Fastener Supply Chain Disruption to Impact NTD30 Billion Production Value

Recently in Taiwan's fastener manufacturing chain, a wave of pickling and electroplating plant shutdown is causing supply chain disruption that cuts down 25% capacity equivalent to NTD30 billion. This leads to fastener cost increase of USD100/ton, posing direct impact to foreign sales competitiveness. Situation is harsh.

China Steel Corp., Jinn Her Enterprise, and Taiwan Industrial Fastener Institute have immediately seeked solutions. Currently they come to four initial measures to close the gap in the fastener supply chain: 1. Build new waste liquid plant; 2. Solve problems at a cross-regional scale; 3.Re-adjust existing production line to provide temporary supply; 3. Expand Jinn Her's legitimate production lines.

Multiple fastener plant owners told they could not make delivery in time and thus had to change shipment from ocean freight to air freight to avoid default. This would push shipment cost up by 10 times, and cause environmental cost to surge by over USD100/ton. They said this conservative estimation has not yet included bigger invisible costs.

China Steel Corp. vice director Mr. Huang, who is in charge of environmental issues of the fastener industry, said 20% to 25% of fastener production value is subjected to the impact of pickling and electroplating plant shutdown. He added that the influence is substantial in that fastener plants are turning more cautious in accepting orders.