Fastener Shanghai
fastener
Official WeChat
fastener
fastenerHomefastener
fastener
fastenerNewsfastener
fastener
fastenerfastenerBuyers' Guidefastener
fastener
fastenerStandard Searchfastener
fastener
fastenerFor Buyersfastener
fastener
fastenerFor Suppliersfastener
fastener
fastenerMagazinefastener
fastener
fastenerTrade Showsfastener
fastener
fastenerMy Officefastener
fastener
fastenerPost Inquiriesfastener
Home->Fastener News->Japanese Automotive Fastener and Parts Maker Piola...You are the 619431 visitors
Views:703   |   recommendation:   |   Votes:0   |   Discuss:0
Japanese Automotive Fastener and Parts Maker Piolax Moves Production Due to BREXIT Woes

Piolax, an automotive fastener and parts maker from Japan, is remapping is production in response to BREXIT, moving the production of automotive parts (which are sold to the U.S.) from the Dongguang (China) plant to the Georgia plant since the start of 2019. Piolax is also increasing inventory of parts within the EU region which are exported from UK to EU. Furthermore, the company is considering consigning production to a partnering company starting the end of this March.

Formerly Piolax manufactured a large amount of hose clamps and other automotive parts from its China plant. The production cost was low and the volume of supply to the Chinese market was large. However, in recent years the growth of the Chinese automotive market slowed and The U.S. government started the imposition of tariff on Chinese products since last summer, to which the president of Piolax said: "If this keeps going, we are looking at a loose of JPN 100 million every year." Given that the U.S./China trade conflict could be a long battle, the president decided to move production to the U.S. plant. He invested hundreds of millions of Japanese yens in building a heat treatment furnace at the U.S. plant to process hose clamps and metal fasteners.

The UK plant is the main supply base for Piolax to the EU region, handling automotive fasteners and other parts, 60% of which are sold to the EU and 40% to
UK. If anything, the customs clearance procedures and relevant regulations as a
result of BREXIT could undesirably cast a heavy blow to Piolax's sales and
logistics.

The president has ordered his operating bases to increase inventory. He is also considering consigning production to his partner ARaymond Japan at the end of this March to retain cost competitiveness. ARaymond, an industrial fastener maker like Piolax, works with Piolax on manufacture of products for untapped markets through bilateral production consignment.

Source: fastener world

2019/3/28 15:06:00

Previous:    The Latest CFD 2019 Distributed in Fastener Fair Stuttgart
        Next:    Sundram Fasteners Q4 Profit up 21%

Recent Related News
Brazil's vehicle exports fall 52 pct in April--2019-05-08
S. Korea's auto production falls in March on weak demand at home, abroad--2019-04-23
German car production tumbles in second half of 2018--2019-04-15
China's passenger car sales continue to shrink--2019-04-15
Brazil's vehicle production drops 0.6 pct in first quarter--2019-04-10
German car production tumbles in second half of 2018--2019-04-10
China will continue to suspend extra tariffs on US vehicles, auto parts--2019-04-01
Italian experts boost Zhejiang manufacturing--2019-03-23
U.S. automakers see great opportunities in China--2019-01-28
China's auto sales continue to fall in November--2018-12-11
Donald Trump's tariffs will cost Ford $1B, CEO Jim Hackett says--2018-10-31
China's automobile imports surge in July--2018-08-31

Vote for this news?

fastener(Very Good)
fastener(Good)
fastener(Normal)
fastener(Bad)
fastener(Very Bad)


Discuss
More Discuss...
Your Name: Anonymous

Enter the code shown:fastener2fastener