Bulten AB reported third quarter sales increased 14.5% to SEK 722 million (US$79.3 million), Fastener + Fixing Magazine reports. Q3 operating margin slipped to 5.2%. Bulten reported order bookings rose 8.3% to SEK 2.36 billion.

“The organic growth is primarily driven by new contracts that are now in production,” stated CEO Tommy Andersson. “We are therefore continuing to take shares on a market characterized by temporarily higher volatility in demand for cars during the quarter, which is largely an effect of new environmental tax regulations in several European countries.”

“Furthermore, global market prices for raw materials for fasteners have risen continually since the first quarter of 2017.”

“Demand for hybrids and electric cars is increasing, a favorable development for Bulten since the value of fasteners is currently far higher in these vehicles compared to ones with conventional combustion engines,” Andersson continued. “Also, in October we signed a new FSP contract for an electric vehicle drive technology driveline, clear confirmation that we are on the leading edge when it comes to technology for electrification.”

During the first nine months of 2018, sales grew 12.7% to SEK 2.39 billion, according to Fastener + Fixing. Nine-month operating earnings increased 4.5% to SEK 162 million, while operating margin declined to 6.8%.

During Q3, Bulten announced it will relocate its operation in China from Beijing to Tianjin. The aim is to expand in the local Chinese market, where Bulten’s volumes and growth opportunities increase considerably from a previously relatively low level.

“With this move we strengthen our position in China and are able to scale-up future volumes to another level,” Andersson explained.

The new plant will be located in XEDA International Industrial Park in Tianjin, approximately 150km from the current plant, where Bulten will rent the premises in a new facility with the latest purification technology. The relocation starts this year and is expected to be completed by the end of 2019. The relocation includes an investment of approximately SEK 25 million and the cost is estimated to amount to SEK 16 million – SEK 20 million distributed over the moving period, the main part in 2019.

“With this investment we get an efficient and a more environment friendly production with more capacity to handle future growth,” stated Edith Wang, Bulten’s managing director in China. “I am looking forward to this opportunity that will bring Bulten to another level on the Chinese market.” Web: Bulten.com