INSIGHT
Trifast goes from strength to strength
Over the last three years Trifast plc has successfully restructured its operations in its European, Asian and USA businesses. The integration of Malaysian Group Power Steel and Electro-PlatingWorks in December 2011 has further enhanced its capacity and capabilities in the global fastenings industry, but it is the Asian automotive sector that has fuelled change.
being earnings enhancing for the Group. Power Steel and Electro–Plating Works Sdn Bhd (PSEP)
A
was acquired in December 2011 and is considered to be one of the most advanced fastener manufacturers in the Asia region, employing around 176 staff and producing 450 tonnes of products per month. PSEP was incorporated in 1972 by Mr Foo Poh Wah, the CEO and principal shareholder with an incredible 90% of its products sold into the existing automotive markets in Malaysia supplying companies such as Proton and Perodua. Trifast CEO Jim Barker spent many months working with
Asia’s MD Thomas Tan to conclude this acquisition as it was strategically important to the future plans for the Group’s automotive strategy. Mr Barker says: “The growth potential for competent manufacturers in the automotive sector in Asia is substantial. We believe this addition to the existing five TR manufacturing locations will further compliment that strategy and enhance what we are already doing following on from our success in this sector in Europe.” TR Fastenings, part of the Trifast Group was traditionally
known for its supply into the electronics and telecoms market places. This involved the supply of small diameter fasteners and components, with high specifications and the supply chain was usually managed on a VMI system. This sector contributed to the Group’s success in the 1980s and 1990s, and to the knowledge of managing these parts globally for companies with multiple sites across the three main continents. This became a particularly important part of TR’s supply
52 Fastener + Fixing Magazine • Issue 76 July 2012
n essential part of TR’s management growth strategy is to identify and selectively acquire profitable, self- managing bolt on businesses that either, extend its product range or offer niche opportunities as well as
strategy to major OEMs and the Contract Electronics Manufacturers (CEMs) that supported them, as these businesses transitioned their sites globally in search of lower cost manufacturing sites, in Asia particularly. During this
time TR acquired manufacturing sites in Singapore, Malaysia, Taiwan and China to further strengthen its product offering and compete in very challenging market conditions in the early 2000s. The Dotcom boom and bust saw a sizeable drop in the fortunes of many of these electronics groups and TR decided to diversify into other markets as a buffer, ensuring that it had no heavy dependence, again, on a specific industry. These different business silos include electronics/telecoms,
audio and visual, marine and the automotive sector in particular which has seen unprecedented growth. No one sector exceeds 25% of the total turnover of the Group and this spread of industries has been instrumental in the success of TR in the three years since recession. From its background of smaller diameter fastenings, TR
focussed on the interior of the car, supplying fasteners within the cockpit for the IP console, seating, air bag and trim. Having built up a good reputation for quality of product and supply of Lean Build systems and winning some prestigious customer awards, TR recognised the need to increase its product offering to Tier 1 and Tier 2 suppliers so that it provides a more holistic supply chain. TR Fastenings had a very strict AVL, controlling either its own manufacturing, e.g. SFE in Taiwan or other major global manufacturers they chose to work with. This list of vendors, however, only satisfied the supply of cockpit fasteners and not engine, steering or braking products. The acquisition of PSEP has addressed that shortcoming.
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