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Small screws in the case of anti-dumping fasteners business three into bankruptcy strength

Fasteners business three percent bankruptcy vitality


Although the anti-dumping case against the EU eventually won, but nearly three years time, has been Zhejiang fastener business experienced a life and death pain, we learned in Zhejiang interview, the current fastener industry-wide One of the enterprises have been closed or in a shutdown state, one-third of the enterprises at a loss, only one-third of the enterprises can maintain meager profits. China's fastener industry therefore lost 400 million euros per year of foreign exchange earnings, while the loss of 800,000 jobs, regardless of the transition is active or passive, Zhejiang enterprises have clearly realized that the transition is imminent.


Case Interpretation:


Zhang Rong, Zhejiang Haiyan people, engaged in fastener production has been 26 years. Every day after get off work, he is like nursing their own children to inspect the factory. From the township enterprises to restructuring the private sector, the old rich for the seawall standard factory to pay his half of the effort. May be in 2009, the EU's anti-dumping almost let the old rich bankrupt.


Fu Zhang Rong: Zhejiang Haiyan seawall standard factory chairman in December 2008 has been stopped, the list is not, and all year in 2009 did not.


Reporter: no how to do it? We have no business, and less, then we are dedicated to find ways to find a way, find orders will be ah, or friends, ah, to Russia to pull customers, like the United States to Taiwan to pull customers. Reporter: At that time there is no fear? For example, this factory can not go on? Yeah, yeah. Has been to die, my output value dropped to four or five million at once, the staff also have a view of me, to die, the reporter: how much the original? (Output value) had nearly 30 million.


Prior to 2009, the old rich seawall standard factory products are carbon steel screws, all sold to Europe. EU anti-dumping of carbon steel fasteners, the product no longer sold, the factory was forced to stop production. Looking at the machine and workshop, the old rich tears.


Fu Zhang Rong: Zhejiang Haiyan seawall standard factory chairman had to loan from the bank. Bank loans less than the money, use the assets of the mortgage, mortgage, unsecured. Where are you going to lend? In the end, the rich Zhang Rong and his son's home are used to mortgage, build a new plant, buy a new machine. And the old rich seawall standard factory similar to Jiaxing Pinghu dragon fastener factory also suffered a pain in the skin. They produce ordinary gaskets, except for very few products exported to the United States, the main export area is the EU countries.


Gu Zhaogen: Zhejiang Pinghu Dragon Fasteners Co., Ltd. General Manager (2009) before we export to the EU gasket more than 10,000 tons a year.


Reporter: more than ten thousand tons? What is the concept of what is about how much the amount of RMB about 60 million,


Reporter: that suddenly after the tax increase, is not a great loss ah? Yes ah, the loss is great, equal to Europe to more than 6000 million sales of all gone.


According to Jiaxing Import and Export Chamber of Commerce statistics, in 2008 Jiaxing City, the EU exports of fasteners 333 million US dollars in 2009, only less than 100 million US dollars, a decline of up to 70%. Such as Jin billion industry leading enterprises, as only about 5% of the business volume, after the anti-dumping completely abandoned the EU market.


We followed the rich Zhang Rong came to his new plant, which he and his son mortgaged all the possessions, the final bank loans to build up, and those around the mid-eighties of the last century compared to the old plant, this new plant in the plant It is particularly prominent. Fasteners encountered European anti-dumping investigation, the rich Zhang Rong pain determined to transition, after the introduction of stainless steel products, they opened a carbon steel to Russia and other places of export channels. After two years of efforts, the old rich finally returned to the original level of sales.


Rich Zhang Ronghai salt seawall standard factory chairman can not turn that no way, turn Yeah, always turn, do not turn you no hope, along this hope to do, you do not turn on the ground is useless, this Factory can not do, only the back of a war, we are now the product structure is so two legs to walk, more stable, the original we have only carbon steel and foreign trade, is equal to one foot in the jump, the foot once the problem is not a move The


Fu Zhang Rong told reporters that their original product sales model is very simple, so the EU anti-dumping output value immediately down, anti-dumping although they bring huge losses, but also to promote their transformation, compared with the rich, Of the factory has been prepared in advance of this. In a short span of three months, their main product from the gasket to the nut. Nevertheless, he still felt a lot of pressure.


Gu Zhaogong Pinghu Dragon Fastener Co., Ltd. General manager of the difficulties must be great, all of a sudden sales down, sales come down later, we focus on the beginning of the nut, with a nut to replace the washer. Reporter: What time did you feel the pressure of stress? The pressure is, all of a sudden transition, then a technology ah, there are individuals in this regard, there are different machines and equipment, do the gasket machine with the nut machine, do other machines are not the same.


Chen Guan Da: Zhejiang Province Fastener Industry Association Deputy Secretary-General The anti-dumping to the enterprise caused great losses, which is dangerous, but in turn an opportunity, it also knows that they can not hanged in a tree, then also To the enterprise, regardless of now despite the success, but later may be anti-dumping, then how to do, the variety can not be a single, while your product to be optimized.


Profit is too low a screw inside and outside the spread of 7 times


Our reporter saw in Zhejiang, the production of fasteners business profit margins were significantly lower, many companies are still struggling in the breakeven point on the edge. As the world's largest fastener industry, the manufacturing and exporting countries, why not have the right to speak, but no pricing power? Will similar anti-dumping come back? Continue to see the reporter's report.


Reporter: Kuang Shuhui like my hands to take this high-strength washers ah, but also in 2009 one of the EU anti-dumping varieties, we understand that this high-strength gasket a earn only 3 cents, and this is called high-intensity One of the nuts can only earn a dime. So low profit margins, then this is a small part of the production cost is how much?


Gu Zhaogen: Pinghu Dragon Fastener Co., Ltd. General Manager of the manufacturing cost of about 80%, manufacturing costs


Reporter: You say that is 20% of the profits. No 20%, there are labor costs ah, what taxes ah, 80% of the material.


Reporter: Do you say that you exported to Europe this is a gasket is about how much money? Like this high-intensity, he is this high-strength, high-strength earned about 10%.


Gu Zhaogen told reporters that such high-strength washers, nuts, etc., due to the relatively high level of processing technology, with relatively small processing capacity of the enterprise, so the competitive pressure is relatively small, the profit margin can be maintained at 10% , If it is an ordinary gasket, family workshop-style enterprises can produce, the price competition has come to the point of white-hot, profit margins can be maintained at 2 to 3 points have been good.


Chen Guan Da: Zhejiang Fastener Industry Association Deputy Secretary-General manufacturers too much, did not form a force, is a price, a protection mechanism, we are to grab business, vicious competition, resulting in the price is very low, foreigners is to seize you This feature puts your price very low


Chen Guan Da: told reporters that the foreign counterparts required profits can not be less than 20-30%. In the country, as the industry can not control the total, private 500,000, 1 million can invest in a plant, lower operating costs, as long as the money earned on the shot, the price is difficult to lift up. And basically in the low-end products on the repeated production, fierce competition.


Ni Ding: Zhejiang Fastener Industry Association Deputy Secretary-General Jiaxing area average export price per ton of fasteners is 1194 (US dollars), one ton is 1194 US dollars, the national price is 1609 US dollars, the country's export tight The average price of the firmware. But I imported the price of $ 10920, the difference between how much difference, poor 6.8 times it


Some fastener manufacturers told reporters that if the industry does not change the status quo, the future is still likely to once again encounter anti-dumping. Recently, in the carbon steel products are more concentrated Jiaxing Haiyan County, the government has introduced a framework for the development of fasteners industry. The same period: Chen Guan Da Zhejiang Fastener Industry Association Deputy Secretary-General We are now encouraged to be more of a car, a space flight, a military, a wind energy, have started to do business, then we now also added two, a nuclear power , A chemical enterprise, then the future we through this, the international market will be more, while the high-end will do, while the domestic will be better development.


It is understood that the foreign market demand for high-end fastener products and low-end fastener products demand roughly the same, the market share is still very large, and which high value-added products, the greatest competitiveness is also very high for China's fastener business For example, industrial upgrading is imminent.