China Fastener Industry: Looking back at the Eleventh Five-Year Outlook Twelve Five

Abstract: Since the accession to the WTO, the development of fastener enterprises in China has indeed been further improved. In October 2011, China produced 416,000 tons of metal fasteners, an increase of 19.21% year-on-year. From January to October 2011, the national metal fastener production reached 4.137 million tons, a year-on-year increase of 21.93%. From the perspective of the production of various provinces and cities, in the first 10 months of 2011, the output of metal fasteners in Zhejiang Province reached 1.534 million tons, an increase of 11.95% year-on-year, accounting for 37.08% of the country's total output. Followed by provinces and cities such as Hebei Province, Jiangsu Province and Shandong Province.

The "Eleventh Five-Year Plan" for fastener industry has steadily risen under the "Restructuring Plan for the Machinery Basic Parts Industry". The fastener industry has made great efforts to overcome difficulties, seize the domestic sales market, and rely on automobiles, high-speed rail, shipbuilding, and advanced manufacturing. The development of major emerging industries such as industry, IT, and electronic appliances has always focused on innovation and transformation. It has consistently adjusted the product mix and achieved steady progress.

According to Feng Jinyu, President of the Fasteners Branch of China National General Machinery Industry Association, the production of fasteners in China increased by 16.98% year-on-year in 2010, and the sales revenue increased by 22.45% year-on-year; the export of fasteners increased by 39.10% year-on-year. The year-on-year increase was 46.26%.

“The reason why exports have increased substantially year-on-year is due to the impact of the financial crisis and EU anti-dumping in 2009. China’s fastener export volume is the lowest in history, only 1.61 million tons,” explained Feng Jinjun.

In 2010, China's imports of fasteners increased by 32.26% year-on-year; import value increased by 26.51% year-on-year, and the average price of imported products was 6.6 times the average price of exported products.

Agglomeration to Cluster Development Development In 2010, the output of Ningbo fasteners accounted for about one-fourth of the country's total, of which Zhenhai accounted for 1/4 of Ningbo and exports accounted for 1/3. There are 10 Zhenhai fastener enterprises with a total output value of RMB 100 million in Ningbo, and Zhenhai, which is a top 10 fastener exporter in the city, accounts for another 4 companies.

The industrial scale is large enough, but what is the profit and tax level? According to statistics, in the first three quarters of this year, nearly 150 fastener companies in the region had completed a total output value of 3.543 billion yuan, sales revenue of 2.979 billion yuan, and taxation of 98,019,900 yuan, less than 1 billion yuan. The benefits are not obvious.

"Zhenhai fasteners products are generally relatively low-end, although the yield is relatively high, but the efficiency is not very good. High-end fasteners have a part, high added value, the efficiency is also very good, but the proportion is not high." District fastening Xu Li, president of the Industry Association, told the reporter that there is a large market demand for low-end fastener products, homogenous competition is more prominent, contribution to local taxes is low, and environmental pollution is serious.

The status quo is not optimistic, and reform is imperative. To this end, increasing investment in technological transformation and accelerating transformation and upgrading have become an inevitable choice for many fastener companies and the entire industry.

On the afternoon of December 6, the Wenzhou Fastener Industry Association held the second session of the fourth general meeting and was informed that in the current complex and ever-changing economic environment, the development of the fastener industry in Wenzhou has become better, and the market share of high-end and middle-end products has been increasing. Increased, the quality of the corporate brand has increased. According to preliminary statistics, in 2011, the total industrial output value of the fastener industry in Wenzhou reached 14.8 billion, an increase of 9.7% over the same period of last year.

It is understood that Wenzhou City currently has more than 600 industrial enterprises above 100 million yuan, of which Wenzhou Fastener Industry has 7 brands such as Ruibiao Group, Zhejiang Mingtai, Junhao, Yili, Zhejiang Yibiao, Yutai and Ruiqiang. Industry's "leader" and play a demonstration role. At present, Wenzhou Fastener Industry Association has a total of 213 large-scale enterprises. The annual output value of these enterprises exceeds 10 billion yuan, accounting for more than 50% of the total output value of the entire industry. According to customs statistics, in 2011, strong foreign market demand, Wenzhou fastener manufacturers foreign trade orders are generally in the first three quarters of this year, Wenzhou Iron and Steel or copper exports 11,168 tons of fasteners, the export value of 24.52 million US dollars.

As a processing industry, production equipment process is life, determines the quality and grade of the product, which determines the market competitiveness of products, must make great efforts to do a good job of technological innovation, and constantly improve the ability of independent innovation. We must face the international market, increase the research and development of newer products, and accelerate the development of high value-added products.

Opportunities and challenges faced by the “12th Five-Year Plan” fastener industry did not make substantial progress in transforming the mode of economic development during the “11th Five-Year Plan” period, facing the new type of modern industrial system structure formulated in the “Twelfth Five-Year Plan”. In the process of industrialization, the development of the fastener industry has actually been at a bottleneck. At present, the production scale of many manufacturers is basically stable, and few new fastener factories are put into operation. Is the development of the industry reaching the saturation stage? It's not always true.

After all, the main reason is that at present, China's fastener companies produce mostly low-end products. Production tends to be saturated, but there is still much room for growth in the production of higher-end products. For example, many engine bolts and chassis tire bolts for mid-to-high end passenger cars must be imported at 60%-65%. The key is the technical level of the industry, and the technical equipment and industrial capabilities have not yet reached the corresponding requirements.

Therefore, China's fastener industry is facing both opportunities and challenges. The situation that basic components are seriously lagging behind the development of mainframes has caused the country to attach great importance to it. The high-end development of parts and components has become a strategic issue for the development of equipment manufacturing, and the mode of development needs to be changed. To this end, the country has issued a series of policy measures, such as the Implementation Plan for the Revitalization of the Mechanical Basic Parts Industry and the 12th Five-Year Development Plan for the Basic Mechanical Components, Basic Manufacturing Processes and Basic Materials, which require breakthroughs in the key manufacturing of a number of basic parts and components. The level of technology and products reached the international advanced level at the beginning of the 21st century, which creates a favorable policy environment for the development of basic components and parts.

Domestic market: General mechanical parts and components are important basic parts in industrial products. Government policies have stimulated domestic demand, and automobiles, railways, highways, power generation, transmission and distribution, environmental protection, and infrastructure have developed greatly. The general parts and components market for machinery is still vast. Demand space. Due to the "globalization" procurement of auto parts and the "localization" strategy of multinational companies, gears, fasteners, chains, springs, powder metallurgy, coupling brakes, etc. will have huge maintenance and new car market demand.

Foreign markets: During the “Twelfth Five-Year Plan” period, the industry is facing changes in the domestic and international environment, and the structure of market demand will undergo major changes. International trade is slowly recovering. While grasping domestic sales, it is also not possible to relax exports. At the same time, it is necessary to actively adjust the distribution and marketing ratios of foreign sales regions and marketing strategies so that the structure of exports can be more reasonable. It is expected that during the 12th Five-Year Plan period, the average export growth rate of industrial products will be about 10%.