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Tuesday, July 24, 2012

Four Expecting Developments of China Valve Business in the Next Decade


No matter in China domestic or abroad, valve industry shows its strong development trend. In domestic, there are a lot of natural gas and the transformation of old industrial bases, network construction, residential projects, sewage treatment, irrigation and water conservancy and other projects will detonate the huge demand of the valve market. In abroad, followed as global recovery, valve demand will keep increasing tendency.
However, faced with such a large market, whether the valve manufacturer in China can compete with foreign are most concerned about by the valve manufacturer in China.

A whole industry chain
As a machinery and equipment, the production of valves like plug valve and globe valve is in the downstream of whole industry chain. Including the level of development of the iron and steel, sealing materials, and machining industry will have a major impact on the technical parameters of the valve. Steel strength, ductility, corrosion resistance, has a direct impact on the valve resistance to high pressure, corrosion resistance.
The degrees of specialization
As general-purpose pipeline equipment, valves have extensive applications in many fields, including industry, water conservancy and hydropower, urban pipeline networks, oil and petrochemicals, sewage processing and more. Due to the different conditions of industries, projects in the working conditions, media, seals, valve device models, materials, pressure rating, and other aspects of the technical requirements are not the same, which also caused the valve equipment for different industries further market segmentation.
The brand influence
According to statistics, many foreign valve manufacturing companies in various areas of expertise, is clearly ahead of the domestic enterprises in the brand of the effectiveness. The next 10 years, company should not fixed position in labor-intensive brand into innovative brand.
The industrial structure
Valve manufacturer in China is of small scale and low industrial concentration. There are about more than 3,000 valve manufacturing companies in China which ranked first in the world. But many of them are low-level, small scale, cottage-style enterprise. Less than 500 companies annual sales income exceed 500 million Yuan; only a dozen or so company the annual sales of one hundred million; only 8% to 9% summed by the market share of top 10 enterprises.

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