Haiyan Fastener Output to Reach 20 Billion Yuan in 2011
Author: ChinaFastener.com
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Date:
2008-3-8
Source: www.Chinafastener.com
It is known that, Haiyan fastener industry, as Haiyan's pillar industry, is changing quietly: some big enterprises are trying to seek business partners and resort to virtual operations hoping to become strong enterprises and lead the whole industry; adjustment of fastener product structure is also carried out quietly-Haiyan fastener industry accelerates its competitive strength during changing.
Due to increasing prices of raw material, lower export tax rebates, appreciation of RMB and rising labor cost, Haiyan fastener enterprises is facing hard time and hundreds of small enterprises have shut down. "30% fastener enterprise can not survive unless we take measures" Mr. Gu Weiping ,Chairman of Jiaxing Brother Fastener Co., Ltd expressed. It is known that there are more than 1200 registered fastener enterprises in Haiyan, among which more than 800 enterprises are manufacturing enterprises. "Taking full use of its advantages in brand, sales channels, R & D and other areas, brother Fastener establish partnership with some small enterprises in the form of virtual operation in order to outsource production to these small enterprises." "It is a large sum of money for small enterprises to open up the market, upgrade equipment and carry out product R&D. However it is a win-win situation for them to supply processing for other enterprises." says an insider.
Adjustment of fastener product structure is indispensable for industrial upgrade. During Haiyan research on Jan, 7th, Mr. Feng Jinrao, Chairman of China fastener industry association, expressed: "the longest vitality period for fastener products is only five years and there will be little chance for product upgrade after five years. Adjustment of product structure will be the eternal topic in fastener industry"
According to statistics, the total world demand for fasteners is about 50 billion US dollars this year and international demand remains strong. In addition, 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%.