2011 Wenzhou Longwan valve breaks development bottleneck survey analysis

“Although after years of development, the position of Wenzhou Longwan Valve Co., Ltd. in the national counterparts has been continuously improved, but the status quo of many enterprises and scattered and relatively small scale has also become a bottleneck for the further development of the local valve industry. Fortunately, more and more The local companies have realized this, and in recent years, the trend of integration among Longwan valve companies has become increasingly evident. With the acceleration of the integration of valve companies across the country, the Longwan valve industry will also enter a new stage of development.” A few days ago, a Longwan valve Experts in the industry briefed reporters on the new phenomenon in the current Longwan valve industry.

The development of enterprises needs to integrate the current Longwan valve industry has more than 1,400 companies, is a large industrial cluster. Chen Zhanji, executive vice president of Wenzhou Longwan Valve Industry Association, said that although Longwan Valve has completed its initial capital accumulation, there are still many problems, such as intensified price war, product quality to be improved, etc., plus the new "Labor Law." The implementation, as well as the changes in the exchange rate and raw material prices, all have caused valve companies to feel unprecedented operating pressure, especially for small-scale companies. At present, medium-sized enterprises in the Longwan valve industry have begun to integrate themselves, and the group or company is affiliated with a large group of companies. Kaiximu Technology Group has formed the joint development of 17 valves and fittings companies such as Kaixi Valve and Huahai Seals.

In recent years, with the country's emphasis on environmental protection, sewage treatment projects in various regions have become important markets for Longwan Valve Industry. However, due to the small scale of the company, only a few good projects can be picked each year, and more orders can be made. Can't take over. Experts in the industry believe that it is difficult for SMEs to grow bigger and stronger on their own. Therefore, they choose to form a group company together with other companies with advantages. This will not only get more orders, but also accelerate the development of the company.

The brand promotion needs to be integrated. Now Longwan Valve has a low product quality and repeatability. Many companies often have valves that are produced in a variety of products and specifications. What the market needs is what it produces and what it wants to put into production. Some companies lack innovation, not to mention products with independent intellectual property rights. Individuals still follow the example of education, copying, and imitating others' products. Wuzhou Valve's general manager Chen Jinfa said that companies do not have their own branded products, and they have come to the black like a road, not to mention the development and expansion, and they are unable to respond to fierce market competition. Of course, there are also many local companies that have done a good job in product and brand innovation. For example, a 56-inch large-diameter long-distance pipeline for ball valves produced by a company in Longwan is the largest in China, and the price is even higher than that of a BMW sedan.

Chen Jinfa said that if low, small, and scattered valve companies do not accelerate brand building, they are likely to be defeated and eliminated in the current wave of market economy. These companies need to change their business methods and ways of thinking, and they can completely integrate and create brands. At present, the National Torch Plan Longwan Valve Industrial Base has been officially approved. In the valve production base construction phase, many local valve companies have applied for entry into the base. The head of the Longwan Valve Association said that this is also a strategy for brand building in the industrial region.

Strengthen Certification Accelerate Industry Integration Valves As a special product, supporting various engineering projects. In the past two years, with the continuous deepening of the tendering system for domestic engineering projects, TS certification has gradually become an important condition for market access. The operating situation of Longwan valve companies has also followed the phenomenon of aggression and heavy fire, and large company orders cannot be completed. Small businesses can't get orders. The valve industry in Longwan has seen rapid consolidation. Two companies have been successfully established.

According to the relevant person in charge of the Longwan Valve Association, with the launch of the “West-East Gas Pipeline” second pipeline project and a large number of national projects such as environmental protection and pollution control, coupled with the large number of foreign orders entering the country, the market for the valve industry has continued to expand. The market prospects are very promising, but TS certification is an important "threshold", there is no TS certificate and you want to order, you can only join a large group of companies or a number of companies. However, if you want to join a large enterprise group, you must first integrate and standardize small businesses.