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What Can We Learn from the Sino-Europe Fastener Anti-dumping War? (Part 2)

Home companies taking actions

It is found that parts of the home fastener companies have changed their strategies to seek for development in our survey. One participant noted, “Fortunately, the domestic market has great developmental potential which will become a more and more important pillar for our development.”

“Our export volume before 2008 was around 200 million dollars, taking up as high as 95 percent of the total revenue, and 45 percent of our products were exported to EU. However, exports to EU are less than 15% due to the anti-dumping and the financial crisis. Our products now are mainly exported to Americas and Asia. So in the long run, a single export pattern cannot work. Companies should carry out the market-diversified policy. Sales of our company in the first half of 2010 are up to 45% compared with the same period in 2009 after we restructured our markets and increased our shares in the home market last year,” Huang said.

It is the same set of problems for Changshu Standard Parts Factory. “Around 70% of our products were exported to EU before 2008. However, we almost give up the EU markets after EU imposed dumping duty of 63.1 percent on our products. For this case and for low demand in the overseas markets caused by the financial crisis, we quickly turned to the home market concentrating on fasteners used in engineering and machinery in 2009. Our sales revenue has been increased by 80% with annual production of 150,000 tons. Sales for 2010 are expected to 1 billion RMB,” Wang stated.

Huang also pointed out that Chinese fastener companies have two ways to go if they want to have a larger potential development. One is developing high-end fasteners instead of importing them. Fastener export volumes for 2008 in China were 2.7 million tons to 4.4 billion dollars, while import volumes were 200,000 tons to 2.1 billion dollars. Obviously, there is great potential for import substitution in China fastener industry. The other is the implementation of productive service which is also what his company has chosen, and to some extend can meet the need of developing Chinese industries to advanced manufacturing.

Shanghai Biaowu was reported to scale up it shares in home market in the coming years with the aim of reducing the pressure from the overseas markets. They will also focus on high-end fasteners and end-users, striving to become a leading fastener supply chain based on the logistics center.

Obviously, many home companies are consciously reducing their exports to EU and extending their business in home market or in other developing markets after the dumping duty.

Emily Chang, who is in charge of the organization of the 4th Guangzhou Fastener Trade Show also gave some useful advices to home companies, “if Chinese fasteners stay less technology involved, they will be encountered with more severe trade friction because Chinese fastener industry is labor-intensive and low value-added. For these cases, home companies should make a breakthrough in technology, strength their core competitive edges, upgrade the products’ structures and turn cost advantage into innovative advantage.”

According to Emily, data of the overseas pre-registered visitors shows that there will be a great many of visitors from Europe, America, Japan, India, Brazil, Argentina, Australia, Turkey, Kuwait, Iran and so on participating in the 4th Guangzhou Fastener Trade Show to be held on Sept. 8-10 in Poly World Trade Expo Center. Exhibiting companies at that time not only can keep expanding the existing markets but also can explore other developing markets. Surely, China Fastener Info will go on to make an effort to help home companies to dominate the domestic markets.

In addition, Xu Deren stated that Zhejinag province, as one of the largest fastener produced provinces in China, has seen a group of companies planning to do investigation and visit related standard departments so as to develop high-end fasteners. And the local government will also enact some related polices to support the development of its own technology and encourage innovation. The final duty is, in effect, the embodiment of a victory we have won during the war of fighting for our deserved rights.

-The end-