Vent valve industry in China about 40% of production capacity

· Vent valve industry in China about 40% of production capacity

· 2016/12/20　Read the number:[1050]

· Valve industry in the market, after years of development, the valve industry manufacturers increased rapidly, the valve production level has been greatly improved, valve production has increased significantly. The main products of the valve can basically meet the needs of the domestic market, the valve market set rate, complete sets of levels and sets of capacity have been greatly improved. Coupled with the expansion of China's current energy market, oil, chemicals, electricity, especially nuclear power demand for the sharp increase in the valve.
At present, the valve manufacturing industry is in a very favorable period of development. This is mainly due to the sustained and stable development of the national economy, the gradual expansion of investment in fixed assets. Especially, the west east gas transmission from west to East, South to north water diversion project construction, need a lot of valve products with matching; plus entry into the WTO, international trade, lowering the threshold of developed countries to adjust product structure, make the valve products manufacturing in China are facing greater development space.
So, valve manufacturers how to seize this strategic opportunity to accelerate development?
To strengthen the joint reorganization
According to reports, the valve manufacturer in China of about more than 5 thousand, but most of the low starting point, small scale, weak research and development, product structure and prototype can only refer to abroad, do some work of digestion and absorption. The reasons for this situation are mainly in the following two aspects: first, investment funds from the composition and scientific research personnel situation, the current domestic valve industry research and the number of employees to 10%, investment in research funding is less than the annual output value of 3%; in foreign countries, investment in research funding to achieve annual output value of 4% enterprises, only reluctantly maintain production. Secondly, in terms of labor productivity, the U.S. $138 thousand per person per year, Japan $95 thousand per person per year, while China's average annual per capita only $30 thousand. The gap is so large, the domestic valve manufacturer will not be able to generate shock force in the market, with the international well-known enterprises in the same industry competition is more difficult. To change this situation as soon as possible, in addition to their own efforts, the most effective way is through the joint, merger and reorganization of enterprises to achieve capital expansion, thereby further expanding market share.
Xu Wei, assistant dean of School of Business Administration of Capital University of Economics and Business said that in recent years, foreign investment is accelerating into the China valve industry, and began the integration of domestic enterprises, to take a fist way to compete with domestic enterprises. For example, the United States Watts industrial group first invested $21 million 500 thousand acquisition of Zhejiang Taizhou Shida plumbing Manufacturing Co., Ltd., subsequently spent $25 million to build Tianjin Watts Valve Co. Ltd. in Tianjin Tanggu national marine high-tech park. Watts this practice in today's international economic field is more popular, but also the future direction of the development of the domestic valve industry. If conditions permit, I hope the domestic valve industry strive to use 3~5 years to create a number of output value of more than 500 million and even $1 billion enterprise groups.
Adjust product structure
From the product point of view, China's valve industry is now able to produce more than a dozen categories of products, such as gate valve, globe valve, ball valve, butterfly valve, safety valve, check valve, throttle valve, plug valve, relief valve, diaphragm valve, drain valve, emergency shut-off valve, the highest temperature reached 570 degrees, the lowest the maximum pressure of -196 C, 600Mpa, maximum diameter of 5350 mm.

Despite the strong support of these products in domestic economic construction, but we should clearly see: the domestic high-end valve products are still heavily dependent on imports, while domestic valves are mostly low value-added, labor-intensive products, few have the international advanced level. According to relevant departments statistics, China's annual valve market turnover of up to 50 billion yuan, of which $about 10000000000 market has been occupied by foreign valve companies. West east gas pipeline as an example, the main line of a large number of valves required have been monopolized by foreign enterprises in the west east gas transmission line tender, the domestic wind only valve company in Chengdu, Sichuan Zigong high pressure valve Co. ltd..
As a warning for the future。 National industry to revitalize the valve industry in the development of technological innovation will certainly be implemented, the adjustment of product structure, vigorously developed a number of high technology content, high value-added work, with international advanced level of valve products. Such as control valves and automatic valves, including valve, three confluence valve, three shunt valve, safety valve; ball type metal seal welded, large diameter valves and high parameters of supercritical power plant C12-A alloy steel valves etc.. D, valve products for these high-level expert advice: one is through cooperation with universities, research institutions, such as 3D company opened high pressure valve factory and cooperation under the Chinese Academy of Sciences, successfully developed a steam boiler with the international advanced level of the valve, to replace imported; two is to take the foreign cooperation or technology introduction the form, such as the Sichuan Zigong high pressure valve Co., Ltd. Xin Bilong Italy through the introduction of technology, greatly shorten the gap with foreign domestic valve products. In addition, qualified enterprises can also set up R & D institutions, independent research and development of new products.
Expand the export of products
According to China General Machinery Industry Association valves Branch statistics show that at present we have excess capacity valve industry, about 40% of the production capacity of shorting, facing such a huge excess capacity, the most effective way is to implement diversified marketing strategy to open up international market. The current international valve market probably exports about 6 billion ~70 billion yuan per year, China's annual export valve of $150 million, less than the international market demand of 2%, thus, great potential for overseas markets.
So how to open up the market? The industry believes that open international markets must first focus on foreign talent, need to have a group of business, understand the language of foreign professionals to join; second to learn how to capture opportunities to use the Internet and information technology; third can cooperate with some domestic foreign trade companies, the use of the channels to expand exports; the qualified enterprises at the point of sale or set up factories overseas. In this regard, Shandong Yidu valve factory in Suzhou and the 526 plants have better achieved the overseas market expansion, significant increase in the proportion of exports, to alleviate the problem of insufficient domestic market orders. In addition, the development of the international market should pay attention to play our own advantages, choose quasi export products. The current focus on universal valve outlet valve of this kind of labor-intensive products, in addition to rough castings and other semi-finished products, the export prospects are very good from the export situation, mostly concentrated in the private, foreign-funded enterprises, state-owned enterprises export share of less and less. According to incomplete statistics, the proportion of assets of China's valve industry at the present stage, private 40%, state 30%, the rest is funded, military enterprises, is expected to run the next few years and the share of foreign-funded enterprises will further expand.
The valve from the private enterprises in recent years the development situation, the Zhejiang Wenzhou area is the most representative, and a considerable number of enterprises has already formed the scale, such as Kai Weixi, Bethel, Wuzhou, Chaoda, propaganda, good enterprise appears, indicates that private enterprises begin to turn the valve in the high-end market. The current valve industry of state-owned enterprises due to historical reasons most heavy burden, the mechanism does not live, operating difficulties, but many companies still have equipment, talent, technology, brand and other advantages. For the rapid development of private enterprises, although there is no mechanism for the shortcomings and the historical burden, pay attention to the management level of the enterprise but its development process to improve the implementation of management innovation, to avoid falling into the "family" and "paternalistic" management stereotypes.