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Chinese Enterprises in the International Valve Market Analysis
Star: Post Date:2012/10/22 Click Count:4985 Author:Our Site Source:articlebase

Has a developed industrial countries from abroad rather interesting statistics: The countrys output value of more than valve compressors, fans and pumps the output value of the sum of the three, accounting for the entire machinery industry output value of 5%. These countries a more intriguing phenomenon: popular in recent years the international valve market flows from Chinese products more and more valves, but the international valve market, the right to speak is not in the hands of Chinese enterprises.

Is still the role of workers

Because of the production of the necessary valves casting, forging, welding, plating, pickling, etc. affecting the environment, greater investment in environmental protection, so in recent years, developed countries will be labor-intensive production of valves, in particular the common valve move to developing countries, such as Chinese. They usually buy to developing countries are in line with the standard requirements of valve Products, and then sold to developing and developed countries. Or do in developing countries are wholly owned or joint ventures, product re-sold back. Seeking truth from facts to say that in the transfer of industry among the developed countries, Chinas valve business or be much good.

Many enterprises have already achieved ISO9001 Quality Management System Certification and API certified, and some enterprises have also made the European Community CE safety certification. At the same time, a lot of our valve business has been fully capable of producing API standard gate valve, valve, check valve, ball valve, butterfly valve and other products, product quality to achieve full ISO5208: 1993 test standards. Chinese Valve Products also export year by year. Take over the past few years, the 2001 output of 380,000,000 U.S. dollars of export in 2002, export value and 430 million U.S. dollars, in 2004 the export value of 656 million U.S. dollars, the export situation can be seen very well.

Even more gratifying is that Chinas valve industry manufacturers have set up factories abroad, such as Suzhou Valve Factory has set up factories in Iran. Some manufacturers have offices in foreign countries, such as Zhejiang Founder valve plant in Singapore, the Netherlands, with offices in Italy, produced almost all the valves for sale abroad. At present, Chinas valve has been exported to the United States, Canada, Germany, Italy, more than 30 countries and regions, has entered the world valve market, Chinas exports in the world valves valves exporting countries ranked in the first 11 or so.

However, despite the overwhelming outpour of domestic valve Product of the country in the international valve market, Chinese enterprises are still not right to speak. The price people are the final say, rules are also other people say. Developed from our purchase very low-grade valves, coupled with the price then sold to developing countries, they also bought Sateri. And domestic enterprises can only serve as a working role.

A lot of market opportunities

Valves are the international market can not tolerate us? Clearly not. It is understood that the Middle East as the worlds most important oil-producing and exporting region, all countries are trying to improve oil production, but also stepped up oil exploration and investment. The next few years, Kuwaits largest oil and gas development projects in the North currently in progress; Qatar will be the worlds largest liquefied natural gas processing plants Products; United Arab Emirates through the construction of large-scale projects to improve oil production, crude oil production is expected to be more than three million barrels; Abu Dhabi National Oil Company in the next 5 years a number of projects to invest 1.5 billion U.S. dollars annually, of which 40% for the oil industry ... ... and every item is the biggest demand for valve products. On the other hand because of the Middle East, Iraq and other countries oil fields, pipelines destroyed too much, are required to import oil pipeline system and the valve, including API gate valve, gate valve, valve, check valve, flat long-distance pipeline valves and ball valves and so on. These are the domestic valve manufacturers main products are our strengths. Why do we not get ourselves to do such business does?

Station to have qualified prospects

In fact, that as long as the needs of the market, domestic enterprises have become the valve of the international market is the key to great advantage. As long as the proper way, we can be our own station to the market prospects for the market to act as the protagonist.

First, export. Exports, including direct exports and indirect exports. Direct exports are an enterprise directly to the product sales in the international market. It also has two ways: First, through foreign brokers, sold to local markets. The second is to set up their own enterprises in the foreign sales agencies, directly to the Products sold to local customers. Indirect exports are an enterprise through domestic intermediaries to export their products. The export is one of the most easy choice, it does not require full-time???and does not require huge capital investments, and flexibility, with less risk. But the disadvantage is also very clear that enterprises should not directly involved in international sales activities, out of control on the export market, the market feedback information is limited, changes in the market it is difficult to make timely adjustments.

Second, trade permits. Trade permits are granted by the authorized persons who have been authorized to have commercial value of the rights or technologies, including trade marks, patents, proprietary technology and so on the right to use. Valve because of the lack of domestic corporate management experience, a well-known brands and a unique technology, on the use of small. But it is also a direction of development, we can urge the enterprises to cultivate their own brands with independent intellectual property rights and development of technology.

Three are foreign direct investment. Foreign direct investment refers to the actual ownership and control of foreign enterprises to participate directly in its management. From the equity point of view, it has two different forms, such as joint ventures. Joint ventures are an enterprise in foreign markets with local companies operate a joint venture enterprise. Joint venture can buy shares in local enterprises or co-financing a new enterprise. The advantages of joint venture receipts are larger, business-to-marketing and production control and market feedback. Disadvantage are often a result of a partnership between the people on the production, marketing has different views on the contradictions arising.

Also such as sole proprietors. Refers to independent sole proprietor enterprises set up production plants in foreign countries. It can be through direct acquisition of existing local enterprises, can also create a new business. Owned enterprises can enjoy the advantages of the profits are to obtain more experience in international marketing and market opportunities, parent company of overseas subsidiaries have complete right to manage and control. The disadvantage is that large investment risks, many uncertainties.



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