AssociationEFDA
President
AndreasBertaggia

Since 2022 the market demand, inflation, rawmaterials, climate change and many otherfactors have continued to affect the global supply chain (andthe EU industry is no exception). Do you think the pressure
on the European fastener industry due to these issues
has eased so far and are there any new issues of concern
emerging? What is your forecast for the EU economy in2024?
A: The pressure has not become less. Quite the opposite:
the challenges for our industry are increasing due to growing
regulation, geopolitics, and the general political and economic
envi ron ment. Already the last qua r ter of 2023 will bechallenging for European traders. And for the coming year, I
expect even more regulation and decreasing demand. However,
although 2024 will be a challenging year for our industry, I
hope that by the second half of the year our industry will see arecovery.
The practices adopted by European fastener
distributors in response to changes in market
supply & demand, industrial upgrade and corporate
sustainability have always been the benchmarks for theircounterparts in other countries. In the face of these new &old challenges in the market that we are all closely concerned
about, how do the European distributors standing at the210

Fastener World no.203/2023 惠達雜誌

front line for their customers cope with and overcome
them? Do you have any case (e.g. mergers & acquisitions,changes in marketing operations, etc.) to share?
A: European fastener distributors are characterized by ahigh degree of flexibility and agility and are very quick on
the market. They take the tasks they are currently facing
very seriously. These include the legal provisions of the EUsanctions against Russia, including an import ban on fasteners
from third countries if manufactured by using Russian steel
products, and the EU Carbon Border Adjustment Mechanism(CBAM). Our companies are also responding quickly tochanges in supply chains and market volatility. Overall, I see
European fastener distributors well prepared.
E U ’s C BA M h a s b e e n i mp l e me nt e dsince October 1 and energy saving &carbon reduction have become priorities for fastener
manufacturers in Asia. Has any additional CBAMrelated requirement s a lready been proposed by
European fastener distributors to their Asian suppliers?
What would you suggest Taiwanese manufacturers to do
to comply with the new EU regulations?
A: First of all, CBAM is a law with multiple obligations
that European importers of fasteners have to fulfil. CBAM

Associationis complex and far-reaching in its requirements, and all of our member companies are in the process of familiarising themselveswith the subject and finding solutions. Not all questions have been answered yet. There is even still a lack of specifications andimplementation of individual aspects of CBAM by the EU or the EU member states.
What we can advise the Taiwanese is that they seriously deal with CBAM. I know that Taiwan started very early to prepare forCBAM. Taiwan is acting in a very exemplary way and is at the forefront of exporting countries in the fastener industry. Taiwanesemanufacturers and European distributors must work hand in hand on solutions to this issue so that the trade business between ourregions can continue to operate successfully. For example, it will be vital that CBAM reports reflect true costs. Certificate
trading, which will start in 2026 for European fastener importers, will become a serious cost factor. The more CO2 emissions
the imported goods have caused, the higher the costs of certificates. Here, the European distributors will take a close look at which
suppliers are competitive in which countries. In the end, CBAM is a cost issue for all participants in the fastener supply chain.

According to EU statistics, the EU imported
about 2 million tons of fasteners in 2022 (morethan €8 billion), with the top 5 import origins being China,Taiwan, Turkey, Vietnam and India. As far as you know,what are the main applications of fasteners imported by
the EU from these 5 countries? And for European fastener
distributors, what are the respective advantages of fasteners
from these 5 countries?
A: In the course of increasing globalization, standard parts
were first procured from these countries for cost reasons.
In addition to price, flexibility and service level played an
important role in the success of these countries. The standard
parts are sold to all industries, for example to the automotive,train, construction, and consumer products industries. In recentyears, the business with special parts has also increased.
In 2022, more than 60% of Europe's fastener
imports (about 1.28 million tons) originatedfrom China and Taiwan, showing a very close cooperationof European fastener industry with suppliers from these
two regions. What do you think are the reasons for this? In
your opinion, what part of Taiwan's supply chain still gain
the upper hand? On the basis of not competing directly withEuropean suppliers, what are the other application fields
that Taiwanese manufacturers can also try to expand theirbusiness to?
A: China and Taiwan are particularly competitive withregard to the mix of price, quality, and service they provide
to their customers. And they both are producing a very
high volume of fasteners. During the last years, Taiwan has
massively increased its production of special parts and thequality level of fasteners in general – keeping a reasonable costbenefit ratio.
A growing area of business for manufacturers is helping
importers meet compliance regulations. Taiwan canachieve a lot in this field. I am convinced that if compliancerequirements can be met, the good trade relationship between
EU and Taiwan will continue.
A fter the Europe -Vietnam Free TradeAgreement (EVFTA) comes into effect in
2020, Vietnamese fasteners have become more competitivein exporting to the EU. Do you think such an agreement
has caused some subtle changes to the existing fastener
distribution system in Europe?

A: We do not know exactly to what extent the agreement
has affected our industry. It is always beneficial when free
trade is encouraged. We see, however, that the increasing
importance of Vietnam as an alternative procurement
market during the last years is also due to geopoliticaltensions in Southeast Asia and for cost reasons.
What meetings or events have been or are going
to be planned by EFDA for the upcoming 2024?
A: EFDA is planning a series of internal meetings for
its members in 2024 including webinars on current topics
as CBAM. The triennial European Fastener Distributor
Conference will be held only in 2025 in Brussels, the EU’s“capital”, as EFDA will then celebrate its 25th anniversary.
Have you achieved any goals or accomplishments(including international exchanges) since yourpresidency?
A: One of our goals in EFDA is to assist its members andcompanies in coping with compliance issues. As alreadymentioned before, CBAM is playing a central part here,
and will continue to do so. I am glad to see that we could
assist our members with a frequent information service andwebinars from an early stage so that they can get prepared in
the best way possible.
I a m also keen on keepi ng a nd strengt heni ng t herelationship between EFDA and its partner organizations
all over the world. I would like to mention our traditionally
good relationship to TFTA and TIFI in Taiwan, and also ourexchange with the Taiwan authorities on CBAM recently.
What is your forecast for the global fastenerindustry in 2024?
A: We expect a strenuous and hard and overall very
challenging year 2024 in terms of demand, sales increases,
regulatory tasks, uncertainty and tensions. Unfortunately, it
is unclear in which direction everything will develop.
Are there any other words you would also
like to share with our readers?
A: We wish everyone in Taiwan and Europe can meet theirchallenges and work hand in hand within the supply chainsto overcome these challenges.
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