Fasteners
Silvano Chiello, Kilton: “The adoption of CBAM in the fasteners sector”
We have received and are pleased to publish the following comments from Mr. Silvano Chiello of Kilton regarding CBAM and its impact on the fasteners industry.
"The CBAM (Carbon Border Adjustment Mechanism) was introduced with a clear goal: to protect European industry from competition with non-EU countries that manufacture goods without facing the same environmental costs imposed under the European ETS system. Steel, aluminum, and other strategic imported materials will gradually be subject to a ‘CO₂ cost’ equivalent to the one borne by European producers.
For the fasteners industry, this is a key issue. Screws, bolts, and fastening components rely heavily on the cost of steel, energy, and semi-finished materials, often sourced from Asia. In theory, CBAM should help restore competition and encourage the reshoring of part of the manufacturing base to Europe. However, the real question is the following: does Europe currently have the manufacturing capacity required to replace the volumes imported from the East?
Over the past two decades, many energy-intensive industries have moved production to China and other Asian countries, where energy, raw materials, and industrial costs are significantly lower. If CBAM drives up import costs without a corresponding expansion of European manufacturing capacity, the risk will be a broad increase in industrial prices.
For the fasteners sector, this could mean:
- higher steel costs;
- greater pressure on margins;
- rising prices for finished products;
- reduced international competitiveness;
- a contraction of European demand.
The risk is that CBAM, rather than revitalizing European manufacturing, could end up suppressing consumption and investment, creating a boomerang effect across the entire industrial supply chain.
To prevent this scenario, CBAM must be supported by a genuine European industrial strategy focused on competitive energy costs, industrial investment, regulatory simplification and innovation support. Without these elements, Europe may increase costs without truly rebuilding its manufacturing base.
CBAM could become a strategic tool for the revival of European industry, but only if it forms part of a concrete reindustrialization plan. Otherwise, it may turn into another source of weakness for sectors that are already facing intense global competitive pressure."
