Penang-based Chin Well Holdings produces over 3,000 types of fasteners and is one of the most significant fastener players in Malaysia, with 600 employees and fastener revenues of RM101.46 million (approximately £18m) in the last reported quarter.
According to local news outlet the Star.com, Chin Well is set to benefit from steel production curbs in China with the wire rods side of the business anticipating a boost. However, fastener exports to Europe dropped in the latest reporting quarter by a significant 23% compared to the preceding year’s quarter.
Europe is a key market for Chin Well, making up 60% of the company’s exports – 30% are shipped to the USA and the rest to Japan and South East Asia.
The Fasteners Products segment of the business posted RM101.46 million revenues and profit before tax of RM13.28 million in the current reporting quarter. Fastener selling prices have been cut – hitting quarterly profits – but steel bar trading cushioned the drop and sustained revenue levels for the quarter.
The firm has also been making headway into European DIY markets including the production of tailored fastener ranges. Back in 2012, Chin Well established a partnership with DKSH Holding to set up Swisstec Sourcing Limited in order to supply fasteners, hand tools and power tools to Europe’s (as well as Asia’s) DIY markets.
KEY MARKET AND KEY PLAYERS
Part of the ASEAN Free Trade Area (AFTA) trade bloc, Malaysia reportedly has “one of the best economic records in Asia”. Nearby Singapore is a key trading partner, landing 14.5% of Malaysia’s exports. China is the next biggest export market for Malaysia, followed by Japan and then the US, with the Netherlands the largest of its European customers. Manufactured goods form the bulk of Malaysia’s exports a 80.4% (Jan-Feb 2017 statistics, source MA Trade.gov.my).
Malaysia has proved a draw for international fastener heavyweights including Trifast. TR has had a presence in Malaysia since 1998 when Trifast acquired Poly Fasteners, which was established in 1992. Located at Juru, Penang, TR’s Malaysia plant area covers 20,000ft2 (8,100ft2 manufacturing plant; 8,100ft2 warehouse) and employs 29 staff. Similarly, Switzerland headquartered Bossard has three sites in the Malaysian region, including Penang, Kuala Lumpur and Johor, employing around 30 people.
Other significant players in Malaysia include distributor Fuji Fasteners, which started trading in 2002 and has been an ISO accredited 9001 Quality Management System since 2008. Specialising in industrial fasteners, Fuji says it is among the leaders in customised turned parts manufacturing and stocks a wide range including bolts, nuts, washers, machine screws, rivets and more, including customised parts.
Stainless steel manufacturer Tong Herr also produces in the region. The company has sites in Thailand and China, but the supply the solar energy industry, petrochemical sector, telecoms and construction, to name a few.
Internationally-focused PS Group Holdings has a customer base of 200 customers from over 45 countries. With a product range in excess of 15,000 different types, PS Group Holdings has long standing relationships with fastener manufacturers including Fang Sheng Screw Co, Alcoa, Shanghai Prime Machinery and Tong Hwei Enterprise.
Explore the Malaysian market first-hand at Torque-Expo Singapore 2017.
SAVE THE DATE: 19-20 September 2017
Torque-Expo Singapore takes place 19-20 September 2017 on the doorstep of the international industry’s manufacturing heartlands. Centrally located for the South-East Asian market, Singapore is a gateway to the region with connections to 330 cities worldwide and 6,800 flights every week. Particularly convenient for Indonesia, Vietnam, Thailand, the Philippines and Taiwan, Torque-Expo Singapore will uniquely bring together fasteners, fixings, tools and related industries.