Longwan Valve: Where are the bottlenecks to development?

"Although many years of development, Longwan valve industry in the national counterparts continue to improve, but the company's many, scattered, small-scale status quo has also become a bottleneck for the further development of the local valve industry. Fortunately, more and more companies Having realized this, in recent years, the trend of integration among Longwan Valves has become increasingly apparent. With the acceleration of the integration of valve companies across the country, Longwan Valve will also enter a new stage of development." A few days ago, Longwan Valve Company was an industry player. Experts briefed reporters on a new phenomenon in the current Longwan valve industry.

Enterprise Development Needs to Integrate At present, there are more than 1,400 companies in Longwan Valve, 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 wars, quality problems 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. Now Longwan Valve medium-sized enterprises have realized these problems. They integrate themselves, and group companies or companies are linked to large group companies. The Kaiximu Technology Group formed a joint venture with 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 the company. However, due to the small scale of the company, only a few good projects can be picked each year, and more orders cannot be taken over. President Zhang Chengzhong said that such medium-sized enterprises are difficult to get bigger and stronger on their own, so they chose to form a group company together with 17 other companies that have their own advantages. This will not only get more orders, but also accelerate business development.

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. Zhang Chengzhong, president of the Longwan Valve Association, said that companies do not have their own branded products, and they have come to the dark 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, Wuzhou Valve Co., Ltd. has successfully developed a 56-inch all-welded large-diameter long-distance pipeline for ball valves. Huaxia Valve Co., Ltd. has successfully developed the world's leading 24-degree cone. Squeezed sealed pipe connectors new products.

Wuzhou valve general manager 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 stage, there are more than 100 valve companies that have no name in the market to apply for entry into the base, and 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 bidding system for domestic projects, TS certification has gradually become an important condition for market access. The Longwan valve industry has also experienced the phenomenon of icy and heavy fire. Large enterprises cannot complete orders, and small enterprises The order could not be obtained, and the valve industry in Longwan was rapidly integrated. There have been two successful group companies.

According to Zhang Chengzhong, president of the Longwan Valve Association, with the launch of the second West-East Gas Pipeline project and the launch of a number of national environmental protection and pollution prevention projects, coupled with the large number of foreign orders entering the country, the market for the valve industry has been expanding. 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 large group companies or a number of companies. However, if you want to join a large enterprise group, you must first integrate and standardize small businesses.