11/25/2013 1:49:00 PM
NEWS BRIEFS
Tariffs Push Fastener Business Towards Malaysia
Courtesy the Star
Malaysia-based Chin Well Holdings Bhd expects to sell more fasteners in 2014 due to demand from the U.S. and Europe, the Star of Malaysia reports.
U.S. industrial product and construction material wholesalers are now sourcing steel fasteners through Chin Well, group director Tsai Chi-yun told the Star.
“Previously, they had bought from India and Thailand,” Tsai stated. “But with the recent anti-dumping duties imposed on threaded rods, a type of fasteners, from India and Thailand, they are now coming to us.”
“We expect steady demand from these buyers for the next five years.”
The orders from the U.S. and Europe would increase the company’s monthly fastener output by as much 20% at its factory in Bukit Minyak, which currently produces about 4,000 tons of fasteners per month, according to Tsai.
To increase European business the group is pursuing more CE (European Conformity) certifications for fasteners used in government projects, the Star reports.
“The sales contribution from Europe for the 2014 fiscal year is expected to improve over to 40% of the group’s revenue compared to 35% a year ago,” Tsai noted.
Malaysia’s market has been hurt by weakening Asian currencies and stiff competition from China-made fasteners.
“The Malaysian and Asian market, which contributed about 30% to group revenue in the 2013 fiscal year ended June 30, is expected to generate less than 25% for the 2014 fiscal year,” she added.
For the 2013 fiscal year, the group’s output of fasteners and wire harness products remained flat at about 107,762 tons, with an estimated 75% of that output comprised of fasteners.
According to The Freedonia Group global fastener sales are expected to rise 5.2% yearly to US$82.9 billion by 2016.
The Asia-Pacific region is expected to record the fastest demand gains from 2011 to 2016, averaging 7.4% per year. ©2013 GlobalFastenerNews.com
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