Global Fastener News

Editor’s Note: The Taiwan External Trade Development Council invited leading fastener journalists from around the world to Taiwan to promote the new trade show in October 2010

June 21, 2010 FIN – It will be a different kind of trade show.  The first Taiwan International Fastener Show will have just 300 traditional booths, but the event won’t be just distributors wandering aisles and stopping at booths in the convention hall.
The emphasis is on visiting the source. Exhibitors are inviting distributors from around the world for plant tours and visits to related service providers before or after the show.
Instead of Taiwan companies traveling to Japan, Europe, Russia and the U.S. to exhibit at trade shows, they are inviting customers to visit Taiwan October 19-20, 2010.
Exhibitors will be displaying nuts, bolts, screws, fastener manufacturing equipment, tools, meters and instruments in the Kaoshiung Arena in Southwestern Taiwan.
They will be talking about their research & development programs, international certifications such as ISO and QS and advancements in automotive and aerospace fastener markets.
There will be one-on-one procurement meetings, seminars and forums.
The development of the fastener industry in Taiwan is traced back to the end of World War II when internal and external demand increased.
Chun Yu Works & Co. Ltd. was an early leader. Founded in 1949 to manufacture sewing needles and calculators, Chun Yu converted to iron punching nuts and in 1955 began manufacturing screws, nuts and hex socket cap screws.
Chun Yu chairman Bruce Sun said the materials for the early screw production came from steel plate of ships and artillery shells.
The U.S. military turned to Taiwan as a fastener supply base for the Vietnam War.
From 1968 to 1978 high efficiency of production machinery and technology brought production cost down.
After Taiwan’s China Steel Corporation began producing wire rod, many fastener manufacturers moved south to reduce both steel shipping costs and using Kaohsiung harbor for exports.
As the fastener industry grew, so did secondary processes. Heat treatment capabilities were added. Major construction projects in Taiwan between 1979 and 1983 increased fastener demand, prompting a jump in the number of factories from 30 to more than 100.
From 1984 to 1990 is considered to be Taiwan’s growth period in fasteners due to innovation, automated production machines, quality control, communization, competitive pricing, quality and fast delivery. Taiwan’s fastener exports reached 140 nations and totaled 30% of the world’s fasteners.
Cluster Manufacturing Concept
Taiwan’s fastener and other industries grew in the “industrial cluster concept.”
Clusters are traced back to urban development and a group of economic entities locate in one area to best utilize related supply and services. Examples of such early clusters were the cotton textiles in Lancashire, England in the 19th century or tiles and shoes in northeastern Italy in the 20th or the cluster of semiconductor computer and telecommunication industries in California’s Silicon Valley.
Taiwan’s Southern industrial cluster – including Kaohsiung and Tainan – produces 40% of the nation’s fasteners.
The central Taiwan cluster – around Taichung and Changhua – produces another 25% of the country’s fasteners and the Northern cluster, which includes Taoyuan, Shulin and Sanchong, manufactures 35%. The clusters create fastener-intensive neighborhoods. In Gangshan Township – with a population of around 100,000 – about eight or nine people in 10 will tell you they are directly or indirectly working in the screw industry.
Between 1991 and 2001, currency exchange rates, wages and land costs sent some fastener companies to China and Southeast Asian countries.
Taiwan now faced price competition and moved into higher quality and value-added production, including stainless structural and automotive fasteners. More Taiwan manufacturers sought ISO, QS and TS certification.
Today, with 1,290 fastener manufacturers, Taiwan is one of the top five fastener exporting countries and accounts for 6% by production value and 30% by volume. The total value of Taiwan fasteners exported in 2008 was estimated at US$3.57 billion.
Taiwan exports fasteners to more than 150 countries with the U.S. the leading customer.  In 2008 42% of fasteners were exported to the U.S.

Distributor Incentive Program
The Taiwan show is sponsored by the Bureau of Foreign Trade and organized by the Taiwan External Trade Development Council and the Taiwan Industrial Fasteners Institute.
TAITRA is offering incentives for distributors to attend and see how the Taiwan industrial concept has developed. The show is located in southwestern Taiwan so distributors also can visit factories in the Kaohsiung area.
For information on incentive programs contact TAITRA. Tel: (886) 2-2725 5200 x2627 Fax (886) 2-2723 4374  Email: fastener@taitra.org.tw Web: FastenerTaiwan.com
For Taiwan Industrial Fasteners Institute information: Morgan Lin, TIFI, 4F, 71 Sungchaing Rd., Taipei 10486, Taiwan. Tel: (886) 2 25060918 Fax (886) 2 25072429 Email: tifi@ms12.hinet.net Web: fasteners.org.tw ©2010/2013 Fastener Industry News.
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2010 FIN � Worldwide Fastener Editors Tour 7 Taiwan Plants
Editor’s Note: As part of the Taiwan External Trade Development Council’s promotions for the new fastener trade show in October, five fastener journalists from Russia, Japan, the UK and U.S. toured seven Kaohsiung-area fastener plants.
June 21, 2010 FIN – Founded in 1973, Ho Hong Works Co. Ltd. is now producing about 1,700 metric tons of fasteners monthly.
Ho Hong has 85 employees at a 180,000 sq ft plant.
Chairman Joe Chen noted that more than 60% of Ho Hong’s production is exported to Japan, followed by 35+% to the U.S. and 3+% to Europe.
“As manufacturers we understand we must upgrade,” Chen said. “We can not compete” with low wage nations.
Upgrading means more research and development, he noted.
Ho Hong felt the global recession in 2009 with sales dropping 34% from 2008.
However, March 2010 sales were up 70% over the same month a year earlier. That led Chen to predict 2010 sales will be back to at least 80% of 2008.
Ho Hong produces OEM specials, non-chrome parts and fasteners to customer drawings. 10, Chung Shan Rd., Lu Chu Village, Kaohsiung Hsien, Taiwan, ROC. Tel: (886) 7-696 3301 Fax (886) 7-696 7780 E-mail: hh.wi@msa.hinet.net
Chun Yu Works
Founded in 1949 by brothers Chun Yu Lee and Chun Tang Lee in Southern Taiwan with four simple machines and 10 employees manufacturing bolts, nuts and screws, Chun Yu Works & Co. Ltd. now has 10 companies.
Chun Yu has 450 employees and produces 12,000 metric tons of fasteners per month for use in vehicles from bicycles to aerospace.
Chairman Bruce Sun points out that a ton of Chun Yu fasteners were used in the Taipei 101 building.
Chun Yu exports to more than 50 countries. More than half of Chun Yu’s fasteners are exported to Asian countries, 26% to the U.S., 17% to Europe and 3% to the Middle East.
Sun reported early 2010 sales were 30% up after a 31.6% drop in 2009 from $300 million in sales for 2008.
President Simon Lee cited Chun Yu’s corporate social responsibility and environmental protection policies.
Chun Yu has its own acid treatment system recycling waste acid from annealing and pickling 99% recycling rate.
Today products include collated screws, weld bolts, flange screws, press screws, hex bolts, wheel hub bolts, bi-metal self drilling screws, micro and precision electronic screws, railway fastening systems, car body and railway track fittings, forging parts and customized parts.
Chun Yu has facilities in Taiwan, China, Indonesia and the U.S. and is headquartered at 1, Chashing Rd., Kangshan Chen, Kaohsiung 82057, Taiwan. Tel: (886) 7-621 4121 Fax (886) 7-622 3256 E-mail: sales@chunyu.com.tw Web: chunyn.com.tw

Samshing Fastech
Founded in 1965 by Yuan-He Lee, Sanshing Fastech Corp. initially produced hinges.
In 1968 Sanshing developed its first self-made nut forming machine. Today Sanshing produces automotive fasteners, machinery and tooling and holds more than 150 patents.
In 1998 San Shing and Textron Fastening Systems signed a cooperative contract for a joint venture factory for automotive fasteners, which lasted until 2006.
In 2002 the company name changed to San Shing Fastech Corp. and entered a strategic alliance with Maclean Fogg of the U.S.
Vice president Clay Chen said San Shing developed its own Total Productivity Management system two years ago as part of a zero defect quality control system. It focuses on “every employee, every movement.”
Bolt sales manager Jacob Yeh said San Shing is “proud of our success” in automation, which has increased profits. San Shing emphasizes its ISO 14001 system with chrome-free coating facilities.
The future is upgrading its product to reach aerospace Chen said, “Aerospace is a goal for us.”
Sanshing displayed its developing “scrapfree” production at Wire Düsseldorf this year with “very good reactions. We are happy to see results,” Chen told GlobalFastenerNews.com.
San Shing Fastech is located at N. 355, Chung Shan Rd., Section 3, Kui-Jen, Tainan, Taiwan. Tel: (886) 6-239-1211 Fax (886) 6-230-9967 E-mail: sanshing@mail.sanshing.com.tw Web: sanshing.com.tw

Jau Yeou Industry
Founded in 1979 by Tea-Nan Sun, Jau Yeou Industry Co. Ltd. began producing nuts and in 1985 expanded tapping screws sold to the U.S. market.
In 1987 Jau Yeou began manufacturing drywall screws for the European market.
In 1989 Jau Yeou set up its own wire drawing division and in 1991 added a case hardening furnace.
In 2008 Jau Yeou moved to a new 98,938 sq meter plant.
Today Jau Yeou has 302,189 sq ft of factory space and 10,704 sq ft of office space. There are 193 employees produce 3,500 metric tons of fasteners monthly. Products include drywall, self drilling, window, chipboard tapping, concrete and collated screws; bits; nut setters; and Jau Yeou patented screws.
Sales manager Steve Tseng acknowledged 2009 was a difficult year. A year ago first quarter orders were down 40%.
Sales for all of 2009 totaled US$50.03 million, down from US$74.5 million for 2008.
But this year Tseng is predicting sales will be double of 2009.
Major customers are led by Hilti, followed by the Würth Group.
In 2009 Jau Yeou sold nearly half its product to Europe 48.5%, followed by 29.5% to North America and 20.4% to Asia.
President Tea-Ren Sun’s quality policy is “Do the things right at the first time to ensure quality and enhance efficiency.”
Growth will come with more subcontracting and working together with customers, Sun said if buyers need small boxes, then Jau Yeou will provide it.
Jau Yeou is developing auto parts and special fasteners, but Jau Yeou will maintain its current market. “We don’t want to give up construction screws even if we move into automotive,” Sun told GlobalFastenerNews.com. Jau Yeou Industry Co. Ltd, 500 Shengsen Rd., Kangshan 820 Kaohsiung, Hsien, Taiwan, ROC Tel: (886) 7-621 1759 Fax (886) 7-623 0679 E-mail: jau@ms10.hinet.net Web: jauyeou.com

Boltun Corporation
Founded in 1988, Boltun Corporation’s name comes from “bolt & nut.”
Early in its history, Boltun developed welding, rivet, clinch, locking, nylon insert and conical washer nuts.
Over the years Boltun received certifications by international OEMs including GM, Lear, Daimler-Chrysler and Ford.
Managing director and sales manager Quintin Chuang emphasizes the Chinese phrase “learn and apply” as the current philosophy at Boltun.
Today’s products include T-nuts, CNC machining parts, stamping parts, bushes & sleeves, assembly components, and special parts.
Boltun’s fasteners include wind turbine bolts, truck wheel screws, rail screws, automotive screws, construction screws and dental implant screws.
In 1987 Boltun opened its first plant in China. In 2007 Boltun opened a casting facility for die casting parts.
Chuang foresees growth in the wind turbine industry. Combined fuel costs and environmental issues make renewal wind energy important and Boltun developed 600 W and 1.2 KW small wind turbines in 2007.
Bolton is located at No. 1, Hsin Tien 2nd SL., Jen Der Hsiang, Tainan Hsien, Taiwan. Tel: (886) 6-279 4013 Fax (886) 6-270 3413 E-mail: sales@boltun.com Web: boltun.com

Jinn Her
Founded in 1980, Jinn Her Enterprise Co., Ltd. has grown to 7,000 metric ton capacity per month and exports 80% of its fastener production.
Vice general manager Andy C.H. Lu reported half is exported to the U.S., 20% to Europe, 10% to Australia, South Africa and other markets. About one-fifth is used within Taiwan.
Jinn Her opened in Malaysia – Chin Well Holdings – in 1988, in China – Gem Year Industrial – during 1995, and in Vietnam with Chin Well during 2005.
In 2008 Jinn Her’s total sales topped U.S.$100 million.
Today Jinn Her has 300 employees and a 30,000 pallet automatic storage and retrieval warehouse.
In house processes includes pickling, drawing,, forming & threading, heat treatment, plating and packing. Products include T.C. bolts, hexagon bolts, structural, and welding studs.
After sales plummeted in 2009, Lu reported the first half of 2010 is almost back up to 2008. “So far, so good,” Lu said.
Lu finds rising sea freight rates have helped spur orders as customers have kept inventories low. Now restocking at higher prices.
Construction fasteners account for 25% of sales. Automotive is a small percent, Lu said.Jinn Her, No. 107 Shin-Lo St., Kangshan, Kaohsiung, Taiwan, ROC. Tel: (886) 7 6229801 Fax (886) 7 6223750 E-mail: sales@jinnher.com.tw Web: innher.com.tw

Tong Hwei
Founded in 1978 to produce steel bolts and nuts, Tong Hwei Enterprise Co. Ltd. moved to the Yung An industrial district in Kaohsiung in 1985 and started manufacturing stainless steel bolts & nuts.
In 1994 THE invested in Min-Hwei south of Kaohsiung to produce stainless steel self-tapping screws, machine screws, chipboard screws and wires.
Executive director Anthony Tsai pointed out that THE’s opened its first automatic warehouse in 1995 and now has a 50,000 pallet capacity. THE provides JIT for Toyota.
Tsai said THE grew in 2006 by relocating to Gang Shan, Kaohsiung and adding machinery.
THE emphasizes its “green earth, life lasting” policies of environmental protection “park-like factory,” vice president Jimmy Ko noted.
The policy includes minimizing energy consumption and reducing waste outcome with proper disposal.
Tong Hwei Enterprise in located at N. 399, Gang Yan Rd., Gang Shan 820, Kaohsiung, Taiwan. Tel: (886) 7-622 2855 Fax (886) 7-621 1234 E-mail: the@the.com.tw Web: fastener-world.com.tw/tonghwei
In 2005 Min-Hwei enlarged its land size to 42,000 sq. meters and tripled its production capacity.
Min Hwei has 400 headers and a 26,000 pallet warehouse. Min Hwei is located at No. 18 Yong Hsiang Rd., Fong-Liao Ping-Nan Industrial District, Pingtung, Taiwan. Tel: (886) 8-866 9611 Fax (886) 8-866 0705 E-mail: export@minhwei.com.tw ©2010/2013 Fastener Industry News.
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Editor’s Note:Fastener journalists participating in the Taiwan External Trade Development Council tour of seven Kaohsiung-area fastener manufacturers were: Mamoru Kashiwagi, executive director of the industrial fasteners edition of Metal Industry News of Japan; Phil Matten, editor of the European-based Fastener + Fixing Magazine; Alexander Ostashov, editor of Fasteners, Adhesives, Tool & magazine of Russia; John Wolz, editor of U.S.-based GlobalFastenerNews.com; and Onaya Yoshiteru, president of Fastening Journal Co. Ltd. of Japan.

2010 FIN – Perspective: Fastener Editors Find 2009 Sales Down, 2010 Improving

July 19, 2010 FIN – It was unanimous among fastener journalists touring Taiwan: Fastener sales plummeted in 2009, but distributors and manufacturers are reporting numbers are up thus far for 2010.
Onaya Yoshiteru, president of Fastening Journal Co. Ltd. of Japan, reported multiple manufacturers 2009 sales were down as much as 50%. The worst case he knows of involved a company whose sales fell 90%.
Construction fasteners were down 60%.
“Since 2009 we have started to recover,” and sales are back up to 80% of previous levels, Yoshiteru told GlobalFastenerNews.com.
Rather than sales, Japanese manufacturers are now concerned about how to raise prices, Yoshiteru said.
Just before the recession, optimism prevailed because month after month sales were running 20% over previous year.
“It is the same set of problems for Europe,” Phil Matten, editor of the European-based Fastener + Fixing Magazine said of the 2009 sales plunge and 2010 price increases.
The European automotive market fell 40%, truck market was down 60% and construction 30% to 35%.
Niches are coming back first, such as the small backhoe as house building recovers.
“Automotive stopped ordering, period,” Matten explained.
Russia’s “Fasteners, Adhesives, Tools &” magazine editor Alexander Ostashov said the Russian government is still looking at protective tariffs, but the overall situation is “pushing the Russian manufacturers of fasteners to upgrade the range and quality of products.”
Ostashov cited the example of Bolt.Ru, which has finished conducting certification tests of high-strength bolts, strength class 10,9, for the German company, Peiner Umformtechnik GmbH. Now these bolts can be used in bridge construction in Russia.
In order to expand the range of fasteners produced in Russia, a “lot of work should be executed. So now the factories, producing fasteners, are intensifying their actions,” Ostashov said.
Since last year the largest Russian producer of automobile fasteners – BelZAN – began to produce fasteners for road construction and plans fasteners for the power facilities. The Severstal-Metiz group of companies received certification for high-strength fasteners for bridge construction.
“Many factories are planning to expand their machine shops,” Ostashov added.
Corrections of Russian standards for high-strength fasteners and preparing standards for special fasteners for bridge structures are being finalized.
GlobalFastenerNews.com editor John Wolz finds North American manufacturers and distributors are reporting sales are up, but confidence in sustained sales is still lagging.
“Sales,” “sales” and “sales” were the most frequently mentioned problems in the End of 2009 FIN Survey, Wolz noted.
Nearly 80% of distributors and manufacturers reported sales fell for 2009. The FIN Sales Index fell to its lowest level.
The FIN Company Performance Index also dropped to its lowest point in the 16 years industry leaders have been asked to rate their company performance. It decreased to 3.8 at the end of 2009, compared with 6.5 a year before.
Toward the end of 2009, the FIN Fastener Stock Index regained most of the value it had lost in the stock plunge of 2008.
Mamoru Kashiwagi, executive director of the industrial fasteners edition of Metal Industry News of Japan, observed that the recession has led to assets being sold to bigger companies. “Big companies are getting bigger.”
Europe has a combination of multi-national companies and “still a lot of family-owned companies,” Matten noted. He cited ABC, Fontana, Agrati and Philose as examples of European fastener family companies, which date back for hundreds of years.
Almost all fastener producers are facing “pressure to manufacture in low cost locations,” Matten said. There are certain exceptions such as “safety critical” fasteners.
Decades ago Japan found it couldn’t compete with China on standard fasteners and they turned to value-added products. ©2010/2013 Fastener Industry News.
For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com