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Fakai Valve Factory Site: Yongxing Industrial Zone, Longwan District, Wenzhou City Tel: 0577-88767789
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Contact: Mr. Wang Email: 1552028357@qq.com
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Reform is the key to domestic valve companies

Release Date: March 05, 2017

Improve the management level of enterprises, implement management innovation, deepen enterprise reform, and implement system innovation. At present, China's 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 estimates, the current proportion of assets in the valve industry in China at present is 40% in the private sector and 30% in the state-owned sector, and the rest is held by foreign-funded and military enterprises. At present, the private enterprises in Wenzhou area have developed rapidly, and quite a few of them have certain scale and strength, such as Bethel, Yongyi, Zhejiang Weiduli and other enterprises. At present, due to historical reasons, state-owned enterprises in the industry are mostly burdened with heavy mechanisms, inactive mechanisms, and operating difficulties. However, many enterprises still have advantages such as equipment, talents, technology, and brands; they must solve the immediate difficulties by deepening reforms and system innovation, and fully revitalize existing assets. Realize diversified property rights and establish a modern enterprise system. Regarding the rapid development of private enterprises, although there are no institutional shortcomings and historical burdens, the development process should focus on improving the management level of the enterprise, implement management innovation, and avoid falling into the "family" and "parental" management stereotypes. In short, the valve industry is promising.

Actively promote joint reorganization among enterprises, and build a number of large-scale enterprise groups as soon as possible.

There are currently more than 5,000 manufacturers in the valve industry, and only 7 have annual sales income of more than 50 million, 3 have more than 100 million, and one has more than 200 million. The domestic market share is only more than 2% for China Nuclear Power Valve Company and the rest are below 1%. This type of enterprise is difficult to generate shock in the market, and it is even more difficult to compete with internationally renowned companies in the same industry. In order to change this situation as soon as possible, in addition to the growth factors of the company itself, the most effective way is to achieve capital expansion of the company through the merger, merger, and reorganization of the company to further expand its market share and stand unbeaten in competition. This is a relatively popular practice in the international economic field today, and it is also a directional issue for the development of the valve industry in the future. On this issue, we must emancipate our minds and, in accordance with the requirements of the 16th National Congress of the Communist Party of China, "require new breakthroughs in reform and new ideas in development," break the boundaries of the region, the boundaries of ownership, and the traditional division of labor. As long as there is a possibility of alliance between enterprises, they can boldly try it out, and strive to create a number of enterprise groups with an output value of more than 500 million or even 1 billion yuan within 3-5 years.

We must pay attention to the adjustment of product structure, be brave in technological innovation, and develop high value-added and internationally advanced products.

China's valve industry has been able to produce 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 ℃, the minimum -196 ℃, The maximum pressure is 600MPa and the maximum diameter is 5350MM. Although these products have effectively supported the domestic economic construction, we should clearly see that most of our products are of ordinary technical content or labor-intensive products, and rarely have the international leading level. The recent tender for the West-East Gas Pipeline was a regrettable fact that all of our valve companies were defeated.

Implement a diversified sales strategy, strive to open up international markets, and expand product exports.

According to statistics from the China Valve Association, at present, our valve industry has a severe overcapacity. About 40% of its production capacity is short. In the face of such a huge overcapacity, the most effective way is to implement a diversified sales strategy and vigorously develop the international market. . The current international market exports about 6-7 billion valves a year, and China exports 150 million a year, which is less than 2%. The potential here is great. To open up the international market, we must first focus on the training of foreign trade talents. There are a group of foreign trade professionals who can understand foreign languages. Second, we must learn to use the Internet and information technology to advertise to customers to capture business opportunities. Third, we can cooperate with some domestic foreign trade companies to expand their channels. Export; Fourthly, qualified enterprises can sell or set up factories outside the border. In recent years, Shandong Yidu Valve Factory and Suzhou 526 Factory have achieved market diversification. The proportion of export products has increased significantly, alleviating the contradiction of insufficient domestic orders. When opening up the international market, we must also pay attention to giving play to our own advantages and selecting the right export products. At present, we are mainly exporting labor-intensive products such as general valves. In addition, the export prospect of semi-finished products of rough castings is also very good.