Global Fastener News

Price, Wire Quality at Issue in Ukraine

John Wolz

Editor’s Note: The following column is written by Phil Matten, editor of UK-based Fastener & Fixing Europe magazine as part of an exchange with FIN.

Difficulties obtaining reliable local wire for cold headed, high-grade fasteners and the investment required to modernize fastener plants were the two consistent issues talked about at a Ukraine technical conference.

Speakers and attendees at the inaugural technical conference in October in Kiev displayed fierce patriotism and a desire to revive their fastener industry. The conference was sponsored by Ukrainian Metal Products magazine.

Modern heat treatment capability is also limited and low cost imports have driven down market prices, participants noted. One Odessa manufacturer reflected, “it is more a price race than a quality race right now.” The market is flooded with cheap imports, she said, presenting producers “no choice but to use less reliable local wire.” Sergey Novatsky, chief engineer at major Ukrainian distributor Metalvis, said that conforming to specifications was a luxury in Ukraine rather than mandatory. As a result defective fasteners had been responsible for a number of serious accidents. “It is a bit like tailoring a suit,” Novatsky observed. “If you use rotten threads it all falls apart. We have to recognize that using cheap, low quality fasteners can prove very expensive.”

Victor Zernaev, marketing director of Russian automotive fastener manufacturer BelZAN, noted that “at conferences we always talk about our problems not our achievements. We should work out common ways to solve our problems. The issue of low quality fastener imports has to be dealt with.”

The BelZAN plant employs 6,000 people producing 48,000 tons of automotive fasteners a year. It has invested to improve efficiency, including the installation of a SAP computer system. Recently BelZAN came under fire over quality improvement from automaker Lada, its biggest customer. “We have a special relationship with Avtovaz,” Avtovaz. Zernaev said. “Hopefully it will survive.” Another delegate suggested that Avtovaz has to buy cheap fasteners to make cheap cars so they need BelZAN.” �2006 FastenerNews.com and Fastener & Fixing Europe