cens logo

Taiwan Fastener Makers Focus on Advanced Heat Treatment Standards to Tap Automotive Segment

CQI-9 HTSA is increasingly applied to ensure quality of thermally treated fasteners

May 07, 2015 | By CENS

Compiled by STEVE CHUANG

In response to the persistently growing global automotive industry, ever more Taiwanese fasteners have actively ventured into the segment as a savvy strategy to secure more sustainable development, with some focusing on introducing advanced heat treatment standards to better meet requirements by global carmakers.

According to Taiwan Industrial Fastener Institute (TIFI), an association of local makers in the sector, around 25% of Taiwanese fastener manufacturers are capable of supplying quality-approved automotive fasteners worldwide for the time being, and the proportion is expected to surge to 40-50% in the next five years, based on steadily increasing global car production. IHS Automotive, a global automotive industry researcher, forecasts worldwide car sales to exceed 100 million units in 2018, and this will surely bring considerable business opportunities to the Taiwanese fastener industry.

K.B. Yo, project manager of Metal Industries Research & Development Centre (MIRDC), a Taiwanese R&D body, says that heat treatment, which reinforces durability, structural strength to enhance added-value, is a critical process that determines a supplier's qualification to be an OEM maker for leading carmakers, adding that “generally, Taiwan suppliers are skilled at upstream processes as forming, threading and heading, but overlook heat and surface treatment due to relatively high costs. They circumvent such issue by cutting corners—subcontracting heat treating and electroplating firms, who can handle the jobs cheaply but without assuring stable quality.”

news-photoThermal treatment determines durability and safety of fasteners (Photo courtesy of Instron®).

In essence, Yo states, Taiwan fastener suppliers can skillfully handle heat treatment to turn out quality automotive fasteners meeting world-class automakers' standards; however, prolonged neglect and underdeveloped quality inspection systems for heat treatment have become major obstacles to effectively explore the OEM (original equipment manufacturing) segment.

To overcome such hindrance, some of Taiwanese fastener makers have introduced the American AIAG (Automotive Industry Action Group) CQI-9 (Continuous Quality Improvement) HTSA (heat treatment system assessment) into the industry, aiming to build Taiwan into a global leader in the automotive fastener segment. 

“Once successfully passing the CQI-9 assessment, Taiwan fastener suppliers can then directly supply automotive fasteners to leading automakers, which would, most importantly, double export prices to NT$100-200 per kilometer from the current NT$50-100 in the AM segment,” he says. “Being CQI-9 qualified enables Taiwan makers to right away enhance the value of their fasteners to make them stronger global competitors.”

Birth of AIAG
Set up in 1982 by U.S.'s big three automakers, namely General Motors, Ford Motor Company and Chrysler, AIAG is a non-profit organization providing an open platform for members to jointly work to develop new technologies. The AIAG has successfully wielded plenty of influence over the global automotive industry—setting up quite a few quality inspection standards and training courses for industry insiders. Currently, an estimated 1,500 voluntary companies within the AIAG are developing optimal solutions to standardize supply chains in the sector.

news-photoGlobal car production is estimated by market observers to exceed 100 million units in 2018 (Photo courtesy of UDN.com).

CQI, introduced by the AIAG, is a quality management concept that stresses the importance of efficient, effective processes under corporate organizational efforts and systematic management—contending that everything can be improved through daily work and experimentation in-house.

Based on the CQI core concept, CQI-9 HTSA contains a series of inspections and audits related to heat treating equipment, processes, personnel, output quality and quality control systems, and, notably, the assessment support processes defined in ISO/TS 16949 standards. In other words, the quality management process helps makers, who have been ISO 9001 and TS 16949 certified, to introduce and implement CQI HTSA in production.

CQI-9 Imperative
Responding to why CQI-9 is helping Taiwan fastener makers, Yo says that,  compared with JIS in Japan, CQI-9 is widely adopted among leading European and North American automakers; so it is imperative to be CQI-9 HTSA certified to become OEM suppliers to automakers.

From another viewpoint, adopting CQI-9 can help Taiwan makers continually improve heat treatment technique. Yo says that, to achieve high capacity, some producers may place too many fasteners at once in a heat treatment oven, causing a very small portion of maybe 1 to 2 pieces to get stuck, hence failing to be properly heat treated.

“Making automotive fasteners safe hinges on carrying out proper heat treatment at specified period and temperature to achieve durability, hardness and structural strength. Without maintaining time and temperature properly during heat treatment, a fastener then will be unsafe for any vehicle,” Yo stresses. “Needless to say that keeping the proper conditions is a common problem among most Taiwan fastener makers and heat treating companies.”

“CQI-9 instructs factories to back up time-temperature diagrammatic charts and related data on daily operation of heat treating ovens, enabling checking such parameters when defective fasteners are found. Consequently, they must try to improve whole production lines by upgrading equipment to minimize poor quality. In short, CQI-9's strict requirements for data back-up and the core concepts of CQI help to instill in suppliers, workers correct attitudes related to quality, as well as be accountable,” he adds.

“As said, proper heat treatment decides the quality and safety of automotive fasteners. The discovery, return of defective fasteners typically result in considerable penalty—calling for suppliers to compensate ten times the cost of fasteners in question. To avoid such consequences and assure product quality, Taiwan makers of automotive fastener tend to send abroad semi-finished fasteners for proper heat treatment, instead of risking business with local subcontractors,” Yo says. “Such scenario discourages fastener suppliers to venture into the OEM segment, hence compromising local heat treating companies' chances to win orders.”

news-photoSome of Taiwanese makers have introduced AIAG CQI-9 HTSA standards to test quality of their automotive fasteners.

“By carrying out CQI in-house and become CQI-9 HTSA certified, Taiwanese suppliers will hopefully become more confident and capable of handling such risky orders, and Taiwan's heat treating sector will also progress in process technology and business operation.”


Industry Reports

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...


An Alliance Between Ford and VW Could be Announced as Early as Next Year</h2>

An Alliance Between Ford and VW Could be Announced as Early as Next Year

Dec 11, 2018

There is news of a far-reaching alliance between Ford Motor and Volkswagen, according to those familiar to the matter, reported CNBC. The two world’s largest automakers plan to announce the alliance next January, a partnership that would encompass sharing assembly plants in the U.S. to avoid new the wave of tariffs, joint marketing and distribution as well as product development, possibly on t...



Industry In-Focus

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...



Supplier News

Antrc Industrial Corp. offers bumpers, parts, decoration strips, skid plates, radiator, radiator grill, headlights and rear lights and will be exhibiting at Automechanika Shanghai to tap into the Asian markets. (photo courtesy of Antrc Industrial Corp.)

Antrc Industrial Corp. Aims for High-End Auto Parts Industry for Asian Markets

Dec 05, 2018

Antrc Industrial Corp. focuses on manufacturing plastic parts, metal parts and other automotive parts in the aftermarket industry. The firm can roll out parts and products that match with customers’ needs and the industry pulse in this changing and competitive market. Having deep roots in the AM industry, Antrc can deliver with its complete supply chain, from designing, molding making and finally...

ANTRC INDUSTRIAL CORP.


NHC and YangPo products satisfy demands for different automobiles. (photographed by Tseng Lung-nan)

Brake Maker Nan Hoang Rides on Biz Upswing to Offer More Clients the Best

Dec 04, 2018

For more than five decades, Nan Hoang Traffic Instrument Co., Ltd (NHC) has been one of the major manufacturers of specialty vehicle friction materials in Taiwan and around the world. Chairman Austin Cheng has been carrying out their “double-arrow developing plan” for this year. In one aspect, through its private label YangPo, NHC aims to adopt a more effective marketing strategy for selling own-...

NAN HOANG TRAFFIC INSTRUMENT CO., LTD.


Intime offers high-quality performance brake calipers. (photo courtesy of Intime)

Intime's Products Sought-after by Professionals Worldwide

Dec 04, 2018

Founded in 2013, Intime Auto Parts Co., Ltd., specializes in making performance brake calipers and performance shock absorber systems. Intime takes pride of its “n&b performance” series. The firm's n&b ceramic brake pads, which are made of low metallic NAO material, is capable of functioning without damaging the brake discs. Also notable is that the brake dust can be removed easily from the al...

INTIME AUTO PARTS CO., LTD.



Insiders' Views

Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...

FOXCONN TECHNOLOGY


Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan</h2>

Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Tang Wenbin, founder and CEO of Megvii Technology, will be visiting Taiwan next week, but accepted an overseas interview with Economic Daily News on Sept. 6. This is the second installment of the interview. Aiming for a complete application; forming a city’s “brain” Q: What are the goals and strategy for the next phase? A: When the company first started off, we had to find a way to impl...

FOXCONN TECHNOLOGY


MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports</h2><p class='subtitle'>Industry veteran suggests Taiwanese suppliers establish market presence as priority</p>

MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports

Industry veteran suggests Taiwanese suppliers establish market presence as priority

May 24, 2018

One of the concurrent events held during the 13th Taiwan International Motorcycle Industry Show (Motorcycle Taiwan 2018), the seminar titled “Turning New U.S. Powersports Business Opportunities” was rounded off with overwhelming acclaim from the audience as a resounding success, mostly thanks to the excellent quality of the lecturers invited, all of whom are seasoned veterans and experts at high ...



Exhibition Highlights

Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


2018 AAPEX Post-Show Report</h2>

2018 AAPEX Post-Show Report

Dec 24, 2018

The 2018 edition of Automotive Aftermarket Products Expo (AAPEX) kicked off from Oct. 30 to Nov. 1 at Sands Expo Center; a total of 6,269 exhibitors came from 43 countries/regions, a 4% growth compared to last year’s figures, using up over 5,000 booths. Organizers estimate that over 162,000 professional buyers from approximately 135 countries visited the largest show of its kind in the North Amer...


Source: show organizer

The 19th Fastener Trade Show Suzhou - China's leading one-stop purchasing platform for fasteners, machinery and supporting products

Dec 05, 2018

As a large international fastener specialized exhibition, the 19th Fastener Trade Show Suzhou will connect the upstream and downstream of fastener manufacturing industry. Focusing on end users and building a global fastener trade platform are the highlights of the show. The 17th Fastener Trade Show Suzhou, successfully held during 26-28 October 2017, was highly praised by exhibitors and visito...