Taiwanese Fastener Industry Sees Mixed Prospects in Q4

Taipei, Nov. 23, 2012 (CENS)--Amid market uncertainty, Taiwan's major fastener manufacturers and upstream suppliers have felt different market climates, and hence see mixed business prospects in the fourth quarter of this year.

Among them, Tycoon Group Enterprise Co. has witnessed strong customer demand and therefore shown optimism about a bright outlook for the quarter.

Tycoon Group's directors said that while some fastener manufacturers have reportedly suspended production due to an uncertain market, the company has seen its single-month sales of steel wires, for instance, significantly surge to over 15,000 metric tons for the time being, mainly thanks to its well integrated production lines already built.

Tycoon Group's future may get brighter in 2013, as the directors confirmed that the company's steel mill in Thailand is scheduled to begin mass production in the second half of the year with annual output of 500,000 metric tons. Backed by the steel mill, the company can better deal with production from steel billets and wire rods to various fasteners by itself to enhance its global competitiveness and profitability in the future.

Coincidentally, Chun Yu Works & Co., Ltd. has also enjoyed influx of contract orders, and is thus likely to attain brisk growth in the fourth quarter and the future. The company's promising prosperity is attributable partly to its efforts on developing fasteners for special purposes, like high-speed railway construction, most of which have been certificated and well received by large-sized international customers. Plus, dense business deployments in China will contribute to the company's growth as well.

In a contrast to the abovementioned peers, San Shing Fastech Corp., which finished the first nine months of this year with EPS (earnings per share) of NT$2.09 as one of the most profitable fastener makers in Taiwan, saw its sales revenue in October suddenly plummet by over 30% from a year earlier for unknown reasons.

Industry insiders assumed that San Shing's revenue plunge in October might result partly from little progress in developing special fasteners, such as models made of titanium, though the company has placed heavy emphasis on such niche businesses over the past few years.