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Your Choice Fasteners: Clamping Down on Illegal Plants will Eventually Do Good to the Fastener Industry Structure
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2014-04-16
Days ago the government clamped down on illegal electroplating plants. This makes it more difficult for legal plants to obtain purchase orders and seriously influences delivery, not to mention the rising cost of electroplating. Mr. Chang, general manager of Your Choice Fasteners and president of TFTA Central District Chapter, says the hardware pickling and electroplating zone in central Taiwan is not enough to supply screw makers' demand in the temporary absence of wastewater treatment plants. This will impact Taiwan's export competitiveness.
China Steel Corp., Jinn Her Enterprise, and Taiwan Industrial Fastener Institute have immediately sought solutions. Currently they come up with 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. Expand Jinn Her's legitimate production lines. However, Chang thinks legitimate plant's capacity and delivery cannot react quickly in time and thus had to change shipment from ocean freight to air freight to avoid default and cause environmental cost to surge by over USD100/ton in estimate. He suggests the government should allow the industry for a period of improvement, and set up legitimate electroplating zones in Tainan and Kaohsiung (the heart of Taiwanese fastener industry) to reduce the impact.
Chang states that in the short term the damage to the fastener industry will be huge. However, in the long run the clampdown will re-deploy the manufacturing environment and do good to the industry.
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