Horng at NFDA: Taiwan’s Fastener Product Mix Changing

John Wolz

The first difference in fastener manufacturing in Taiwan from North America is that 90% of production is exported, David Horng, H-Locker Corporation, told the National Fastener Distributors Association. In contrast, China uses 60% of the fasteners it produces.

In Taiwan there are about 500 hardware-size distributors with 5 to 6 employees serving the local market, Horng noted during the NFDA panel on global issues.

The Taiwan Fastener Distributors Association was formed in 1993 and now has more than 100 members selling U.S.$200 million annually. Among the best-known names are Bossard Taiwan, Kao Way, TongZe and Jun Chang. The Taiwan Fastener Manufacturers has 480 manufacturer members. Originally founded in 1989, the Taiwan Fastener Traders Association has 187 trader and manufacturer members exporting U.S.$1.4 billion annually.

Taiwan has been forced to give up low end products and change to the automotive sector and invest in more production technology such as camera sorting and international certifications. While the total weight of fastener exports peaked in 2004, the value continues to rise. Taiwan manufacturers are updating production equipment, offering more value-added services. In addition to technology, Taiwan is emphasizing education of the next generation of fastener engineers. Fastener companies are turning to mergers and acquisitions for survival.

In 1990 Taiwan exported 38.6 million tons of fasteners, 140.1 million tons in 2004 and 126.7 million tons last year. Horng estimated there are 1,700 fastener factories and 200 of the Taiwan manufacturers have invested in plants in China or other Asian countries.

Taiwan’s goal is increasing fastener exports 10% in both weight and value by 2010. nfda-fastener.org �2007 FastenerNews.com