“We are now expanding the Bukit Tengah plant so that it can plate more threaded rods
“The expansion exercise should be completed in December,” she said.
The US importers of threaded rods turned to Chin Well as the source because the US government has imposed anti-dumping taxes on threaded rods from Thailand, Taiwan, India, and China.
“If the trade war between US and China continues into 2020, then we can see the contribution of the US market to our revenue increased to over 20%.If the trade war ends, the US contribution should stay at around 15%.
“For the 2019 financial year ended June 30, the US market contributed 11% to the group’s revenue,” she added.
The contribution of the European market, however, has declined to below 31% for the 2019 financial year, compared to 42% in the 2018 fiscal year. “For the 2020 fiscal year, the European contribution is expected to stay below 30%,” she added.
Tsai said the group was increasing its shipment of do-it-yourself (DIY) screws from its plant in Vietnam to the US market.
“In January 2020, the DIY shipment should hit 50 containers per month.
“We are now almost there,” Tsai said
According to Tsai, the group competes with its rivals on quality and not on pricing.
“Because of the higher pricing, our fasteners are targeted at the Malaysian and Western market,” she said.
Meanwhile, Tsai said the domestic market’s contribution to the group’s revenue increased to 38% for the 2019 financial year, up from 35% a year ago. “Most of the local buyers are involved in industrial and housing projects,” she said.Tsai said the group had started shipping reinforcement bar connectors from Vietnam to customers in Taiwan and Japan.
“We will supply to the South-East Asia region in 2020,” she added.
Chin Well Holdings Bhd will ramp up output of its fastener products to 110,000 tonnes from 105,000 tonnes for the financial year ending June 30, 2020, to cater to rising demand, according to Tsai.
“We are raising output to meet the higher demand from the US, which still uses the imperial system that measures in feet and inches. With the trade war, the US importers of steel hardware products have turned to companies in South-East Asia that can make fasteners according to the US standards and specifications,” she said.
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