A hot land for fastener
2008-07-30

    As the biggest fastener production base in the world, Haiyan is well located in the middle of Yangtze Delta, with Hangzhou Bay to the east and Hangzhou to the southwest. Along with the construction projects of Hangzhou Bay Across-Sea Bridge, Hangzhou-Pudong Expressway and Shaoxing-Jiashan Expressway, its area is 503 km2, population is 370,000. And it takes only one hour from Haiyan to four cities—Shanghai, Suzhou, Hangzhou, or Ningbo. The areas surrounds Haiyan like Shanghai, Jiaxing , Haimen, Ningbo, Wenzhou and so on, focus many fastener enterprises, building a big fastener market in Haiyan must be a great attraction for fastener manufacturers.

    According to the statistics, there are more than 1200 registered fastener enterprises in Haiyan, among which more than 800 enterprises are manufacturing enterprises. These enterprises produce approximately 20% of the total fasteners in China. 70% of the Haiyan fasteners are exported to more than 60 countries and regions. Of about 14000 types of fastener products, the output and export volume of its long bolts rank top in China. Obviously,Haiyan’s advantage is irreplaceable. Haiyan is near Bao Steel Group, so that its transportation cost is not high. Moreover, Bao Steel has very high quality and expensive wires, which can be made into top-end fasteners. Yongnian, with Xingtai Iron and Steel Company nearby, can get the materials easily. Its costs of materials and transportation are low. And Yangtze Delta is always a hot land for foreign investment. Jiangsu, Zhejiang and Shanghai have advantages in the areas of heavy industry, these areas need to apply a lot of fasteners, which cultivates a rich land for fastener enterprises. Another factor is the local government and the Haiyan fastener same business chamber of commerce. They list fastener manufacturing as their traditional and pillar industry and consider it as the greatest importance of local construction and development. They collect the relative information in time, especially those on antidumping and safeguard. As soon as those early warnings are passed down to the corresponding enterprises, the measures will be taken.      

    Tide has its ups and downs. Due to lower export tax rebates, increasing prices of raw material, appreciation of RMB and rising labor cost, Haiyan fastener enterprises is facing hard time and hundreds of small enterprises have shut down. If we don’t take measures, about 30% fastener enterprise could not survive. What is worse, the fastener product price excessively is very low in haiyan, which is always trouble of the local enterprise heart. the competition is intense Because the enterprise multitudinous, last year the Haiyan fastener exportation price was approximately 6500 Yuan/tons to 7000 Yuan/tons, but when overseas store sale, its price for the exportation price 6 to 8 times, and the price low also became this time is mentioned by Europe the dumping investigation the important reason. According to statistics, the total world demand for fasteners is about 50 billion US dollars this year and international demand remains strong. And there are 87 domestic fastener enterprises in Haiyan which have invested 2.116 billion Yuan totally since 2006. These inputs will be output in the next two years, which will make Haiyan fastener industry further booming. After Haiyan seminar on healthy fastener industry development, the latest development plan for Haiyan has been clear: It is estimated that the output value of the entire fastener industry will achieve 20 billion Yuan by 2011, while medium and high strength fastener will cover more than 50%.      

   Taking full use of its advantages in location, brand, sales channels, government and other areas, we strongly believe that, Haiyan will become the most influential fastener production base in China and even in the world in the near future.