Chin Well Aims to Raise DIY Fasteners Output

Chin Well Holdings Bhd is ready to increase production of do-it-yourself (DIY) fasteners in Vietnam to spearhead the growth of the group’s business in 2016.

Executive director Tsai Chia Ling told that the group could raise its production in Vietnam to 4,000 tonnes monthly from 3,800 tonnes to meet rising orders from Europe.“We can expect the DIY segment to contribute 20%-25% to the group’s turnover for this 2016 fiscal year ending next June 30.

“The DIY contribution has steadily risen from 10% in 2014 to 15% in 2015,” she said. Currently, the Vietnam operations contribute about 40% to the group’s revenue, making up half of the bottom-line.

The outlook for the 2016 first quarter ending in September is expected to be slow. “The market started to slow down in Europe in the fourth quarter of the 2015 fiscal year ended June 30, due to the uncertainties in Greece and lack of confidence in the global market. “Usually the fourth quarter is the time when orders for fasteners pick up.

“There were fewer orders for bolts used for the construction industry, while the sales of smaller screws used in the renovation and furniture industry improved,” she added. Tsai said the group expected Europe to generate about 50% of its turnover for the 2015 fiscal year, compared to a 60% forecast projected earlier. “The demand for fasteners from the domestic market improved in the final quarter of the 2015 fiscal year, as local wholesalers restock their inventories,” she said.