Leading Stainless Steel Nuts Manufacturer - Chong Cheng: “Making Valuable Nuts Using Multiple Processes to Avoid Competition in Buying Cheaper Wire”

Leading Stainless Steel Nuts Manufacturer

Chong Cheng: “Making Valuable Nuts Using Multiple Processes to Avoid Competition in Buying Cheaper Wire”

  by Tanya Shih, Fastener World Inc.

Chong Cheng Fastener Corp. is a leading manufacturer of stainless steel nuts, specializing in developing special and high value added nuts, mainly sold to Europe, the US, and Japan. The 23,140 m² plant produces 1,200 tons of nuts monthly (among which stainless steel nuts account for 300 tons), up 20% from last year. In 2014, the company is planning to build 3 more plants in which forming and sorting machines will be placed and used in 2015. This reflects the booming market for nuts, Chong Cheng’s formidable competence, and its leading position.

Automotive Fasteners ≠ High Value Added Fasteners

Multiple Processes to Promote Product Value and Helps Avoid “Buying Cheaper Wire” Competition

Chong Cheng established in 1989 continues to improve its technical ability. It focuses on nut manufacturing and has done really well in differentiating itself from other screw and bolt makers. By acquiring the approval of ISO 9001 and ISO/TS 16949, its high value added nuts can be applied in the construction and automotive industries. Chong Cheng manufactures according to DIN, ISO, and JIS standards. In order to protect the image of its brand, it has successfully registered its trademark in Taiwan, the US, Europe, and China.

Is Chong Cheng going to enhance the development of high value added fasteners by increasing the production of automotive fasteners? President Sandy Yu replies, “Actually, you will see that automotive fasteners do not contribute high net profit, but if you produce them in a large amount, you will get a fairly reasonable result. The prospect comes from the growing automotive market. Therefore, what we are saying is still about ”making profit with mass production.”

Then, how will Chong Cheng react to the rising price caused by Indonesia’s ban on nickel export? Yu says, “Any product is likely to be affected by the fluctuation of wire price, and carbon /stainless steel products are no exception. The only approach to effectively retaining the market share and avoiding fluctuating material cost is to produce more special parts or focus on highly differentiated products.” He adds, “Special parts cannot be made by using the forming machine only. They have to go through multiple processes before they can become high value added products that meet clients’ requests.”

Complete Auxiliary Facilities Create High Value for Nuts

Chong Cheng keeps steady growth every year. It has 45 forming machines, 120 tapping machines, 25 assembly machines, 11 slotting machines, and 13 full-inspection machines. It has expanded the automatic inventory up to 8,250 stock keeping units, and purchased 8 forming machines, 7 CCD full-inspection machines, profile meters, etc. Inventory expansion and equipment purchase aim to meet clients’ demand and fulfill the company’s goal in quality control. Chong Cheng expects to offer premium service on every aspect of its products.

As the company continues to grow, Yu says, “Taiwan and India are tough rivals to each other. Chong Cheng does not take pride in its current scale; neither will it fear the future challenges. We have industry leading techniques, flexible order mechanism, systematic manufacturing procedures, and strict quality control. In addition, we continue to create one new product every year. In 2013, our Conical U-Nut was patented for its dual anti-loosening effects.” Correct business strategy successfully helped Chong Cheng take the lead in Taiwanese fastener industry.