wood Dale, Illinois).
<< Association News >>
Kelly Cole (Hayes Bolt & Supply, San Diego, California) completed his service on the Board this year.
Adam Derry Elected NFDA President 2020-2021 Adam Derry of Field (Machesney Park, Illinois) has been elected as the 2020-2021 president of the National Fastener Distributors Association. Keven Simmer of Wurth Des Moines Bolt Supply (Des Moines, Iowa) will serve as vice president, Kelly Charles of Sems & Specials (Rockford, I l l i noi s) a s a ss o ci a t e ch a i r, and Doug Ruggles of Ma r tin Fastening Solutions (Florence, A l a b a m a) w i l l r e m a i n o n the Boa rd as im mediate past president. Jon Queenin of Specialty Bolt & Sc r ew (Agawa m , Massachusetts) has been elected to serve on the Board of Directors effective July 13, 2020.
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<< Acquisitions >> Midwest Fastener Acquires Hy-Ko Products Midwest Fastener has acquired Hy-Ko Products. The combined companies will be led by the DeVries family (Midwest Fastener) and Bass/Kaufman (Hy-Ko) with the goal of superior customer care, long-term growth, and operational efficiencies. The cultural and business combination makes sense for both companies moving forward. All employees will remain in place and the expertise of each enterprise will be retained and expanded to help serve the marketplace. The ongoing mission of
Fastener World News providing quality products and service to their retail and distribution partners is first and foremost. Their global companies will focus on new products, R&D, innovation, supply chain optimization, sales support, and leadership.
Grainger Announces Agreement to Divest Grainger China Grainger, the leading broad line supplier of maintenance, repair and operating (MRO) products serving businesses and institutions, announced it has entered into a definitive agreement to sell its distribution business in China, Grainger China LLC (Grainger China), to a purchaser owned by the Grainger China management team and Sinovation Ventures, a China-based venture capital firm. This divestiture will better enable Grainger to focus on its key businesses and geographies. To support this portfolio, the company will maintain its Global Sourcing operations based in China. Grainger's Global Sourcing provides the company with private label products in categories that include safety, cleaning, electrical, motors and tools. This transaction is not subject to any financing condition but is subject to the standard regulatory approvals. The deal is expected to close later this year.
Metso Outotec to Bring Unique Fasteners and Wear Monitoring Technology to Its Minerals Customers by Acquiring Davies Wear Plate Systems in Australia Metso Outotec has closed the acquisition of the Australia-based fastener and wear monitoring technology provider Davies Wear Plate Systems, extending its wear lining portfolio and capabilities. T h e a c q u i r e d t e ch n olog y i n clu d e s fasteners with a unique locking mechanism that does not require traditional studs and nuts and thus enables faster and safer maintenance work. Davies Wear Plate Systems’ portfolio also includes wear monitoring technology, which provides a real-time forecast of wear and expected liner change-out timing. The monitoring solution can be fitted to any metallic or ceramic liner, independent of attachment systems. “This acquisition supports our target to offer comprehensive and unique solutions for the entire wear lining value chain. We are eager to introduce these advanced solutions globally to our customers; we now have the market’s widest range of optimized wear protection solutions, tools and services. The new technology will increase safety during maintenance and increase uptime. I warmly welcome the new colleagues to become part of the Metso Outotec team,” says Sami Ta ka luoma , P resident of Con su mables business area at Metso Outotec.
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Association
T
aiwan Fastener Trading Association (TFTA) Chairman Josh Chen and Gwo Lian Machinery President Ahung Chen invited fastener industry representatives and TAITRA President James Huang over for a summit held on August 31, in order to discuss the post-epidemic status quo of the fastener industry and the actions to take. The summit at Gwo Lian Machinery Conference Room served with light meal went smoothly with Ahung Chen as the host. There was a thorough talk on ways to tackle impendent crises, speed up transformation, integrate the supply chain, and obtain a competitive edge in the international market. The participants to this summit included the following: current TFTA Chairman Josh Chen; previous TFTA Chairmen Jimmy Chang; former TFTA presidents William Liao, Kosky Yen, Jim C.N. Chen, Zephyr Chang; Boltun President Mark Wu, Sheh Kai Precision President Terry Tu, He Wei Machinery President Juan Lien-Kun; financing and asset management representatives; Vice President Tzeng of WPG Holdings and two publicly listed presidents of other industries.
TFTA & TAITRA Summit
at Gwo Lian Machinery Conference Room by Dean Tseng, Fastener World
The summit focused on four issues: 1. Challenges from COVID-19 and the friction between the U.S. and China. 2. Digital transformation and upgrade, integration of resources/ distribution/supply chain. 3. Making use of financing platforms. 4. Actions for business successors to take.
“The points at issue are material/land costs, exchange rates, talent training, and government assistance.“ The fastener representatives in the summit threw in many suggestions. The most discussed issues were about material costs, land, exchange rate, talent e ducation a nd gover n ment assistance. Taiwan’s China Steel Corp's steel price forms cost pressure on fastener companies by i n c u r r i n g ove r 50% of material cost on manufacture of ordinary screws, not including ele ct r opla t i ng cost a mong others. A representative called fo r o p e n i n g st e el i m p o r t s w h i l e k e e p i n g Ta i w a n ’s China Steel Corp as the main material source. Some fastener companies wanting to move
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Current TFTA Chairman Josh Chen
TAITRA Chairman James Huang
Josh Chen said he was glad to express to TAITRA the challenges faced by the fastener industry. He was thankful to James Huang for traveling far south to Kaohsiung City just to hear what the fastener industry had to say. Josh told James that TFTA is interested in co-organizing fastener shows with TAITRA. He invited James for the next TFTA Member Assembly. He also advised TAITRA to establish a panel of fastener trading as a medium of contact with the fastener industry.
Gwo Lian Machinery President Ahung Chen
Association plants back to Taiwan are set back from high land cost. They hope the government will make a tailored land pricing policy to give them a place to stay if they choose to come back. Similar cost pressure comes from exchange rates. Non-appreciating New Taiwanese Dollars cause quite some damage to the low-profit fastener industry. Furthermore, as Vietnam and other southeast Asian countries have a good outlook of market demand, there are quite a few Taiwanese fastener companies setting up plants overseas to reduce cost. However, their first problem is that specializing in fastener production and development doesn’t mean they have a thorough understanding of overseas investment environment, laws and policies. Fighting alone abroad, they urgently need TAITRA and the government to provide a tailored assistance program that is not far-fetched so that they can be fully prepared for the risks in overseas investment. A fastener representative pointed out that fastener companies are facing a talent gap where many graduated students majoring in related subjects are seriously detached from the fastener industry, which reveals a gap between what is taught at school and what the industry actually needs. Thus, the representative suggested providing courses dedicated to the fastener industry to enhance cultivation of talents.
Previous TFTA Chairman Jimmy Chang
5th TFTA Chairman Jim C.N. Chen
1~2th TFTA Chairman William Liao
7th TFTA Chairman Zephyr Chang
3~4th TFTA Chairman Kosky Yen
Boltun President Mark Wu
“The government should help develop the electric vehicle fastener industry.“ Last but not least, a few representatives put their focus of future on “opportunities from electric vehicles”. The pandemic boosts the demand for electric vehicles such as Tesla cars in the U.S. and Europe, and therefore the demand for automotive bolts and nuts is optimistic for the coming years. However, Taiwanese automotive fastener companies have not fully converted to the electric vehicle field. They need the government to help the automotive fastener companies upgrade and transform into the electric vehicle field in order to keep up with the world. What's special about this summit is that Chris, GM of renowned annealing furnace maker RAD-CON from the U.S., was invited to join the conference via Skype with the summit participants. Chris said the U.S. trade war with China is further distorting the market, but the reality is that the U.S. cannot produce all it consumes, including fasteners. With the labor cost difference between China and Taiwan shrinking, and the other high costs of doing business in China, he thinks investment to Taiwan is an attractive idea to overseas companies because Taiwan has an edge in its ease of doing business, lower VAT, and reasonable import and export protocols. After the talk, the participants took a group photo and hoped to meet again in the next summit.
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Company Focus
Fastener Inspection Expert-
iTAC Laboratory Co., Ltd.
by Fastener World
The Globally Trusted and Reliable Third-party Inspection Unit iTAC ca n reduce hu ma nmade errors, make testing faster, and ensure the validity of testing. “Ou r i nspection sta f f continues to enhance their capabilities at tendi ng i nservice training programs and constantly learning about the latest regulations, ideas, a nd tech nology. Trai n i ng iTACs staff to improve their expertise is a paramount concern to us,” according to iTAC. As an impartial third-party inspection unit, iTAC always sets strict requirements on itself, which include daily review of its inspection devices and instruments in order to ensure the highest accuracy. iTAC provides inspection and plant auditing services on Asian suppliers for its U.S. and European customers, which continuously ensures better quality control. iTAC’s Managing Director, Charles Chang, said, “We maintain a very close relationship with our customers. After long collaboration with our customers and their suppliers, iTAC can help strengthen the relationship throughout the supply chain. We play a key role in facilitating communication between our foreign customers and manufacturers in Taiwan. We help answer customers’ questions about product and, in turn, help Taiwanese manufacturers keep their customers and maintain an excellent reputation.”
Solving Comprehension of Discrepancies to Create a Win-Win “Comprehension of discrepancies sometimes come from the misunderstanding between buyers and manufacturers. Several of our staff have also worked for years in the area of fastener manufacturing, so we certainly understand the difficulty, yet know how to solve those issues to create a win-win,” Chang added. “This is a unique service offered by general inspection laboratories. It is more like a new service derived from the reliability iTAC has been offering to its customers for years. iTAC is also very willing to provide general assistance. By doing so, we can get a clear picture of the current market trends.”
Active Equipment Upgrade and Staff Training Over the years, iTAC continues to purchase semi-automatic tapping speed testing device, Vickers hardness testers, electronic torque wrenches and saltspray testing machines. We continue to upgrade our current equipment and also purchase new precision inspection equipment. In recent years, we have almost completely replaced our manual inspection equipment with computercontrolled equipment. iTAC Laboratory Manager, Ms. Winnie Lu, believes
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Offering Both Product and Supplier Appraisal Service W hen inter national customers are looking for suppliers from Southeast Asia or Taiwan, iTAC offers plant appraisal or audit services. It can help foreign customers conduct auditing, check packaging and discuss future ways of collaboration. iTAC said, “The Taiwanese traders also work directly with us, so they can save on the cost of employees and equipment maintenance.” By leaving the inspection work to a third party professional fastener laboratory a customer can reduce costs on purchasing quality instruments, additional staff, and also ensure a high level of precision quality. By keeping in contact with international fastener companies, iTAC has also learned a broad ra nge of k nowle dge a nd exper ience i n cer ti f ication. Buyers and manufacturers can rest assured by putting their faith in iTAC’s credibility and inspection methods. iTAC will also fully upgrade its quality management system to the latest ISO 17025 : 2017 this year. In addition, iTAC has started to build a cloud database allowing customers to look up their inspection records and offer a more convenient user’s experience. >> Contact: Mr. Charles Chang E-Mail: cchang@itac-lab.com.tw
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Perspectives from Editors
Reflections of Fastener Industry on The "Dieselgate" Scandal of VW by Gang Hao Chang, Vice Editor-in-Chief of Fastener World On July 27, U.S. Federal Trade Commission (FTC) released a final report on the “Dieselgate” scandal of the VW Group, which was uncovered in 2015. In the report, U.S. FTC pointed out that such a scandal has cost the VW Group an astronomical compensation of over 9.5 billion USD (nearly 280 billion NTD) paid to U.S. consumers, which does not even include the extra compensation of 4.3 billion USD (approx. 130 billion NTD) incurred from the criminal action against fraud, fabricated statement and perverting the course of justice. With just an initially barely noticed fraudulent means of adjusting the exhaust emission software, the VW Group has incurred to itself a loss of over 30 billion EUR (about 1.05 trillion NTD) in total. What’s worst is, although the VW Group proposed two types of compensations to consumers (one is returning their cars and getting extra compensation, and the other is having their cars repaired at authorized resellers until they are compliant with the emission regulations), there are still
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more than 86% (around 0.55 million units) of U.S. car owners choosing to return their cars directly, which significantly tarnished the brand image of the VW Group’s diesel cars in U.S. market. From this case we could obviously observe that “sometimes the prices of products are not the only consideration of consumers to place their orders and the quality of products are what consumers are really concerned about when it comes to the final determination,” which is also a quite significant trend lots of industry analysts have observed in the global fastener trade in recent years.
High Quality is Preferable to Cheap Price! Many fastener buyers may have such a similar experience of buying products at cheap prices and later facing goods return or requests for compensation from consumers due to defective performance and incompliance with standards of products, which are basically the result of the ignorance of quality. As a result, in order to prevent the operation of an enterprise from being delayed or even destroyed, the control of manufacturing procedures from material selection to the final delivery, nice equipment and even operating staff will all play a very critical part. Don’t ever thin k about cheating on ma nufactur ing procedures without being noticed (e.g., replacing material A featuring better performance with material B whose property is not compliant with required standards, shortening the heat treating time on purpose to accelerate delivery, etc.), as the current advanced equipment has been capable of conducting a complete range of analysis of fastener materials, surface treatments, and application performance. Those issues the
Perspectives from Editors industry is most concerned about, such as toxic hexavalent chromium, hydrogen embrittlement, and bolt failure, can be all detected before shipment. Those ways which have been usually taken by many fastener manufacturers dedicating themselves to the R&D of high value-added products in recent years for quality improvement and winning consumers’ trust may also work for other fastener companies.
1. Getting Certification is a Must Being certified to ISO 9001 or ISO 14001 is very common in the industry, however, if one would like to penetrate into advanced construction, automotive, aerospace or medical industry, getting the approval of ETA, ICC-ES, IATF16949, AS9100, or ISO13485 (whose entry barrier is higher than others) will become a must. Through the introduction of these internationally recognized quality management systems, one can manufacture products fully trusted by consumers. The application procedure of some certifications is really time- and costconsuming, but as there are not as many competitors as in the application procedure of other certifications, once one can get the certification of this kind, he will be very likely to be accepted into a higher tier supplier chain and simultaneously grasp more profiting opportunities. In certain markets (the EU and Japan, for example), if one can get further certifications like CE or JIS, he can also strengthen the reliability of his products on local consumers’ minds, and even indirectly win an entry ticket to certain markets where similar national certifications do not exist at all.
2. Keep Investing in New Equipment Good equipment results in high quality goods and fastener manufacturing technology is also being improved day after day. For example, many new machine models nowadays can complete heading, threading, and pointing at one time, so manufacturers do not need to buy machines for separate manufacturing procedures. Although doing so will require high costs, manufacturing efficiency and quality of finished products can be greatly increased. Many fastener companies have even invested a lot in introducing advanced facilities from Europe/USA/ Japan or purchasing automated machines from Taiwan at a high cost-toperformance ratio for processing products, surface treatment and final quality control & inspection. All of these investments, in the long run, can definitely boost the quality of products toward the development of consistency, stability, and compliance with international standards.
3. Training Technical Staff As consumers’ requirements for product design have been stricter than ever, manufacturers, as a result, have to enhance their knowledge of products. In addition to scouting potential talents through the industrial collaboration with technical colleges, companies can also reinforce the professional knowledge of their in-plant technicians and the training of onsite machine operators, so their R&D staff can design products with high quality and performance and their machine operators can do according to their R&D colleagues’ drawings and are capable of solving unexpected situations in manufacturing in time and preventing defective products from being carelessly shipped to consumers. High quality is well-managed from the very beginning of manufacturing. Moreover, if quality control staff can speak a second language, it’ll be even better.
Conclusion High quality is easier said than done. Through the above said three major principles, companies can not only fully control the quality, but also prevent quality-related scandals similar to the VW Group’s “dieselgate” that led to an astronomical compensation and the loss of reputation from happening again. Only when one continues to work hard in quality control and does not do shoddy work can he achieve the real success in the end. Fastener World no.184/2020
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Special Feature
C
A
Framing Nailers
Super Coat SST5000
Japanese TONEJI CO., Ltd has announced a new innovative coating technology. The all-new Super Coat SST5000 applied on TONEJI's D-LOCK bolts on top of their hot-dip zinc-tin alloy plating is now available. SST5000 passed a 5,000-hour salt spray test and a combined cyclic test (150 cycles), with minimized white rust and no red rust. This new coating is ideal for rust prevention measures in salt-damaged areas.
U.S. Milwau ke e Tool continues t o expa nd it s li ne of cordless naili ng solutions from frame to finish with the introduction of their very first cordless framing nailers, the M18 F U E L™ 21° F r a m i n g Nailer and M18 FUEL™ 30° Framing Nailer. Delivering the power to sink nails in engineered lumber, these framing nailers can also fire up to 3 nails per second with no gas cartridges required. Milwaukee is committed to improving productivity by providing performance-driven and tradefocused solutions so users can perform an entire day’s work on one battery system.
Innovation Alley B
compiled by Fastener World
Extra Large Wrenches for Extra Large Jobs
Companies in heavy machi ner y i ndust ries of ten face the dilemma: how do you increase productivity without sacrificing safety? U.S. Lowell’s extra-large wrenches can help. Too of ten, workers will use t he wrong tool for t he job, and as a result, they can risk damaged equipment or personal injury. Lowell Corporation’s 40 Series ratchet wrenches and 50 Series socket wrench sets provide workers with the right tools for extremely demanding applications. The cast malleable iron 40 Series wrenches are available up to 48" long with square, hex, or round/keyed openings up to 4-1/2". They include reversing controls in the head and enclosed replaceable gears. Additionally, the tools’ Bolt-Thru design makes it easy to tighten nuts on any threaded length. Above all, Lowell designs its extra-large wrenches to be safe, accessible, and customizable to your needs.
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D 3-Point Anti-loosening Bolts Japanese Takasho Gigen combines 3 nuts for a new 3-point anti-loosening bolt. The company puts a custom-shape nut between two nuts with their surface inclined inward to generate a strong fastening force. The new bolt can be used on steel towers and bridges and mass-produced at any time desired. The company is planning to provide manufacturing license. The key to generating a strong fastening force is the custom-shape nut which has an 11-degree inward declined circular surface containing notches. First, the stainless steel nuts and threads have different starting positions, which generates pressure to the side of the threads during the fastening process. Second, the notches on the iron nut will bend the circular inclined surface inward by 0.4 mm in diameter. The company makes use of these two phenomena to generate a fastening force. Lastly, the fastening force generated from the surface width of the two stainless steel nuts, together with the first two phenomena, form a 3-point vibration resistance feature.
Special Feature Resin-embedded Anti-vibration Bolt
E
Japanese Design Part Corporation develops a bolt with resin embedded within to achieve anti-vibration and noise absorption. In a vibration test where a variable frequency of 90-350 Hz per minute is applied, the bolt is able to restrain vibration by 50% on average and 86% at most. The hollow hole diameter of the bolt and the fillers can be changed. A trial test is currently run at a shiprelated company and a transportation vehicle component company. The bolt is expected to bring JPN 100 million in revenues in a year.
F
SDPW Deflector Screws German Simpson Strong-Tie, the leader in engineered structural connectors and building solutions, has introduced the Strong-DriveÂŽ SDPW Deflector screw line of fasteners designed to connect non-load-bearing, full-height partition wall top plates to trusses or joists while allowing for vertical movement without associated connector squeaks. Featuring an innovative polymer sleeve, the SDPW creates a strong connection that provides both lateral resistance and the ability for walls to deflect with the truss or joist. Atmospheric and loading conditions can put a variety of forces on a structure, and the SDPW permits vertical movement on the wall while preventing squeaks that are commonly associated with alternative hardware solutions.
Torque Wrench Kit
G
U.S. Lowell Corporation has introduced a new torque wrench kit that gives plumbers and utility workers greater flexibility in working with US-style No-HUB couplings. This compact kit gives plumbers and utility workers all the tools they need to properly tighten all standard fastening screws on No-HUB couplings to either 60 or 80 lb-in. Each kit comprises two Lowell T-Torker torque wrenches and three hex sockets (1/4", 5/16", and 3/8"). A durable carrying case is available. One of the wrenches in the torque wrench kit handles a max torque of 60 pounds while the other handles up to 80 pounds. When you reach maximum torque during the tightening process, each wrench will slip to prevent overrunning. The presets in this kit are static. Each wrench carries a label with its torque setting and a color-coded collar for easy identification, even in low-light conditions. Based on Lowellâ&#x20AC;&#x2122;s ratchet technology, the torque wrenches offer fast, one-handed tightening in the right-hand direction to values that are accurate to Âą10%. The spanners prioritize maximum efficiency, ease of use, compact size, and lightweight hand comfort. For example, the T-shaped handle gives users optimal leverage. Its flanged collar easily disengages the ratchet mechanism and locks the tool for effective reversing action without torque limitation. Furthermore, all devices come with a sealed die-cast handle and lubrication for increased longevity.
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Industry Focus
by Dean Tseng, Fastener World
A Holistic Look into Taiwanese
Fastener Business Successors’ Strategy Development
O
ver the decade, Taiwanese fastener business successors (also known as the next fastener generation, hereinafter referred to as “the successors”) have expressed themselves at the forefront of business grounds. Some of them have taken the family's helm, while some are still new to steering the family business. We have interviewed fastener business owners for long, and noticed some of them are visionary and adventurous young-to-middle-aged successors who are gradually shaping up the characteristics and creativity of their generation. What interests us is an issue that calls for the attention of fastener forerunners and successors in Taiwan— “Will the successors set off a new trend in the Taiwanese fastener industry?”, which t hen ra ises you r question — “ W hat characteristics have we observed from these successors?”
Fading Boundaries Among Manufacture, Trade and Distribution There were already signs of fading boundaries of fastener business types in as early as the generation of forerunners. The global market competition propelled them to deploy in Southeast Asia, China and then the U.S. in early days. These highly admired forerunners have long notice what they call a trend of business shift to extend from manufacture to trade or vice versa, or to extend to managing of sales routes. Our finding indicates the business concept of “extension to other realms” has rooted ever more strongly on the minds of the successors. Through digital technology and global network, the successors have a keen perception of international affairs and global market trends, as well as strong awareness to the fact that “expertise in a singular business type” is no longer i n sync with the world trend. By just owning production capabilities with no access to sales routes, or only having trading capabilities without a factory or inventory, it will be difficult to meet the ever-changing and ever-growing clients’ demand from
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around the world. Their new knowledge of the status quo is to break the boundaries set for themselves, and deploy in advance by “diversified business extension”, which in turn accelerates the fading of boundaries and brings the advent of a new type of fastener companies as stated below.
Integrated Service Provider / Fastener Service Consultant T he s e a r e not some t e r m s we ju st randomly made up, but a new concept that the successors came up with and told us. It is the fading of boundaries that opens up the possibility of providing integrated service. How so? Now think about this question— If a fastener forming machine specialist doesn't just sell forming machines, but also peripheral machines, tools and dies from his counterparts, and takes one step further to set up global sales bases to globally distribute products via logistics, what do you call this concept? Further, if a metal hardware OEM takes a leap of faith to include fastener manufacture and work as a middleman for purchase of hand tools and tooling, even to the extent of one-stop service that handles sales routes for clients, what do you call this concept? To satisfy direct fastener users and buyers from various industries as well as hardware and tools importers, currently a few Taiwanese fastener companies have succeeded in what they call “integrated service” through which they aim to become “comprehensive service consultants for fasteners and peripheral products”. You might be baffled to ask what these consultants are like. Simply put, any products and service you can think of that relate to fasteners, the consultants will do the best to bring to you whether by introducing or matching you to acquainted suppliers. And the purpose behind all this? Obviously, the consultants don’t expect you to reach out to other companies, but only expect you to purchase your whole desired production line in one go through one-stop service. They even hope to lead this trend and make it work in the macro-industry.
Digitized / Visualized / Techdriven To become an integrated consultant will require laying the ground work on hardware.
T hi n k about t he dozen processes i n t he production chain stemming from purchase of wire rods from China Steel Corp, to packaging and shipping to the hands of buyers, not excluding the slim profits earned from all of this work, and you will have to carefully count every dime and penny. To that, some successors turn their focus to “digital technology”. They add intelligent sensors to their equipment on the production line. They hire engineers to develop software or outsource the development to acquire digital data which are later converted into visible and comprehensible information to visualize orders and production status. By doing so, global clients can have access to online customer management system to look up order status. Additionally, the data from the sensors will help the successors analyze configurations for the equipment to optimize capacity, speed and profits. This is one of the skills the successors are especially good at.
Heralding New Era of the Successors External changes always far precede the internal ones. The constant truth of this era is that everything keeps changing all the time. Taiwanese fastener industry doesn’t have a preemptive edge. It has to deal with import tariffs, anti-dumping duties, foreign exchange rates, competition from overseas companies and rising domestic manufacturing costs. The Taiwanese business owners can only fight for themselves to get through challenges. With that said, instead of fighting at close quarters, it is best for them to opt for buyers who place customized orders, provide them with customized products and offer special services that are not available from other counterparts. A current phenomenon in development is the setup of overseas bases. In early years Taiwanese fastener companies didn’t suffer language barrier when they set up bases in China, and they were accepted by local markets fairly and quickly. That is not the case as of now when they are setting up bases in other countries. Language, workforce, financial & material resources are high hurdles and critical challenges. Last but not least is another phenomenon we have observed. As a result of increasing pressure from workforce and transportation costs, some fastener companies are striving to break away from sharing profits with thirdparty business owners. They are building after-sale customer service centers to seek and serve direct clients, so that costs from both the fastener companies and customers can be reduced to create a win-win. From the above analyses, we have confidence and feel relieved to say that Taiwanese fastener industry is firmly evolving en route to digital and technological transformation, and a host of fastener successors could be the ones to lead this trend.
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Industry Focus The Covid-19 pandemic burst out in the first half of 2020 continues to pose a huge challenge to almost every industry around the world. Except for certain industries benefiting from city lockdown orders and the increasing demands for medical PPE, almost every industry has been hard hit by the pandemic, especially air/sea transportation, automobile/motorbike, mechanical processing and basic components, which used to rely heavily upon the global supply chain. Taiwan fastener industry has been also influenced since Q1 2020. Sales of top 10 Taiwanese public listed fastener companies started to appear a sign of plunge, which even reached a drop of 15-30% in H1 2020 due to the serious outbreak in Europe and America. Lots of by Gang Hao Chang, Vice Editor-in-Chief of Fastener World small-to-medium sized downstream factories mostly relying on orders released from big manufacturers have been also going into their “early cold winter” due to the chain effects. A similar result may be also observed in the latest financial report of Taiwan’s China Steel Corp., whose sales revenue in H1 2020 reached 15 billion NTD, a slump of at least 20%.
Analysis of Financial Reports of
Taiwan's Public Listed Fastener Companies in H1 2020
In the following paragraphs are the analysis of the sales revenue and earnings per share (EPS) of major Taiwanese public listed fastener companies in the first half of 2020.
Sales Revenue and EPS in H1 2020 Company Tycoons Group
Revenue H1 2020 Revenue H1 2019 (1,000 NTD) (1,000 NTD) 4,304,647
5,963,092
Change in H1 Revenue (%)
EPS H1 2020 (NTD)
EPS H1 2019 (NTD)
Change in H1 EPS
-27.80%
-0.34
0.01
-0.35
Tong Ming Enterprise
3,967,914
4,242,185
-6.47%
0.8
0.97
-0.17
Chun Yu Works & Co
3,775,268
4,623,246
-18.34%
0.34
0.8
-0.46
QST International New Best Wire Industrial San Shing Fastech
3,696,462
4,968,654
-25.60%
-0.35
0.92
-1.27
2,486,271
2,936,132
-15.32%
0.36
0.45
-0.09
2,281,930
3,423,021
-33.34%
0.92
1.45
-0.53
NAFCO
1,045,952
1,349,823
-22.51%
1.67
3.2
-1.53
Rodex Fasteners
1,007,478
1,204,808
-16.38%
1.13
1.43
-0.3
Intai Technology
974,708
1,217,821
-19.96%
3.89
5.61
-1.72
Sheh Fung Screws
969,668
930,196
4.24%
1.68
2.47
-0.79
Sumeeko Industries
926,467
1,301,847
-28.83%
0.44
3.6
-3.16
Chen Nan Iron Wire
817,754
878,090
-6.87%
-0.59
0.36
-0.95
Patta International
733,788
941,188
-22.04%
0.61
0.84
-0.23
Chun Zu Machinery
629,064
815,877
-22.90%
0.62
1.07
-0.45
Sheh Kai Precision
493,683
543,009
-9.08%
1.09
1.83
-0.74
Ofco Industrial Ching Chan Optical Technology
444,968
603,191
-26.23%
-1.48
0.25
-1.73
218,416
314,103
-30.46%
-1.79
0.74
-2.53
Source: mops.twse.com.tw
According to the latest sales revenue reports in H1 2020, top Taiwanese public listed fastener companies are: Tycoons, Tong Ming, Chun Yu, QST, New Best Wire, San Shing, NAFCO, Rodex, Intai, Sheh Fung, Sumeeko, Chen Nan, Patta, Chun Zu, Sheh Kai, Ofco, and Ching Chan. The semi-annual sales revenue of each of the first 8 largest companies reached over 0.1 billion NTD. Except for New Best Wire and Chen Nan providing wire rod as well as Chun Zu and Ching Chan Optical supplying machines, all the other companies on the list are manufacturers of various standard and special fasteners or precision parts.
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According to the fastener (HS code 7318) export data of Taiwan Customs, in the first 6 months of 2020 Taiwan exported around 57 billion NTD worth of fasteners to the global market and the aforementioned major Taiwanese fastener-related companies represented more than 50% of the total export (around 28.8 billion NTD). In the same corresponding period of 2019, Taiwan exported around 66.7 billion NTD worth of fasteners to the global market and the aforementioned major Taiwanese fastener companies represented more than 54% of the total export. This also means that Taiwan’s fastener export value in H1 2020 was down nearly 10 billion NTD if compared to the same corresponding period in 2019.
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Industry Focus In H1 2020, almost all revenues of these Taiwanese leading fastener companies appeared a decline of over 15% (50% of them even appeared a decline of 20%). The company reporting the most significant decline was San Shing (-33.34%) and its EPS reduced by 0.53. NTD from 2019’s 1.45 NTD to 0.92 NTD. However, San Shing is still ranked the 6th largest Taiwanese fastener company in terms of revenue. Among the list in which almost all companies reported negative growth, Sheh Fung was the only company in H1 2020 reporting a positive growth of 4.24% and the EPS of 1.68 NTD. However, although it reported an eye-catching revenue in the period, its EPS was still down 0.79 NTD
from 2.47 NTD recorded in the same corresponding period of 2019. In terms of the EPS of each company in H1 2020, almost all companies reported a positive and profiting value, though they did not perform well in revenue. Among these companies, only Tycoons, QST, Chen Nan and Ofco reported a negative value ranging from -0.24% to -1.48%. However, the EPS of each of these companies was lower than the record they achieved in the same corresponding period of 2019.
Sales Revenue and EPS in Q1 2020 Company
Revenue Q1 2020 Revenue Q1 2019 (1,000 NTD) (1,000 NTD)
Change in Q1 Revenue (%)
EPS Q1 2020 (NTD)
EPS Q1 2019 (NTD)
Change in Q1 EPS
Tycoons Group
2,139,329
3,209,103
-33.33%
-0.20
-0.01
-0.19
QST International
2,005,803
2,554,550
-21.48%
0.01
0.73
-0.72
Chun Yu Works & Co
1,936,692
2,293,832
-15.57%
0.01
0.53
-0.52
Tong Ming Enterprise
1,598,438
1,939,635
-17.59%
0.09
0.34
-0.25
San Shing Fastech New Best Wire Industrial NAFCO
1,493,959
1,843,207
-18.95%
0.64
0.81
-0.17
1,253,793
1,509,383
-16.93%
0.18
0.29
-0.11
653,665
635,080
2.93%
1.4
1.45
-0.05
Rodex Fasteners
559,865
583,963
-4.13%
0.63
0.58
0.05
Sumeeko Industries
550,026
653,921
-15.89%
0.77
1.31
-0.54
Intai Technology
508,179
485,333
4.71%
2.04
1.98
0.06
Sheh Fung Screws
482,367
385,829
25.02%
0.91
0.83
0.08
Chen Nan Iron Wire
362,784
419,688
-13.56%
N/A
N/A
N/A
Patta International
353,623
421,939
-16.19%
N/A
N/A
N/A
Chun Zu Machinery
319,457
390,630
-18.22%
N/A
N/A
N/A
Sheh Kai Precision
260,448
251,873
3.40%
0.68
0.88
-0.2
Ofco Industrial Ching Chan Optical Technology
224,116
310,567
-27.84%
-0.89
0.25
-1.14
132,281
165,824
-20.23%
-0.64
0.66
-1.3
Source: mops.twse.com.tw
Now, let’s go back to Q1 2020 when the pandemic began to spread. In this period, many of these Taiwanese fastener companies reported a revenue drop of 10-30%. The company reporting the most significant drop was Tycoons (-33.33%), which also reported a revenue drop of 27.8% in H1 2020 and the loss of 0.2 NTD in Q1 2020 (Q1 2019: -0.01 NTD). On the other hand, Ofco and QST were the companies respectively reporting the 2nd and 3rd most significant drop. The respective revenue of these two companies in Q1 2020, compared to Q1 2019, was down 27.84% and 21.48%. However, different from Tycoons and Ofco reporting a negative EPS, QST’s EPS remained the positive level at 0.01 NTD (lower than 0.73 NTD recorded in the same corresponding period of 2019). NAFCO, Intai, Sheh Fung and Sheh Kai were the only four companies in Q1 2020 reporting positive growth. In addition to NAFCO, Intai and Sheh Kai reporting a revenue growth of around 3-5%, Sheh Fung even reached an incredible revenue growth of 25.02% and the EPS of 0.91 NTD, which is also higher than its EPS recorded in the same corresponding period of 2019. In terms of the EPS in Q1 2020, only a few companies reported negative values, while the rest of companies remained the positive level.
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Conclusion Concluding the performance of these companies in Q1 2020 and H1 2020, we noticed that as these companies are export-oriented, they are very susceptible to the global market fluctuations. On the other hand, the pandemic in certain markets around the world (e.g., USA, Brazil, India, etc.) is still not well under control, so whether the global industrial activities can be soon resumed to the previous normal condition remains unforeseeable. However, maybe companies can make the most of time to renovate and upgrade their inplant facilities, improve manufacturing procedures and strengthen staff training in order to get fully prepared and quickly respond to the possible outburst of big and urgent orders in the post-pandemic period.
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EU Fastener Import Licensing Replaced
industrial sectors concerned and is completely transparent. The new system is based on import statistics available two weeks after the actual imports, thus considerably earlier than the official Eurostat data. It offers a better assessment of the import situation as compared to the previous system, which was based on import intentions, not actual imports.” Further information and the first monthly data summaries are available on the Commission’s website: https://webgate.ec.europa.eu/siglbo/postsurveillance
EU Prior Surveillance Import Licensing on fasteners and other steel and aluminium products expired on 16th May 2020. The regime is replaced by monitoring of actual import data collected from Member States’ customs authorities.
Article 6 of both regulations stated: “This Regulation shall apply from the day following its publication in the Official Journal of the European Union until 15th May 2020.” The surveillance regimes therefore expired on 16th May 2020 and importers are no longer required to apply for import licences on the products cited in the regulations. The European Commission did not make any announcement about the expiry of import licensing but import licensing and customs authorities in some EU states issued confirmatory notices to importers on 15th May. The European Commission has replaced import licensing, which effectively captured intentions to import, with a new monitoring system based on actual import data transmitted by Member States’ customs authorities. The monitoring reports are updated on a monthly basis, covering the steel and aluminium products previously subject to prior surveillance, with the addition of products subject to US Section 232 me a su res. T he new syst em ha s b e en introduced within the framework of Article 56(5) of the Union Customs Code, by which the release for free circulation or the export of goods may be made subject to surveillance. Announcing the new system, the Commission said: “It will respond better to the needs of the
The original implementation of the prior surveillance regime proved extremely complex with some EU states able to rapidly implement highly automated systems and others using bureaucratic and often painfully slow manual reporting methods. The integrity of the data was also questionable, as it captured intention to import rather than what was eventually imported.
European News
Com m ission I mplement i ng Reg u lat ion 2016/670 of 29th April 2016 introduced prior Union surveillance of imports of certain iron and steel products originating in certain third countries. Amongst the products cited in the regulation were fourteen CN codes for fasteners, covering the majority of carbon steel, but not st ai n less steel, t h readed fastener products i ncludi ng nuts. Com mission I mplementi ng R e g u l a t i o n 2 018 / 6 4 0 i n t r o d u c e d si m i l a r surveillance of certain aluminium products.
The European Fastener Distributor Association made regular submissions to the European Commission, arguing that the licensing regime created a significant and unnecessary administrative and financial burden for European fastener importers. EFDA succeeded in getting the Commission to raise the threshold for licensing of consignments of each CN code from 2,500kg to 5,000kg net weight, but not in having the system eliminated.
LISI Group Becomes Sole Owner of US Company TERMAX LLC LISI Group has agreed to acquire the remaining 49% of the TERMAX LLC equity. This transaction, initially planned for the first quarter 2021, enables LISI Group to become the sole owner of TERMAX LLC through its U.S. subsidiary, LISI Holding North America. LISI Group is a global industrial group specialising in the manufacture of high value-added assembly and component solutions for the aerospace, automotive and medical industries. Thanks to the commitment of its 11,171 employees in 13 countries over four continents, LISI generated sales of €1,7 billion in 2019. François Liotard, chief executive officer of LISI AUTOMOTIVE, explains: "With TERMAX LLC, LISI AUTOMOTIVE has extended its global footprint in clip-fastening solutions in a lasting manner. The commercial and industrial synergies between our Clipped Solutions Business Group and Termax will continue to bear fruit. They will allow us to bring to a wider customer base the best development and production capabilities to offer innovative solutions in the areas of weight reduction, electrification and autonomous vehicle equipment.” Effective as from 30th June 2020, the transaction does not have a material impact on the LISI Group financial statements in which TERMAX and the whole of the corresponding debt have been consolidated since 1st November 2017.
LOCKHEED MARTIN and LISI AEROSPACE Sign Agreement LISI AEROSPACE, part of the LISI Group, has signed its first longterm supply contract with Lockheed Martin, for F-35 fasteners. The award covers years 2020 – 2022, with three one-year options to 2025, at an estimated (six-year) total value of US$60 million (€53.3 million). The entire contract will be supplied by LISI AEROSPACE's North American platform and strengthen the company’s position as a major supplier of fasteners for aerospace and military aviation.
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European News fischer FireStop Used at Istanbul Airport Numerous fischer FireStop products have been used in the construction of the largest airport in the world, Istanbul Airport, to protect lives and infrastructure in the event of a fire. Istanbul Airport is fully equipped with fischer FireStop solutions for passive fire protection. The range helps to prevent fire, smoke, and toxic gases from spreading in the event of a fire. All bushings for MEP applications (mechanical, electrical and sanitary work) such as cables and ventilation systems, as well as all types of pipes and lines were sealed with fischer FireStop products. fischer states the products installed to seal off the leadthrough openings include the FCPS panel system. The FCPS is designed to provide up to four hours of space and two hours of temperature resistance. Other products used include the one component, water-based acrylic emulsion fischer FiAM and the graphite-based fischer FiGM. The FiAM guarantees up to five hours of space closure; whereas FiGM foams under high pressure, expanding up to 20 times its own volume. The fischer fire protection wrap FiPW for wrapping nonmetallic pipes and ducts and offering up to four hours of fire resistance was also used, along with the two component polyurethane foam FBS-EN and the fischer FFSC seal. FBSEN is particularly suitable for use in openings that are difficult to access for electrical feedthroughs; and the FFSC seal is a formulated gypsum-based mortar suitable for filling voids and gaps in walls and floors – offering resistance and insulation for up to four hours. Istanbul Airport currently handles around 90 million passengers a year and when construction is complete the passenger capacity is expected to more than double to over 200 million a year. Six runways on a total construction area of approximately 76.5 million square metres are intended to enable passengers to be transported safely to their destinations. “Because this is a large-scale project with enormous HVAC systems, most of the ducts through fire protection walls and ceilings are built on a considerable scale, particularly the pipes and ventilation systems. Innovative conductor lines and large metallic and flammable pipes presented an enormous challenge in finding a technical solution, but we were able to successfully plan and implement them,” states Ant Güngör, technical marketing manager at the Turkish subsidiary of fischer. fischer had to supply systems that have been tested, approved according to European standards, but also adhered to project specific requirements. "Construction progressed quickly on this prestigious project, which is why a reliable partner was required for its fire protection. We began supporting the project at an early stage and helped the client plan the FireStop solutions and provided on-site support,” stated Constantin Wiegert, product and market manager at fischer. compiled by Fastener World News provided by: Fastener + Fixing Magazine www.fastenerandfixing.com Fastener World no.184/2020
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Industry Focus
Non-ferrous Fasteners Market Overview
by Shervin Shahidi Hamedani
The raw material segment in the fa st en e r m a rket i s bi f u r c at e d i nt o metal and plastic. Rising metal prices together with their increasing demand in other application industries including construction and machinery are expected to affect raw material supply for fasteners. Additionally, the increasing substitution of metal fasteners by plastic and rubber fasteners as well as adhesives especially in the automotive industry is expected to obstr uct the growth of the metal industrial fasteners market. However, the irreplaceable ability of metal grade products to provide impact resistance in heavy-duty applications is expected to limit the threat of substitutes.
Plastic fasteners are manufactured in various raw materials such as polyamide, nylon, acetal, PVC, and others. Polyamide (PA) is the most common type of plastic fastener which represents the largest share in this market with high strength and high abrasion resistance. Various major automobile manufacturers, for instance, have merged the use of polyamide in their vehicles. Additionally, PA plastic fasteners are progressively penetrating the aircraft interior fastener market as they have the advantages of being lightweight at a substantial strength compared to the metallic counterparts. However, in the aerospace industry, aluminum fasteners are still the most preferred choice for manufacturers because of their numerous advantages, such as higher specific strength to steel, lightweight, and excellent corrosion and heat resistance. The aluminum fastener is one of the most famous non-ferrous fasteners supported by its fast-growing market. The total global import and export value of aluminum fasteners in 2019 was about 2 billion US dollars. China, Germany, the US, Mexico, and France registered their
Chart 1. Aluminum Fastener Import Value (by Country)
(Unit: 1,000 USD)
I ncreasi ng dema nd for costeffective, lightweight, and corrosionresistant fasteners from the automobile and aerospace industry is expected to drive the plastics segment to grow at a faster pace in the future. Plastic fasteners market is projected to reach USD5.64 billion by 2025, after growing at a CAGR of 6.1% during 2020-2025. However, the metal segment dominates the industrial fastener market (accounting for about 9 0% m a rket sh a r e) a s it gener at es enormous demand from the industrial machinery and construction sector owing to their outstanding mechanical strength and resistance properties. I n ter ms of t he plastic fast ener types, Rivets & P ush-In Clips have seized the largest share in the plastic fasteners market in recent years due to their applications mainly in automobiles, marine, space, oil & gas, and electrical & electronics. Asia Pacific (APAC) region, has dominated the plastic fastener market share with about 38%, followed by North America and Europe. The growth of industrialization and urbanization in India and China is projected to boost dema nd a nd popula rity i n end-user industries, including electronics and automobiles. These sectors will expand the market for plastic fasteners in the region. The growing number of Asia Pacific customers who are willing to purchase affordable and lightweight vehicles has been a positive contribution to growth in the market.
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Chart 2. Aluminum Fastener Export Value (by Country)
(Unit: 1,000 USD)
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Industry Focus names as the top five destinations for aluminum fasteners in the global market. Interestingly, the US, Germany, France, and China are the major manufacturers and exporters of the aluminum fasteners in the global market. Chart 1 and Chart 2 illustrate the major import and export players in the aluminum fastener market within the last five years. The rise of innovative fastener materials such as Aluminum, Titanium, and Plastic is known as alternatives to traditional all-metal fasteners. The non-ferrous fastener applications are more related to their light-weighting features used in the automotive and aerospace industry. For instance, the aerospace titanium fasteners market is projected to grow by USD777.21 million during 2020-2024 with a CAGR of 6%. The increased investments in industrial automation, motion control & robotics (IR4.0) have significantly affected the steady growth of the nonferrous fastener market. As mentioned, a majority of fasteners are made of steel due to its strong mechanical properties. Stainless steel fasteners are mainly used in applications where the primary requirements include high tensile strength, temperature resistance, and corrosion resistance.
Chart 3. Copper Fastener Export Value (by Country)
(Unit: 1,000 USD)
A n o t h e r t y p e o f n o n -fe r r o u s fasteners which is commonly used in several industries is a copper fastener. I n most wat er appl icat ion s when conditions change and materials need to hold up in harder, more severe and tremendously corrosive environments, Copper fasteners need to be used. High tensile strength makes copper fasteners perfect for marine use. The total global import value of copper fasteners in 2019 was about 1.2 billion US dollars and the fastener export registered the value of 1.04 billion US dollars. In this market, last year, Germany, China, Italy, the U.S., and Taiwan had the highest value of export. Chart 3 shows the value of exports for copper fasteners in the last five years shipped from the top five exporters into the global market. On the other hand, the U.S., China, Germany, Mexico, and Indonesia were the major copper fastener destinations last year. Chart 4 illustrates the major import of aluminum fasteners in the last five years. Taiwan is the only country in this list, which its name has been recorded as one of the top copper fasteners exporters with a value of about USD69 million but it has only imported about USD2.7 million of copper fasteners in 2019. Other major exporters such as Germany, the U.S. and China are also known as the major importers as well.
Chart 4. Copper Fastener Import Value (by Country)
(Unit: 1,000 USD)
In the future, automotive, aerospace, marine, electrical, and electronics will remain the major end-users for the nonferrous fasteners. Although stainless steel is the most common material used for manufacturing internally threaded fasteners, leading manufacturers in the industry will be focusing more on the R&D initiatives related to the use of raw materials to improve durability, strength, and temperature and pressure resistance. As a result, we will hear more about other (new) materials used in the fastener industry in the future.
Sources: Plastic Fasteners Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast 2020 â&#x20AC;&#x201C; 2025, by Industry ARC Industrial Fasteners Market Size, Share & Trends Analysis Report By Raw Material, By Product By Application, And Segment Forecasts, 2019 â&#x20AC;&#x201C; 2025, by Grand View Research Trade statistics for international business development, ITC
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The Pearl on
Industry Focus The Size of South African Fastener Market: According to National Statistics System Fasteners, on average 10 percent of its fasteners in South Africa are not manufactured domestically, which means that the value of domestic fastener market in South Africa is about 1.8 billion USD.
South Africa’s Imported Fasteners
Africa South African
Fastener Market by Behrooz Lotfian
South Africa’s imported fasteners showed a sinus pattern in the last 5 years, which is shown in the right and first graph.
South Africa's Fastener Import (2015 - 2019)
Unit: 1,000 USD
Exporter
2015
2016
2017
2018
2019
World
191,362
178,032
186,283
195,451
177,346
Based on the right pattern, South Africa’s imported fasteners should increase in 2020, but it seems that COVID-19 has changed this pattern. The right and second graph and numbers obviously showed the sinus pattern in 2019 and the January 2020, but after that, the numbers got negative for 3 months in a row. The promising point in the numbers was April 2020. Its number dropped by 1.4% in comparison with March 2020. It can be interpreted as a turning point. May 2019 15,989 World Nov 2019 14,540
Unit: 1,000 USD Jun Jul Aug 2019 2019 2019 15,728 16,684 14,035 Dec Jan Feb 2019 2020 2020 10,696 15,441 12,962
Sep 2019 12,886 Mar 2020 9,818
South Africa's Fastener Import (May 2019 - April 2020)
Oct 2019 15,937 Apr 2020 9,679
South Africa’s Exported Fasteners The right and third graph showed that the trend of South Africa’s exported fasteners was positive for 3 straight years in a row!! The growth of 2019 was about 2.7% and it can be the turning point for dropping South Africa’s export. The Covid-19 disease intensifies this situation. Importers
2015
World
73,379
Unit: 1,000 USD 2016 2017 64,711
75,366
2018
2019
84,318
86,674
South Africa's Fastener Export (2015 - 2019)
The right and first graph and numbers showed that Covid-19 has affected seriously on the positive growth trend of South Africa’s exported fasteners.
World
May 2019 7,190 Nov 2019 8,384
Unit: 1,000 USD Jun Jul Aug 2019 2019 2019 6,926 8,643 7,193 Dec Jan Feb 2019 2020 2020 7,443 5,640 7,074
Sep 2019 6,743 Mar 2020 6,202
Oct 2019 8,540 Apr 2020 1,684
Although South Africa’s exported numbers have turned negative since October 2019, the number in April has even dropped sharply! Quarantine has caused the businesses to close their activities, the demand for products dropped sharply, and it has been proven by numbers.
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South Africa's Fastener Export (May 2019 - April 2020)
Industry Focus Who were the Partners of South Africa? In the import sector, the main partners of South Africa were:
Main Partners for South Africa's Fastener Import
China satisfied 32.5% of South Africa’s fastener demand; Germany satisfied 13.6%; USA satisfied 10.9%, and Taiwan satisfied 9.5%. These 4 countries supplied more than 66% of South Africa’s fastener demand. Unit: 1,000 USD Oct Nov Dec Jan Feb Mar Apr Exporters 2019 2019 2019 2020 2020 2020 2020 China 4,266 4,374 2,695 5,299 4,046 1,327 3,014 Germany 3,094 1,948 1,328 1,988 1,787 1,657 1,250 USA Taiwan
2,042 1,518 1,316 1,485 1,305 1,490 1,124 1,549 1,754
877
1,368 1,164
970
827
In terms of the export sector, the main partners of South Africa were:
Main Partners for South Africa's Fastener Export
Zimbabwe bought 22.8% of South Africa’s exported fasteners; Zambia bought 12.7%; and Namibia bought 11.5%. Unit: 1,000 USD Oct Nov Dec Jan Importers 2019 2019 2019 2020 Zimbabwe 2,569 2,544 1,436 989
Feb Mar Apr 2020 2020 2020 808 1,393 809
Namibia
1,028
868
647
713
891
689
186
Zambia
910
1,156
712
537
661
670
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The Future of Fastener Business in South Africa
Saharan Africa’s market for fastener imports, which is worth nearly one billion USD. With the right investments, fastener businesses could ramp up exports to the region.
South Africa has travelled along a remarkable road in the two decades since its transition to democracy. Since 2008, however, its average annual GDP growth has slowed to just 1.8 percent, while the unemployment has stubbornly remained at 25 percent.
Make Small Businesses. Investing in small businesses (family-owned businesses) could be a key driver of fastener growth. Capturing this potential (families) will require a bold national industrial plan to ramp up production and productivity.
South Africa is the second largest economy in Africa, only second to Nigeria. It has six dynamic and upwardly mobile cities. South Africa has a good business environment compared to the other African countries and it has a growing consumer base. However, in comparison with the global standard, South Africa still acts poorly, though it is a leader in Africa. There are four bold opportunities that can improve South Africa’s fastener market. These “big four” could increase the numbers in the fastener industry . These opportunities include: Advanced Manufacturing. South Af rica can draw on its skilled labor to grow into a globally competitive manufacturing hub focusing on high-value added categories in fastener industries such as automotive, industrial machinery & equipment. To realize this opportunity, however, South African fastener manufacturers will have to pursue new markets (i.e., keep the African market and go global) and step up innovation and productivity. Infrastructure Productivity. South Africa is investing heavily in infrastructure, but big gaps remain in electricity, water, and sanitation. By forging a true partnership with foreigners, they can together drive three strategies to make infrastructure more productive: making maximum use of existing assets and increasing maintenance; prioritizing the projects with the greatest impact; and strengthening management practices to streamline delivery. (This sector is the government‘s responsibility). Service Exports. South Africa appears highly potential in fastener industries, yet, it currently captures only 8 percent of the rest of sub-
Last Word: It’s Time for South Africa to Go Global The general principle is widely recognized: The larger the market, the more focused your brand must become. There is a big change compared to just a few years ago. Before, companies wanted to dominate their category in the domestic market. Today, almost every company wants to dominate the global market, not just the domestic market. Good thinking for South Africa’s fastener business is going global. Today, almost every category is dominated by global brands, not domestic brands. In terms of price, Chinese brands, dominate the global market for fasteners. In terms of quality, Germany dominates the global market for fasteners. American suppliers dominate the global market of fasteners for high-tech usage. Where can South African producers stand? It is obviously that for South African companies, “going global” doesn’t have to mean taking their existing brands and marketing them in some of the 200 countries in the world. That’s a mistake. Fastener producers in South Africa shouldn’t forget about the general principle when they go global. Rather, they take their existing brands and try to market them on the global market. Not a good idea. The larger the market, the more focused their brand must become. Fastener World no.184/2020
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Industry Focus
by Shervin Shahidi Hamedani
Spotlight on
the Emerging Fastener Market
Looking at the last 30 years, Vietnam’s growth has been amazing. The economic and political restructuring has brought steady and fast economic growth for the country. The drastic changes in Vietnam have transformed this county from one of the world’s poorest countries into a lowermiddle-income nation. With a large and dynamic population, Vietnam has begun to come at the head of international trade and turn out to be a very attractive market for international investments. As reported by World Bank, GDP per capita in Vietnam increased by 2.7 times between 2002 and 2018. Last year, the country’s GDP reached over USD2,700 where more than 45 million people were lifted out of poverty. The country’s economy continued to show essential strength and flexibility, backed by its strong domestic demand and export-oriented manufacturing. The healthy growth of Vietnam’s GDP, in 2019, was one of the fastest growth rates in the region, named the country as the new Southeast Asian tiger economy. Vietnam is rapidly becoming a global manufacturing hub and has often been referred to as “the new China”. Although the manufacturing sector is still relatively new compared to China, it is growing fast. The manufacturing subsector in the country is one of the best performers as a key economic growt h d river. T his fast development mainly originated from substantial foreign investment in the country where most export-oriented Vietnam manufacturers are owned by foreign investors including Chinese. With the recent conflict between the U.S. and China, Vietnam has faced faster economic growth from entities moving their supply chain out of China, supported by lower labor costs and a prime location for shipping in Vietnam. As a result of the U.S. and China tension, with a 25% tariff on US$250 billion worth of Chinese imports, the trade war is driving companies
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to diversify and relocate. Additionally, the Vietnamese government has also considered new specia l econom ic zones a nd t a x exemptions and has increasingly introduced open trade and investment policies to attract more investment while maintaining price stability. In 2019, Vietnam recorded a trade surplus of USD11.12 billion, with a more than 60% growth compared to the year 2018, USD6.8 billion. Last year, Vietnam’s export increased by 8.4% and reached about USD 264.2 billion and the import recorded the value of USD253.1 billion with a 6.8% growth compared to its previous year. The country now is one of the most dynamic and fastest-growing emerging ma rkets globally. Last yea r, Viet na m continued its astonishing growth in fastener manufacturing, driven by export demand as well as healthy FDI inflows. The major trade partners for Vietnamese fastener manufacturers and traders are Germany, China, Taiwan, Korea, Netherlands, Japan, UK, Italy, Thailand, and the U.S. In 2019, Ger ma ny impor ted more tha n USD96 million worth of fasteners such as screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers. Studying on the same category of the fasteners, Vietnam exported about USD37.7 million to the Netherlands, and USD24.3 million to the United Kingdom. 2019’s ove r a l l t r a de d a t a showe d Vietnam’s surplus with the United States, Vietnam’s largest export market, increased to USD46.98 billion last year from USD34.87 billion a year earlier. Subsequently, the fastener industry has followed this path a nd it has increased its expor t figure significantly from USD31 million in 2018 to USD67.6 million in 2019. While Vietnam has been seeking to import more U.S. goods to help shorten the trade gap, Vietnam’s trade deficit with China increased to about USD34 billion last year from USD24.15 billion in 2018. Vietnam
relies on China, its largest trading partner, for materials and equipment for its laborintensive manufacturing. In 2019, Vietnam imported about USD282 million worth of fasteners from China while only exporting USD12.7 million to China. This indicates how the fastener market in Vietnam is dependant on Chinese manufacturers. Vietnam has made a firm progress in improving its business environment in general and the fastener industry in specific. This country has signed several tariff-free trade agreements with other countries to simplify seamless trade with the global market. Japan, for instance, provides a large market for exports, with tariff-free trade, therefore, benefiting the manufacturing sector in particular. Last year, Vietnam exported about USD30 million worth of fasteners to Japan while importing about USD41 million worth of fasteners from Japan. The fastener manufacturing market in Vietnam seems a viable alternative to manufacturing in China for several local and international players in this industry. Gradually, fastener suppliers and traders in Vietnam are gaining more attractions from industries and consumers to compare with their Chinese rivals. Other than the labor cost mentioned earlier which significantly impacts the fastener price, the local manufacturers in Vietnam are generally agreeable to take smaller order quantities in contrast to Chinese factories which often need a minimum order quantity. Moreover, foreign investors who have set up their businesses and factories in Vietnam are exempt from import duties on goods imported for their use which cannot be produced domestically, including machinery, raw mat er ia ls, tools, dies, a nd ot her components and spare parts for machinery and equipment. In the end, and again, the strategic location and rapid growth of Southeast Asia both have supported Vietnam to become one of the most attractive countries for foreign investors. This would be a great opportunity for any manufacturer to tap into the Vietnamese market. With the growing Vietnamese market, there is a high demand for infrastructure construction, building machines a nd facilities, automobiles, motorcycles, and related components sectors. The economic development in Vietnam is going well. However, machines and facilities used in Vietnam are not as state-of-theart as in other countries, so this is where fastener companies should come in and take advantage of all those opportunities.
Sources: The US-Vietnam Economy Trade by Reuters ITC, Trade statistics for international business development The World Bank in Vietnam
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Industry Focus
Three Baltic States Become the Next Opportunities for Fastener Manufacturers? Could the
by Sharareh Shahidi Hamedani
Introduction Based on Heritage website1 the statistics for 2020 show: ●
●
●
Estonia’s economy is the 10th freest in the world and the 5th in the EU region. Estonia’s economic growth is expected to be 3.9% and absorbs 1.3 billion USD worth of foreign direct investment in 2020. Lithuania’s economy is the 16th freest in the world and the 9th in the EU region. Lithuania’s economic growth is expected to be 3.4% and absorbs 905.1 million USD worth of foreign direct investment in 2020. Latvia’s economy is the 32nd freest in the world and the 17th in the EU region. Latvia’s economic growth is expected to be 4.8% and absorbs 879.4 million USD worth of foreign direct investment in 2020.
The numbers of these 3 countries for 2020 are analyzed as below:
Estonia, with a population of around 1.3 million
and the GDP of about 45 billion USD (which can be divided into services (68.1%), industrial (29.2%), and agriculture (2.8%)), has a GDP per capita of 34,096 USD.
○ The World Bank reported that the main industrial sectors of Estonia are the food industry (dairy products & meat processing), accounting for over 15% of the manufacturing industry, electronics & IT (a traditional sector), the chemical industry (accounting for 6% of the manufacturing industry) and the wood processing
industry (this sector accounts for over 20% of the manufacturing i n d u s t r y). A l t o g e t h e r, t h e manufacturing sector alone contributes to an estimated 13.3% of the country’s GDP. ○ The total value of exports and imports of goods and services equals 147.0 percent of its GDP.
Lithuania, with a population of around 2.8 million and the GDP of about 97 billion USD (which can be divided into services (68.3%), industrial (28.5%), agriculture (3.3%)), has a GDP per capita of 34,826 USD.
○ The main industrial sectors of Lithuania are electronics, chemical products, machine tools, metal processing, construction materials, household appliances, food processing, light industry (including textile), clothing and furniture. The country is also developing oil refineries and shipyards. The World Bank estimates that the manufacturing sector alone contributes to 17% of the country’s GDP.
Latvia, with a population of 1.9 million and the GDP of 57.8 billion USD (which
can be divided into services (73.3%), industrial (22.4%), and agriculture (3.9%)), has the GDP per capita of 29,901 USD.
○ The industrial sectors of Latvia contribute to 19.5% of its GDP and employ almost one-fourth (23%) of the active workforce. The construction, metallurgy, industrial food-processing, and mechanical engineering sectors are booming. Latvia is well-known for being an important producer of railway equipment, radios, refrigerators, medicines, timber and steel by-products. Its manufacturing sector is estimated to account for 10% of its total GDP.
The Fastener Industry in the Baltic Countries Estonia’s Manufacturing Sectors and Relevant Numbers The manufacturing sector alone contributes an estimated 13.3% of the Estonia’s GDP, which means that Estonia makes 6 billion USD through manufacturing. Fig. 1 reveals the growth of the manufacturing sector of Estonia year on year. For example, Estonia’s industrial production plunged by 17.7% year-on-year in May 2020, the lowest record since October 2009, after a downward revised 16.9% slump in a month earlier. On a monthly basis, its industrial production dropped by 0.8% in May.2 On the other hand, the industry sector of Estonia deals in the production of chemical products, textiles, machinery, equipment, electronics, oil shale energy, and timber. Shipbuilding is also part of the industries in Estonia but this industry represents only 0.1% of Estonia’s GDP (4550 million USD in a year). The companies in the shipbuilding sector engage in the manufacture of boats and ships, which are used for both recreational and commercial purposes.3 In a simple sentence, manufacturing in Estonia shows low consumption of fasteners.
Lithuania’s Manufacturing Sectors and Relevant Numbers The World Bank estimates that the manufacturing sector alone contributes 17% of Lithuania’s GDP, which means that Lithuania makes 16.5 billion USD through manufacturing. Fig. 2 shows the growth of its manufacturing sector year on year. For example, the industrial production of Lithuania fell 6.2% year-on-year in May 2020, following an upward revised 12.2% drop in the prior month. It was the sixth straight month of decrease in its industrial production. On a seasonally adjusted monthly basis, its industrial production surged by 6.0%. The food processing industry is one of the primary sectors of Lithuanian, which accounts for 11% of its total export. There are about 979 food processing companies registered in Lithuania that produce a wide range of products, including dairy products, meat, fish, vegetables and fruits, baked goods and grains, spices, and herbs. The food and beverage sector accounts for over 4.5% of Lithuania’s GDP and employs 4.6% of the total workforce. Another significant manufacturing activity in Lithuania is “chemical products,” which accounts for over 12.5%
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2 >> 1 https://www.heritage.org/index/ranking https://tradingeconomics.com/estonia/industrial-production 3 https://www.worldatlas.com/articles/what-are-the-biggest-industries-in-estonia.html
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Industry Focus Fig. 1 The Year-on-year Growth(%) of Estonia’s Manufacturing Sector 5
3.4
0 -2.1
-3.5
-4.5
-5.4
-5
-4.3 -7.5
-9.3
-8.1
8.3
-10 -15 -16.9 -17.7
Jul 2019
Oct 2019
Jan 2020
Apr 2020
-20
SOURCE: TRADINGECONOMICS.COM I STATISTICS ESTONIA
Fig. 2 The Year-on-year Growth(%) of Lithuania’s Manufacturing Sector 10
7.6 4.4
5
2.4
2.1 0.2
-0.4
-2.1
-0.4
0 -1.4 -5
-4.9
-6.2 -10 -12.2
Jul 2019
Oct 2019
Jan 2020
-15
Apr 2020
SOURCE: TRADINGECONOMICS.COM I STATISTICS LITHUANIA
Fig. 3 The Year-on-year Growth(%) of Latvia’s Manufacturing Sector 10 7.2 4.3 2
5
3.2 0.9
0
0
-1.5 -3.2
-4.2
-3.5
-5 -9.2
Jul 2019
Oct 2019
Jan 2020
-6.4
Apr 2020
-10
SOURCE: TRADINGECONOMICS.COM I CENTRAL STATISTICS BUREAU OF LATVIA
of its total export. Over 80% of the chemicals produced in Lithuania are exported. The furniture production sector employs over 50,000 individuals in Lithuania, with the biggest firms in this industry working together with IKEA. In the automotive industry, Continental AG in 2018 started to build a factory for high precision car electronics – biggest greenfield investment project in Lithuania so far. Another German manufacturer of lighting technology Hella opened a plant in 2018 in Kaunas FEZ, which will produce sensors, actuators and control modules for the automotive industry. Lithuania’s automotive cluster experienced a significant growth during the past 5 years. Companies in the automotive and engineering sectors are relatively small but offer flexible services for small and non-standard orders at competitive prices. The sector employs about 3% of the working population and receives 5.6% of FDI.4 In a simple sentence, based on furniture companies and the automotive industry in Lithuania, this country can be a desirable market for fastener players.
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Latvia’s Manufacturing Sectors and Relevant Numbers Based on the World Bank’s report, the manufacturing sector of Latvia is estimated to account for 10% of its total GDP. It means that Latvia make 5.8 billion USD through manufacturing. Fig. 3 shows the growth of its manufacturing sector year on year. For example, the industrial production in Latvia declined 6.4% year-on-year in May of 2020, following a 9.2 percent fall in the previous month.5 Latvia’s major industries are textiles, processed wood products, processed foods, chemicals, metalwork, and machine building. Latvia builds both small and big machines such as railway cars, buses, washing machines, and radios. The chemical industry makes up a huge chunk of exports. The industry relies on highly specialized and educated human resources who have made great medicinal discoveries over the years. Products manufactured include bio cosmetics and ecofriendly cosmetics. The decline in demand for fibers and detergents may affect the chemical industry over time.6 In a simple sentence, based on the machinery industry in Latvia, this country can be an acceptable market for fastener players.
Conclusion Accordi ng to t he a forementioned (Key Performance Indicators) KPIs (Table 1) in this article and the diversity of fastener users, it is predicted that the fastener market size of Estonia is expected to become smaller in 2021, but in the long term it is a potential market that will attract more FDI to establish fastener factories, which will also boost the industrial development in Estonia. Lithuania is not the dreamed country for foreigners in the Baltic region, so its FDI/GDP is low, and the manufacturing trend is negative. These factors may restrict the fast growth of local manufacturers (including those in the fastener industry). However, based on the type of their industries, they still need fasteners, so it is a market for foreign fastener producers. Based on Latvia’s numbers, this country has the potential for two types of players in the fastener industry (i.e., exporters to Latvia and manufacturers). Table 1 Country
GDP Growth Manufacturing Growth FDI/GDP
Estonia
3.9%
Negative in 2019 Negative in 2020
2.9
Lithuania
3.4%
Positive in 2019 Negative in 2020
0.9
Latvia
4.8%
Positive in 2019 Negative in 2020
1.5
>>
4
https://www.worldatlas.com/articles/what-are-thebiggest-industries-in-lithuania.html
5
https://tradingeconomics.com/latvia/industrial-production
6
https://www.worldatlas.com/articles/what-are-thebiggest-industries-in-latvia.html
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Industry Focus
Five Minutes Before Twelve Motto: “Only when the last tree falls, the last river is poisoned, and the last fish is caught, will we understand that money cannot be eaten.” Divination of the Cree Indian tribe
by Jozef Dominik
About
The number of cases of coronavirus infection particularly in Europe exceeded 1.5 million. The “old continent” is thus one of the most affected in the world. The situation in the 6 countries of Europe and in Taiwan (TW), Russia (RU) and USA is shown in Fig. 2 (source: WORLDOMETER, expressed in the number of infected population in %, which is the only objective comparison).
Source: Worldometer 5M Total Coronavirus Cases
Today's topic - coronavirus, whether we admit it or not, is currently a serious societal phenomenon. The ultimate extent and the consequences of the crisis are not yet foreseeable. The facts change daily. The whole situation in the world as at the end of May 2020 is shown in Fig. 1. It needs no comment. Alarming is not only the extent, but especially the increasing tendency to spread the pandemic.
4M 3M 2M 1M 0 end of March
Consequences
Fig. 1. The Number of COVID-19 Cases
The corona pandemic has a firm grip on social and economic life in the world. The ultimate extent and consequences of the crisis are currently not foreseeable. One of the biggest risks at this time is uncertainty.
Most car manufacturers had to stop production for a short period of time (KIA Slovakia for example) due to a lack of assembly parts imported from abroad. VW also had to temporarily stop its stores in Europe (ES, SK, CZ) for fear of a pandemic. The carmaker Peugeot (SK) also stopped working and sent employees home with a salary of 65% of the original salary. Fiat Chrysler Automobiles reported a net loss of 1.69 billion euros for the first three months of the year. In the same period last year, the company recorded a profit of 508 million euros. Of course, such a situation also has a negative impact on manufacturers and suppliers of fasteners. Agrati, IT, one of the most important manufacturers of screws for the automotive industry decided the lockdown of the operations, due to the outbreak of the COVID-19 emergency.
0.6 EU Number of infected population in %
Pleasing it is that thanks to effective measures consisting of rigorous protection already in place to keep the pandemic at a bridle. “The countries of Central and Eastern Europe reacted before the epidemic began. Slovakia, for example, acted very, very quickly," the Financial Times quoted Professor Martin McKee from the London School of Hygiene and Tropical Medicine. Similarly, Taiwan has made a rapid action. The government locked up the airports. Inevitably, however, this has a negative effect on economic activities and that kills some of the trade between manufacturers and overseas companies. That results in forcing some companies to lose revenues and making a portion of employees lose income.
end of May Cases of 2020
ES
0.5
0.3
IT
UK
0.4
USA
FR DE
RU
0.2 0.1
SK
TW
0 Source: Worldometer (situation: end of May 2020)
Fig. 2. The Number of Infected Population in Percentage
Machinery production switched to the so-called “Kurzarbeit” (short-time work).
As Prof. MUDr. Eva Rozborilová says, “... although the corona will pass away like any viral disease in the past, we will continue to die of oncological, metabolic and cardiovascular diseases. All these diseases are associated with climate, diet and life style. Humanity will slow down, and maybe it's the purpose of the flu, no matter who triggered the virus. We need to really think about how our grandchildren and their grandchildren will live”.
“The construction industry is facing the most difficult times," says Prof. Norbert Gebbeken, President of the Bavarian Chamber of Engineers. “Construction projects are naturally designed to be long-term, so that many offices are still working on projects that started before the Corona crisis. We are very concerned that there won't be new orders soon."
And the world-famous traveler and film director Pavol Barabáš, laureate of more than 250 international awards for film shots of the planet Earth, summed it up in one sentence: "We have pushed aside the harmonious relations between civilization and nature as an obstacle to economic growth".
All this had to have a negative effect on the overall economic situation of individual countries. However, it is not just an economic consequence.
And what does the author say? “We have degraded nature to the position of a slave”.
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Industry Focus Hard times have come for all areas of life, including trade fair and symposiums organizers. Due to the spread of the new corona virus, numerous trade fairs and other major events had to be canceled or postponed this year. For example, fastener fairs in USA, France and India this year were postponed due to the COVID-19 virus. Digital offers will not replace real trade fairs, they will complement them only. The pandemic has wiped out almost a third of global oil demand through lockdowns and travel bans, landing a direct hit on a sector already in the grip of its own crisis. The situation is all the more complicated because there is still no effective vaccine and the origin of the virus is not clearly known. There are only assumptions and conspiracy theories: Table. 1. Conspiracy Theories Conspiracy Theories Random transmission
Human pollution
It is not within the competence of this article to draw conclusions in every case, but it is clear that nature cannot be plundered indefinitely. In the end, it always triumphs over human stupidity. Nature cannot be bound with impunity as a criminal (Fig. 3) or endlessly looted.
It has been stated countless times on various forums what enormous material damage is caused by corrosion. In particular, steel structures and especially screw connections are sensitive to the aggressiveness of the external environment (Fig. 5 and Table 3). Although it is not exactly possible to prove that anti-virus measures have helped not only living but also inanimate nature, it can legitimately be assumed that they are equally beneficial. products
raw materials energy emissions CO2
Nature can take cruel revenge. This has been the case in the past and is probably t he case now. L et's look at t he cu r rent environmental situation and its changes this year (Table 2).
Environment and Materials
Fig. 3. Bound Tree
solid waste
Force majeure
The coronavirus therefore helped nature. Of course, not directly, but thanks to the measures taken. Those measures were taken by the mankind and nature immediately repaid them. Isn't this a clear signal to get rid of this mess? Nature literally provides us with instructions.
waste water
Calculated & developed in the laboratory
Paradoxically, the coronavirus helps nature. According to various world agency reports, the measures taken against this latest plague of humanity have caused an improvement in the atmosphere, the return of animal species, including freshwater and marine species, to places where they have long since disappeared.
Fig. 4. Sankey Diagram
Fig. 5. Material Damage by Corrosion
Table 3. Material Loss Per Year
Environment Situation in 2020 (source: worldometer)
Material loss per year [µm]
Table 2. Environment Situation This year - 2020
End of April
Forest loss [hectares] Land lost to soil erosion [hectares] CO2 emissions [tons]
End of May
1,735,930
2, 079, 000
2,337,032
2 799,000
12,064,113,183 14, 453, 467,000
Desertification [hectares]
4,051,302
4, 797,000
No comment. What is actually happening to our mother Earth as a result of economic activity (See Senkey diagram in Fig. 4) As seen, a person's economic activity is associated with induced production harmful substances. The higher the desire for wealth and prosperity, the greater the risk of devastation. These are mainly the development of motoring, aviation and energy and the associated CO2 emissions, which, in addition to steam, methane NH4 and N2O, are primarily responsible for the greenhouse effect. Carbon dioxide is normally at least as important to life on Earth as water. Understandably, this means the natural metabolism between flora and fauna, which takes place through photosynthesis, the most important process on Earth in terms of life. Chemically it can be expressed as follows:
It can be said that there is a balance between O2 and CO2 in nature. The one who disturbs the balance is human economic activity.
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Environment Zn
Brass
Copper
Non-alloy steel
Country air
1-3
≤4
≤2
≤ 80
City air
≤6
≤4
≤2
≤ 270
6 - 20
≤8
≤4
≤ 170
Industry air
This table clearly documents the dependence of material losses on the aggressiveness of the environment. Even a well-known expert Prof. Peter Jost in his colossal work The Jost Report said that corrosion, friction and wear cost the world astronomic sums of money every year. Unfortunately, even the largest authorities in the field of climatology could not convince. Neither did Günter Verheugen, a former European Commissioner for Industry, who said: "I firmly believe that politicians should create the conditions to make environmental protection attractive to businesses." Until “Mr. COVID 19” had to come to convince.
Conclusion “Five Minutes Before Twelve” is the title of this post which indicates the severity of the current pandemic situation. Maybe it's a little far-fetched, but in any case, the coronavirus is a warning to humanity. Thanks to extensive preventive measures and an effective vaccine, we will certainly manage the pandemic, but that is only the solution to the consequence. Wouldn't it be better to address the cause?
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Company Focus
Introducing German Domas' New Office with More "Fine Blanking" Capabilities to Serve Foreign Customers by Gang Hao Chang, Vice Editor-in-Chief of Fastener World
Domas Hardware Co., Ltd. has reached its 50th anniversary milestone in 2020! Its factory of more than 2,645 sqm (28,470 sqf) provides customers with ODM/ OEM service of automotive/motorbike stamped parts and furniture caster parts. Its monthly revenue is around 5 million NTD (170,000 USD). In order to actively extend its business reach to more int’l markets and diversify its customer portfolio, Domas then launched its new office upgrade program this year and has had it finished with a new ambiance this August.
Introducing German “Fine Blanking” Technology and Outpacing Others with Better Stamping Results In earlier time when Domas was incepted, it was more like an OEM for domestic trading companies. Later, with the gradual accumulation of technique and equipment, Domas started to increase its order intake from abroad. Sales manager Michael Huang, with years of experience in int’l marketing management and parts processing, said, “Generally speaking, the application of traditional stamping technology will easily result in fractures, causing quality issues for subsequent processing steps. However, since 2004 Domas has introduced from abroad the advanced “Fine Blanking Components” manufacturing procedure and made-to-order machines, significantly reducing the occurrence of fractures and creating even & smooth surface of finished products, which can also further enhance the quality of electroplating. What we already invested in have not only made the quality of our automotive parts and furniture caster parts get ahead of other competitors still using traditional stamping, but also have successfully brought us into U.S., Japanese, and the Middle East markets in the past 2-3 decades.”
Not Just an OEM, but ODM Thus far, Domas has mainly focused on satisfying its Middle East customers’ demand for automotive seat belt pretensioner parts and its U.S. and Japanese customers’ demand for furniture caster parts. Up to 80% of its cooperation with customers are ODM cases. When customers submit their product drawings, the team of Domas can help them improve design and develop new products. Moreover, they can offer peripheral service if customers have extra requests for hole drilling, tube bending, CNC machining/milling, to name a few. Domas’ principles of considering customers’ interests and product performance its priority have made it win the trust of world leading automotive safety system manufacturers and many other big brands. Huang added, “Our insistence on quality is as strict as our customers’ requirements for quality. In order to manufacture certain products satisfying to customers, we have even invested a great deal of capital for times in acquiring machines to develop auto parts for customers. Such effort made our caster parts successfully enter U.S. warehouse approach of DIY products, enabling local customers to get access to our products in a faster and more convenient way. Looking forward, we are also considering setting up an independently operating quality inspection division to achieve a manufacturing procedure that is more complete and works based on specialization.”
Domas contact: Michael Huang E-mail: michael@do-mas.com
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Domas invested in equipment for customers.
Next Target: Australian Stamped Building Hardware Market The ISO 9001-certified Domas is gifted with the ability to communicate with customers. Over the past decades it has gained several loyal customers from the U.S., Japan, and the Middle East. After sales manager Huang took the helm of the sales division, he then planned to develop new markets, hoping to make the Company’s sales more diversified. Huang noted, “Australia, in particular, will be Domas’ focused market for development in the next 3-5 years. In addition, it will also work hard to improve quality control over products and apply for certification, in order to gain more advantages to stand out in future challenges.”
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Special Feature
Ask Our Expert of the Month: The Fastener Professor, Dr. Toshimichi Fukuoka
～Thread Materials～
Q1:
What is the significance of Young’s modulus when selecting thread materials?
Ans: In the case of metal materials, Hooke's Law, which insists that stress is proportional to strain, holds in the range of small displacements. The proportional constant is called Young’s modulus. Young’s modulus of carbon steel materials is around 200GPa. Although Young’s modulus of austenitic stainless steels is slightly smaller, but there is no significant difference. The important point about Young’s modulus is that it does not represent the material strength but the stiffness, i.e., the extent of difficulty in deformation. For instance, there is not much difference in Young’s modulus between low-strength low carbon steel and high-strength alloy steel. The moduli of titanium and titanium alloy are about 110GPa and that of aluminum alloy is around 70GPa, both of which can be called low stiffness materials.
Q2:
Is there any other material constant similar to Young’s modulus?
Ans: Young’s modulus represents the extent of ease to elongate or shrink when the material is subjected to the load perpendicular to the surface. On the other hand, including twisted bars, the stress caused by the load along the surface is called shear stress. Shear stress is proportional to shear strain (surface inclination angle) caused by shear load. The proportional constant is called modulus of transverse elasticity. Incidentally, when a round bar is pulled, it elongates in the axial direction and shrinks in the diameter direction. The ratio between the strains in the diameter and axial directions is a material constant called Poisson's ratio. In addition to those constants, there is a material constant called bulk modulus. In any event, if the values of any two of the above material constants are given, the remaining material constants can be calculated by relating mechanical expressions. This is a convenient property that makes it possible to obtain material constants that are hard to measure.
Q3:
What are the material constants representing the characteristics of thread materials?
Ans: Material constants are classified into two categories that represent mechanical properties and thermal properties. A typical constant of the former is Young’s modulus. Among the latter constants, coefficient of linear expansion and thermal conductivity are representative ones. Regardless of high or low temperature environments, it is necessary to note the amount of these constants when bolted joints are subjected to thermal loads. Coefficient of linear expansion represents the amount of strain generated by the temperature change of one Celsius degree. It is a constant representing the extent of ease to elongate or shrink. If the temperature of a carbon steel round bar of 1m in length is raised by 100 degrees Celsius, the bar elongates a length of 1.2mm. Comparing to this, the coefficient of austenitic stainless steel is 1.5 times larger, that of aluminum alloy is about 2 times larger, and titanium/titanium alloy is about 75%. On the other hand, thermal conductivity is a material constant representing the extent of ease for heat flow. Comparing to the thermal conductivity of carbon steel, the conductivity of austenitic stainless steel is about one third, that of aluminum alloy is 2.5 times larger, and those of titanium and titanium alloys are as small as about 40% and 17%,
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respectively. When material surface is heated, the surface temperature does not rise too much in case of high thermal conductivity because the heat easily dissipates into the object. Conversely, if thermal conductivity is low, heat is less likely to diffuse; hence, attention must be paid because the surface temperature may significantly rise.
Q4:
What are the characteristics of austenitic stainless steel?
Ans: Compared to carbon steel, austenitic stainless steel has somewhat lower Young’s modulus and the coefficient of linear expansion is 1.5 times larger. In contrast, the thermal conductivity is one third of carbon steel. Thus, we can say it is a material that is hard to conduct heat and is easy to elongate. When using austenitic stainless steel in a bolted joint subjected to thermal loads, axial bolt force is likely to vary and large bending stress tends to occur due to large temperature gradient to be generated. Additionally, in the tightening process of bolts, the heat generated at thread surface and bearing surfaces is unlikely to diffuse inside. Therefore, the temperature of the contact surfaces rises, making seizure more likely to occur.
Q5:
What are the characteristics of titanium and titanium alloy if used for thread materials?
Ans: Young’s modulus of titanium and titanium alloy is somewhat larger than 50% of the modulus of carbon steel. Hence, when using titanium and titanium alloy as the materials for bolts and nuts, it is found from simple calculation that they tend to elongate nearly twice as much as the screw threads with the same specification made of carbon steel. From a mechanical perspective, if the thread specification and axial bolt force are the same, the longer the bolt, the higher the fatigue strength and the less the loosening is likely to occur. From that point of view, screw threads made of titanium and titanium alloy can be said to be excellent. Meanwhile, they have small coefficients of linear expansion. Accordingly, using them while noting the small value of thermal conductivity, they possibly work well as anti-loosening threads against thermal loads.
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Technology
Protection Above All by Jozef Dominik
It is better to prevent errors than to eliminate their harmful effects ex post!
a slightly modified image, already known to Fastener World readers, to demonstrate the causes of the indoor swimming pool accident. If a competent designer understood the specifics of the corrosion process in indoor swimming pool with chlorinated water, disaster did not have to occur. The solution was to prevent harmful chlorine vapors from entering the space between the roof and the ceiling of the pool. Fig. 3. Typical Example of the Impact of an Aggressive Environment
Fig. 1
Readers cer tainly u nderstood t he symbolic meaning of the attached Fig. 1. Hard to get around the most recent topic of the day - the spreading dangerous pandemic named Covid-19. The present generation was not ready for it, because it had never experienced anything like this. Only the sporadic literary sources are known to us the deadly effects of for example: Spanish influenza (1918 - 1920) worldwide distribution, 50 million victims (according to Nature, 2004) or HIV (since about 1980, still ongoing) - worldwide prevalence, 20 million victims, 40 million infected (by the end of 2003 according to the WHO). Why do we talk about it on this magazine? The answer is simple; because there is very current topic and analogy between the harmful virus and a "virus" called corrosion. The only difference is that the first case concerns living beings and the second case concerns metallic materials, in particular steels. However, they have one thing in common â&#x20AC;&#x201C; the most effective measure is prevention. Fig. 2. shows
Similarly, the case in Figure 3. It is a typical example of the impact of an aggressive environment. If the designer had already taken the appropriate anticorrosion measures before assembly, such huge replacement costs would not have to be incurred. And, we could go on with many other similar examples. Every corrosion is governed by the principle of cause and effect. Eliminate the cause, avoid corrosion!, is the basic rule in the fight against corrosion. It is known from various literary sources that corrosion impoverishes national income by about 7%, which is an astronomical sum in a global sense. The forecasts are not optimistic at all. Waste products during production (Fig. 4) will continue to grow. Warning is a quote from the lecture by Miriam Behrens - Pro Natura Foundation at the 5th Economic Conference Public Eye on Davos: "It would be naive to think that companies will volunteer to protect the environment or respect the Fig. 4. Waste Products During Production interests of the affected population. The main goal of the groups is and will remain profit maximizationâ&#x20AC;?. The question is to what extent the plant kingdom is able to absorb excess CO2 and convert it to oxygen O2. However, let us return to corrosion, which also depends on the aggressiveness of the environment. Researchers are constantly looking for more effective methods of corrosion protection but the universal protection medicine of bolted joints that would be equally effective for all types of corrosion does not exist. Each corrosion must be approached individually, as it is always a unique system. The example in Fig. 2. shows that even stainless steel is not always the right solution. Very dangerous are the invisible corrosion cases to naked eye. Such is e.g. hydrogen embrittlement. Hydrogen is often introduced during manufacture from operations such as forming, coating or cleaning and surface treatment. The only way to eliminate hydrogen embrittlement is to avoid contact with hydrogen. For fasteners this means replacing galvanic methods of surface treatment. The current market offers several such processes, and it may not be the usual hot-dip galvanizing.
Summary Fig. 2. The Causes of the Indoor Swimming Pool Accident
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The article aims to point out the negative consequences of increasing the aggressiveness of the environment that surrounds us. This applies not only to living organisms but also to inanimate matter. In both cases, protection is important. Let the current Covid-19 pandemic be a memento for humans. You donâ&#x20AC;&#x2DC;t like to play with nature. It can be cruelly avenged.
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Technology Some for ms of mechanical and heat treatments a re common for all stainless steel alloys to obtain different physical properties. When a material is plastically deformed (cold worked) it tends to become harder. However, the rate of work hardening decreases as the temperature increases (hot forming). Two opposing effects take place at the same time when a material is plastically deformed at an elevated temperature; a hardening effect due to plastic deformation and a softening effect due to recrystallization. Whenever there is a distortion of the lattice structure, whether it is from plastic deformation, heat treatment or alloying, there will be an increase in strength and hardness of the material. Yield strength increases more rapidly than tensile strength so that as the amount of plastic deformation is increased, the gap between the yield and tensile decreases. Annealing widens the ratio between tensile and yield strengths but reduces residual stresses. The ASTM (American Society for Testing and Materials) Standards A193 and F593 both have their own alloy and treatment identification methods. Both of these standards are inch standards. The A193 was developed for “Alloy-Steel and Stainless Steel Bolting Materials for High-Temperature Service” and the F593 was developed for common use and general corrosion resistance for “Stainless Steel Bolts, Hex Cap Screws and Studs”. The F738M was a metric standard for hex head stainless products but was withdrawn in 2014 in favor of referencing the ISO 3506. However, there are other stainless steel standards in both inch and metric units for socket head cap screws, socket set screws and square head and slotted headless set screw products.
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Part 2
Stainless Steels
High Temperature Bolting by Guy Avellon
In 2004 the F2281 was published as the Standard Specification for “Stainless Steel and Nickel Alloy Bolts, Hex Cap Screws, and Studs, for Heat Resistance and High Temperature Applications”. This specification is intended for fasteners from ¼” diameter and larger for use at temperatures up to 1800ºF (982ºC) as well as balancing the corrosion resistance of the alloys for specific applications. It should be noted that several steel standards are referenced; ASTM A276 and A479, for example. Both have similar steel chemistries but have some differences. The A479 specifically refers to being used in boiler and pressure vessel applications. When the SA276 material specification was submitted for ASME Section II review and endorsement, it was for bars and shapes. The scope limits the use to non-pressure boundary applications. Strain hardening is a form of work hardening whereby the material develops an increased resistance to further deformation. Strain hardening will increase the yield strength in the shank, whereas cold working will increase the strength in the threads. This is important since non-ferrous materials can and are allowed to yield in the shank area under tensile testing.
Carbide solution treated and strain hardened conditions are referenced in most all of the stainless steel material specifications. These conditions change the physical properties without affecting the corrosion resistance. These changes should be taken under consideration when calculating torque values because some alloys and conditions will have a drastic change in yield strength with different diameters. Some alloy conditions will have up to four different yield changes through 1 ½” diameters.
Technology
The F2281 does not reference strain hardening but instead references all annealed or solution-annealed stock with re-annealing the product within specific heat ranges for different Types and Classes. What is unique with this standard is that the tensile and yield strengths are consistent for all diameters in each Class with the exception of the alloys 410, 416 and 431. There are three types of material specifications; Type I for heat resisting alloys for continuous service applications; Type II for heat resisting alloys for continuous and intermittent service applications; Type III for high temperature alloys for continuous and intermittent service applications. There are also three Classes of alloy Grades; Class A, for heat resisting austenitic grades; Class B, for heat resisting martensitic grades; and Class C for heat resisting ferritic grades. For example, to designate austenitic alloys, all product markings will have an F1, followed by a letter from A (F1A) through M (F1M). The austenitic alloys are Type I; Class A are 304, 304L, 316 and 316L. The 304 and 304L alloys are the most susceptible of the austenitic stainless steels to stress corrosion cracking (SCC). The ‘L’ suffix indicates low carbon, such as 0.03% for 304L vs 0.08% for 304. Exposure to halides, chloride ions as well as elevated temperatures will promote SCC due to their lower nickel content, which is why the proper solution-annealing and re-annealing processes are very important as is a slow cooling rate to prevent carbide precipitation. The 316L has better resistance to intergranular stress corrosion but continuous operating temperatures from 800-1500ºF (427-816ºC) will cause chromium carbide precipitation in the grain boundaries weakening the fastener. Because of the relatively low carbon content of the austenitic series, they may not be hardened by heat treatment. The martensitic and ferritic series may be hardened because of their higher carbon content and lack of nickel. The martensitic steel is a body-centered tetragonal (BCT) crystal and the ferritic steel is a body-centered-cubic (BCC) crystal structure: both are ferromagnetic and hardenable. The ferritic steels are more resistant to SCC but more susceptible to pitting and crevice corrosion. The martensitic alloys of 410, 416 and 431 are of the Type I, Class B grades and the ferritic alloys of 430 and 430F are of the Type I Class C grades. Type II, Class A heat resisting austenitic alloys for continuous and intermittent service include; 309, 310, 321, 330 and 347. Type II grades are designated with an F2 followed with a letter suffix of A through I. (F2A- F2I) Type III, Class A for high temperature nickel alloys for continuous and intermittent service includes alloy 600 and 601. Type III grades are designated with an F3 followed by a letter suffix of A through G (F3A-F3C). Type III, Class B is for high temperature, precipitation hardened alloy 660 (F3D-F3F). Type III, Class C is for high temperature, precipitation hardened alloy 718 (F3G). It should be noted that while the tensile strengths of these high temperature alloys are high, their tensile strengths and yield strengths begin to decrease significantly once the operating temperature is elevated beyond 1100º F (594ºC). For example, the Type III, Class B alloy (660) has a tensile strength of 138 ksi (952 MPa) at 800ºF (427ºC) but drops to 64 ksi (441 MPa) at 1400ºF (760ºC). The Class C alloy grade 718 retains its strength properties at a slightly higher strength and temperature level. When making and using torque values, always check the specification and diameter requirements for any changes in the yield strength. The tensile strengths may be the same for some, but the yield strength may have changed which will significantly affect the connection. Then check the operating temperatures for the proper choice of alloy and condition.
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Company Focus
Rise of Integrated Fastener Service Provider
Industry Building Hardware Co., Ltd. Product R&D and Customization Reducing Costs and Improving Profits for Clients
More about IBH
by Dean Tseng, Fastener World
Perfect Dual Specialties: Manufacturing & Trading IBH started off as a small screw processing plant. To kick off overseas sales, President Martin Tsai founded IBH in 2016. Martin used to work for Yieh United Steel Corp and has more than a decade of experience in steel production. Rita Su, another corporate pillar for IBH, entered the fastener industry since 2000. She used to work for foreign companies as their purchasing representative in Taiwan for 6 years and helped them double their purchase volumes in Taiwan, which is why she knows all fastener purchase demands and quality requirements. With dual specialties in both fastener manufacturing and trading, IBH has become an impeccable manufacturer and international trader.
Professional Consultant Offering Integrated Service Besides various fasteners, IBH offers fastener manufacturing machines, measuring/ inspection equipment, gages, wrenches, dies, and punches. Martin says he has formed a strategic alliance with 30 suppliers, so he can provide diverse products mentioned above and provide surface treatment (electroplating, coating) as well as packaging. All processes from material handling, forming, processing, shipment to logistics are handled by IBH. Rita says she follows a strict set of standards, utilizing her specialty in purchasing to audit suppliers’ certificates, manufacturing equipment and quality. “We have personnel on 24-hour standby through online instant messaging, so without stepping out of your front door, you can have access to IBH’s service. We also provide turnkey projects for clients to customize the production line they want to purchase, and organize the layout of equipment for them. We even headed to Africa and assembled testing equipment for our clients at the beginning of this year.” Providing one-stop integrated service, IBH is a consultant of fasteners and related products for global customers. Contact person: Rita Su
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IBH hired an R&D consultant who customizes and develops small screws, nuts, stamped parts and automotive parts to improve added values of products to satisfy clients of different levels and industries. As a member of Taiwan Soka Association, “Our ultimate goal is to become a leader of the industry that creates a supply chain alliance with our suppliers and clients which seeks mutual growth. We hope from very deep in our heart to help our clients create profits and achieve business growth. We also seek to create business opportunities with our suppliers and fulfill SOKA’s purpose to deliver blessings and happiness for everyone. IBH values tr ust and f lexible com mu n icat ion. It is a genu i ne Taiwanese service provider knowing the bolts and nuts of local fastener supply chain. “In this globalized market and the Internet era, we’ve come to realize that corporations of ‘a singular product or trade’ can no longer survive, so we opt for an all-inone integration, namely the concept of ‘Company of One’.” In addition to Southeast Asia, India, Africa and other emerging markets, IBH’s products are sold to the U.S., Europe and other developed countries. Furthermore, orders from India have swarmed in IBH this year. IBH knows where to find the products that clients need most. If they choose IBH for their initial investment, they can expect multiple efficacy to come up later.
E-mail: ritasu@ibh-fastener.com.tw
Technology
Limits to Tool Life –
Preventative Maintenance
“It’s a bad workman who blames his tools”, is a proverb which will be found in almost every language. It can be interpreted in a number of ways: that the workman did not possess the necessary skills; that the quality of the work was poor; that the time taken was too long, etc.. As a youngster, I often recalled the quotation when I struggled repairing the car or around the home to fix something when I didn’t have the correct tools. This often resulted in skinned knuckles or some such inconvenience. For the Fastener Manufacturer, the term “incorrect tooling” should refer only to tooling which has the wrong dimensions or has been incorrectly manufactured/heat treated. With appropriate inspection, such tool failures should not reach the press and if they did, would be expected not to be used in production.
by Peter Standring
As shown in Figure One, this is identified by the crack initiation site being bounded by a series of equally spaced lines which progress into the body of the tool. The fewer the boundary lines (striations or beach markings – as indicated by the ridges left by the tide of the sea on a sandy shoreline) the higher the loading and/or the harder the tool material. Large numbers of striations indicate a slower progress in the tool fatigue prior to ultimate failure suggesting a lower load and/or a tougher material. Final failure is identified by the crystalline structure. It should be noted that where a tool is subjected to shear/torsional loading, brittle tools will fail in a spiral or 3D manner and those displaying ductility show a planer fracture surface as predicted by classical stress theory.
T his a r ticle is not concer ned wit h tooli ng misadventures or how tools should be made. It is only concerned with the enhancement of efficient tool life through tool control, care and preventative maintenance.
Limits to Tool Life All fastener manufacturers are keenly aware of the impossibility to generalise tool life. The number of variables involved: hot/cold forming; single/multi station forming; work/tool materials used; product geometry; batch sizes produced; and so many other factors demand knowledge, competence and consistency to be successful. Happenstance and serendipity are words rarely used in competitive volume manufacture. As in all life, the only sure thing is death. For tooling, this comes either catastrophically as in breakage, or through dimensional changes by wear. Where multistation tooling is employed, the amount of work done at each stage coupled with the geometric shape change produced will subject individual tools to different types of stress of varying degrees of intensity. Examination of a fractured tool surface can reveal the nature of loading and failure mode. A tool having a hardened surface and a tough core will behave in a more ductile manner than one which is through hardened and only lightly tempered back. Where compressive loading is applied, catastrophic failure would normally result from a surface defect caused in manufacture or handling. Tool misalignment during setting causing tool bending would exacerbate this and hasten the failure. Where excessive loading is applied and early failure occurs, the fracture surface would be entirely crystalline. However, where significant cyclic loading takes place prior to failure, the failure mode would be one of fatigue.
Figure One Illustration of a Typical Fatigue Failure Fracture Surface Where the tool loading is below the stress level which will cause catastrophic breakage, the failure method becomes one of wear. In this case, the part being produced fails to meet one or more of the required dimensions and is then replaced. To ensure efficient quality of production, all fastener manufacturers must have and maintain full process consistency. In reality this can only be obtained by having all performance data captured, recorded and analysed at every stage of manufacture. The purpose of this information gathering is quite simply to gain a measure of ‘predictability’ over the production process. Given so many variables exist in the system, the unanticipated will always occur. In this way, by being able to recognise and identify the ‘how’ part of the problem, it should be possible to include the new information into the data base to help ensure that the ‘when’ and ‘where’ rarely occur in the future.
Tool Loading Intuitively, we all know much more about the behaviour of materials than we think. Most children at an early age are aware that crockery and glassware often breaks when dropped on to a hard surface. That metal is hard and heavy. That rubber is elastic unless overstretched when it breaks and that wood can be bent when loaded normal to the grain or split along it. Figure Two shows a simple stress strain graph for a material in tension. Stress is the applied load acting over a given area. Strain is extension over the original length. Of course, different materials will behave in different Fastener World no.184/2020
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Technology ways. For example, nylon would undergo a very large strain at a low level of stress whereas a brittle material would fail catastrophically with very little strain. Interestingly, the nature of the plotted results for a brittle material would be the same as that of an elastic band if it were extended to failure although with very different values.
It is only through the dedicated, continuous and methodical collection of tooling data and its analysis that any fastener manufacturer can hope to understand the tooling situation. Change suppliers, invest in new equipment and/or techniques then, without previous performance data, on what basis could any assessment be made to determine if the change was worthwhile?
The Jewel in the Crown In the current Covid 19 crisis, everyone is struggling. None more so than the TV News people. Normally, they have such slick studio presentation skills and now, with interviews, discussions and talk shows linked to home working using a range of different on-line systems, the whole thing often looks and sounds quite amateuristic. This is because we have become conditioned to certain standards and when they are unavailable, it becomes very noticeable.
Figure Two Stress/Strain Graph for a Material in Tension In both cases, the resulting curve would be a straight line indicating the relationship between stress and strain. This initial portion of a stress/strain graph is the ‘elastic’ region since when the loading is removed, the material will return to its original geometry. If a metal does not behave in a brittle manner and is loaded beyond the ‘elastic limit’, then to do so without failure, it must ‘yield’. The stress at which this occurs is termed the ‘yield stress’. In a brittle material where yield does not occur, it would be the fracture stress. Further application of load in a material with some ductility will take the material into a ‘plastic’ phase where the resulting strain becomes permanent. When forming metals, failure of a workpiece to exceed the yield stress will not produce the desired deformation. In the case of tooling, loading beyond the elastic limit will permanently reshape the tool. Hence, the material the tools are made from must have significantly enhanced properties relative to the materials they are forming. Figure Two shows the loading situation in tension which in compression would be a mirror image. However, a shear or lateral loading would reduce the stress at which yielding occurs in tension or compression by around one half. This shows that any off-centre loading by either design or incorrect setting/location, could have dramatic results. Stresses due to bending, torsion (twisting) and impact may cause direct tool failure but if not, could provide a major contribution to failure by fatigue. Invariably, as indicated in Figure One, such breakages are the result of stress raisers in the tooling. These could be score marks, sharp corners, tooling constraints etc., and their effects will be exacerbated by the cyclic nature of the deformation process. Even the nature, degree and direction of tool polishing can be identified as a cause of fatigue failure.
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So it is with the very best metal forming companies working in fastener manufacture, cold/warm forging and powder metallurgy. They are all aware that the materials, equipment and technologies they purchase are readily available to their competitors. However, what is different and recognised by all as the Jewel in their respective Crown, is the toolmaking skills they require to give them a competitive edge. Such skills are never acquired overnight nor can the tool quality demanded be obtained using worn out, ineffective machines and practices. Wherever quality metal formed products are produced the core competency is always to be found in the toolroom. Recognising the fundamental importance of these attributes to the success of the business, individual enterprises (very often family owned) jealously guard the personnel and techniques they have spent such efforts to create and nurture. Successful fastener companies can be acquired and successfully continued if the new owners are themselves appreciative of what provided the success in the first place. Anyone contemplating setting up a competitive company to manufacture fasteners from a zero knowledge base would find it tantamount to pouring water into sand.
Tooling Database Only a few millennia ago, people measured time in years. Then, in seasons, months, weeks, days, hours, minutes and seconds. Today, we use the oscillations of a caesium atom (just over 9 billion make one second). At all stages of human development it has been the awareness of the time which has allowed the regulation of everything else. Travel times, work times, leisure times, etc. In manufacturing, predictability is the key to all planning. We can predict with some certainty that the factory will be available and open for business tomorrow (or whenever). We can predict that employees will be available to work (despite recent shutdowns!). We can predict that machines will run and that work can take place but can we predict the tool life? In a low loading situation where only wear is a likely problem and using methods of statistical process control (SPC) to monitor product dimensions, it should be relatively easy to recognise when a tool change is necessary. Continuous monitoring of when tools require to be changed can be used to produce a Tool Life Diagram.
Technology Such information will provide opportunities to investigate and evaluate methods to improve existing tool life and to assess their effectiveness. Tool Life Registration Cards which are used to capture the data must be an integral part of developing a Tooling Database.
Tool Maintenance
Things become much more difficult if tool breakage is the failure norm. By definition, such failure will be unpredicted and therefore significantly more damaging to manufacturing production schedules. Again, by the use of Tool Registration Cards, it will be possible to obtain definite data as to the timing of the failure and by examination and analysis provide an understanding of the likely cause(s) of that failure. Continuous data capture of these stochastic events will allow a timeline diagram of failures to be plotted showing the nature and frequency of occurrence.
In the case of tooling, this is often expensive to produce and unless it is used appropriately, will be unable to carry out its function as designed. So, tool setters are key to ensuring that tooling is able to perform to its optimum. When it has produced the batch quantity required, the tooling should be: inspected, cleaned, its condition documented, its refurbish implemented, inspected, the Registration Card updated and then suitably stored ready for further use.
Such information, hopefully shared across many different products/applications, should provide a genuine opportunity for tooling gurus to: identify sensible tool change schedules prior to failure occurring; introduce knowledge based programmes for tool development and improvement; have a marked and very positive influence on the companyâ&#x20AC;&#x2122;s tooling issues.
In any volume production process, down time is a hit on efficiency. Automotive suppliers are terrified of stopping an assembly line and the costs that may involve.
The undoubted key to good tool usage is in its management. As stated earlier, the background needed to have the tooling necessary for any successful fastener manufacturer cannot be obtained off the shelf. As in most of life, you get what you pay for. Only in this case, the payment is in time, effort and knowledge gained and maintained; in some cases through more than one lifetime. The International Cold Forging Group (ICFG) has published twenty years of study by its Tooling Sub Group. These documents, Tool Life & Tool Quality in Cold Forging (parts 1 to 5) are available for purchase from Meisenbach Verlag Bamberg and are very definitely recommended reading.
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Company Focus
by Dean Tseng, Fastener World
Reputed Indian Brass Fasteners Manufacturer/Exporter
SVM Metal Industries
SVM Metal is an ISO 9001:2008 certified company manufacturing brass fasteners and brass engineering turned components. With a modest beginning in 2004, in Jamnagar, a premier industrial town of Gujarat, India, it has the privilege of supplying quality products such as brass fasteners, brass marine fasteners and brass engineering turned components to reputed Indian and overseas customers, and stands as one of India’s well recognized name in the brass industry today.
Main Focus on Europe and Other Emerging Countries “Around 60% of our sales is contributed by Indian clients,” says General Manager Amit Arora. “Our clientele in India includes OEMs, industrial houses and electrical components and equipment manufacturers. We also export to Europe, the Middle East and Southeast Asia.” SVM Metal has exclusive manufacturing of customized products and special price for long run contract manufacturing on mass production. “We believe in building a long term relationship with clients but only through fair business ethics, global reach and technological expertise.”
Opportunity to Arise from 2nd-half 2020 “This pandemic has affected the whole world and dealt a huge blow to global markets including India. There is no denying that business has been affected very badly with the pandemic in India and other countries of the world. “But fortunes are made in times of crisis sometimes,” Amit continues, “Times of distress create rise of opportunity. If the business world has come out of crisis in the past like war, disaster, economic depression, then why not now? I firmly believe things would improve in the second half of 2020.”
Open for Global Contact SVM Metal is anticipating for more positive responses from clients globally by appearing on Fastener World Magazine. “We are hopeful to extend our export to other nations we have not reached and to become a globally recognized corporation that provides the best brass metal solutions.” The company is looking for clients who require best quality brass components at very attractive prices. We’d like to inform Fastener World readers that we are committed to constantly developing, improving, implementing and maintaining product quality standards to the entire satisfaction of our customers.” Contact: Amit Arora, General Manager
E-mail: sales@svmmi.in
Italian Stocked Fasteners for Global Applications
Inoxdadi S.r.l.
Assorted Fasteners for Commercial & Technical Applications Inoxdadi, meaning “stainless steel nuts”, is what the company started out with and it later extended to bolts, screws, threaded bars, studs, washers and fasteners in a wide range of materials, from the simple and commercial ones to very specific alloys for extreme technical applications like oil/gas, chemical, petro-chemical, pharmaceutical, food, water treatment, tunneling, extractions, automobile, nuclear, and aerospace.
Huge Stock Available Inoxdadi produces and stocks fasteners in stainless steel A304, A316, Duplex, Superduplex, and refractory stainless steel like A309-A310-A314, Monel, A904L, 1.4529 HCR, Inconel, Hastelloy, Nimonic, Titanium, available in ISO, DIN, NFE, UNI specifications (metric/imperial/customized). “We can offer stock service for monthly/call-off orders for customers’ annual needs, and our policy is to continuously enlarge stock dimensions,” says Andrea Togni. The finished products are located in a covered warehouse spanning 3,000m2, and dedicated to prompt supply of high quality fasteners with EU origin and full traceability to customers. “We mainly sell to European countries with 50% of turnover (around 10 million €) from domestic distributors, stockists and end users. We also have customers in Canada, U.S.A., South Africa, the Middle East, North Africa and Asia.”
Doubling Inoxdadi Capacity Amid Current Challenges “The Covid-19 pandemic has surely deeply hit the whole market, but for some sectors (automobile, construction) mostly connected to immediate market demands the problems are much bigger than others. Food, Chemical, Pharmaceutical are still investi ng i n new pla nts, while Pet ro-
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by Dean Tseng, Fastener World chemical and others are only doing maintenance or what is essential. We expect to grow in the green energy sector but the whole market will restart in the next year.” Despite the challenges ahead, the export department of Inoxdadi has grown a lot over the last 20 years and the company is doubling its factory to increase capa cit y a nd product r a nge. Inoxdadi is looking forward to becoming the next new supplier for those in need of fasteners. Contact: Andrea Togni E-mail: estero1@inoxdadi.com
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Special Feature
Chronicle of Taiwan Fastener Industry H2 2005 Mar. 01
May 15-17
National Aerospace Fasteners Corporation (NAFCO) welcomed its new CEO.
Hardware + Tools was held in Dubai.
宏達新執行長上任
中東杜拜五金展參加人數 踴躍
May
3-5
National Hardware Show was held in Las Vegas. 美國拉斯維加斯國際五金工具展覽會盛大展出
美國巴爾的摩螺絲展熱鬧 開展
月
May 26
Jun. 07-09
Jun.
Fastener Week opened its gates in Chicago.
KCS Enterprise moved to a larger plant in Chang Bin Industrial Park.
芝加哥螺絲機械展如火如 荼開幕
Fu Wei Machinery signed a technology transfer agreement with Daido Machinery.
台灣螺絲貿易協會B.N.W 螺絲隊會長改選
5-6
月
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Jun. 02 TFTA B.N.W Golf Team welcomed its new team leader.
富煒公司與日本大同機械 簽定技術授權協議
230
May 17-19
National Industrial Fastener Show/East took place in Baltimore．
寶源複合材料擴大規模， 喬遷彰濱新廠
Special Feature 新時光軸：2005下半年
Jul.
6-8
月
Hwaguo Industrial Fasteners moved to its new plant.
Aug.
華國五金喬遷新廠
Jun.
Aug. 18
Shin Chun Enterprise moved to its new Gangshan plant.
Taiwan Fastener Trading Association held the directors & supervisors election. 台灣螺絲貿易協會舉辦理監事選舉
昕群企業遷至岡山新廠
Sep. 23-25 Expo Nacional Ferretera was held in Mexico.
Aug. Tech Stell announced mass production of the new TS Special Looseproof Fasteners. 德剛宣布TS特殊防鬆脫緊 固件進入量產
墨西哥五金展盛大開展
Sep. 14-15 Fastener Fair Stuttgart was crowded with visitors and exhibitors.
Taiwan Industrial Fastener Institute convened a preparatory meeting in Southern Taiwan for the annual members assembly. 台灣螺絲工業同業公會會 員代表大會南區預備會盛 大召開
Sep. Taily Corporation took a step further to develop high value-added products. 鈦立邁入高附加價值產品 開發
德國司徒加特螺絲展吸引 爆滿展商訪客
8-9
月 Fastener World no.184/2020
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Special Feature
H2 2005 Chronicle of Taiwan Fastener Industry
新時光軸：2005下半年
Nov. 03
Nov.
The 3rd Four Regions Fastener Association Conference was held in Grand Hi-Lai Hotel in Kaohsiung. 第三屆四地區螺絲協會交流大會移師高雄漢來大飯店舉辦
11
月
Taiwan Fastener Trading Association held a social gathering with China Fasteners Industrial Association and Hong Kong Screw & Fastener Council at Tayih Landis Hotel Tainan. 台灣螺絲貿易協會於台南大億麗 緻酒店舉辦中國緊固件工業協會 及香港螺絲業協會三方交流大會
Nov. 04 Fastener industrialists attended a friendly golf match play amid the 3rd Four Region Fastener Association Conference 四地區螺絲協會交流大會代表團舉辦高爾 夫友誼賽
Nov.
Nov. Chia-I Industrial integrated wire and coil supply in the upstream and downstream metal industry. 嘉益工業整合金屬產業上 下游線材供應
Nov. Min Jui Automation developed a new nut image optical inspection & sorting machine. 敏銳自動化開發新式螺帽 影像光學檢測及篩選機
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Zinteker Technology received European and American automobile manufacturers’ certification. 鋅德克科技取得歐美汽車 製造商認證
11
月
Nov.
Stand Tools Enterprise won the silver prize of the National Invention and Creation Awards. 首君企業獲國家發明創作 獎銀牌獎
Technology
Rupture and Fracture of Fastener by Embrittlement Stress Corrosion Cracking (SCC) by Wei-Ming Wang
2. SCC Mechanism Stress corrosion cracking begins when small cracks develop on the external surface of fastener material. These cracks are not visible initially, but as time passes, these individual cracks may grow and form colonies, and many of them join together to form longer cracks. (See Figure 2)
1. Introduction Stress corrosion cracking (SCC) is a fracture process that involves the combined and simultaneous action of a tensile stress and a corrosive environment. SCC occurs when the fastener suppor ting the tensile stress and a specific environment are able to cause failure by their combined action, but are insufficient to cause failure by either one acting alone. In fact, the tensile stresses are usually below the fastenerâ&#x20AC;&#x2122;s yield strength. Furthermore, the metal fastener would suffer only minimal corrosion in the absence of the applied stress. There are three requirements for SCC to occur, please refer to Figure 1. (1) A susceptible metal. (2) Tensile stresses applied to the metal. (3) A specific environment containing an aggressive species that promotes SCC. T he SCC key stages shall have been st udied t hat the fracture mechanism should be similar to hydrogeninduced cracking (HIC) with external corrosion condition introduced. It may exist with or without Internal Hydrogen Embrittlement (IHE). The SCC should only combine with External Hydrogen Embrittlement (EHE) if there is no Internal Hydrogen Embrittlement (IHE). The SCC is often mistaken to be simple Hydrogen Embrittlement caused by the fastener manufacturing process. The combined action of a tensile stress and a corrosive environment may have been ignored and neglected for the root cause and trigger factor of SCC. Composition Heat treatment Microsturcture Surface condition
Stress, strain Service stress Fit-up stress Residual stress Strain rate
Materials susceptible to SCC
Fatigue
Tensile stress above critical level
Corrosion
CorrosionFatigue
Environment Composition Temperature Electrode potential Flow rate
Conductive environmental conditions
Figure 1. Three Requirements for SCC to Occur Reference: https://www.ducorr.com/ducorr-blog/2018/5/13/ causes-stress-corrosion-cracking-in-pipelines
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Figure 2. Stress Corrosion Cracking Begins When Small Cracks Develop Stress plays an important role for crack initiation, growth and coalescence of crack. (See Figure 3.1) Corrosion is another important role for crack sources. (See Figure 3.2)
Figure 3.1. The role of stress for crack initiation, growth, coalescence of crack and propagation. The more stress applied, the more crack growth develops
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Figure 3.2. The Sources of Crack by Corrosion The SCC phenomenon has four key stages: (1) The initiation of stress corrosion cracks. (See Figure 4) (2) The slow growth of cracks. (See Figure 5) (3) The coalescence of cracks. (See Figure 5) (4) Crack propagation (See Figure 6) and structural failure then. (See Figure 7)
Figure 4. Mechanistic and Fractographic Aspects of Stress-corrosion Cracking Initiation
Figure 5. Slow Growth of Cracks and Coalescence of Cracks
Figure 7. Crack Propagation and Structural Failure
Figure 6. Stress Corrosion Crack Propagation with External Corrosion Environment Introduced Adsorption-active media could affect deformation and fracture of solids due to decreases in the surface energy. Chemisorption of specific ions, e.g. complex Cu-NH3 ions for SCC of brass fastener or Chloride SCC or Sulphide SCC of Steel fasteners, weakened the strained interatomic bonds at crack tips, promoting crack growth by decohesion along a cleavage plane or a grain boundary. (See Figure 8)
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Figure 8. Adsorption-active media weakened the strained interatomic bonds at crack tips, promoting crack growth by decohesion along a cleavage plane or a grain boundary
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Technology The SCC four key stages shall have been studied that the fracture mechanism should be similar to hydrogen-induced cracking (HIC) with external corrosion condition introduced. The SCC should focus on the following mechanisms:
fracture morphology of fastener. Under a microscope or macro visual measurement, the branched direction of the crack initiation, crack growth, and propagation can be seen and they are practically measured in the form of intercrystalline or transcrystalline corrosion.
- hydrogen-induced decohesion (HID) or hydrogen enhanced decohesion (HEDE); or/and - hydrogen-enhanced local plasticity (HELP); or/and - hydrogen-induced phase transformation (HIPT); or/and - hydrogen-enhanced strain-induced vacancy formation (HESIV). A brief description of the adsorption-induced dislocation emission (AIDE) and hydrogen enhanced vacancy formation are also included. Figure 9 shows the adsorption-induced dislocation-emission (AIDE) mechanism for SCC involving coalescence of cracks with nano-voids (or microvoids) in the plastic zone ahead of crack tips that adsorption-active media exists in corrosive agent. Figure 10. The shape and geometry of thread area should be taken to a crack notch or crack tip. It may exist microcrack(s) within the crack notch or crack tip. Different cracks initiate at base of threads. The development of cracks depends on the stress differences.
Figure 9. Adsorption-induced dislocation-emission (AIDE) mechanism for SCC involving coalescence of cracks with nanovoids (or microvoids) in the plastic zone ahead of crack tips Fasteners made of copper alloys which contain oxygen can be embrittled if exposed to hot hydrogen rich atmosphere. The hydrogen diffuses through the copper and reacts with inclusions of Cu2O, forming H2O (water), which then forms pressurized bubbles at the grain boundaries. This process can cause the grains to literally be forced away from each other, and is known as steam embrittlement (because steam is produced, not because exposure to steam causes the problem). It is the typical SCC failure. For fasteners made of Copper and Copper Alloys, such as brass, it may concern about SCC phenomenon in hydrous or anhydrous ammonia atmosphere. The residual stress of brass fastener should be the key factor of SCC without external serving load or stress. The stresses can be the result of the crevice loads due to stress concentration, or can be caused by the type of assembly or residual stresses itself from fabrication (e.g. cold working); the residual stresses can be relieved by annealing or other surface treatments.
3. Diagnosis of SCC for Fasteners All th readed fasteners shall be ta ken the shape a nd geometry of thread area to be a crack notch or crack tip. It may exist micro-crack(s) within the crack notch or crack tip. (See Figure 10) The very useful measurement for diagnosis of fastenerâ&#x20AC;&#x2122;s SCC is the direction of the lateral crack and its
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Even in the absence of applied stress, residual stresses in a structure can often be of a sufficiently high sensitivity to cause SCC and failure in service. Stress corrosion cracking is not only highly localized but it can occur in environments that are only mildly corrosive to the fastener material. Stress corrosion cracking presents an especially difficult problem that the damaging concentration of the harmful ions in that corrosive agent or environment may be quite small and difficult to detect. One of the very useful ways for diagnosis of SCC is to measure the direction of the crack. The crack always follows the plane of maximum stress, and therefore, has branches in its form. These branched cracks are often visible without any other assistance. When the crack fracture is viewed under a microscope, the branched direction of the cracks can be seen and they are practically always intergranular or transgranular. The concentration of stress at the tip of a sharp crack or flaw can be quantified in terms of the Stress Intensity Factor, K1. It deter mi nes t he growt h rate of SCC cracks for a specific alloyâ&#x20AC;&#x201C;environment combination. The exposure time of corrosion agent needed to cause SCC failure depends on the stress intensity at any preexisting or developed crack tip. Stress-intensity factor is also called fracture toughness for a loading condition that displaces the crack faces in a direction normal to the crack plane (also known as the opening mode of deformation). Kc is the symbol for Plane-stress fracture toughness a nd t he va lue of st r e ss i nt en sit y at wh ich c r a ck propagation becomes rapid in sections thinner than those in which plane-strain conditions prevail. K I C i s t h e s y m b ol fo r P l a n e - s t r a i n f r a c t u r e toughness and the minimum value of Kc for any given material and condition, which is attained when rapid crack propagation in the opening mode is governed by plane-strain conditions.
Technology Selection and control of fastener material is the first line of defense in controlling stress corrosion cracking. By choosing a fastener made in appropriate material that is not susceptible to SCC in the service environment, and by processing and fabricating it correctly, subsequent SCC problems can be avoided. The fastener in exact alloy composition, microstructure and heat-treatment can have a marked effect on SCC performance. It is not always simple. Some environments, such as high temperature water, are very aggressive especially where hydrogen embrittlement is involved, and will cause SCC of most steel fastener. A fastener wit h h ig h st reng t h me cha n ica l prop er t y requirements can be very difficult to reconcile with SCC resistance when hydrogen induced cracking is involved.
Figure 11. Typical three stages occur for stress corrosion cracking Most stress corrosion cracking typically occurs in three stages (see Figure 11): Stage 1 - Initiation, below a threshold value of K1, called K1SCC, growth of a crack by SCC is not expected. Above this value, the initial SCC growth rate climbs with increasing K1. Stage 2 - Steady-state crack propagation, the crack growth rate is independent of K1 a nd depends instead on t he cor rosive envi ron ment a nd temperature. During stage 2 growth, K1 conti nues to i ncrease a nd t his leads to the rapid acceleration of the crack in stage 3, and stage 3 - Rapid crack propagation or final fracture. final fast fracture when K1 reaches K1C which is the fracture toughness. The higher the value of K1SCC under given condition s, t hen t he g reat er t he expected SCC resistance.
4. Controlling and Prevention of Stress Corrosion Cracking (SCC) Underlying causes that trigger SCC, a susceptible material for fasteners, an e nv i r o n m e n t fo r fa s t e n e r a p pl i c a t io n intended to use, and stress or stress intensity factor shall be taken into consideration for Controlling and Prevention of Stress Cor rosion Cracking (SCC). There are a number of approaches t hat we ca n use to prevent SCC or give stress corrosion cracking control strategy. The design stage of fastener will focus on the selection of alloy material of fastener, the limitation of stress and the control of the environment for intended use. Fastener World no.184/2020
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Technology The presence of stress in the fastener components is one of the factors for stress corrosion cracking to be triggered. One of the approach control methods is to eliminate that stress, or at least reduce it below the threshold stress or threshold fracture toughness value of K1SCC for SCC. Residual stresses is one of the stress sources retained in fastener for use. Residual stresses can be relieved by stress-relief annealing process. It is a proper way to eliminate the residual stress of fastener during working process. Fasteners of austenitic stainless steels have a very low threshold stress for chloride SCC. Austenitic st a i n le ss fa st ene r shou ld b e c a r r ie d out wit h combined with the high annealing temperatures for stress relief that are necessary to avoid sensitization and sigma phase (Ď&#x192; Phase) embrittlement. Stresses can also be relieved mechanically. A surface compressive stress are beneficial for the control of SCC. Fasteners should be similarly shotpeening or grit-blasting to introduce a compressive stress on fastener surface for the control of SCC.
evolution, and this may lead to external hydrogen embrittlement (EHE) and trigger the SCC which is shown in Figure 12. The single electroplating coating layer may be not sufficient against corrosion agent to fastener body. Fastener's basic coating system exists multi-coating layers should have better Controlling and Prevention of Stress Corrosion Cracking. The multi-coating layers may include sealant/top coat, conversion coating and protective metal coating according to ISO 4042:2018. Appropriate measures for prevention of IHE for quenched and tempered fastener depend on hardness specified in ISO 4042:2018. Since reducing the risk of IHE has been done and multi-coating layers of fasteners to be the corrosion barrier, it is better approach than single coating protection layers for Controlling and Prevention of Stress Corrosion Cracking. To reduce the risk of IHE should be important for fasteners to reduce the risk of embrittlement by Stress Corrosion Cracking. In presence of IHE, it will be complicated and confused to identify the root cause of the stress corrosion crack in order to control and prevent Stress Corrosion Cracking. Thus, the root cause of the stress corrosion crack shall be clearly identified to control and prevent it in absence of IHE.
The installation tightened force of fasteners shall be the stress source directly. The installation tightened force should be caused by driving torque on fasteners. The deformation effect and cracks shall occur on surface or crack-like thread area when a fastener is driven by over torque. The formation of cracks shall impair the resistance to SCC of fasteners. The suitable applied torque and service stress of fasteners shall be the important key to control the SCC. Apparently, the most direct way of controlling SCC through control of the environment is to remove or replace the fastener component of the environment that is responsible for the SCC problem. But it is relatively rare for this approach to be applicable. If the active species is present in an environment, it is hard and difficult to remove the active species away. For exa mple, ch lor id e st r e ss c or r o sion cracking of austenitic stainless steel fastener has been experienced in hot-water or sea-water, we canâ&#x20AC;&#x2122;t easily change the fastener material, environment or the temperature. It cannot remove the chloride from the water by an ion exchange process or other successful proper control and monitoring approach. Adding corrosion inhibitors could be an alternative approach to reduce corrosion rate in order to prevent SCC. Corrosion inhibitors are chemicals that reduce the rate of a corrosive process. Inhibitors may be effective at controlling SCC. Fastener protective coatings isolate the metal from the environment, and can prevent SCC, too. Zinc coating such as electroplating or galvanizing is a popular coating for carbon steel fasteners. The normal corrosion potential for zinc is relatively low, and if any of the underlying steel is exposed, this will be cathodically protected. But the low electrode potential will also encourage hydrogen
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Figure 12.
Reference: https://www.ducorr.com/ducorr-blog/2018/5/13/causes-stress-corrosioncracking-in-pipelines https://www.ducorr.com/ducorr-blog/2018/5/13/causes-stress-corrosioncracking-in-pipelines, https://www.researchgate.net/figure/Schematic-depiction-of-intergranularstress-corrosion-cracking-A-corrosive-agent_ fig2_7669934) https://aeroenginesafety.tugraz.at/doku.php?id=5:54:542:5421:5421 https://www.sciencedirect.com/science/article/pii/ B9781845696733500018?via%3Dihub http://steelalloys.blogspot.com/2006/11/metallic-corrosion-stress-corrosion. html https://www.sciencedirect.com/science/article/abs/pii/S1359645410007743, https://www.sciencedirect.com/science/article/pii/B978184569673350002X https://www.researchgate.net/figure/Figure-2-18-Schematic-diagramsillustrating-a-the-adsorption-induced-dislocation_ fig15_ 282003599, https://www.semanticscholar.org/paper/Hydrogen-embrittlement-of-ferriticsteels%3A-on-and-Neeraj-Srinivasan/1a5111fb8b7bc1744238d23dcfe62850f 32f0e27/figure/11 https://ashrafi.iut.ac.ir/sites/ashrafi.iut.ac.ir/files//files_course/stress_ corrosion_cracking_ 02.pdf https://ashrafi.iut.ac.ir/sites/ashrafi.iut.ac.ir/files//files_course/stress_ corrosion_cracking_ 02.pdf https://www.sciencedirect.com/topics/engineering/stress-corrosion-cracking https://trends.directindustry.com/bossard-group/project-187952-157973.html
Certificate of Registration This certifies that the Quality Management System of
Q-Nuts Industrial Corp.
T
No. 193-1, Lane 315, Sec. 1, Erren Road, Rende District, Tainan, Taiwan
DR AF
has been assessed by NSF-ISR and found to be in conformance to the following standard(s):
ISO 9001:2015 Scope of Registration:
Manufacture of nuts and metal parts. Certificate Number: Certificate Issue Date: Registration Date: Expiration Date *:
1835-IS1 06-NOV-2017 01-NOV-2017 31-OCT-2020
Carl Blazik, Director, Technical Operations & Business Units, NSF-ISR, Ltd.
Certificate of Registration This certifies that the Quality Management System of
Q-Nuts Industrial Corp.
T
No. 193-1, Lane 315, Sec. 1, Erren Road, Rende District, Tainan, Taiwan
AF
has been assessed by NSF-ISR and found to be in conformance to the following standard(s):
IATF 16949:2016 Scope of Registration:
DR
Manufacture of nuts and metal parts.
Exclusions: Product design.
IATF Certificate Number: 0277634 Certificate Number: 1835-TS10 Certificate Issue Date: 06-NOV-2017 Registration Date: 01-NOV-2017 Expiration Date *: 31-OCT-2020
Carl Blazik, Director, Technical Operations & Business Units, NSF-ISR, Ltd.
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Company Focus
King Yuan Dar
Rolls out 3 Latest Furnace Products by Fastener World
Cyclic Continuous Vacuum Spheroidizing Furnace Cyclic Continuous Vacuum High Temperature Sintering Furnace Cyclic Continuous Box Vacuum Carburizing Furnace Many suppliers to European automakers are seeking the latest eco-friendly equipment because of more stringent requirements that ask for compliant manufacturing procedures and good quality. To that end, Mr. Tseng Chang-Lung, General Manager of King Yuan Dar Metal Enterprise, utilizes his years of experience and background in the gas industry and applies his know-how to heat treatment. This year he is introducing 3 latest heat-treating furnaces with 8 major advantages:
1
Thermal Recyclable & Reusability
5
Batch production management
2
Increased capacity and stable quality
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Combining remote visual management & Intelligent AI monitoring
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Reduced gas consumption in the furnace
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Intelligent equipment to automatically record capacity, power and gas consumption
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High efficiency / Eco-friendly / Energy-saving
8
Free of bumps, mixed materials and mesh belt
Free of Bumps, Mixed Materials and Mesh Belt The company overhauled its previous mesh belt type equipment and converted it to box type batch processing and added a vacuum furnace to resolve issues of workpiece marring and mixing up with materials, tackling once and for all the downsides of existing heat treatment and stabilizing production quality and efficiency. This is the thing that Mr. Tseng wants to solve for the industry.
High Efficiency/Eco-friendly/Multi-purpose; Thermal Recyclable & Reusable King Yuan Dar has achieved an ultra-performance able to clean and recycle 90% of quenching oils. The new design is less likely to lose heat, and successfully recycles and reuses heat. It saves more power and gas, and processes 2 to 3 times faster, accelerating processing speed of the manufacturing plant and minimizing environment pollution. Specifically, the Continuous Box Type Vacuum Carburizing Furnace is packed with multiple functions such as vacuum carburizing, carbonitriding, quenching, tempering, and normalizing.
Integrating Smart Equipment for Monitoring & Management King Yuan Dar furnaces use an intuitive operating interface and integrate automated and smart hardware. It will only take the personnel to place materials, set configurations, and then complete carburizing, tempering, and cleaning in one go. The computer monitors the whole heat treatment process. It will immediately send out signals for personnel check if there is an anomaly with the protective gas or temperatures. King Yuan Dar provides a setup of the central control room for monitoring all equipment. The personnel can also monitor and keep all equipment in check to save costs on labor and time.
Contact person: Mr. Tseng Chang-Lung
King Yuan Dar
Metal Enterprise Company
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LTD
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E-mail: gold.dollar@msa.hinet.net
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www.fastener-world.com/en/supplier/shunhsin
b
acquired patents on some die forming methods.
with
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Technology
Thread Rolling Screws -
Screws Forming Threads in Mild Steel
by Laurence Claus
A
number of years ago I was approached by a potential customer to provide a quote on a large volume of a simple pan head machine screw with a pre-applied adhesive. One thing led to another and we were soon having a conversation about some of their fastening challenges from which I learned several valuable pieces of information. I learned that they had a high incidence of scrap in a variety of mild steel components that utilized these machine screws because of thread tapping issues. I also learned that they had experienced field problems with the machine screws falling out, which had led them to add an expensive adhesive to the machine screw threads. I inquired if they had ever considered using thread rolling screws and was, honestly, shocked to learn that they did not even know what a thread rolling screw was or why it might be a compelling option for their situation. I took the opportunity, therefore, to educate them about Thread Rolling Screws and explain how such fasteners might prove very beneficial to them. Thread rolling screws have been around for many years. They are a form of self-tapping screw or one that creates its own internal thread. Self-tapping screws act like thread taps and depending on their configuration either cut or form the threads. Thread Rolling Screws are of the forming variety. This innovation has saved manufacturers and assemblers millions of dollars each year because they eliminate often troublesome and expensive thread tapping operations. Additionally, many Thread Rolling Screw designs provide a small, but noticeable, amount of Prevailing Torque (or the torque remaining in a joint that provides some resistance to self-loosening.) Self-tapping screws are used in many different applications including wood, concrete, plastics, aluminum, magnesium, mild steel, and even human bone. Each material exhibits different and unique behavior, and, thus, utilizes only a subset of all the self-tapping screws on the market. In other words, there is no single universal self-tapping screw design that works well in all materials. For mild steels (those in the HRB 70-100 category), the proven self-tapping screw falls into the Thread Rolling Screw family. The remainder of this article will explore the engineering, design, and advantages of using this type of screw in mild steel applications.
What is Thread Forming?
S
elf-tapping screws come in two varieties, those that cut the internal thread and those that form the internal thread. Although some applications exist where thread cutting screws outperform the other options and are the design of choice, they are generally rare today, and thread forming screws make up a larger portion of the market. Unlike cutting threads which remove material, thread forming screw threads move the material around. Thread Rolling Screws only behave as thread forming screws. Figure 1 illustrates the typical installation of a thread forming screw relative to torque generated as the screw progresses into the application. This graph illustrates the increasing amount of torque (Y-axis) as the screw progresses further into the application as measured by either time or angle of rotation (X-axis). If we were to compare this plot with one of a machine screw, we would see that they are very similar except for t he ver y begi n ni ng of t he plot. In Figure 1 we see that at the very beginning there is a near immediate and sharp increase in torque that lasts for a short time (in fact, only one screw rotation). This initial spike in torque represents the torque required to form the leadi ng t h read. Si nce T h read Rolling Screws are of the forming variety, the thread forming portion of the screw must push, displace, and reconfigure the material in the cylindrical pilot hole to form a
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complete internal thread. A machine screw does not exhibit this initial spike in torque because the internal thread has already been formed by tapping. Returning to Figure 1, after this initial spike the torque can be seen to level out into a gently sloping upward line. This portion of the plot represents the friction generated when each subsequent thread of the screw enters the just previously formed thread. Thus this portion of the graph represents the thread friction torque. This increase continues until the head just seats against the clamped material and all the joint components are â&#x20AC;&#x153;snugged upâ&#x20AC;?. This point on the graph represents the Driving Torque.
Figure 1: Torque Behavior- Thread Forming Screws
At this point the joint is snug and the only additional movement is going to come from the joint compressing or the screw stretching. This explains why the torque rises up at a very steep slope until one of the joint components is overloaded and the joint fails. This point is known as the Ultimate Torque, although many call it the Stripping Torque because that is the most likely failure mode of most self-tapping screws.
Technology The reason I consider Ultimate Torque to be the better term, at least with Thread Rolling Screws, is that other failures such as torsional screw breakage and overload of the clamped material may occur. Generally, the relationship between the Driving Torque and Ultimate Torque is the most studied relationship when designing a t h re a d for m i ng application. T h is is partly because this relationship is easily quantifiable with the right experimental tools, but probably more so because this relationship determines the quality of the joint and, in some cases, whether the joint design parameters will allow successful assembly. When validating a joint this is usually the most commonly tested parameter although other tests to optimize pilot hole diameter, installation speed, pull-out resista nce, prevailing torque, or to understand the joint relaxation behavior may all be conducted.
the proper Tightening Torque may be established. It should be understood that unlike a standard bolted joint, which depends highly on stretching the bolt to generate and maintain clamp load, most Thread Rolling Screws are limited because too much joint tension results in shearing the internal threads (stripping).
Pull-out:
S
ome applications may have service loads or uses that effectively are trying to pull components apart. In these cases, the joint designer has to consider Pull-out loads. As we will see in the next section, there are different designs and configurations of Thread Rolling Screws. By their special geometry some of these may be more prone to lower pull-out loads than others. If this is a consideration then pull-out testing will need to be conducted to determine the average pull-out loads that the screw will tolerate.
Self-loosening:
S
ome of the Thread Rolling Screw designs are not circular but rather have multiple lobe designs. These screws create localized stress concentrations at the lobe tips.
Thread Forming Considerations: Drive and Ultimate Torque:
A
s the section above just introduced the number one consideration contemplated by users and designers of thread rolling screw joints is the behavior and influence the Driving and Ultimate Torques. The previous section made it clear that it is important for these two values to be as far apart as possible. This is important because the further apart these values are the more margin of safety the user has to guarantee that the screw is always seated and never stripped. If the values are too close, the installation equipment may not be sufficiently precise enough to assure that the installer doesn’t end up with one of these two undesirable conditions. Although the difference between these two values is important, the magnitude of the Driving Torque is also critical. End users desire for this value to be as low as possible since this determines how easy or difficult it is to install the screw. It will also influence where the Tightening Torque must be specified. If the Tightening Torque gets too high, it will become necessary to install protective devices on the installation equipment to protect the installer from the high torque reaction forces.
Tightening Torque:
O
ne must understand all that is going on in the joint to be able to recommend a Tightening Torque. The Tightening Torque will be determined based on the statistically lowest Ultimate Torque and statistically highest Driving Torque. Once this “window” is understood, a Manufacturing Engineer can review the accuracy of the installation equipment and make a determination where Fastener World no.184/2020
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Technology The material at these stress concentrations reacts by relaxing and minutely flowing back around the lobe. The effect of this is that the screw receives some natural locking or Prevailing Torque that is not seen in fully circular screws or machine screws. Therefore, it is usually unnecessary to add any type of locking feature to a Thread Rolling Screw.
Thread Strength:
A
s with any self-tapping screw, Thread Rolling Screw threads must be stronger than the material they are forming. Since most Thread Rolling Screws are being used in mild steel, they must be strengthened by heat treating to achieve a sufficient strength differential from the mild steel material they are forming. For this purpose, most Thread Rolling Screws are carbonitrided (case hardened). Case hardening develops a very strong and hard outer shell. Unfortunately, because they are very hard they are also inherently brittle and vulnerable to breakage under certain stress or environmental conditions. For this reason, applications where the Thread Rolling Screw must retain Metallurgical Toughness, such as seat belt anchor bolts, instead of case hardening they are neutral hardened and then the thread rolling portion of the screw is induction hardened to a significantly higher strength. In such a case, the thread rolling portion of the screw has the requisite hardness and strength while the body of the screw, which serves as the application’s functional component, remains tough and resistant to brittle failure.
Ergonomics:
I
n recent years one of the most critical considerations regarding the use of Thread Rolling Screws is ergonomics. Ergonomics is an area of study that seeks to improve the efficiency and safety of human interaction with manufacturing processes. Companies that are concerned with ergonomics have learned that the more difficult it is to drive a screw the more fatiguing it is to workers that have to repeat the action all day long. Therefore, many companies have placed high priority and laser focused attention on getting the Driving Torque ever lower. In other words, the lower the Driving Torque, the longer and more comfortably an operator can perform this fastening task. Another ergonomic concern is the reaction of the installation equipment when reaching the desired Tightening Torque. The reaction is the jolt or twisting that occurs in the installation tool when the Tightening Torque value is reached. Many of you may have experienced this unpleasant action before when using a power drill. Let’s say you are drilling a hole in a steel plate. Just as the bit is about to punch through the back side of the plate it gets bogged down, stopping the bit, and twisting the drill in your hand. If you are unprepared for this or it is quite strong it may injure your wrist or twist the drill handle from your grasp. In the case of larger fasteners installers may have to contend with such a reaction force every time they install a fastener. Left unchecked or having to cope with this many times a day, it is both unsafe and fatiguing. To avoid such problems installation equipment is routinely fitted with reaction bars that counter this reaction force and make the installation more ergonomically friendly.
Thread Rolling Screw Designs:
O
ne of the first and perhaps most prominent Thread Rolling Screw designs today is the Taptite® and its many improved cousins. (Taptite® is the registered trademark of REMINC of Rhode Island USA.) The Taptite® and its many related cousins are either partially or fully trilobularTM in design. This innovative thread form has gained worldwide recognition and is, perhaps globally, the most widely used Thread Rolling Screw in mild steel. Instead of being fully round the cross section is triangular in shape with three distinct lobes at each apex. This design provides advantages such as lower Driving Torque and a natural Prevailing Torque which assists in the prevention of self-loosening. Today there are many different variations on this design ranging from screws that are trilobularTM in shape along their entire length to ones that only maintain this shape at the point. Of course there are other designs and brands of Thread Rolling Screws. Most of these are also not fully round and have cross sections that are five or seven lobes in shape. Regardless of the brand or type of Thread Rolling Screw the important thing is whether it is well designed for the specific application. Like any applications engineering activity it is important to assess the specific requirements of the application and choose the best fastener for the job. For example, one might choose a different type or style of Thread Rolling Screw if pull-out is the number one consideration relative to, say, ergonomics.
Conclusion:
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hread rolling screws are an innovative and excellent choice for many mild steel applications. The savings alone from not having to pre-tap the pilot hole is reason enough to consider this style of screw. However, one size does not necessarily fit all and it behooves the end user and the designer to know a little bit about self-tapping fastener engineering to assure that they are choosing the right screw for the job and using it to its highest potential.
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Association
China Steel Corp. (CSC) Production & Sales Conference with Fastener Business Owners
Signs of Ascending Global Steel Price On steel price, CSC analyzed Chinaâ&#x20AC;&#x2122;s steel production in June was back to its heyday recorded last year, even higher than last June. This was due to the reopened Chinese market that pushed the domestic demand after the temporary lockdown, coupled with the unprecedented floods that spur spurred the demand for infrastructure and reconstruction that stimulates steel production and import. Also, steel distribution increased by 10% in southern China. The U.S., Europe, Asia and Southeast Asia showed signs of ascending steel prices.
Taiwan's Fastener Export on Decelerated Growth Track; Export Price Continues Downward According to Taiwan Industrial Fasteners Institute (TIFI), Taiwan exported 688 thousand tons of fasteners in the first half of 2020, down 14.4% over the last half. The average unit price dropped a minor 0.28%. Product
by Dean Tseng, Fastener World
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he conference was suspended in the first half of this year because of the pandemic outbreak, but it eventually came back on August 11. In the conference, Taiwan CSC reported the global economic development and steel price fluctuation for the first six months of 2020. CSC analyzed that the 32% GDP decline in Q2 caused by the untamed pandemic indicates weakening US dollars, contrasted by the appreciating Asian currencies. Although Europe has bottomed out, it is in for a possible 8.3% drop in full year GDP, coupled with a 38% decline of automotive sales in first-half 2020 as well as 30% more vehicle inventory above the average level at the dealersâ&#x20AC;&#x2122; stores. Despite the worsening epidemic in the Philippines starting July, Southeast Asia sees a U-shaped recovery with Vietnam standing out as a GDP keeper which grew 0.4% in the second quarter. China had a V-shaped upturn pulling its negative GDP back to the growth trajectory.
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Export Volume
Unit Price
Wood Screws
+7.96%
-3.42%
Self-tapping Screws
+18.25%
-6.67%
Bolts
-18.84%
+0.56%
Nuts
-28.86%
+5.9%
In the first half of 2020, Taiwan had a double-digit decline (27% at maximum) in fastener export to all top 5 export destinations, including the U.S., Germany, the Netherlands and Canada. A comparative lower drop was recorded only in the export to Japan. In monthly perspective, the export volume dropped from 114 thousand tons in January to the lowest point of 94 thousand tons in April, and picked up to 101 thousand tons in June. Judging from this, there is room for growth in fastener export during the 2rd and 4th quarters. The fastener export price dropped from NTD 86 thousand per ton in January to NTD 85 thousand in April, and further down to NTD 82 thousand in June. There was no sign of a price surge in the first half of 2020. Commenting the results, CSC said to raise its Q4 steel price by a range between NTD500-1,000 amid the ascent of steel prices in the U.S., Europe, Asia and Southeast Asia. The TIFI Chairman Tu-Chin Tsai in the conference called for CSC to carefully review the cost and competitiveness for fastener business owners. CSC expects to hold the next conference somewhere between the end of November and the star t of December, and to announce the next Q1 steel price by mid-December.
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Industry Focus
The Impact of
Covid-19 on Taiwan Hand Tool Industry
by Dr. Arthur Hsu, MIRDC
Foreword Since the outbreak of Covid-19 at the end of 2019 in China, the global confirmed cases as of July 2020 have reached over 16 million, costing lives of more than 0.65 million people. According to IMF, the global economy is estimated to shrink by over 4.9%. In addition, according to the statistics of Asian Development Bank, this pandemic may cost the global economy a loss of 8,800 billion USD. The pandemic has resulted in lockdown in over 80 cities in mainland China. China is the world’s largest hand tool exporter and lots of major Taiwanese hand tools manufacturers are headquartered in Taiwan. Under the influence of U.S.-China trade war and uncertainties caused by the pandemic, how can Taiwanese hand tools companies respond to the market reshuffling effect on the global market mainly caused by these two factors? This article will expound upon Taiwan hand tool industry, the analysis of how certain products have been impacted by the pandemic, and how can these hand tool companies adjust their operating strategy to face the post-pandemic global market.
Taiwan Hand Tool Industry Influenced by U.S.-China Trade War Before the Outbreak of Covid-19 The hand tool industry is one of the most essential industries for Taiwan to earn foreign exchange. In 2019, the total production value of non-power & power tools reached 125 billion NTD. Its import value was 22.57 billion NTD and the export value was 116.8 billion NTD. Its production value and export value even hit the highest records in its history in 2018. The average CAGR over the past 6 years was around 1.31%. Hand tools explored in this article are: non-power hand tools (HS codes 8201-8215) and power tools (HS codes 8467, 8460, 8465). Among these products, non-power hand tools represented around 75% of the export and power hand tools represented around 25% of the export. Table 1 shows Taiwan’s hand tool import/export and its market share in European and U.S. markets in 2014-2019.
Table 1. Taiwan’s Hand Tool Import/Export and Its Market Share in European and Unit: 0.1 bn NTD; % U.S. Markets in 2014-2019
In 2019 Taiwan exported 87.86 billion NTD worth of non-power hand tools to the world. 29.86 billion Statistics 2014 2015 2016 2017 2018 2019 CAGR NTD worth of them were exported to the U.S. market (up to 34.0% of its Import Value 209.1 203.1 217.3 212.4 235.8 225.7 1.55% total export) and 24.22 billion NTD Export Value 1094.2 1103.3 1088.0 1135.9 1158.0 1168.0 1.31% worth of them were exported to the Export Value to the U.S. 308.2 353.7 361.7 367.3 386.0 432.8 7.03% EU (27.6% of its total export). The export to the U.S. market was nearly % of Its Export to the U.S. 28.2% 32.1% 33.2% 32.3% 33.3% 37.1% 5.64% 40% of its export, which showed a Export Value to Europe 296.9 276.5 282.7 295.4 300.1 301.4 0.30% significant growth amid U.S.-China t rade wa r, even h igher t ha n t he % of Its Export to Europe 27.1% 25.1% 26.0% 26.0% 25.9% 25.8% -1.00% total export to the EU. Such a result Export Value to China 132.9 130.8 118.4 131.4 131.9 106.5 -4.32% reveals how important U.S. market is % of Its Export to China 12.1% 11.9% 10.9% 11.6% 11.4% 9.1% -5.56% to Taiwan hand tool industry. Due to U.S.-China trade war, lots of orders Source: Import and export data of Taiwan's Customs were switched to Taiwanese hand tool manufacturers in the first half of 2019. With products “Made in Taiwan” recognized as being of high quality to compete with those “Made in China” well known for supply en masse, Taiwan hand tool industry also reported a growth of 5-6% in the first half of 2019 amid U.S.-China trade war, though its growth later slowed down in the second half of 2019 due to the focus on processing the orders made in the first half of 2019. Fastener World no.184/2020
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Industry Focus On the other hand, although the total export scale of power tools is not as large as that of non-power tools, it confronted with less impact from the global economy due to the diversity of technology barriers for power tools and pneumatic tools (including not only metallic processing technology, but also Li-ion battery technology, circuit loading system, dustproof system, durability in certain environments). In fact, in the past the export of Taiwan’s power tools did face a much smaller impact than that of non-power tools.
The Impact on Taiwan Hand Tool Industry After the Outbreak of Covid-19 As the U.S.-China trade war hasn’t come to an end yet and the Covid-19 has also brought many uncertainties to the global hand tool industry since the beginning of 2020, the market deployment of many Taiwanese hand tool companies watching closely the U.S-China trade war and trying to benefit from the order-switching effect have been greatly interrupted. First, in the beginging of Feb. this year, orders coming from Europe and the U.S. plunged, influencing the normal operation of a majority of hand tool companies. A few of these companies even reported a turnover loss of around 20-40%. In addition, as the hand tool industry will only activate production after orders are made and the general lead time is around 40-50 days, the issue of delayed shipment could still be observed in May and June, which is forecast to influence the deliveries in the 3rd quarter this year. The market situation in the second half of this year is still unclear and has to be dependent upon how fast the economies in Europe and America will be reopened. In the following paragraphs the impact on Taiwan’s top 5 exported hand tools of various categories will be analyzed based on their final shipment destinations (i.e., global, U.S., and European markets).
a. Export to the Global Market- Same Period Comparison (H1 2020 vs. H1 2019) and Impact Analysis In the first half of 2020 Taiwan exported 52.08 billion NTD worth of hand tools to the world, down 11.9% from 59.1 billion NTD recorded in the first half of 2019. Table 2 shows the impact on Taiwan’s top 5 hand tools of various categories exported to the world. In the first half of 2020 the non-power hand tools Taiwan exported to the world that showed a more significant decline were: other hand tools (-12.3%), hand-operated wrenches & spanners and sleeves (-16.9%), hand tool sets (-19.1%); in terms of power tools, the products that showed a more significant decline were: other non-reversible hand-held pneumatic tools (-12.6%), other hand-held tool accessories (-13.0%); in terms of fastening hand tools, the products that showed a more significant decline were: interchangeable socket wrenches with or without handles (-18.5%), hand-operated wrenches & spanners (-15.0%), hand-held pneumatic spanners (-30.8%).
Table 2. The Impact on Taiwan’s Top 5 Hand Tools of Various Categories Exported to the World in the 1st Half of 2020 Unit: 0.1 bn NTD; % H1 2020 H1 2019 Export Value Export Value
Growth Rate
Top 5 Exported Products of Various Categories
HS Code
Type A- non-power tools- subtotal
--
387.2
440.1
-12.0%
1. Other hand tools
8205
132.9
151.5
-12.3%
2. Hand-held wrenches & spanners and sleeves
8204
83.3
100.3
-16.9%
3. Interchangeable tools or hand-operated hand tools for machines
8207
69.8
72.8
-4.1%
4. Hand tool sets
8206
30.2
37.3
-19.1%
5. Pliers, cutting pliers, and similar articles
8203
18.1
20.0
-9.3%
--
133.6
150.9
-11.5%
1. Other non-reversible hand-held pneumatic tools
8467199000
38.4
43.9
-12.6%
2. Other hand-held tool accessories
8467990000
15.8
18.2
-13.0%
3. Other reversible hand-held pneumatic tools
8467119000
13.5
14.3
-5.4%
4. Pneumatic tool accessories
8467920000
12.6
13.8
-8.3%
5. Spray guns and similar articles
8424200000
10.6
10.7
-0.9%
Hand tool industry (Type A- non-power + Type B- power) total
--
520.8
591.0
-11.9%
Type C: fastening hand tools- total
--
109.4
132.9
-17.7%
1. Interchangeable socket wrenches with or without handles
8204200000
45.0
55.2
-18.5%
2. Hand-operated wrenches and spanners
8204110000 8204120000
38.3
45.1
-15.0%
3. Screwdrivers
8205400000
10.8
11.9
-8.6%
4. Hand-held pneumatic wrenches
84671130001
9.3
13.5
-30.8%
5. Power socket wrenches
8467293000
3.4
4.6
-25.2%
Type B- power tools- subtotal
Source: Import and export data of Taiwan's Customs
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Industry Focus b. Export to the U.S.- Same Period Comparison (H1 2020 vs. H1 2019) and Impact Analysis In the first half of 2020 Taiwan exported 20.16 billion NTD worth of hand tools to the U.S., down 6.2% from 20.16 billion NTD recorded in the first half of 2019. Such a decline was not as low as the 11.9% decline of the entire industry, showing that Taiwan’s hand tool export to the U.S. did not show a significant decline. Table 3 shows the impact on Taiwan’s top 5 hand tools of various categories exported to the U.S. in the first half of 2020. In the first half of 2020 the non-power hand tools Taiwan exported to the U.S. that showed a more significant decline were: hand-operated wrenches & spanners and sleeves (-9.0%), hand tool sets (-18.9%). On the other hand, the products that were not impacted by the pandemic and still showed growth were interchangeable tools or hand-operated hand tools for machines (up 15.6%); in terms of power hand tools, the products that showed a more significant decline were: non-reversible hand-held pneumatic tools (-12.0%), other hand-held tool accessories (-10.0%). On the other hand, the products that were not impacted by the pandemic and still showed growth were reversible hand-held pneumatic tools (up 9.4%); in terms of fastening hand tools, the products that showed a more significant decline were: hand-operated wrenches and spanners (-45.2%), hand-held pneumatic wrenches (-37.2%), power socket wrenches (-31.4%). It is obvious that fastening hand tools were stricken by various levels of impact in U.S. market.
Table 3. The Impact on Taiwan’s Top 5 Hand Tools of Various Categories Exported to the U.S. in the 1st Half of 2020 Unit: 0.1 bn NTD; %
Top 5 Exported Products of Various Categories Type A- non-power hand tools- subtotal
HS Code --
H1 2020 H1 2019 Export Value Export Value 137.1 144.1
Growth Rate -4.9%
1. Other hand tools
8205
51.7
54.1
-4.3%
2. Hand-operated wrenches & spanners and sleeves
8204
33.6
37.0
-9.0%
3. Hand tool sets
8206
13.3
16.4
-18.9%
4. Interchangeable tools or hand-operated hand tools for machines
8207
11.4
9.8
15.6%
5. Pliers, cutting pliers and similar articles
8203
6.5
6.7
-2.6%
Type B- power tools-subtotal
--
64.5
70.8
-8.8%
1. Other non-reversible hand-held pneumatic tools
8467199000
27.3
31.0
-12.0%
2. Other reversible hand-held pneumatic tools
8467119000
7.4
6.8
9.4%
3. Spray guns and similar articles
8424200000
5.7
5.5
4.0%
4. Pneumatic tool accessories
8467920000
4.7
4.6
3.0%
5. Other hand-held tool accessories
8467990000
4.4
4.9
-10.0%
--
201.6
214.9
-6.2%
--
45.8
52.0
-11.8%
8204200000 8204110000 8204120000
20.5
21.5
-4.5%
8.5
15.5
-45.2%
3. Screwdrivers
8205400000
6.1
6.0
2.1%
4. Hand-held pneumatic wrenches
84671130001
2.7
4.3
-37.2%
5. Power socket wrenches
8467293000
2.7
4.0
-31.4%
Hand tool industry (Type A- non-power + Type B- power) total Type C: fastening hand tools- total 1. Interchangeable socket wrenches with or without handles 2. Hand-operated wrenches and spanners
Source: Import and export data of Taiwan's Customs
c. Export to Europe- Same Period Comparison (H1 2020 vs. H1 2019) and Impact Analysis In the first half of 2020 Taiwan exported 12.71 billion NTD worth of hand tools to Europe, down 19.4% from 15.77 billion NTD recorded in the first half of 2019. Such a decline of Taiwan’s hand tool export to Europe was much higher than that of Taiwan’s fastener export to the U.S. (-6.2%). Table 4 shows the impact on Taiwan’s top 5 hand tools of various categories exported to Europe in the first half of 2020. In the first half of 2020 the non-power hand tools Taiwan exported to Europe that showed a more significant decline were: other hand tools (-20.9%), hand-operated wrenches & spanners and sleeves (-18.9%), hand tool sets (-20.9%), interchangeable tools or handoperated hand tools for machines (-6.7%), tools for agriculture, gardening and forestry (-17.9%); in terms of power hand tools, the products that showed a more significant decline were: other non-reversible hand-held pneumatic tools (-20.1%), hand-held pneumatic wrenches (-31.2%), other reversible hand-held pneumatic tools (-30.5%), pneumatic tool accessories (-28.0%), other hand-held tool accessories (-16.6%); in terms of fastening hand tools, the products that showed a more significant decline were: hand-operated wrenches and spanners (-17.9%), interchangeable socket wrenches with or without handles (-20.0%), hand-held pneumatic wrenches (-31.2%), screwdrivers (-25.1%), handheld pneumatic screwdrivers (-31.3%).
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Industry Focus Table 4. The Impact on Taiwanâ&#x20AC;&#x2122;s Top 5 Hand Tools of Various Categories Exported to Europe in the 1st Half of 2020 Unit: 0.1 bn NTD; %
Top 5 Exported Products of Various Categories
HS Code
Type A- non-power hand tools subtotal
--
H1 2020 H1 2019 Export Value Export Value 102.8
Growth Rate
125.8
-18.3%
1. Other hand tools
8205
38.9
49.1
-20.9%
2. Hand-operated wrenches & spanners and sleeves
8204
24.5
30.2
-18.9%
3. Hand tool sets
8206
10.3
13.0
-20.9%
4. Interchangeable tools or hand-operated hand tools for machines
8207
9.9
10.6
-6.7%
5. Hand tools for agriculture, gardening or forestry
8201
7.4
9.0
-17.9%
Type B- power hand tools subtotal
24.2
31.8
-23.9%
1. Other non-reversible hand-held power tools
8467199000
5.9
7.4
-20.1%
2. Hand-held pneumatic wrenches
8467113000
3.8
5.5
-31.2%
3. Other reversible hand-held pneumatic tools
8467119000
2.8
4.0
-30.5%
4. Pneumatic tool accessories
8467920000
2.5
3.4
-28.0%
5. Other hand-held tool accessories
8467990000
Hand tool industry (Type A- non-power + Type B- power) Total Type C: fastening hand tools total
--
2.1
2.5
-16.6%
--
127.1
157.7
-19.4%
--
31.0
39.3
-21.2%
1. Hand-operated wrenches and spanners
8204110000 8204120000
13.5
16.5
-17.9%
2. Interchangeable socket wrenches with or without handles
8204200000
11.0
13.7
-20.0%
3. Hand-held pneumatic wrenches
8467113000
3.8
5.5
-31.2%
4. Screwdrivers
8205400000
2.0
2.7
-25.1%
5. Hand-held pneumatic screwdrivers
8467112000
0.2
0.4
-31.3%
Source: Import and export data of Taiwan's Customs
Solutions for Taiwanese Government and Companies Although it is uncertain if the global hand tool market after the influence of U.S.-China trade war and the Covid-19 pandemic can return to the normal level as it was before the outbreak of Covid-19, some countermeasures may still be good references for Taiwanese Government and companies to take into account.
a. For Taiwanese Government 1. Financial Relief: Taiwanese Government has been very active in providing suffering hand tool companies with financial relief. As of this June, the total value of the financial relief provided has been over 0.5 billion NTD, benefiting around 11,000 people. The continuous simplification of the application procedure and the expansion to cover more people in need of the financial relief should mitigate the escalating pressure on hand tool companies. 2. Reinforce Marketing Approach: Taiwanese Government helps domestic companies promote their brands abroad via approach deployment, talent training, market survey, and strengthening hand tool marketing and promotion. 3. Help Improve Intâ&#x20AC;&#x2122;l Marketing: Taiwanese Government can help hand tool companies reinforce their sales to focused international markets or niche industries, organize delegation to participate intâ&#x20AC;&#x2122;l trade shows or visit local buyers around the world, integrate resources from various official authorities, help Taiwanese hand tool companies penetrate into the supply chain of international leading companies, and give purchasing orientations for foreign large companies to help increase orders of Taiwan hand tool industry.
b. For Taiwanese Hand Tool Companies 1. The U.S.-China trade war and the Covid-19 pandemic have reshuffled the global hand tool supply chain. As a result, in order to gain a firm presence in the markets which have not been saturated yet, it is suggested that Taiwan hand tool industry should adopt the risk management strategy for multi-layered supply chains, figure out feasible plan B and backup solutions in different places, or adopt the strategy of various supply origins to avoid too much reliance upon one single approach and the risk of becoming a second-tier OEM. 2. Hand tool companies can make the most of their time amid the Covid-19 to readjust their plans or operations, such as establishing strategic alliance with companies from different industries to develop IT-enabled hand tools to search for new business opportunities, or adopting the transformation strategy to upgrade their product level and value, or focusing on the development of high-end products and applications to accumulate their strength in the R&D of critical hand tool technology.
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