Sweden's Bulten to establish micro screws joint venture in Vietnam

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Agreements have been signed between the parties with the aim of starting micro screws production in Vietnam in 2025.

There is an increased demand for domestically produced micro screws among international customers in the consumer electronics industry, with manufacturing in Vietnam and India. Bulten entered into a joint venture with ZJK and Indian Radium Fasteners Private Ltd (Radium) late last year for the manufacture of micro screws, and now a similar establishment is planned in Vietnam.

"Bulten’s strategy is to grow within customer groups outside automotive, which is our largest and most established segment. In recent years, we have had good development in the consumer electronics segment, especially in Asia, and see this trend continuing. It is against this background that we are now taking the next step and establishing ourselves in Vietnam. This will increase Bulten’s sales volumes and benefit profitability," said Christina Hallin, interim president and CEO of Bulten.

The new joint venture plans to rent production facilities, which means limited investment costs and risk-taking for Bulten.

Bulten’s ownership in the planned company will be 51 per cent and ZJK Vietnam Precision Components Co., Ltd will own the remaining 49 per cent. The proposed joint venture will be called Bulten ZJK Vietnam Company Ltd.

According to Fitch Solutions, Vietnam's consumer electronics market is forecast to accelerate in 2025 as economic conditions become more supportive, including a tailwind from foreign exchange trends. The market has a strong medium-term outlook to 2028 because of purchasing power and demographic trends that will create a larger and more affluent middle class. The combination of a flow of first-time buyers and a more affluent middle class will mean that vendors can target volume growth and higher unit prices in Vietnam over the medium term.

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