Fisher - How China's valve companies are accelerating the growth of the industry

According to the China Valve Association, the total annual sales of 773 enterprises in 2005 was 25.935 billion yuan, and it can be presumed that the national valve output value in 2005 was 36.144 billion yuan. And more than 20 scouts were interviewed, according to their predictions, the total annual sales of China's valves in 2010 was 6.736 billion yuan.

Fisher - How China's valve companies are accelerating the growth of the industry

The valve industry is an important branch of our general machinery. Its products are widely used in petroleum, chemical, metallurgy, electric power, urban construction, environmental protection and other industries as key equipment for fluid control. At present, the valve production industry is in a very favorable opportunity for development.

(1) Sustained economic development. Investment in fixed assets has gradually expanded. In particular, the start of several century projects such as "West-to-East Gas Transmission", "West-to-East Power Transmission" and "South-to-North Water Diversion" requires a large number of valve products;

(2) With the accession of the WTO, the threshold of international trade has been lowered and developed countries have adjusted their product structure, and China is gradually becoming the world's largest processing plant.

So how to seize this strategic opportunity to accelerate the development of the valve industry. Professionals in the industry have made an analysis from the following aspects:

1. Actively promote the joint reorganization of enterprises and build a number of large-scale and high-grade enterprise groups as soon as possible.

At present, there are more than 5,000 production enterprises in the valve industry, and only 7 have an annual sales revenue of more than 50 million, 3 have more than 100 million yuan, and there is no enterprise with more than 200 million yuan. The domestic market share is only more than 2% of the company, and the rest are below 1%. It is difficult for this kind of enterprise scale to produce shock in the market, and it is even more difficult to compete with internationally renowned enterprises in the same industry. To change this status quo as soon as possible, in addition to the growth factors of the enterprise itself, the most effective way is to realize the capital expansion of the enterprise through the union, merger and reorganization between enterprises, so as to further expand the market share and remain undefeated in the competition. This is a popular practice in today's international economic field, and it is also a directional issue for the development of the valve industry in the future. On this issue, it is necessary to emancipate the mind, and in accordance with the requirements of the 16 th National Congress of the Communist Party of China (CPC) that "new breakthroughs must be made in reform and new ideas for development," we should break down regional boundaries, break down the boundaries of ownership, and break down the traditional boundaries of professional division of labor. As long as there is the possibility of joint between enterprises, they can boldly do and try, and strive to create a number of enterprise groups with an output value of more than 500 million or even 1 billion yuan in 3-5 years.

Second, we should pay attention to the adjustment of product structure, have the courage to innovate in technology, and develop high value-added and international first-class products.

China's valve industry has been able to produce more than a dozen categories of products. Such as gate valves, globe valves, ball valves, butterfly valves, safety valves, check valves, throttle valves, plug valves, pressure reducing valves, diaphragm valves, trap valves, emergency shut-off valves, etc., high operating temperature 570 °C, low -196 °C, high pressure 600MPa, large diameter 5350MM. Although these products have strongly supported the domestic economic construction, we should clearly see that most of our products are general technical content or labor-intensive products, and rarely have the international level. It is a regrettable fact that the bidding for the main line of the West-East Gas Transmission Line, all of our valve enterprises have failed.

Draw a lesson from a bitter experience. To revitalize the national industry, the valve industry must be developed, we must implement technological innovation, adjust the product structure, and have the courage to develop valve products with high technical content and high labor added value, such as control valves and automatic valves, control valves, three-way confluence wide, three-way diverter valves, safety valves; Ball valves are fully welded with metal hard seals, high-parameter large-diameter valves; and supercritical C12-A alloy steel valves for power stations. There are several ways to implement technological innovation research and development of new products, one is through cooperation with universities and scientific research institutions, such as the first high-pressure valve factory near Kaifeng and the "three-dimensional" company under the Chinese Academy of Sciences to develop the main steam control valve of the power station boiler is a product with the international level, its "pressure drop" is much lower than the international standard, and has a very promising prospect in the power station industry; Second, in the form of foreign cooperation or technology introduction, the cooperation between Zigong High Pressure Valve Co., Ltd. and Italy Simbillon Company has shortened the gap between us and foreign countries in ball valve products. In addition to the above-mentioned practices, qualified enterprises can independently research and develop.

Third, the implementation of diversified sales strategy, efforts to open up the international market, expand product exports.

According to the statistics of China Valve Association, at present, our valve industry production capacity is seriously overcapacity, about 40% of the production capacity is empty, in the face of such a huge overcapacity, the most effective way is to implement a diversified sales strategy, and vigorously explore the international market. At present, the international market exports about 60-70 billion valves every year, and China's annual exports are 150 million, less than 2% of the share, and there is great potential here. To open up the international market, we must first pay attention to the cultivation of foreign trade talents, and have a group of foreign trade professionals who can operate and understand foreign languages; secondly, we must learn to use the Internet and information technology to make friends with customers and capture business opportunities; Third, it can cooperate with some domestic foreign trade companies to expand exports through their channels; Fourth, qualified enterprises can set up sales or factories abroad. In recent years, Shandong Yidu Valve Factory and Suzhou 526 Factory have achieved market diversification. The proportion of export products has increased substantially, alleviating the contradiction of insufficient domestic orders. To open up the international market, we should also pay attention to our own advantages, select the right export products, the current main in the general valve such as labor-intensive products export, in addition to the export prospects of semi-finished products of rough castings are also very good.

Fourth, improve the level of enterprise management, the implementation of management innovation, deepen the reform of enterprises, the implementation of system innovation, China's valve industry is in a new round of alternation and reorganization period.

The proportion of state-owned enterprises has been declining year by year, and private and foreign-funded enterprises have developed rapidly. Estimated from incomplete data; At this stage of China's valve industry assets, private accounted for 40%, state-owned 30%, the rest for the three capital, military enterprises occupied, is expected in the next few years private and foreign-funded enterprises accounted for by the share will be further expanded. At present, private enterprises in Wenzhou have developed rapidly, and a considerable number of enterprises have a certain scale and strength, such as Bethel, Yongyi, Zhejiang Weiduli and other enterprises. At present, most of the state-owned enterprises in the industry have heavy burdens, inactive mechanisms, and difficult operations due to historical reasons, but many enterprises still have advantages in equipment, talents, technology, and so on; It is necessary to solve the immediate difficulties through deepening reform and institutional innovation, fully revitalize the stock of assets, realize the diversification of property rights, and establish a modern enterprise system. For the rapid development of private enterprises, although there are no shortcomings in the mechanism and historical baggage, but in the process of its development, we should pay attention to the improvement of the level of enterprise management, implement management innovation, and avoid falling into the "family" and "paternalistic" management clichés. In short, the valve industry is promising.

Fisher - How China's valve companies are accelerating the growth of the industry

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