Chin Well to make Viet­nam fo­cal point for fas­tener ops

The Star Malaysia - StarBiz - - News - By DAVID TAN david­tan@thes­tar.com.my

BUKIT MERTAJAM: Viet­nam will play a key role in Chin Well Hold­ings Bhd’s plans to grow its fas­tener busi­ness.

Group ex­ec­u­tive di­rec­tor Tsai Chia-ling told Star­Biz that Viet­nam is where the group would fo­cus its re­sources as the coun­try of­fered cheap labour who could be trained cost ef­fec­tively,” she said.

Tsai said the group is now plan­ning for its Viet­nam op­er­a­tions to pro­duce more do-it-your­self (DIY) and other types of fas­ten­ers.

“In July, the Viet­nam fa­cil­ity will start to man­u­fac­ture a new range of fas­ten­ers for South-East Asian mar­ket.

“These new fas­ten­ers will be used to con­nect re­in­forced con­crete bars used in high- rise build­ings,” he said.

Ac­cord­ing to Tsai, the group will also raise the pro­duc­tion vol­ume of DIY fas­ten­ers at its Viet­nam plant in the third quar­ter.

He said it is talk­ing to a big DIY cus­tomer in the United States who could take up about 15% of the group’s an­nual out­put of fas­ten­ers in Viet­nam.

“We have plans to tap into the Euro­pean mar­ket with our DIY fas­ten­ers. Cur­rently, the Viet­nam fa­cil­ity pro­duces about 60,000 tonnes of fas­ten­ers per year.

“We fore­see the op­er­a­tions in Viet­nam to con­trib­ute about 50% to Chin Well rev­enue in two years, com­pared to 30%-40% now,” she added.

Mov­ing on, the group ex­pects to per­form bet­ter in the fi­nan­cial year end­ing June 30, 2018 com­pared with the pre­vi­ous year.

“This is due to the higher prices of hot- rolled coil, which hov­ers be­tween US$650 and US$750 per tonne now, com­pared to US$500-$600 per tonne a year ago,” she said.

Tsai also said that or­ders from Euro­pean con­struc­tion com­pa­nies had slowed down due to the win­ter sea­son.

“We can ex­pect or­ders to come in next month. Eu­rope’s con­tri­bu­tion should ex­ceed 50% for fi­nan­cial year 2019, com­pared to about 45% now,” she added.

The group is fore­cast­ing an out­put of 140,000 tonnes for the fi­nan­cial year end­ing June 30, 2018.

Ac­cord­ing to the Global DIY Sum­mit 2018 web­site, about 86% of the DIY mar­ket is in North Amer­ica and Eu­rope com­bined, although their joint pop­u­la­tion ac­counts for only 23 % of the world pop­u­la­tion.

The DIY mar­kets of these two con­ti­nents € to­tals 463bil.

Tsai: We have plans to tap into the Euro­pean mar­ket with our DIY fas­ten­ers.

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