Domestic valve companies need to adjust for their weak competitiveness

Valves as a component of fluid transport, along with the national economy, especially the development of national coal chemical industry and equipment manufacturing. In the liquid-solid two-phase flow, new requirements are put forward for valves: high temperature, high pressure, wear resistance, corrosion resistance, erosion resistance, thermal cycling and zero leakage. In this way, the metal sealed ball Valve will achieve rapid development.

There are 77.3 valve manufacturers with output value over 5 million yuan, accounting for 70% of the total valve output value in the country. According to the China Valve Association, the annual sales of 773 companies in 2005 totaled 25.935 billion yuan, and it can be assumed that the output value of the valve in 2005 was 36.144 billion yuan. And visits to more than 20 resource-exploring experts, according to their forecast in 2010, China's valve sales totaled 6.736 billion yuan.

For China's customs statistics, the total amount of valve exports in 2005 was US$760 million. The total export of valves in 2010 is forecast to reach 2.009 billion U.S. dollars. In the afternoon of 7005, the total amount of imports was 2.259 billion U.S. dollars. It is estimated that the total amount of valve imports in 2010 will be US$3.632 billion. According to statistics from the National Bureau of Statistics of China, the total domestic demand for valves in 2005 was 6.169 billion U.S. dollars (domestic sales income + imports - exports). The total demand for valves in 2010 is forecast to be 11.466 billion U.S. dollars.

In 2005, the demand for ball valves was about 20% of the total demand, that is, 1.233 billion U.S. dollars. In 2010, it is expected to account for 23% of the total demand, or 2.520 billion U.S. dollars. The demand for metal sealed ball valves is estimated to be 10% of the ball valve demand, about 960 million yuan in 2005, and is expected to grow to an annual demand of 1.96 billion yuan in 2010.

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

(1) Sustainable economic development. Investment in fixed assets has gradually expanded. In particular, the commencement of several projects such as “West-East Gas Transmission”, “West-East Electricity Transmission” and “South-to-North Water Transfer Project” require a large number of valve products.

(2) With the entry of the WTO, the reduction of the international trade threshold and the adjustment of product structure by the developed countries, China is gradually becoming the world's largest processing factory. The manufacture of valve products faces greater room for development.

How to seize this strategic opportunity and accelerate the development of the valve industry. Industry professionals analyzed from the following aspects:

First, actively promote the joint reorganization between enterprises, as soon as possible to create a number of large-scale enterprise groups.

The valve industry currently has about 5,000 production companies. There are only 7 companies with annual sales revenue of more than 50 million yuan, 3 companies with more than one billion yuan, and 200 million yuan or less. The domestic market share of only one company in the nuclear Suval valve is more than 2% and the rest is below 1%. This kind of company's scale is difficult to produce a shock in the market, and it is even more difficult to compete with internationally renowned companies in the same industry. To change this situation as soon as possible, in addition to the growth factors of the company itself, the most effective method is to achieve the expansion of the company's capital through the combination, merger, and reorganization of enterprises to further expand market share and remain undefeated in the competition. This is a relatively popular practice in the current international economic field and is also a directional issue in the development of the valve industry in the future. In this issue, we must emancipate our minds and break the regional boundaries in accordance with the requirements of the 16th National Congress of the People's Republic of China for "new breakthroughs in reform and new ideas for development." Break the boundaries of ownership, and break the boundaries of traditional professional division of labor. As long as there is a possibility of coalition between enterprises, they can boldly try to do it, and use 3-5 years to create a number of enterprise groups with output value exceeding 500 million to 1 billion yuan.

Second, we must pay attention to the adjustment of product structure, be bold in technological innovation, research and development of high value-added products and international leading products.

China's valve industry has now produced more than a dozen major products. Such as gate valve, globe valve, ball valve, butterfly valve, safety valve, check valve, throttle valve, plug valve, pressure reducing valve, diaphragm valve, trap valve, emergency shut-off valve, etc., the maximum operating temperature is 570°C, the lowest is -196°C. The maximum pressure is 600 MPa, and the maximum diameter is 5350 MM. Although these products strongly support the domestic economic construction, we should be soberly aware that most of our products fall into the category of general technical content or labor-intensive products, and rarely have international leading level. Recently, the bidding of the West-East Gas Pipeline was a regrettable fact that all of our valve companies were defeated.

Painful thinking. In order to revitalize the valve industry, the national industry must implement technological innovation and adjust the product structure. It is imperative to develop and develop valve products with high technological content and high international value for labor added value, such as control valves and automatic valve control valves. Combine flow wide, three-way diverter valve, safety valve; ball valve metal hard seal all welding, high-parameter large diameter valve; and power plant supercritical C12-A alloy steel valve. There are several ways to implement technological innovation to research and develop new products. First, cooperation with research institutions of universities and colleges, such as the recent joint development of the Kaifeng High Pressure Valve Factory and the “Three-dimensional” company affiliated to the Chinese Academy of Sciences, is the main steam control valve for power station boilers with international advanced level. The product's "pressure drop" is much lower than international standards, and has a very promising prospect in the power plant industry. Second, the form of foreign cooperation or technology introduction, the cooperation between Zigong High Pressure Valve Co., Ltd. and the Italian company Billy has shortened our ball valve. The gap between products and foreign countries. In addition to the above practices, qualified companies can independently research and develop.

Third, implement a diversified sales strategy, strive to open up the international market and expand product exports.

According to statistics from the China Valve Association, currently we have a serious excess production capacity in the valve industry, about 40% of production capacity is emptying, in the face of such a huge excess production capacity, the most effective method is to implement a diversified sales strategy, vigorously open up the international market . At present, the international market exports approximately 60-70 billion yuan each year. China exports 150 million yuan each year, which is less than 2% of the total. There is great potential here. To open up the international market, we must first pay attention to the training of foreign trade talents, and there should be a group of foreign trade professionals who can handle foreign languages. Secondly, we must learn to use the Internet and information technology to create opportunities for customers to capture opportunities. Third, we can cooperate with some domestic foreign trade companies to expand their channels. Exports; The fourth qualified company can sell or start factories at the external peripherals. In the past few years, Shandong Yidu Valve Factory and Suzhou 526 Factory have all achieved market diversification. The significant increase in the ratio of export products has eased the contradiction of insufficient domestic orders. To open up the international market, we must pay attention to our own advantages and select export products. Currently, we are mainly exporting labor-intensive products such as general-purpose valves. In addition, the export prospects of semi-finished products for rough-brick castings are also promising.

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

The proportion of state-owned enterprises has declined year by year, and private and foreign-funded enterprises have developed rapidly. According to incomplete data, China’s current share of the valve industry’s assets is 40% privately owned, 30% state-owned, and the rest occupied by foreign-funded and military-owned enterprises. It is expected that the share of private and foreign-funded enterprises will expand further in the next few years. Now private enterprises in Wenzhou have developed rapidly, and a considerable number of companies have a certain scale and strength, such as Bethel, Yong Yi, Zhejiang Wei Duoli and other enterprises. At present, the state-owned enterprises in the industry are burdened with heavy burdens due to historical reasons, the mechanism is not alive, and operating difficulties, but many companies still have the advantages of equipment, talents, technology, brand, etc.; to solve the immediate difficulties through deepening reforms and institutional innovations, and fully revitalize existing assets, Diversify property rights and establish a modern enterprise system. For the rapid development of private enterprises, although there are no institutional defects and historical burdens, the development process should focus on the improvement of the level of enterprise management, implementation of management innovation, to avoid falling into the "family" and "patriarchal" management habits. In short, the valve industry is full of hope.