Analysis of China Valve Industry Restricting Factors
In the present valve market, in addition to low pressure valve has reached a level acceptable to the international market, the high pressure valve still rely on imports. Continued favorable macroeconomic situation, the valve industry, most of the production and sales targets are maintained rapid growth, but due to the impact of a price war, industry sales revenue and profits compared with last year dropped significantly. As the world economy rebounds, the import and export of China valve products also increased, but the international valve market competition is also growing. As high end technology and a large foreign companies are still a large gap, so in the next period of time, product technology will be restricting the development of our valve products is a bottleneck.
Valve oil, chemical, power station, long distance pipeline, shipbuilding, nuclear industry, a variety of low temperature projects, aerospace and marine oil and other economic sectors not indispensable fluid control equipment. After years of development, China’s valve business volume ranks first in the world, all about 6,000 more than the size of the valve, of which more than 5 million yuan of annual output value has 900. From the product point of view, China’s valve industry is now capable of producing 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, pressure reducing valve , diaphragm valves, steam traps, emergency shut off valve, the maximum temperature reached 570 , the lowest 196 ?, the highest pressure 600Mpa, the largest diameter to 5350 mm. In addition, according to the relevant departments of Statistics, China’s valve market turnover each year up to 500 billion yuan, of which 100 billion market been occupied by foreign valve business.
Although the valve industry in China after the reform and opening up to develop, has made no small achievement. But now, China valve industry, there are still some problems remain, such as the present valve company in China mainly low level, small scale enterprises in family workshops. Products, due to repeated investment, technology investment, the introduction of inadequate valve leading enterprise products in China is still low quality mass products.At present our production of various valves widespread leakage, Nei leakage, the appearance of quality, and life short, action is not flexible and Famen electric and pneumatic devices Zhuangzhi not Kekao ? shortcomings, some products Zhixiangdangyu of the last century the international level of the early eighties.
Some high pressure and critical needs of the valve device is still dependent on imports, while China’s valve industry in the industrial structure, the valve industry, the industrial chain, and industry specialization are the same there is a big gap between foreign enterprises.Create internal valve because of low quality: the rapid expansion of the market, but the original state owned enterprises have Guantingbingzhuan valve, had not the high level of mechanical industry, township enterprises (private enterprises) developed rapidly. However, from a low of township enterprises, the technical force is very weak, poorly equipped, mostly imitation product production, particularly with the low pressure water supply and drainage valves, the problem is serious.
In contrast with these problems is China’s valve industry, the future market prospect. This is mainly benefited from:
1, the state policies. Along with the policy of speeding up the revitalization of the equipment manufacturing industry step by step, common basis for the manufacturing industry will focus on further support.
2, strong market demand valve. Sustained and stable development of state owned economy. Investment in fixed assets gradually expanded. In particular the works of several centuries, “natural gas”, “West to East”, “South” and started the project requires a lot of valve products matching; In addition, China is facing the industrialized era, petrochemical industry, power sector, metallurgy sector, chemical industry and urban construction will increase the use of large valve on the valve products. For example, the power industry in the “Eleventh Five Year” period in the coal units large and medium sized valves required for the project started forecast total: total demand valve 153 thousand tons, an average annual demand of 30,600 tons; the amount of total demand valve 3.96 billion yuan, an average annual demand amounted to 792 million yuan.
3, with the WTO accession, international trade, lower the threshold and developed countries, the adjustment of product structure, China is becoming the world’s largest factory, manufacture valve products face even greater space for development.
Therefore, if companies can seize opportunities, strengthen R & D capability, and constantly improving product technology content and product quality will be able to compete in the broad market of seizing the initiative.
1, with technological innovation of enterprises with long term competitive advantage. To use high technology to transform traditional industries, and actively introduce, digest and absorb advanced technology and equipment, improve enterprise equipment, to speed up renewal of equipment and technology, to achieve the valve industry and product optimization and upgrade their own, improve product value. Such valves businesses will have sustainable competitive advantage.
2, industry leaders will be rapid development. These leading companies not only in size but also in technology, capital, both have an advantage, as the market demands on the valve gradually improve product quality, such enterprises will be in fierce competition opportunities to develop. For example, currently working to develop nuclear power industry, while natural gas and oil pipelines connecting Central Asia and other construction projects started, it will be China’s leading enterprises, such as intelligent valve Hongseong shares, nuclear valves and other leading enterprises in Suzhou will be nuclear take this opportunity to grow and develop.
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