Xiangyang Subsidiary Launched: Wire Thread Insert Business and the New Central China Manufacturing Base
Executive Summary
Established in 2023, Zhichengjia Metal Technology (Xiangyang) Co., Ltd. is YF Zhichengjia's central China manufacturing base. It is dedicated to the wire thread insert (thread insert) product line and scaled production of NEV-specialty fasteners, complementing the Shenzhen headquarters' precision small-parts capability and forming a "HQ + regional plant" dual-base structure.
Table of Contents
Why Locate the New Base in Xiangyang
Xiangyang sits in the heart of central China and is a cluster point for Dongfeng Motor and other vehicle and component manufacturers. It is also an important hub connecting the Yangtze River Delta, the Pearl River Delta, and the central/western automotive supply chain. For a fastener manufacturer serving new energy vehicles and high-end equipment, locating a manufacturing base in Xiangyang means being close to the automotive customer cluster, shortening the delivery radius for central China, and benefiting from relatively reasonable manufacturing costs and a complete industrial supply chain.
From the company's development rhythm, 2023 was exactly the window when the NEV supply chain was expanding rapidly. Since entering the NEV supply chain through process optimization in 2017, the Shenzhen headquarters' capacity and delivery pressure had been rising continuously. Establishing the Xiangyang subsidiary served two purposes: to absorb the new NEV orders, and to develop the wire thread insert (thread insert) product line into a specialized, deep capability that would form a second growth curve complementary to Shenzhen's precision small screws and aluminum sleeves.
Wire Thread Insert Product Line: From R&D to Mass Production
A wire thread insert (also known as a thread insert or screw lock insert) is a helical internal-external threaded insert wound from precision stainless steel diamond-section wire. When screwed into a dedicated STI tapped hole, it expands back and forms a standard internal thread in soft materials (aluminum, magnesium, plastic), used to reinforce threads on soft substrates or repair damaged threaded holes. This product line aligns closely with the company's two material solution directions: light-alloy die casting and engineering plastics.
The Xiangyang subsidiary has built a specification matrix from free-running to screw-lock types, and from metric to inch, covering M2~M39 metric sizes and UNC/UNF inch sizes. The primary material is 304 stainless steel, with Inconel and phosphor bronze options for high-temperature or corrosion-resistant special conditions. Products are widely used in NEV battery packs, electronic enclosures, and aerospace equipment for weight reduction and thread reinforcement.
| Product Dimension | Free-Running Type | Screw-Lock Type |
|---|---|---|
| Functional positioning | Soft-material thread reinforcement, thread repair | Adds reversible anti-loosening on top of reinforcement |
| Typical material | 304 stainless steel primarily | 304 stainless steel primarily; special alloys available |
| Size range | Metric M2~M39 / Inch #2~1-1/2 | Metric M3~M39 / Inch #4~1-1/2 |
| Typical application | Al/Mg die castings, plastic housings, thread repair | Engines, motors, pump bodies and other vibrating positions |
Coordination Between Xiangyang Base and Shenzhen HQ
The Shenzhen headquarters and Xiangyang subsidiary are not a simple "split in two" but a coordinated division of labor by R&D, process, product category, and regional customers. Shenzhen HQ retains core production lines for precision small screws, aluminum sleeves, and cold-headed bolts, and serves as the group's R&D center, inspection laboratory, and overseas marketing window. The Xiangyang base focuses on the wire thread insert product line and batch delivery to central China automotive customers.
| Dimension | Shenzhen HQ | Xiangyang Subsidiary |
|---|---|---|
| Positioning | Group HQ, R&D and precision manufacturing center | Regional manufacturing base, wire thread insert product line |
| Core products | Precision small screws, aluminum sleeves, cold-headed bolts | Full range of wire thread inserts (thread inserts) |
| Customer region | South China, overseas, and national key accounts | Central China automotive cluster, NEV customers |
| Functional focus | R&D, inspection, technical service, overseas marketing | Batch manufacturing, local delivery, regional service |
The two sites share the same quality system (IATF 16949 etc.) and the same technical document library. Whether a customer places an order in Shenzhen or Xiangyang, they receive consistent quality standards and selection support. This "R&D in Shenzhen, manufacturing in Xiangyang, delivery close to the customer" model concentrates technical capability while improving regional response speed.
Which Industry Customers the New Base Serves
The products and services of the Xiangyang subsidiary align with the company's overall mid-to-high-end market focus, covering the following key sectors:
- New energy vehicles: Al/Mg alloy thread reinforcement and anti-loosening joining on battery pack housings and electronic control assemblies - the largest application volume for wire thread inserts.
- Light-alloy die casting: Aluminum die castings around engines and transmission housings where threaded holes must survive repeated assembly and disassembly.
- Electronics and communications: Thread reinforcement on thin metal and engineering plastic at base stations, server enclosures, and PCBs.
- Aerospace and low-altitude economy: Joining positions where weight reduction and reliability are critical, using special materials and screw-lock inserts.
Leveraging its location near the central China automotive cluster, the new base can respond faster to OEM and Tier-1 sampling and batch needs, closing the loop from rapid prototype samples (as fast as 1 day) to batch delivery.
Next Steps in Regional Footprint
The establishment of the Xiangyang subsidiary is an important part of YF Zhichengjia's "dual domestic base + multiple overseas points" layout. Domestically, Shenzhen and Xiangyang form a South China - Central China echo. Overseas, the company already has an India manufacturing point and established the Indonesia subsidiary in 2025 to expand into Southeast Asia, with marketing windows in Japan and the United States.
Xiangyang is not the endpoint but the starting point of the company moving from "Shenzhen manufacturing" to "regionalized manufacturing close to customers." Going forward, as NEV and high-end equipment customers continue to expand, the company will continue optimizing domestic regional capacity and overseas delivery networks while maintaining consistent quality systems.
Conclusion
The Xiangyang subsidiary, established in 2023, takes on the important wire thread insert (thread insert) product line and completes the central China capacity and delivery footprint. It forms a coordinated model with Shenzhen HQ of "R&D in Shenzhen, manufacturing in Xiangyang, delivery close to customers," being close to the central China automotive cluster while deepening the wire thread insert product line that is highly relevant to lightweighting and soft-material thread reinforcement. The Xiangyang base is a key step in YF Zhichengjia moving from a single center to regionalized manufacturing.
