Insight

Focused on special fasteners that are customised according to drawings or samples, Goodway believes that whilst the Carbon Border Adjustment Mechanism (CBAM) regulation will have a significant impact on the fastener market, it could also be an opportunity for companies that have prepared properly.

As a Chinese manufacturer Jiaxing Goodway Autoparts Technology Co Ltd has various processes as part of its production including cold forming, turning, stamping, casting and hot forging – providing customers with a ‘one stop’ solution for C-parts. This vast capability enables the business to offer a complete portfolio of products including fasteners, turned parts, special parts, assembly parts, stamping parts, as well as welding parts.

“Our powerful production capability, and qualified product groups, allow us to offer customers the most competitive prices and punctual delivery times,” underlines Goodway. “With the introduction CBAM regulation there is another aspect of business that we must be able to support our customers if we wish to continue to be successful.”

Goodway quickly realised the potential opportunities CBAM could create within the fastener market, which is why as soon as the company learnt about the regulation it immediately started to prepare for its eventual implementation. “Thanks to the work we have done over recent years we are now proud to say that we are fully ready for CBAM. It has been a big challenge for us to get to this point, but we are always looking to improve ourselves – so that we can become stronger and cooperate closer with customers.”

Goodway’s determination to be ready is underlined by its decision to cooperate with a professional third party in creating its CBAM reports. “Thanks to this partnership we can provide CBAM reports according to customers’ requirements within hours,” comments Goodway. “In fact, we have been providing customers with CBAM reports since the third quarter of 2024. The whole process has been an exploration for every fastener company and we have done our best to provide the data we believe is needed. Furthermore we believe it would be helpful if the EU audited all the reports carefully and gave feedback for best practice.”

Thanks to its modern ERP system, Goodway is also benefitting from having comprehensive data records from the material coming into production, making it easy to provide the corresponding reports to customers based on the actual shipments of each quarter.

“For fastener manufacturers based within the EU there is a limit of the production capacity, leading to inefficiency in supply, in addition to higher labour cost. This means they can’t meet the big demands of the EU market by themselves,” reports Goodway. “Even if our prices are not so advantageous as before, due to CBAM duties, we believe our customers will still source from outside of the EU. That is why we need to make sure we find good strategies to improve ourselves and also to make sure we can meet the requirements. At Goodway we continue to try our best to keep up with these topics so that we can go on satisfying customers’ needs.”