Stepping into Emerging Markets

MIT Gains Admiration from the Worldby Serena Hsiao & Tanya shih, Fastener World Inc.

T here are certain features in emerging markets. First, the population in these areas displays a structural

advantage and the increasing number of the middle class becomes the driving force of pushing the domestic demand. Second, the integration of capital markets and implementation of mutually beneficial economic agreements result into a coordination such as the steady progression of integrated ASEAN. Third, the upgrade of infrastructure becomes one of the favorable factors to attract local and foreign investors.

In addition, the new emerging economies in Southeast Asia performed really well in 2012 and the first half of 2013. The stock market in Thailand after the natural disasters led the other stock markets in Asia to grow. Meanwhile, Philippines, Indonesia, and Malaysia also demonstrated a nice growth. All of the aforementioned countries retained the growth of 4%-7% during the current quarters. Politics, societies, financial systems, monetary situations are all in the best condition in history.

118 New Emerging Markets

Newfast Co., Ltd., founded in 1987, is specializing in the production of small

screws, multi-stroke screws, auto parts, stamping parts, pins, and machining parts. The materials include carbon steel, stainless steel, copper, and aluminum. Product specifications range from #0 - 1" / M2 - M24 with length up to 3/16 - 11."

"Our products are 100% for export." Newfast pointed out, with support of customers and suppliers, the sale of the company continues to grow stably. The annual export amount is 11,000 to 12,000 tons. "Newfast's products are applicable to the industry of electronics, home

appliances, construction, automobiles, furniture, and after sales service." End users of its products are mostly located in Northern America, Europe, Asia, and other regions.

Most Professional Company with QUADREX Advantage in Taiwan

"Since we gained the QUADREX patent in 1988, during the 10 years valid period, we've always been serious about the R&D of our products and never acted recklessly." Newfast said, with over 20 years of experience, it has dragged the other competitors far behind in the field of QUADREX.

Honesty to Gain Industrial Trust

Newfast- The Expert of QUADREX

Reinforcing Industrial Competitiveness

YOUR CHOICE Gains Reputation by

High Quality

said, "In order to satisfy the increasing customers' demand and offer better services, Your Choice is active in training more sales representatives." The existing sales networks of Your Choice all present stable growth and there is also good news for new market development, which are the foundations of the company to keep growing.

Mature Technology -"Quality" is the Key

"We think an enterprise should have good management on quality, cost, and delivery (QDC) first before they persuade buyers from new emerging countries to build partnerships, so customer's demand can be satisfied and they can enjoy the extra value of services and products." Chang added that the demand of customers must be clearly understood. Then, through the management of QDC, the applicability, reliability, and stability of products can be ensured.

Chang further pointed out the advantages of Your Choice on QDC management, which include:

Quality: Your Choice sets up criteria for product quality based on customers' demand and have them fully implemented in every process of production, making the production the key point to ensure high quality.

Cost: In terms of quality assurance, Your Choice has the most competitive cost control ability, which will bring more chances to the application of products. The cost can be controlled through streamlining of product development, systemization of production, and sufficient manufacturing experience.

Delivery: With the highly effective production management system, meeting mechanism, and control on R&D and production, Your Choice can have longer preparation to achieve on time shipment of products.

Diversified Development to Gain New Share in Emerging

As a manufacturer specialized in self-drilling screws for construction,

Your Choice Fasteners & Tools Co., Ltd., founded in 1986, clearly differentiates itself from others by serious concerns on quality and delivery time.

With nearly 30 years of operation, the scale of Your Choice continues to grow, but the company still shows the flexibility of SME. It can make internal adjustments according to the market demand to satisfy customers' requirement on quality and delivery time. President Johnson Chang

119New Emerging Markets

In addition, Newfast shows another advantage to entering emerging markets. "We've got quota offered by Taiwan CSC and are able to achieve the most in-time delivery." By joint-venture with the wire drawing company, heat treating factories and small screw factories, which allows Newfast to have the advantage of offering the best price on processing. As well as the 20 years personal networks, Newfast has established hundreds of suppliers to cooperate with. Furthermore, Newfast can digest and analyze customers needs and requests in a timely manner, and further provide the best and the most reasonable price to the customers with the most suitable supplier.

Quality Support to Create a New Picture

In order to maintain superior quality, Newfast appoints professional staff from the laboratory to supervise every process of fastener manufacturing. "We insist on offering customers the best quality." Such stringent quality control not only shows a certain level of guarantee on exported products, but also presents the best and qualified products to customers. Meanwhile, for reaching the best quality, Newfast keeps introducing new equipment including the optical sorting machine and retail packaging machine which are purchased in 2012. Newfast also plans to expand the factory by 2015.

Facing customers' complaints, "being

completely responsible" is the major principle of Newfast. Newfast added, "Customers have admired our service for years. We have many customers who have cooperated with us for over 20 years, not only because we have excellent after sales service, but also the relationship with customers is much more like family."

"We have a QC laboratory and all products will be examined before export. In addition, the reasonable prices and competitive products can make buyers from emerging markets have confidence in us." Newfast points out Latin America, East Europe, and emerging BRICS are the markets they are currently interested in. With years of experiences in Northern America, this will become their strength to entering the emerging markets.

Markets

Major products of Your Choice are self-drilling screws and window screws. Compared with the first half of 2013, the order of self-drilling screws grew nearly 70% and the number almost doubled for window screws over the same period last year. In addition, the current capacity can reach 850 metric tons per month and 10 thousand metric tons per year.

In order to minimize the risks from international relationships and investments, Your Choice is ready to develop new emerging markets. In America, it is active in developing Central & Southern American region, like Brazil and Mexico; In Europe, "As of now we focus on markets in Eastern and Western Europe, and the next focus will be Northern Europe." On the other hand, Chang thinks Oceania cannot even be ignored.

Declaring the Determination for Sustainable

Operation

To accumulate competitive advantages, achieve sustainable operation, and become the best partner of the global fastener industry, Chang pointed out 4 directions for the future:

Upgrade staff level: analyze the staff and their abilities. Then, arrange training programs to increase the level of key persons in each department when the economy is not very well.

Restructure procedures: Simplify current procedures. Shorten and standardize procedures by staff training and computer supports to accelerate efficiency, reduce errors, and meet customers' requirement on shorter delivery time.

Develop new products: For sustainable operation and increasing competitiveness, Your Choice not only continues to increase the functions of self-drilling screws, but also devotes to the development of new products like long screws, stainless steel screws, and auto screws. It also plans to acquire TS16949 to increase the added value of products.

Control costs strictly: Control personnel costs, increase production capacity, and reduce secondary processing caused by inferior quality.

President Johnson Chang

122 New Emerging Markets

HOM E SO ON E N T E R PR I SE CO., LTD., established in 1982,

started from hand tool socket forging and transformed into one of the best screwdriver bit makers whose products are compliant with world-recognized DIN standard. Currently, annual capacity exceeds 200 million units, and export volume reaches 1,400 tons supplied to 52 countries globally.

31 Years of History & Pride

Over the decades, Taiwan hand tool industry gradually advanced from OLM, OEM, to ODM, even OBM, and established self-owned brands. With 31 years of history, HOME SOON is no exception. Coupled with president Mr. Ernie Lin's practical experience in hand tool production and sales, HOME SOON is an agile, rapid, and flexible company that fully controls systemized work division and integration.

As of now, HOME SOON's products include bits, sockets, wrenches, screwdrivers, and over 800 kinds of bits/tool sets to satisfy DIY and professional clients. In addition, the company uses inspection devices made by Germany, US, and Japan to inspect product hardness, torque, tool life, and size to make sure that the products reach the highest quality standard and clients' requirement.

Thorough Quality Requirement

HOME SOON, Firefighter for the

Screw Industry

www.homesoon.com.tw

100% Dedication

Changing Sun Overwhelms Competitors with High Value Added Rivet Nuts

www.changingsun.com.tw

S ince its inception in 1990, Changing Sun Metal Co., Ltd. has been dedicated to

the production and R&D of rivet nuts. The annual capacity has grown from the initial 5 million pieces to the current 0.2 billion pieces. In addition, Changing Sun introduced ISO9001 into its system in 2007 and was certified by ISO/TS16949 in October 2011.

Product Quality Reinforcement and Social Responsibility Fulfillment

Recalling the initiative to focus on the development of only one product item, President Brown Chen said it was a coincidence in the beginning when he met an engineer from U.S. AVK, who taught him the use and future development of rivet nuts, which then pushed him to devote into the development, and resulted in the flourishing business later. 95% of his products are sold to

President Mr. Ernie Lin and his team

123New Emerging Markets

• New Product R&D: Hand tools are characteristic of less volume, more variety, design oriented, and R&D oriented. HOME SOON owns close to hundred patents. The newly-released Deep Well Nut Setters can be coupled with electric tools and particularly used on longer bolts. This is an efficient, labor-saving, and time-saving method that breaks from traditional methods. As if a "firefighter" and "doctor" for screw tools and the industry, HOME SOON steps in whenever a new product arises, and develops a new tool to combine with it. If faults or defections are found, the company corrects the tool in correspondence with the product.

Strict Self-discipline to Be "Better" than just "Good"

"This industry applies to a very wide range of territories. We are involved in industries including screws, nuts, hand tools, auto spare parts, motors, bikes, sporting equipments, furniture, computers and so on." Ernie, smiling, indicates that any company related to screws is HOME SOON's primary client. Thus, the manufacturing industry that comes with booming emerging markets is like a sweet merit to the eyes of Ernie.

Looking at the future, Ernie mentions that he always puts high standards on himself, and "we have to make comprehensive upgrades starting from machinery, labor, packaging, land area, and factory improvement." The achievement of "Better than the Best" will further boost the company in its future development.

Innovation with the Right Methods HOME SOON Opens up for the Next Level

"Together with the business strategy to elevate client satisfaction in all aspects, we have been extremely focusing on product quality and new product development during the past 30 years to create our added values with our clients, " says Ernie. He adds that "innovation" drives the company to grow steadily in this hand tool industry where product life and profit cycle are short. Next, he explains the advantages that push the company to stand out and face the emerging markets.

• Material: In general, the hand tool industry uses 6150 or S2 steel materials. HOME SOON levels up and uses the new "V5 high-torque steel material". As high as the cost may be, torque power and tool life can increase above 20%. With professional and sophisticated special treatment, the torque power and tool life can even reach 200%.

• Packaging: From the previous manual packaging to the automatic selection & packaging, HOME SOON's packaging performance is expected to increase 4 folds with labor cost down by 75%, followed by more improved capacity management as well as less occurrence of defective products and wrong POs.

the Group of Eight (G8).

Products are mostly applied to the industry of automobiles, 3C, construction, high-end yachts, medical treatments, etc. It uses 316 stainless steel as the material, which has anti-rust and anti-corrosion features. That is why Changing Sun's products are always in high quality. In addition to 316 stainless steel, Changing Sun also uses other stainless steel, iron, aluminum, copper, etc as per customer's request.

Rivet nuts demonstrate high fastening ability and reliable performance. They are easy to be assembled by any hand tool or power tool within seconds and are applicable to any thin material. "As rivet nuts become fastened with self deformation, they are not influenced by steel properties or material strength and can be applied to plastics and glass fiber." Furthermore, they can be fastened from only one side and the production cost can be saved due to lightweight.

Presenting Top Quality to New Emerging Markets

Due to higher units prices of its products, Changing Sun's sales are mainly to Europe, the U.S., and Japan. 38% of its rivet nuts are exported to Germany. "Our requirement for quality cannot be doubted!" Facing the rise of new emerging markets, Changing Sun looks positively at BRICS and ASEAN. Chen added, the average annual GDP grew by 7% and the automotive or medical treatment industry, etc. will all be the direction Changing Sun would like to penetrate in the future.

Brown Chen, President of Changing Sun

Storage equipment located in the third plant

Zheng Shin Enterprise Co., Ltd. dedicates in the R&D of self-drilling screws and roofing screws and its annual capacity can reach over 10,000 metric tons. Processing companies cooperating with it are all certified by ISO and

other globally known certifications. Materials include C1018~1022 steel, stainless steel A2/A4, and other composite materials (steel + stainless steel). In addition, the external diameter can reach M2.5-M8 and the longest length can be up to 300mm.

Flexible Lead Time and High Productivity

All products of Zheng Shin are 100% produced in Taiwan and are all for exports. Its high quality cannot be overlooked. "Among all the products, the exports of construction screws and roofing screws altogether represent 1/3 of the total sales," said Ms. Irene Wang.

126 New Emerging Markets

I ncorporated in 1980, Shun Den Works Co., Ltd. specializes in the manufacture of wires,

forged products, and cast products. Certified by ISO 9001:2000, it provides design and production of specialty screws and nuts to clients. Products are sold worldwide.

Anti-Wear Property Stuns Foreign Clients

Talking about products from Taiwan, President David Chang said that most people usually think that metallic products from Taiwan are cheaper than those from Japan, Europe, and the U.S., but the quality is not as good as them. Shun Den currently is active in developing high quality hex wrenches and power bits. He took the actual user experience from Korea, Singapore, and Russia as example and said "In the International Fastener Show, Taiwan 2013, one Korean client tried the destructive way of screwing the bit installed on a fast spinning power screwdriver, and the tested bit did not break or display obvious abrasion." Such a brilliant performance gained the praise of several clients.

Chang said that the bits produced by Shun Den have been proved as no rupture or breakage under the DIN7504 drilling screw penetrating-through and torque tests conducted by fastener factories. The "amazing" and "excellent" series displayed subtle deformation only after 50 and 250 pieces of tests, respectively. The lifecycle is 10 to 50 times longer than those of other bits. Simultaneously, the requirement on the hardness of products should be min. HRC58, reducing the possibility of embrittlement and slowing the wear process. Through all of the above, Shun Den can thus save substantial time and costs for actual works.

Completely Produced in Taiwan

Zheng Shin Targets Southeast Asia with Construction Screws

www.zhengshin.com.tw

Finding the Difference of Products

Shun Den Iron Works Supplies

Undeniable Quality

www.shun-den.com.tw

She also added that the superior materials supplied by Taiwan CSC enable Zheng Shin to offer prices that are competitive and widely accepted by the market, ensure on-time delivery, and advance quality and technology continuously.

Aiming at the Potential of Latin American Markets

Reviewing all the emerging markets around the world, Zheng Shin holds a positive view toward the future development of Latin America, which is rich in natural resources and shows an enormous consumers market and bourgeois boosting the substantial growth of the domestic consumption. "The current Latin American construction and business industries continue to grow, which is definitely a really great timing. Zheng Shin has been active in making arrangements in order to grasp the business opportunities to develop new emerging markets," stated Wang.

"Quality, service, and customer satisfaction are principles of our management."

In the end of the interview, Wang referred to its developing strategy in the future and said "The R&D of products has been always one of the projects in the company. The major mission of Zheng Shin is to provide stable and superior products as clients' demand with required prices in the market." In addition, it will try to reinforce the communication with existing clients, listen to them and get to know what they actually need to gain their agreements as well as planning related international marketing to search for new customer sources. "Quality, service, and customer's satisfaction are principles of our management."

127New Emerging Markets

On the other hand, the hardness of Shun Den's hex wrench is not as high as that of S2 hex wrench in the market, but the strength is strong enough to produce high elasticity and malleability. It will not embrittle after it is turned to 90 degrees or used for times, which may result in a dangerous situation. Because the strength is strong enough, the wear on the diagonal angle appears less. With the practical in-house tests, Shun Den's hex wrench can be 2 times more durable than one of the famous brands in Japan.

Surviving Red Sea Competition with Heat Treatment

For the sustainable operation of a company, quality and technology are important and must always be kept in hand. If one of these chips is not in presence, the company will be thrown into the red sea of price-cutting. As a result, being "different" from others is very important. Shun Den has been well experienced in heat treatment when the founder began to manufacture dies in his own factory 30 years ago. Such an experience is now transferred to

the development of tools. With the continuous accumulation of technology, Shun Den's tools can display its difference in the market.

Looking forward to the emerging markets with lots of infrastructure projects, Chang said the wear of bits is related to the time of project completion. Shun Den's products display high anti-wear ability, so a lot of time will not be wasted. In the end, he said "The value of Shun Den's products lies in quality. We insist on conducting the strictest quality test to ensure our clients get the best products."

"Products with good quality can be proved under any test.”

130 New Emerging Markets

Business Means Quality

GIAN-YEH INDUSTRIAL

Heads for High End Market &

Technical Factory

"Molds are the driving force for machinery!" Established in

Longjing District of Taichung in 1989, GIAN-YEH INDUSTRIAL CO., LTD. has been devoted in developing and making self-drillling screws for 24 years. President Tsang Yao Lin believes that constant support and trust have helped the company accumulate experience and technical know-how. GIAN-YEH aims at high-end markets such as Japan, Germany, US, EU and so on with brilliant performance. What is the secret of its success?

Business Equals Quality

In response to increasing demand, GIAN-YEH opened up a new plant in 2005 to expand capacity. Now, the company utilizes 90 Electrical Discharge Machines 24 hours a day to facilitate the supplies to foreign markets including Japan, Germany, US, EU, etc., and comply with clients' demand in the long term.

Molds for self-drilling screws are highly sophisticated, technical, and skill-requiring, using special steel materials like Tungsten steel and high speed steel that are highly hard, wear-resistant, impact resistant, and difficult to process. To overcome this technical difficulty, GIAN-YEH adopts a great

number of processing machines to ensure the consistent quality of molds by deliberate and stable processing procedures. Its molds for self-drilling screws have various trim lines, and are patented and preferred by clients. Therefore, it must have the ability of customization, and it has invested in high-performance 3D, CAD, and CAM systems as well as sophisticated CNC engraving and milling machines to satisfy clients' need.

In GIAN-YEH's perspective, other screw plants cooperate with it and regard it as their mold division, so it does not allow for downtime. To ensure adequate mold supply to clients, GIAN-YEH requires half of its employees be on duty every Saturday, and its new and old plants are located in TPC's different electric power supply zones. As long as the molds fail to reach ideal life span and end in damage by unusual or unknown reasons, the company will always be in clients' standpoint and make appropriate supplementation, reducing their costs and lifting competitiveness.

During the seminar in IFST 2013, Würth Group Executive Vice President Mr. Thomas Klenk gave talks on fastener procurement towards Taiwan, pointing out 7 good impressions on cooperating with Taiwanese companies, while indicating 14 advantages and opportunities of Taiwanese companies (refer to Fastener World 141 Magazine for full content). Full gratitude to his recognition for the Taiwan fastener industry.

For many years, GIAN-YEH has been working hard nonstop in the screw industry. Its products has earned recognition by global high-end markets, so it extended its product lineup, such as screwdriver molds and clamping molds, gradually expanding market share.

Moving on to the 2nd Generation

Just like the 1st generation of many Taiwanese screw companies, GIAN-YEH's president and his wife have spent over 20 years of efforts and layed foundation in the territory of self-drilling screw molds. Now, the 2nd generation is making preparations to take over, utilizing Electro-mechanics background to participate in production management, manage computer 3D, CAD, and CAM process, inherit technical experience, and fulfill promises to the clients while progressing and growing with clients and employees.

From trial and error to building a professional mold kingdom, GIAN-YEH president and his wife humbly states, "GIAN-YEH has been growing with its employees and clients all the way to this date."