"The market of non-standard parts is in chaos. A lot of enterprises are involved in low -price competition, which confuses the whole industrial people." Mr. Cao Jinhai, Factory Directory of Haining Sanlic Fastener Factory says in a serious tone, "Doing business does not go like this. We strongly resist low-price competition."


It is learned that Haining Sanlic Fastener Factory is the only factory that makes non-standard fasteners in Haining District. Mr. Cao says, "There are many family workshops in Haining District that produce standard fasteners, but none produce non-standard fasteners of high technical contents. Therefore, we decided to engage in non-standard parts." In May 2007, Haining Sanlic built a new plant, covering an area of 20 Mu. Moreover, they spent 5 million yuan in importing five multi-station cold forming machines from Taiwan. In August, the machines were all tested and put into production in September.


Most of the employees are green hands when Haining Sanlic was founded in 1989. To make the employees more skillful, Mr. Cao, an engineer of 8 years experience, did not only manage the daily life of the workers, but also lectured to employees. As the machines they introduced demanded very high technology, Mr. Cao and his employees had to take the technological training courses. Sanlic's tools are always designed by Mr. Cao, while the operators have to adjust the machines according to the drawings to ensure product quality. Although the employees were not so experienced at the very beginning, they are very careful and diligent. "By now, we haven't received any complaints from our customers. We expect that our factory will run very well." Mr. Cao says, "In the past 3 month, our production value reached 500,000 dollars though, we received a 1-million-dollar order from German customer, which strongly proves that we keep improving."


"As a new factory, our major task is learning. We have to strengthen training our employees in term of technology. Beside, we will attend several fastener exhibitions, for example, in Shanghai, Ningbo, Haiyan and Wenzhou, and learn from other industry people. Of course, finding customers is the first problem we have to solve in 2008." Mr. Cao says, "It is more and more difficult to have orders, although there are many inquiries. Price is the main problem in the cooperation. The raw materials in 2007 had increased a lot. The price of wires was 5500 yuan per ton. Plus, non-standard fasteners demand very high in terms of technology. Our margins are generally low, but some customer's counteroffers are the same as or lower than the production costs. But some companies still receive such orders. It will not only do harm to its own self, but also injure others. Recently, I received an inquiry call from a Japanese customer. He asked me the price of non-standard parts per ton. It sounds strange because how can non-standard parts be priced by ton?"


Finally, Mr. Cao notes that to prevent the low-price competition inside industry, fastener companies had better negotiate a reference price regularly, so that both of suppliers and buyers are well prepared, thus avoiding excessively low-price competition.


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