Insight

In 2022 Vertex Precision opened a new plant dedicated to open die, 1 die 2 blow, as well as CNC machines – with the aim to increase its production capabilities for advanced fasteners.

Vertex made this investment due to the production of standard fasteners in Taiwan becoming increasingly uncompetitive. The company has therefore looked to shift to high unit price/multiple stage fasteners to meet the needs of the market.

In addition to investments in machines and equipment, another important focus for Vertex Precision Industrial Corp is environmental protection, including software and hardware. Due to the introduction of the Carbon Border Adjustment Mechanism (CBAM) regulation, which will start collecting carbon taxes in 2026, as well as a similar policy in the United States, Vertex Precision has introduced solar power generation, plant energy saving, resource recycling and other devices to reduce carbon emissions in production. 

“Through these environmentally friendly investments we can contribute to environmental protection, whilst at the same time enhance the competitiveness of our business on the global market,” explains Vertex Precision.

Vertex Precision is focused on the European market, which represents 65% of its business. However in 2024, Europe’s market was a little slow, with business in the North American market moving faster. In 2024 the company also increased its new product development projects by 24% compared with 2023, which underlines the positive steps the business is taking and why Vertex Precision is optimistic about 2025.

“With the increasing competition from countries such as China, India and Turkey – where production costs are lower – Taiwanese manufacturers have to decide whether they want to compete on price, which can erode profit margins, or focus on innovation and value-added products,” highlights Vertex Precision. “That is why we have invested in our manufacturing capabilities. There are abundant opportunities for Taiwan’s fastener industry, especially with the global emphasis on sustainability and green manufacturing, which opens new avenues for Taiwanese companies to develop eco-friendly products and processes.”

The company adds: “Moreover, Taiwan’s advanced manufacturing technology, and skilled workforce, position it well to transition toward producing high-precision and speciality fasteners for industries such as aerospace, automotive, AI/robotics and renewable energy. A small number of customised products, with high technical content, can help improve R&D capabilities, increase product selling prices, as well as build a global reputation for the Taiwanese market as a high-end fastener market.”