UK Fastener Firms Expanding in Europe

Phil Matten

Editor�s Note: The following is presented by UK-based Fastener & Fixing Europe magazine as part of a news column exchange with FIN.
By Phil Matten, Fastener & Fixing Europe
Walters Hexagon Makes Move on Europe � UK direct-to-line specialist distributor Walters Hexagon has announced plans to establish a network of customer service centres throughout mainland Europe during 2003. The first, near Paris, opened January 1 to continue to service an AGCO Corporation production operation switched from the UK to northern France. A second site in France will be followed by further operations in Spain, Germany, Italy and the Czech Republic.
CEO David Woodcock says there is great potential for Walters Hexagon to expand in Europe because the �market there is immature, with few serious companies offering just-in-time, direct line feed and vendor managed inventory to manufacturers.� The decision reflects a pattern of UK-based OEMs and assemblers migrating to Europe and particularly to �old East� countries.
Last year Black & Decker announced 1,000 jobs would move from Northeast England to the Czech Republic. On top of the attraction of lower-cost labour, less regulation and lower general business costs, the Czech Republic, and nine other Eastern European countries, will join the European Union in 2004, ensuring producers free market access.
Competitors TR Europe, amongst others, might question Woodcock�s market assessment. They already have operations in Hungary, France, the Netherlands and Scandinavia.

First Major European Distributors Conference in May � The European Fastener Distributors Association will hold its first major conference May 14-17 in Munich. The coalescence of German, French, Italian and British associations confirms the emergence of a coherent body to represent, promote and inform distribution companies across Europe. Proposed presentations are expected to address changing business roles in an expanding EU market and trends in assembly techniques. EFDA is already coordinating distributors� views on stainless steel anti-dumping tariffs currently under review by EU authorities and is acting as an interchange for member associations� technical and training publications.

BAFD Chair Urges Distributor Involvement � British Association of Fastener Distributors chairman Ian Hutchinson pressed for distributors to take a stronger role in the association. Hutchinson, sales director of UK wholesaler Harrison & Clough, said he is �very much aware that our organisation takes perhaps too much direction from its wholesaler [supplier] members.� He went on to say that, without devaluing wholesalers� contribution, he wanted to �encourage distributors to play a role that proportionately reflects their numbers.� Wholesalers represent around 10% of the 80 member companies but hold nearer half the board positions.
BAFD differs from its North American counterpart, the National Fastener Distributors Association, in that wholesalers are defined as full members and there is no limit on how many may be elected to the executive seats [board of directors]. Wholesaler executive members have played a pretty unselfish part in developing the association � such as Fastbolt CEO Heinz Storch, who dedicated two energetic years as chairman.

Spanish Fastener Distributor Association Formed � ADISFI was formally constituted in Barcelona to represent fastener and fixing distributors. Alongside general objectives regarding business, product quality and service standards, ADISFI aims to promote member businesses and create direct links with manufacturers. Spain already has an active manufacturers association, ASEFI, established in 1994 and now with around 50 members.

Mixed Fortunes for UK Fastener Manufacturing � Last year the UK�s largest manufacturer of bolting products, Armstrong Fastenings, moved away from selling standards through distribution to focus on automotive OEMs, cutting annual output by an estimated 15,000 tonnes.
At a recent Confederation of British Metalforming meeting managing director Bert Shaw had no doubt about the wisdom of the decision, saying the company has �found the promised land of profit � and it�s good.� Assessing the future, he went on to say he had �a high degree of confidence that Armstrong could drive forward over the next two years.�
For others, 2002 was far less healthy with established names, including Holokrome, closing UK production and, probably the best known, Nettlefolds going into administration [bankruptcy protection].
Nettlefolds� future is still unclear, but production will never again be on the same scale. More specialist operations are faring better with the emphasis on focused markets, flexibility of both management and workforce, and tightly targeted investment. Following an MBO two years ago, Clyde Fasteners, in Scotland, have significantly adapted their production ranges and techniques to meet customer requirements.
Specialist rivet producers Clevedon Fasteners, also subject to an MBO in 2000, went on in 2001 to acquire Carlo Salvi machines from a previous sibling company. They are just about to take delivery of a new Salvi 246 2-die, 4-blow header to take them into 8-mm net shape forming. Salvi�s UK dealer, Johnson Machine Tools, is expected to confirm several other machine sales on the back of the Italian company�s factory extension celebrations last summer.
At the other end of the scale, automotive parts specialists CSW Coldform are just commissioning a Jyoto Parts Former they reckon to be the largest cold forming machine of its type in the UK. Concerns remain, though, about persistent UK steel price increases and the growing impact of regulation, notably last year�s Climate Change Levy, which is estimated to represent an addition to UK manufacturing generally of approaching $200 million. \�FastenerNews.com