Industry Focus >>Emerging Fastening Tool Marketin Central and E. Europe
新興中東歐扣件緊固工具市場現況

Hardware & Fastener Components - no.56/2022

Introduction >>082

Central and E. European markets have a great potential ineconomy and trade. They are geographically advantageous inthat they connect with W. Europe. They span a large area ofland and have capable talents and technical potentials, creating
a complementary and synergistic relation with multiple Taiwanese industries. The interaction between Taiwan and Central/E. Europe has become more frequently in terms of trade andeconomy. Taiwan exported USD 2.8-3.2 billion worth ofproducts to Central/E. Europe per year during 2019-2021,
but in the first 4 months of 2020, the value amounted to arecord-breaking USD 1.38 billion, up 31.7%, a consecutive
double-digit growth following the 28.4% export growth in 2021.
Since the outbreak of Russia-Ukraine war, triggering thematerials and energy crisis, the world has recognized the importance of sustainable and resilient supply chains; and therefore, time is of the essence for Taiwan to enhance its economic
and trade ties with Central/E. Europe and build a resilient andmultilateral industrial supply chain. This article concentrates
on 6 primary countries in Central/E. Europe, incl. Czech Rep.,
Hungary, Lithuania, Latvia, Estonia, and Slovakia. This article

will discuss market development in the emerging Central and E.
Europe from the aspects of global economy and trade, Taiwan’strade with Central/E. Europe, and the investment environment
in emerging markets, and present suggestions and strategies for
Taiwanese fastening tool companies seeking to deploy in Central/E. Europe.

Central/E. Europe’s Fastening Tool
Export and Import with the World >>(1) Import Analysis
Table 1 shows the trend in Central/E. Europe’s fastening
tool import from the world in 2017-2021. The top 3 countries
with the most imported fastening tools in 2021 were Czech
Rep. (NTD 3.95 billion), Hungary (NTD 1.63 billion), andSlovakia (NTD 1.47 billion). Although the import values do
not necessarily translate to the amounts of demands, it is stillnecessary to consider the countries’ capacities. Imports reflectIndustry Focus >>a rough picture of the countries’ demands for fastening tools. The
5-year import CAGR of the 6 primary countries in Central/E.
Europe averaged 4.6% and none of these countries had a negativegrowth. Latvia had an import CAGR growth up to 10.1%, topping
all the other primary countries.
Table 1. Primary Central/E. European Countries’ Importsof Fastening Tools from the World in 2017-2021

Unit: USD 10 Thousand; %Country

2017

2018

2019

2020

2021

CAGR

Czech Rep.

9,491 10,800

9,903

8,816 10,495

2.5%

Hungary

4,174

4,765

4,331

4,491

5,814

8.6%

Slovakia

4,760

5,119

4,582

4,288

5,241

2.4%

Lithuania

1,151

1,3311,589

1,346

1,537

7.5%

Estonia

736

719

768

733

1,015

8.4%

Latvia

618

684

720

784

909 10.1%

Total

20,930 23,418 21,893 20,459 25,011

4.6%

Source: ITC/MIRDC(2) Export Analysis
Table 2 shows the trend in Central/E. Europe’s fastening tool
export to the world in 2017-2021. The top 3 countries with themost exported fastening tools in 2021 were Czech Rep. (NTD
3.73 billion), Hungary (NTD 760 million), and Slovakia (NTD660 million). The 5-year export CAGR of the 6 primary countriesin Central/E. Europe averaged 7.4% and none of these countries
had a negative growth. This region had a stable export growth.
Both Estonia and Latvia even had an import CAGR growth of up
to 20%, topping all the other primary countries. Hence, Central/E.
Europe are worthwhile for Taiwanese companies to keep an eye
on continuously.
Table 2. Primary Central/E. European Countries’ Export ofFastening Tools to the World in 2017 - 2021
Unit: USD 10 Thousand; %Hardware & Fastener Components - no.56/2022

Table 3. Taiwan’s Import of Fastening Tools from Central/E.
Europe in 2016-2021
Unit: NTD 10 Thousand; %Country

2016 201720182019 2020 2021 CAGR

Czech Rep. 364.8 606.6 1,128.9 555.7 723.7 736.6 15.1%
Lithuania

00000

Hungary

36.2

512.6

15.3

28.4

36.3

--

Latvia

000

000.3

--

Slovakia

0.6

0.9

1.9

2.1

00--

Estonia

0.4

00.1

0.1

0.10--

Total

402 612.5 1,143.5 573.2 752.2 803.7 14.9%

30.5 -3.4%

Source: Taiwan Customs trade data/MIRDC(2) Export Analysis
Table 4 shows Taiwan’s export of fastening tools to Central/E. Europe in 2016-2021. The top 3 destinations in Central/E.
Europe for Taiwanese fastening tools in 2021 were Czech Rep.
(NTD 118 million), Estonia (NTD 116 million), and Hungary(NTD 43 million). The 6-year CAGR of Taiwan’s fastening tool
export to Central/E. Europe slipped 4.9%, but the CAGR of export
to Czech Rep. and Estonia was stable.
Table 4. Taiwan’s Export of Fastening Tools to Central/E.
Europe in 2016-2021

Unit: NTD 100 Million; %Country

2016 2017 2018 2019 2020 2021

CAGRCzech Rep. 0.74

0.84

0.65

1.06

0.87

1.189.8%

Estonia

0.93

1.27

1.06

1.17

0.73

1.16

4.5%

Hungary

0.50

0.44

0.49

0.49

0.42

0.43

-3.1%

Slovakia

0.25

0.41

0.51

0.24

0.33

0.28

2.6%

Latvia

1.08

2.15

1.88

1.35

1.10

0.25 -25.3%

2021

CAGR

Lithuania

0.99

1.04

0.65

0.17

0.27

0.20

-27.4%

Czech Rep. 10,036.0 11,167.9 10,377.7 10,451.9 13,326.9

7.3%

Total

4.50

6.15

5.24

4.48

3.73

3.51

-4.9%

Hungary

1,908.4 2,152.3 2,491.3

2,115.3 2,702.1

9.1%

Slovakia

2,092.6 2,326.4 1,999.9 1,909.4 2,345.1

2.9%

Lithuania

515.4

694.2

884.3

687.7

746.7

9.7%

Estonia

250.5

254.9

333.0

307.4

508.9 19.4%

Latvia

94.0

119.5

131.4

170.9

192.5 19.6%

Country084

been steadily importing fastening tools from Czech Rep. and Hungary.

Total

2017

2018

2019

2020

14,896.9 16,715.2 16,217.6 15,642.6 19,822.2

7.4%

Source: ITC/MIRDC

Taiwan’s Fastening Tool Trade with
Emerging Central/E. Europe >>(1) Import Analysis
Table 3 shows Taiwan’s import of fastening tools from Central/E. Europe in 2016-2021. Taiwan imported NTD 8.03 million
worth of fastening tools from this region in 2021. The six-year
CAGR was 14.9%. This is not a big value, but recently Taiwan has

Source: Taiwan Customs trade data/MIRDC

Central/E. Europe’s Fastening Tool Import and Export Analysis by ProductCategory >>(1) Czech Rep.
Table 5 shows Czech Republic’s import and export of fastening
tools. The country imported USD 100 million worth of fastening tools from the world in 2021 with a 5-year CAGR of 2.5%.
The main imported products were interchangeable tools (USD
48.44 million) and interchangeable socket wrenches (USD
17.97 million). The ones with the highest CAGR were non-adjustable spanners and wrenches (7.1%) and adjustable spanners andwrenches (5.6%). In 2021 Czech Rep. exported USD 130 million
worth of fastening tools to the world with a 5-year CAGR of 7.3%.
The main exported products were interchangeable tools (USD
57.91 million) and screwdrivers (USD 34.84 million). The ones

Industry Focus >>with the highest CAGR were non-adjustable wrenches (47.7%) and interchangeable socket wrenches(10.8%).
Table 5. Czech Republic’s Fastening Tool Import and Export Analysis
Unit: USD 10 Thousand; %by Product Category in 2021
Fastening Tool Category & HS Code2017

2018

2019

2020

2021

CAGR

Interchangeable
820790 OtherTools
Socket820420 Interchangeable
Wrenches
Import 820411 Non-adjustable
Wrenches

4,510

5,049

4,789

4,130 4,844

1.8%

1,630

1,532

1,513

1,596

1,797

2.5%

1,364

1,571

1,544

1,539

1,792

7.1%

820540 Screwdrivers

1,509

1,928

1,406

1,110

1,467

-0.7%

478

720

652

442

595

5.6%

9,491 10,800

9,903

8,816 10,495

2.5%Interchangeable
820790 OtherTools

5,058

5,166

4,610

4,435

5,791

3.4%

820540 Screwdrivers

2,948

3,688

3,171

2,960 3,484

4.3%

Non-adjustable
Wrenches
Interchangeable
Socket820420 Wrenches

487

778

1,240

1,739

2,316

47.7%

619

695

710

758

931

10.8%

820412

925

841

648

559

805

-3.4%

10,036 11,168 10,378 10,452 13,327

7.3%

820412Adjustable Wrenches

Import Total

Export820411

Adjustable Wrenches

Export Total

Source: ITC/MIRDC

Table 6. Hungary’s Fastening Tool Import and Export Analysis
by Product Category in 2021
20172018

2019

2020

2021

CAGR

(2) Hungary

2,528

2,829

2,253

2,477

3,407

7.7%

820540 Screwdrivers

574

732

758

687

874

11.1%

Import 820411 Non-adjustable
Wrenches
Interchangeable
Socket820420 Wrenches
Adjustable Spanners &820412 Wrenches

586

678

766

709

837

9.3%

371

410

439

496

556

10.7%

116

116

115

123

140

5.0%

Import Total

4,174

4,765

4,331

4,491

5,814

8.6%

1,352

1,480

1,539

1,391

1,716

6.1%

820540 Screwdrivers

494

569

827607836

14.0%

Non-adjustable SpanExport 820411 ner & Wrenches
Socket820420 InterchangeableWrenches
Adjustable Spanners &820412 Wrenches

4368

897788

19.9%

1528

32

37

56

39.9%

573

3

65.6%

Export Total

1,908

2,152

2,491

2,115

2,702

9.1%

Table 6 shows Hungary’s importand export of fastening tools. Thecountry imported USD 58.14 million worth of fastening tools fromthe world in 2021 with a 5-year
CAGR of 8.6%. The top importedproducts were interchangeabletools (USD 34.07 million) andscrewdrivers (USD 8.74 million).
The ones with the highest CAGR
were screwd r ivers (11.1%) a ndinterchangeable socket wrenches(10.7%). In 2021 Hungary exported
USD 27.02 million worth of fastening tools to the world with a 5-year
CAGR of 9.1%. The top exported
products were interchangeable tools(USD 17.16 million) and screwdrivers (USD 8.36 million). The
ones with the highest CAGR wereinterchangeable socket wrenches(39.9%) and non-adjustable spanners
and wrenches (14.0%).

Fastening Tool Category & HS CodeHardware & Fastener Components - no.56/2022

Interchangeable820790 OtherTools

086

Unit: USD 10 Thousand; %Czech Republic’s primary sources of foreign investment are theNetherlands, Luxembourg, Germany, and Austria, followed by an increasing number of foreign investors
from Japan, S. Korea and China.
Czech Rep. was one of the eightlargest industrial countries rightbefore the outbreak of World War I.
It has a strong foundation in metals,machinery, precision machinery andmachine tools. A part of local small
and medium family businesses focus on low volume and customizedproduction. They are active in R&Dand produce high value-add products. They are globally competitiveand have potentials. The Czech
merchants have established an intricate network with the world incl.
Taiwan, Switzerland and Sweden.
There is potential with the technicalcollaboration between Czech andTaiwanese merchants. For Taiwanese companies that export to the EU,
Czech remains a good choice forinvestment because it is located in
the center of Europe and connectswith Germany, Austria, Slovakia
and Poland. Plus, it is capablein conventional manufacturing,it has better infrastructure thanother Central/E. European countries, it has good technical people,and its wage is lower than Western
European countries.

Interchangeable820790 OtherTools

Source: ITC/MIRDC

Industry Focus >>Taiwan’s main competitors in Hungary are China, Japan, and S. Korea. Giant Manufacturing
is a Taiwanese metal-related company in Hungary. The Hungarian Government recently signed
an agreement to form a strategic alliance with critical foreign companies and it plans to make
Hungary a regional operating hub in Europe. Hungary encourages investing in the following
strategic industries incl. automobile/automotive components, electronics and telecom., bio-tech& life science, and renewable energy. The Hungarian Government promotes automobile andcomponents, wind power and solar power which are pertinent to fastening tool demand. Additionally, the Hungarian Government builds industrial parks and smart cities, and infrastructures as such may drive the demand for fastening tools in Central/E. Europe.

(3) Slovakia
Table 7 shows Slovakia’s import and export of fastening tools in 2017-2021. The country
imported USD 52.41 million worth of fastening tools from the world in 2021 with a 5-year
CAGR of 2.4%. The top imported products were interchangeable tools (USD 26.76 million)
and non-adjustable spanners & wrenches (USD 10.15 million). The ones with the highest
CAGR were interchangeable socket wrenches (10.4%) and non-adjustable wrenches (3.5%). In
2021 Slovakia exported USD 23.45 million worth of fastening tools to the world with a 5-year
CAGR of 2.9%. The main exported products were interchangeable tools (USD 15.64 million) andnon-adjustable wrenches (USD 3.17 million). The ones with the highest CAGR were adjustablespanners & wrenches (15.0%) and interchangeable socket wrenches (11.9%).

Hardware & Fastener Components - no.56/2022

Table 7. Slovakia’s Fastening Tool Import and Export Analysis
by Product Category in 2021
Unit: USD 10 Thousand; %088

Fastening Tool Category & HS Code2017

2018

2019

2020

2021

CAGR

Interchangeable
820790 OtherTools
Span820411 Non-adjustableners & Wrenches
SocketImport 820420 Interchangeable
Wrenches

2,377

2,106

2,087

2,247

2,676

3.0%

884

990

888

762

1,015

3.5%

572

949

815

666

849

10.4%

820540 Screwdrivers

541

693

499

375

472

-3.3%

820412386382293238

230 -12.2%

Import Total

4,760

5,119

4,582

4,288

5,241

2.4%

Interchangeable
820790 OtherTools
Span820411 Non-adjustableners & Wrenches
SocketExport 820420 Interchangeable
Wrenches

1,329

1,031

963

1,260

1,564

4.1%

324

336

228

249

317-0.6%

180

318

317

240

282

11.9%

820540 Screwdrivers

244

534

416

130

156 -10.6%

15108

76

30

26

15.0%

2,093

2,326

2,000

1,909

2,345

2.9%

820412Adjustable Wrenches

Adjustable Spanners &Wrenches

Export Total

Source: ITC/MIRDC

The foreign investors in Slovakia are mainly from the U.S., Japan, S. Korea, and China. The
primary conventional industries in Slovakia are machinery, precision manufacturing, automobile,metallurgy, metal processing, electronics, chemical engineering and pharmaceutical industries.
These are also the critical industries that interest foreign companies to make their direct
investment. The Slovakian Government encourages foreign hi-tech companies to invest, and since
fastening tools are not a hi-tech industry to Slovakia, it is suggested that Taiwanese fastening toolcompanies should focus on export to Slovakia. In the bilateral trade between Taiwan and Slovakia,
the top products exported from Taiwan are metal products, electronic products & components,
and automotive components, which indicates Slovakia and countries in Central/E. Europe
need metal, electronic and machine products from Taiwan. Furthermore, Slovakia is building

infrastructures incl. industrial
park s a nd R 2 Expre s sway,which could drive the demand
for fastening tools. This is an
opportunity worthy of Taiwanesecompanies’ attention.

Conclusion >>The Russia-Ukraine war isa shock wave in the European
economy. IMF has lowered its
projected growth. The disrupted
supply chain issue which shouldhave got better reemerges. Europe
will be dedicated to building aresilient supply chain and regard
it as an important criteria forsustaining business. The warinflicted Ukrainian economy isexpected to drop 35%, and theestimated reconstruction demandis valued at USD 540 billion.
The reconstruction in Ukraine
will highly demand fasteners andfastening tools. As the U.S. andEurope are opting to separate
from China’s supply chain, theneighboring production basesin Central and E. Europe couldb e t he f i r st ones to provide
support, which characterizes theimportance of Central/E. Europe
to Taiwanese companies seeking
market development. Taiwanesecompanies can grasp this demand
to enhance their product visibility
and market share in Central/
E. Europe. They can also usebilateral industrial investment
and trade exchange to extend theTaiwanese market to Central/E.
Europe, enhance supply chain
and the local support system, andcreate favorable conditions forexpanding export. Furthermore,
Ta iwa n e s e G ove r n m e n t h a sformed delegations for times formarket inspection to Central/
E. Europe, and signed multiple
MOUs to st reng t hen mut u a lconnection in economy and trade,and utilized onsite/online tabletop
shows, matchmaking meetingsand exhibitions to help Taiwanesecompanies expand export.

Article by Dr. Arthur Hsu
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