How can enterprises seize opportunities to accelerate industry development

According to the statistics of the China Valve Association, the total annual sales of 773 enterprises in 2005 was 25.935 billion yuan, and it can be estimated that the national valve output value in 2005 was 36.144 billion yuan. And interviewed more than 20 resource exploration experts, who predicted that the total annual sales of valves in China in 2010 would be 6.736 billion yuan.

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

(1) Continuous economic development. Fixed assets investment gradually expanded. Especially for several century old projects such as "West East Gas Transmission", "West East Electricity Transmission", and "South to North Water Diversion", the commencement of these projects requires a large number of valve products to be matched;

(2) With the accession to the WTO, the lowering of international trade barriers, and the adjustment of product structure by developed countries, China is gradually becoming the world's largest processing plant, and the processing and manufacturing of valve products are facing greater development space.

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

1¡¢ Actively promote joint restructuring among enterprises and quickly build a group of enterprise groups with scale and grade.

There are currently over 5000 manufacturing enterprises in the valve industry, with only 7 having annual sales revenue exceeding 50 million, 3 exceeding 100 million, and none exceeding 200 million yuan. The domestic market share is only slightly higher than 2% for China National Nuclear Corporation (CNNC), while the rest are below 1%. This kind of enterprise scale is difficult to generate 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 enterprise itself, the most effective method is to achieve capital expansion through alliances, mergers, and reorganizations between enterprises, thereby further expanding market share and standing undefeated in competition. This is a popular practice in the international economic field today, and it is also a directional issue for the development of the pressure control valve industry in the future. On this issue, we must emancipate our minds and break through regional boundaries, ownership boundaries, and traditional professional division of labor boundaries in accordance with the requirements of the 16th National Congress of the Communist Party of China, which called for "new breakthroughs in reform and new ideas for development". As long as there is a possibility of collaboration between enterprises, they can boldly try and build several enterprise groups with a production value exceeding 500 million or even 1 billion yuan within 3-5 years.

2¡¢ We should attach importance to the adjustment of product structure, be brave in technological innovation, and develop high value-added and internationally leading products.

At present, China's valve industry can produce more than ten categories of products. Such products as gate valves, globe valves, ball valves, butterfly valves, safety valves, check valves, throttling valves, plug valves, pressure reducing valves, diaphragm valves, drain valves, emergency shut-off valves, etc., have a maximum operating temperature of 570 ¡æ, a minimum of -196 ¡æ, a maximum pressure of 600MPa, and a maximum diameter of 5350MM. Although these products strongly support domestic economic construction, it should be noted that most of our products belong to general technical content or labor-intensive products, and rarely have international leading levels. It is a regrettable fact that all of our valve companies have been defeated in the recent bidding for the West East Gas Pipeline.

as a warning for the future. To revitalize the national industry and develop the valve industry, it is necessary to implement technological innovation, adjust product structure, and have the courage to research and develop valve products with high technological content, high labor added value, and international leading level, such as control valves and automatic valve regulating valves, three-way merging and widening, three-way diversion valves, and safety valves; Metal hard sealed fully welded ball valves, high parameter large-diameter valves; And supercritical C12-A alloy steel valves for power plants. There are several ways to implement technological innovation research and development of new products. Firstly, through cooperation with universities and research institutions, such as the recently developed main steam regulating valve for power plant boilers by Kaifeng High Pressure Valve Factory and the "Three Dimensional" company under the Chinese Academy of Sciences, which is a product with international leading level. Its "pressure drop" is significantly lower than international standards and has great prospects in the power plant industry; The second is in the form of foreign cooperation or technology introduction. The cooperation between Zigong High Pressure Valve Co., Ltd. and Italian Simbel Company has shortened the gap between our ball valve products and those of foreign countries. In addition to the above methods, companies with conditions can independently research and develop.

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

According to statistics from the China Valve Association, our valve industry currently has a serious overcapacity, with about 40% of production capacity being empty. Faced with such a huge overcapacity, the most effective way is to implement diversified sales strategies and vigorously explore international markets. The current international market exports approximately 6-7 billion valves annually, while China exports 150 million valves annually, which is less than 2% of the total. There is great potential in this area. To open up international markets, we must first focus on cultivating foreign trade talents. There is a group of foreign trade professionals who can operate and understand foreign languages; Secondly, we should learn to use the Internet and information technology to capture business opportunities; Thirdly, we can cooperate with some domestic foreign trade companies to expand exports through their channels; The fourth eligible enterprise can set up sales points or establish factories overseas. In recent years, Shandong Yidu Valve Factory and Suzhou 526 Factory have achieved good market diversification. The significant increase in the proportion of exported products has alleviated the contradiction of insufficient domestic orders. Opening up the international market also requires us to focus on leveraging our own advantages and selecting the right export products. Currently, our main focus is on the export of labor-intensive products such as general valves. In addition, the export prospects for semi-finished products such as rough castings are also very promising.

4¡¢ Improving enterprise management level, implementing management innovation, deepening enterprise reform, and implementing institutional innovation. Currently, China's valve industry is in a new round of alternation and restructuring.

The proportion of state-owned enterprises has been declining year by year, while private and foreign-funded enterprises have developed rapidly. Based on incomplete information estimation; At present, the proportion of assets in China's valve industry is 40% for private enterprises, 30% for state-owned enterprises, and the rest for foreign-funded and military enterprises. It is expected that the share of private and foreign-funded enterprises will further expand in the coming years. Private enterprises in Wenzhou are developing rapidly, and a considerable number of them have a certain scale and strength, such as Bethel, Yongyi, Zhejiang Weiduli and other enterprises. Due to historical reasons, most state-owned enterprises in the current industry are burdened with heavy burdens, inactive mechanisms, and difficult operations. However, many enterprises still have advantages in equipment, talent, technology, brand, and so on; We need to solve the current difficulties through deepening reform and institutional innovation, fully activate existing assets, achieve diversified property rights, and establish a modern enterprise system. For rapidly developing private enterprises, although there are no institutional deficiencies or historical burdens, their development process should focus on improving the level of enterprise management, implementing management innovation, and avoiding falling into the management clich ¨¦ s of "family style" and "parental style". In short, the valve industry is full of hope.