Zhenhai’s fastener industry rises to the challenge

Category: Ningbo District
Published: Monday, 20 April 2020 17:18

In April, the workshop of Ningbo Zhongbin Fastener Manufacturing was very busy, and the workers processed the newly developed products for domestic enterprises on the production line. "Fortunately, we arr "turning around quickly"to develop the domestic market in a timely manner, and the company's development will not stop at a standstill," said Sun Bin, the head of the enterprise.

"The resumption time of enterprises in the West is absolutely uncertain, and customers will send emails to inform them 60 days before making a decision," Sun Bin

said. In response to the rapid changes in the market, Zhongbin Fasteners has been on the road of transformation since February 2020. They quickly shifted their sales focus to the domestic market, conducted research and development in response to the needs of domestic customers, and successfully obtained orders from a large number of large state-owned enterprises. On April 10, in the enterprise's packaging workshop, the workers packaged the bolt products that had just been off the assembly line and prepared to send them to CRRC. "We signed a 60 million yuan framework procurement agreement with CRRC Group," Sun Bin said.

The export-oriented fastener enterprises in Zhenhai District actively changed their ways of thinking, made efforts to sell domestically, continuously innovated in sales and operations, and transformed the period of market turmoil into an opportunity period.

"In terms of gross profit, the newly added domestic market has higher gross profit," Sun Bin said. Due to the fact that wholesalers are responsible for distribution in foreign businesses, corporate profit margins are limited. While domestic business directly connects enterprises with enterprises, for the same raw materials and processes, the profit margin is several times more than that of foreign business. Therefore, in the first quarter, the overall benefits of the enterprise did not decrease but increased.

Jinding Fasteners is the largest fastener enterprise in Zhenhai District. The enterprise plans to build an intelligent storage system from April 15 using the unsaturated schedule. "We will invest 50 million yuan for the transformation, and the storage facilities after the transformation will be controlled by computers and robots," said Ji Qiming, secretary of the party branch of Jinding Fastener.

Zhenhai District is a well-known fastener production and export base in the country and occupies an important position in the international and domestic markets, especially the fastener enterprises in Jiulonghu Town. "Some fastener companies are actively expanding their domestic businesses, and some are undergoing internal transformation in accordance with the Zhenhai District fastener industry upgrading plan," said Yao Guohua, director of the Development Service Office of Jiulonghu Town Government. In the face of increased uncertainty in the market, seizing opportunities for reshaping the market pattern and improving quality and efficiency are related to the long-term development of the fastener industry.

"We are also actively connecting with banks to solve the capital gap for enterprises, and at the same time match the expansion of the domestic market for enterprises," Yao Guohua said. With such a shrunken market, relevant departments are increasing support for credit loans and intelligent transformation as a way to help fastener companies improve their competitiveness