Zhejiang Fasteners Association launches steel procurement model

Summary of contents: Since the establishment of the Fastener Industry Association of Zhejiang Province, we have included the discussion of the joint procurement model for iron and steel materials on the agenda of the Association's work. After two years of efforts, we believe that the conditions are basically mature. Judging from the status quo of the industry, the development orientation, and the construction of the association platform, the construction of the joint procurement model for steel materials will contribute to the development of the fastener industry in Zhejiang Province.

1, from the status quo of the industry:

Zhejiang is the largest province in China's fastener industry. At present, it has formed three fastener industry clusters represented by Jiaxing (Haiyan), Ningbo (Zhenhai), and Wenzhou. According to statistics, there are approximately 3,200 fastener companies in the province, including 911 enterprises above designated size in 2010, accounting for 41.98% of the total number of entrepreneurs; the average number of employees is 67,200, accounting for 34.46% of the country; The total assets amounted to 25.597 billion yuan, accounting for 38% of the country's total; the annual fastener company's material consumption was 3.2 million tons, and 2.27 million tons of various types of fasteners were produced; the fastener business above designated size realized a main business income of 18 billion yuan. , accounting for 29.23% of the country; total profit of 744 million yuan, accounting for 21.28% of the country; self-exports of 10.83 billion yuan, accounting for 43.8% of the country.

It is estimated that by the end of 2015, the total output of fasteners in Zhejiang will reach 350-4.5 million tons, of which the export products will show a fluctuating growth trend, maintain an average annual export growth rate of 8% to 10%, and by the end of 2015, the fasteners will self-support. The total export volume will reach 160-180 billion yuan.

2, from the development of positioning analysis:

As a traditional Zhejiang industry, fasteners will strictly comply with the requirements of the Ministry of Industry and Information Technology of the Ministry of Industry and Information Technology, and follow the requirements of the provincial government on the traditional industries of Zhejiang, “bringing in and fostering a batch, improving and upgrading a group of batches, and transferring batches in an orderly manner. Shut down and eliminate a group of "development strategies to accelerate the transformation and upgrading."

The purpose of the transformation and upgrading is to enhance the competitiveness of Zhejiang's fastener industry and increase the added value of Zhejiang fastener products. There are three main routes: First, industrial concentration; Second, professional division of labor; Third, technological breakthroughs. Joint procurement is an innovation in the optimization of the industrial chain, which is conducive to the implementation of the National Plan for the Revitalization of the Mechanical Basic Component Industry in Zhejiang and is conducive to the implementation of the provincial government’s transformation and upgrading strategy for traditional industries in Zhejiang.

(1) Joint procurement can effectively enhance the competitiveness of enterprises and accelerate the concentration of industries. Taking the current top six companies in Jiaxing (Jinyi Industry, Dongming Industry, Zhangpu Industry, Yuxing Nuts, Jiaxing Brothers (Brother Morgan), and Zhejiang New Oriental) as examples, the annual demand for all types of steel is about 600,000 tons. About 60% of each purchase through trading companies, such as the use of joint procurement, while improving the conditions of cooperation with related steel mills, can save a lot of manpower, material resources and costs, while at the same time will be for Zhejiang fastener companies in other links basis.

(2) Joint procurement will help promote the repositioning of small and medium-sized professional steel traders, accelerate the specialization of steel trade, and form a circulation model supplemented by large-scale steel trade platforms and small and medium-sized circulation enterprises.

(3) Joint procurement lays the foundation for corporate grouping. Taking the automotive industry as an example, the contribution of automotive fasteners to the automotive industry has already accounted for 10% to 15% of the value of the vehicle. Fastener companies have established strategic partnerships with complete vehicles and complete machine companies based on credit, technology and capital. Relationship is the direction of future development. Therefore, in the future, automotive fasteners will gradually be integrated and will participate in market competition in a grouped manner. Organizing the joint procurement of steel products will lay the foundation for the development of Zhejiang fastener enterprises.

3, analysis from the association platform construction:

Organization and coordination agency platform. In addition to provincial associations in Zhejiang Province, there are also 3 (autonomous) class fastener industry associations, and 5 county (city, district) fastener industry associations (commercial) associations. The presidents of associations are generally Provincial Association honorary president or vice president, the Secretary General of the associations are generally deputy secretary-general of the Provincial Association, from the organization and coordination for the implementation of the joint procurement of steel to provide protection.

Joint procurement lead platform. The Secretariat of the Fastener Industry Association of Zhejiang Province has one or two iron and steel materials, among which: steel products (Pufa Metals) sales reached 400,000 tons last year; Steel Village II (Laoshanhai Steel Trade) was established at the end of last year. After six months of trial operation, sales will reach 80,000 tons this year from June to September. The Association’s Steel Materials Division has the ability to assume the functions of a joint procurement platform.

Cooperative company (member) platform. There are 963 member companies in the 9 fastener industry associations (commercial companies) of the province, including more than 565 production enterprises above designated size and 60 production enterprises with output value exceeding 100 million yuan. Financing guarantee platform. There are 3 financing guarantee companies in the province's Fastener Association system. The registered capital is 28,550,000 yuan. According to the minimum amplification standard (1:5), it can have a credit line of 1.4 billion yuan. At present, the balance of guarantee liability is only 500 million yuan. The RMB has a lot of room for development. In addition, two guarantee companies (registered 100 million yuan) of Wenzhou and Pinghu Fastener Industry Association are reporting according to regulations.