Along with the rapid pace of economic globalization, world manufacturing is transferring to China. Manufacturing bases are built in many places. China has become the largest fastener producer in the world. Although China fastener industry develops so quickly, it has many deficiencies, such as unreasonable product structure, enterprise distribution, resource allocation, etc. which greatly affects the development of our fastener industry. The industry should be specialized and formed by cluster and group. Xingtai Ningbo Fasteners Co., Ltd. was born under such a background. Since it was established, it has been concerned and appreciated by many industrial people. It is considered as "demonstration project of fastener industry transfer" by China fastener associations.


Strong Alliance Speeds Up Industry Transfer 


Xingtai Ningbo Fasteners Co., Ltd. was invested by 7 members (including Ningbo Fastener Industry Association, Ningbo Eastport Fastener Manufacturing Co., Ltd., Ningbo Yonggang Fasteners Co., Ltd., Wenzhou Pioneer Standard Component Co., Ltd. etc.) along with Xingtai Steel Co., Ltd. With a total investment of 1 billion yuan, Xingtai Ningbo Fasteners Co., Ltd. is a processing enterprise that has the largest scale, the strongest strength and widest impact since Xingtai Steel Wire Base was established. It is so significant that it represents a great leap for China fastener industry transfer.


When being asked why they jointly built a new factory away from Ningbo, personnel concerned said it was required by industry transfer. About 70% of China fastener enterprises are located in coastal regions. As the industry is getting mature and the competition is turning intense, fastener enterprises in coastal regions lose their advantages gradually but gain more pressure and risks; the conflicts in terms of human resources, energy, materials and land become so prominent that it compels the farseeing entrepreneurs to?consider better development. As a coastal city, Ningbo is also troubled by this problem. Ningbo has become the most important fastener production base in China: Its fastener sales rank top in China, covering over 25% of the total sales. However, it is restricted by the lack of labor force, water & electricity supply and other factors, so Ningbo fastener industry has to carry out industry transfer. The opening of Xingtai Ningbo Fasteners Co., Ltd. invested by 8 Ningbo enterprises is indeed a great move for Ningbo in terms of industry transfer.


Strategic Location Produces Outstanding Advantages


When considering location, the 8 enterprises took it seriously. Led by Ningbo Fastener Industry Association, they visited several places in China. After comparing some locations, they finally decided to settle down in Xingtai. They chose Xingtai not only because of the enthusiasm from Xingtai municipal government, but the key attractions of good foundation in industry, good location and huge market potential.


As a production and export base, Xingtai has many outstanding advantages: Firstly, it is adjacent to material producing area—Xingtai Steel. Xingtai Steel Co., Ltd. is the biggest enterprise that produces and further processes excellent wires. It is also the only one enterprise that specialized in producing wire products in China and enjoys high reputation in industry. A large portion of the materials in new factory come from Xingtai Steel, so that they can realize zero inventory and reduce the transportation and storage costs. As a result, their products will be more competitive. Secondly, it has a very good location. Xingtai is close to Huanghua Port and Tianjin Port. And a railroad and highway from Xingtai to Huanghua Port is now under construction. The distance between Xingtai and coastal regions will get closer after its completion. 80% of the products from the new factory are for export. In this way, the freight is cut and it's much more convenient for export. Thirdly, Xingtai has a big fastener market in surrounding areas. Located in the south of Hebei Province, Xingtai has 5 heavy industry cities nearby within 300 kilometers; there are more than 10 automobile manufacturers near Xingtai, providing a wide market for fastener enterprises. Fourthly, abundant resources. Xingtai has sufficient electricity supply. It is also abundant in gas and natural gas of reasonable price. Lastly, advantage in talents. There are two vocational colleges in Xingtai and 7 technical secondary schools. The labor force is of high quality and low cost.


A strategic location represents the vision of the entrepreneurs, laying a good foundation for sustainable development in the future.


Striving for the Best


Covering an area of 1000 Mu, Xingtai Ningbo Fasteners Co., Ltd. will be divided by 2 phases. Currently, the first phase, with an investment of 300 million yuan and a floor space of 132 000 square meter, has completed. It is expected that the annual output of standard fasteners, such as screws, nuts, tapping screws, etc. will reach 115 000 tons, and the annual output of automotive fasteners will be 5000 tons. It is anticipated that the annual sales will approximately be 1 billion yuan. The products are mainly exported to Europe, America, Middle-East and other regions. When the second phase is completed, it will achieve an annual sales of 3 billion yuan, and the annual production of fasteners and automotive fasteners will reach 300 000 tons, with an annual profit & tax of 450 million yuan. More than 3000 positions are offered. Along with the overall completion of the second phase, Xingtai Ningbo Fasteners Co., Ltd. will be the biggest fastener production and export base in Northern China.


At present, the company offers high-strength fasteners of over Grade 8.8. Main products include high-strength hex bolts, hex socket screws, hex nuts, square neck bolts with round head, etc, which are widely applied to engineering, automobile, machinery, electronics, aviation, railroad, highway and other industries.


Having various advantages, Xingtai Ningbo Fasteners Co., Ltd. begins to develop. Let's look forward to their prosperity and miracles!


*Note: 1 Mu=666.6667 square meters


Translated by Alice
www.chinaFastenerinfo.com
www.chinaFastenerinfo.net