Major decision making in domestic fastener industry

I. Review of China's Fastener Industry in Recent 10 Years

China Fastener Industry Development Achievements over 10 Years

Reviewing the development of the fastener industry for more than a decade, we are very pleased to see that: China's fastener production reached 6.6 million tons in 2012, an increase of 3.3 times from 2 million tons in 2001; sales revenue reached 65 billion yuan in 2012* **, which was 5.2 times of 2001's 1.25 billion yuan; in 2012, the total export volume was 2.464 million tons, which was 4.7 times the 520,800 tons in 2001; the foreign exchange earned through exports in 2012 was US$4,512 million, which was 9.17 times that of 492 million US dollars in 2001.

Second, the status of fastener industry in Asia in 2012

For more than a decade, the fastener industry has undergone tremendous changes. More than 95% of the fastener companies have been restructured into joint-stock or private enterprises. The industry's vitality has increased and the number of companies has increased. There are more than 4,000 companies above designated size in the country; product structure. Adjusting the number of blocks, the production capacity has been increased, the output of fasteners has taken the lead in the world, and the overall strength of the industry has increased. It has become one of the largest manufacturers of fasteners in the world, and its position in the international market has improved significantly.

Third, speeding up the adjustment of the fastener industry, new breakthroughs in corporate restructuring and industrial concentration

1, the initial concentration of industrial concentration

In the 21st century, the market competition has further intensified. In order to maintain the sustained and stable development of the fastener industry, the whole industry has proposed new adjustments in development and improvement in adjustments, with market structure and product structure adjustment as the starting point. Promote the transformation of economic growth mode.

From the one-sided pursuit of output value production, to improve the quality and brand effect changes; from one-sided pursuit of large and complete, to the fine, special, special direction; from production to production and service-type change, so that the fastener industry concentration The degree is clearly highlighted.

Initially formed three major fastener industry clusters in the Yangtze River Delta, Pearl River Delta and Bohai Bay, forming a number of fastener industry bases such as Jiaxing, Ningbo, Wenzhou, Dongguan, Hebei Xingtai, Yongnian.

2. Leading enterprises play a leading role

These regional fastener companies accounted for more than 75% of the country's total, and emerged as leading enterprises such as Jinyi and Shanghai Standard Five, sales revenue of over one billion yuan, and 200 key enterprises with annual sales revenue of over one hundred million yuan. The annual sales revenue of these enterprises is more than 35 billion yuan, accounting for 53% of the national sales revenue, and more than 4,000 enterprises of all sizes in the industry, accounting for 85% of the national fastener sales revenue, and the country’s annual export earnings of more than 10 million US dollars. There are more than 40 companies, accounting for more than 60% of the country’s export earnings. From this we can see that the development of leading enterprises has played a more and more dominant role, and thus the industrial concentration has been greatly improved.

3, accelerate the pace of technological innovation

Fastener companies adhere to the path of innovation, learn advanced foreign technologies and experiences, accelerate the integration of modern information technology and traditional industries, and upgrade the industry-wide equipment and technology level. Enterprises in the technological innovation has also accelerated the pace, the formation of a group of unique special, special, specialized enterprises, including high-strength special fasteners accounted for 15%, heat treatment products accounted for 60%, other products accounted for 40%.

4. Going abroad to go to the world with new measures

With the further intensification of domestic and foreign market competition, it is bound to promote the outward development of enterprises. Fastener companies will invest in foreign countries and go abroad to the world. In addition to some traditional export trade markets, many companies have turned their attention to emerging countries. More than 10 companies including Changshu Standard Parts and Ningbo Jinding have opened up overseas markets such as Hungary, Malaysia and Indonesia.

5. New breakthroughs in corporate restructuring

With companies in the industry investing abroad, they also promote corporate restructuring, such as Zhejiang Youli Fastener Co., Ltd. and Shanghai Hadiwei Trading Co.; Zhejiang Ruian Standard Co., Ltd. and Chongqing Second Co., Ltd.; Shanghai Jiyou Machinery Co., Ltd. Company and Shanghai High-strength Bolt Factory Shanghai Fasteners and Welding Materials Technology Research Institute; Shenzhen Aerospace Standard Parts Co., Ltd. and Shanghai Excellence Automotive Components Co., Ltd. This combination of advantages, corporate restructuring can quickly gather the development advantages of the two companies to form a new joint force to promote the rapid development of enterprises, while also increasing the degree of industrial concentration. For the fact that the fastener industry is facing an intensification of the contradiction of overcapacity, corporate restructuring can maximize the allocation of production factors and resources, and realize the purpose of vertical integration of the industry chain.

Fourth, understand the situation, adjust the transition, and upgrade during the adjustment

From the distribution of fastener market in mainland China

As the recovery of the world economy slows down, the party’s Third Plenary Session has made strategic steps to comprehensively deepen reforms. It has issued a series of major decisions to promote the development of the state-owned economy and non-public economy and promoted the development of the national economy in a better direction. The economy has a new starting point.

From the distribution of fasteners in the world

Looking at the economic situation at home and abroad, we must transfer our foothold to the country, seize the opportunity to expand domestic demand, and become bigger and stronger.

We must constantly adjust the product price structure in the market practice so that the price of fastener products can be adapted to the production cost, adapt to the international market, and adapt to the brand and quality.

Promote the fundamental transformation of the whole industry's economic growth mode, from one-sided pursuit of output value production to improve the quality and brand effect; from the one-sided pursuit of large and all-round fine, special, special change; from production to production and service-oriented changes. To maintain the steady and healthy development of fasteners throughout the industry, China's fastener industry has always maintained a moderate development. By 2014, the fastener production will reach 7 million tons, making China's fastener industry stand in the world's forest.