Global Fastener News

INTERNATIONAL NEWS

John Wolz

Editor�s Note: The following is presented by Taiwan-based Fastener World magazine as part of a news column exchange with FIN.
Taiwanese Seek Overseas Alliances
Taiwanese wire rod manufacturers and downstream industrialists are aggressively seeking cooperative partners. The fastener industry of the future may explore overseas markets by strategic alliance with American or Canadian customers. \
Since last year the Taiwan Industrial Fasteners Institute has called for the manufacturers of wire rods and fasteners to avoid price competition. As a result, export prices of bolts and nuts gradually increased. By the end of July this year the unit price of fasteners was about US$1.41/kg, up by 8% from the March level. On the other hand, China Steel Corp. did not change wire rod prices in the fourth quarter. Fastener insiders expect that the price of fasteners could be stable for the next six months.
TIFI also is encouraging fastener companies to consider strategic alliance with local or foreign companies.
� According to Economic Daily News, an aerospace fastener manufacturer, National Aerospace Fasteners Corp. has submitted an application to the ROC Over-the-Counter Securities Exchange for initial public offering (IPO). The company is expected to be listed in the third tier of high-tech stocks. Meanwhile, it will be the first IPO of a firm producing aerospace fasteners in Taiwan.
� China Steel Corp. chairman C.Y. Wang is nominated to be the first Taiwanese to head the International Iron and Steel Institute (IISI). IISI members meeting in Australia for their 34th convention include British Steel, America Steel, Nippon Steel and China Steel Corp. One convention topic is the consideration of participation by Chinese steel companies. The production value of Chinese steel companies accounts for about 30% of the world�s production.
� The Taiwan Legislative Yuan set limits on two work weeks totaling 84 hours, meaning that a five-day work week system will be implemented every other week before January 1, 2001.
In addition, the legislature is implementing the five-day work week for civil servants before January 1.
Two proposals were adopted increasing the primary wage and reducing foreign labor 10% every year.
Some industrialists pointed out that if these resolutions are enforced, wage costs could jump 8.75%. As a result, fastener exports could be up 1% to 2% by November to reflect the increased labor cost from the shorter work week.
The five-day work week will affect civil servants, the operations of financial institutions, transportation and customs. It further encourages the fastener industry to move to China or other Southeast Asian countries to reduce costs.
� Tycoons Group Enterprise Co. in Thailand went public with capital of US$130 million and screw capacity of 50,000 tons, annealing wire & rod of 72,000 tons and hot rolled wire rod of 500,000 tons per year. Sales are expected to reach US$100 million this year. Together with the parent company�s business turns of US$50 million, the Tycoons Group revenue is estimated to approach US$150 million this year. The Group�s production emphasis will be based on Thailand in the future.