EIFI

Secretary : AFFIX – 39-41 rue Louis Blanc–92400 Courbevoie –FRANCE

Phone: 00 33 1 47 17 64 24 – Fax: 00 33 1 47 17 64 26

Website: Email:

From the Secretary

EIFI

European Industrial Fasteners Institute

ANNUAL REPORT 2006

27th March 2007

MARKET SITUATION

Where would the world be without fasteners? Fasteners are still a fascinatingly complex business due to the large number of companies involved, the huge number of different products and the vital importance of fastener quality in the various applications ... 2006 was a good year for most of the companies involved in the fastener business.

Many businesses reported a two digit growth, especially those participating in the booming business in Asia or Eastern Europe - but there was no need to delve that far into 2006 to find a booming market, as the Italian market, partly due to the revival ofFiat, showed renewed vitality and the aerospace industry continued to enjoy a very high level of activity.

The automotive industry retained more or less the same level of market as the previous year, as we probably have to expect insuch a saturated market like the European one. However, from one brand to the next there is such a big contrast and It is somewhat fascinating to see how fast things change, the best of yesterday becoming the worst of today!

On the home front, It is the intention of our association to try and implement a simple yearly fastener industry survey based on the questionnaire successfully established by the american association IFI. We will start at the beginning of 2008 for the year 2007 and see how itdevelops.

The past few years have seen significant changes in fastener supplier companies, with acquisitions and mergers happening quite regularly. 2006 was no exception to this, with major companies being involved in ownership changes. This is probably not the end of the story.

Finally, let us mention a speculative move on the copper price, which will have big consequences for those fastener companies making brass inserts for the plastics’ industry. This is another sign of how a dangerous trend on the raw material market can affect our industrial companies who are not prepared to deal with stock exchange mentalities.

EIFI EVOLUTION

Following the decision of the board in 2005 we proceed to the transfer of our head office from Birmingham to Bruxelles and are on the way to create a Belgium registered European Industrial Fasteners Institute Aisbl (association internationale sans but lucratif) with head office Diamant Building Bld A.Rayers 80, B1030 Brussels, Belgium. We have an agreement with the Orgalime in Bruxelles with provision of administrative services but the EIFI secretary will be Denys Tremblais with following adress AFFIX,

39 /41 rue louis Blanc F 92400 Courbevoie France. For info the EIFI mail adress will remain . It will be the role of our general assembly in hamburg on june the 15th to approve the change. In the name ofEIFI I want to thank Mike Baker for the fantastic job he did almost 20years long to promote our association.

EIFI ACTION PLAN

Antidumping: As Mr Mandelson used to say ( see Le Figaro 11 12 mars 2006) "

It is not protectionismus to interfer for limiting the consequences of deloyal commercial practices". Is it fair competition when wire rod which considerably influences the costs and therefore final sales price is 40 % cheaper in Asia as it is in Europe. ? In other words EIFI plays his role trying to limit the effects of dumping from some asiatic countries. Will this action be successful or not very much depend on political trends which are not under controll of our association but we did the job we had to do to make it possible.

EFDA: We had a meeting with the European fastener Distributor Association end of 2005 and will create a working group to identify subjects we could work on together like for example: establish a classification of the different distributors (Logistic company, Full service provider, generalist, technical profile...). We have to admit that manufacturers and distributors will always be partners and competitors at the same time.

Which aspect is stronger depends on the market, the timing and obviously also our efforts. At the end of the day we are probably stronger together.

Let us try a modest and progressive approach of a few selected subjects.

IFI. Jean Paul Micheau and Mike Baker will attend the IFI annual meeting march 24/27 in Sarasota.

Web Site: We are working on a new web site which should be ready for presentation to the general assembly.

Eastern Europe members: The board has agreed that further efforts should be made to try to encourage members from eastern Europe to candidate for EIFI or to create their own association before candidating. One of the next board meeting will take place in an easternEuropean country to be defined. This should be the opportunity to introduce EIFI to a group of easternEurope fastener companies which has to be selected and invited.

Participation to selected fairs: Another possibility to promote EIFI could be to participate to selected fasteners fairs. We presently have the opportunity to get a complementary booth on the Fastener fair in Stuttgart in september this year and could use this opportunity in case the board support it.

News of the national associations

The spanish association just nominated a new secretary Jose Alvarez- Monteresin . Welcome on board!

UPIVEB is the Italian Fasteners Association.

Key figures 2006:

- Turn-over: 900.000.000 €

- Volumes: 310.000 tons

- Employment: 4.000 people

The association is composed of 39 companies, representing around 70% of the industry.

Main working committees :

- Automotive

- Antidumping

- High Strength Structural Bolts for building

- Distribution

- Standardisation

Major projects:

During 2006, the major project was Antidumping

AFFIX is the French Fasteners Association.

Key figures 2006:

- Turn-over: 1 billion €

- Volumes: 250000 tons

- Employment: 7500 people

The association is composed of 33 companies, representing more than 90% of the industry and 29 associate members.

Main working committees :

- Automotive

- Aerospace

- Distribution

- Building

- Research & Development

- Standardisation

- SME: Small and Medium Enterprise

- Training

Major projects:

During 2006, we have established General professional conditions for the supply of mechanical mountings and a Reference guide for quality rules.

Schraubenverband

The DSV presently includes 46 manufacturing companies and 63 associated members. The regular work is done in 2 commercial groups and 9 very active technical committees. Furthermore exist operational working ad hoc groups for several actual items.

In the commercial groups the main items to be discussed were:

  • costs of raw material, energy and personal
  • relations to the customers
  • market situation

The technical committees were busy with the following items:

  • Change over to Cr(VI)-free coatings
  • Creation of several technical guidelines for better argumentation in discussions with customers, e.g.:
  • Properties for high tensile fasteners for the automotive industry
  • Geometrical tolerances of fasteners
  • Technical cleanness of fasteners
  • Consideration of the influences of tip and transport processes to the new Cr(VI)-free coated products
  • Cooperation with several scientific institutions in certain projects
  • Intensive cooperation with the German Forging Association in several projects

The DSV realizes a permanent comprehensive assistance to their members in the fields of legal aspects, standardization and statistics.

The Confederation of British Metalforming has 168 member companies, with manufacturers involved in sheet metal forming and hot forging, as well as fastener manufacturing. There are 30 fastener members and associates, and these comprise the majority of the industrial fastener manufacturing community in the UK.

During 2006, the Fastener Engineering & Research Association was co-opted into CBM, and several seminars were held at CBM on fastener technology.Also during 2006, a decision was made to recruit a fastener specialist, to look after the interests of the fastener members of CBM.

News of the Working groups

Automotive. We have a new chairman Mr Pozzi from Agrati who will select subjects to be approached from a european perspective. One way could be to extend to europe the results of the work of one association like for example the " guide de reference des pratiques et regles qualite pour les produits de fixation". We will translate it into english and check the way we could move.

Aerospace:The Aerospace Fasteners Group met several times throughout the year and elected a newChairman, Mr Peter George, Alcoa Fastening Systems. Much of the Groups’ meetings were taken up with market trends, technical issues and raw material matters.

General fasteners:Chairman is Carlos Eseverri. He will check with the new ASEFI secretary( see above) the best way to relaunch the work of this commission.

Stainless:The Stainless Steel Fasteners Group continues to meet on a regular basis. Chaired by Dr Guiseppe Marzorati, the Group successfully made an anti-dumping complaint to the EU Commission during 2006, this was upheld and the result has seen the introduction of Anti-Dumping duties.

Honorary Life President:

Robert lench is invited by the board to become the first Honorary President of EIFI in recognition of his outstanding service of the institute.

EUROPEAN INDUSTRIAL FASTENERS INSTITUTE - Aisbl registered in Belgium

Registered Office: EIFI–DiamantBuilding– 5th floor

Bld A.Rayers 80–B1030 Brussels–BELGIUM