Analysis of Wenzhou Valve Enterprise Integration Trend Forecast

January 16, 2019

At present, Wenzhou Valve has more than 1,000 companies and is a large industrial cluster. High Secretary-General of Wenzhou Pump Valve Industry Association said that although Wenzhou Valve Industry has completed the accumulation of original capital, there are still many problems, such as intensified price wars, quality problems to be improved, etc., plus the new "Labor Law" this year. The implementation, as well as the changes in the exchange rate and raw material prices, have caused valve companies to feel unprecedented operational pressures, especially for small-scale enterprises. Now Wenzhou Valve Medium-sized enterprises have realized these problems. They integrate themselves, combine groups or affiliate with large group companies.

Zhejiang Yunyi Valve Co., Ltd. Chairman Wang Yunhui is busy discussing with the four valve companies such as Taifeng about the joint establishment of group companies. This integration between enterprises has become an important choice for medium-sized enterprises in the Wenzhou valve industry to grow bigger and stronger.

Special valve is one of the largest enterprises in Wenzhou water supply and drainage valve production and sales. 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. Wang Yunhui said that medium-sized companies like Special One are hard to get bigger and stronger on their own, so they chose to form a group company together with four other companies that have their own advantages. This will not only get more orders, but also accelerate business development. A valve company in Weibei originally had five companies, but now it has 22 companies under its control. The new 17 companies are the small companies that come to affiliate. It is understood that at present, there are more than 100 small companies like Wenzhou Medium Valve Brewing Group in Wenzhou as such.

The upgrading of the brand needs to be integrated. Now Wenzhou Valve has a low level of 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. Chen Jinfa, president of the Longwan Valve Association, said that companies do not have their own branded products, and they are like a road to the black, not to mention the development and expansion, and they can't deal with fierce market competition. Of course, there are also many local companies that have done a good job in product and brand innovation. For example, 56-inch large-diameter caliber long-distance pipelines produced by Wuzhou Company are the most expensive in China. The price is even higher than that of BMW cars. The largest domestic caliber is developed. The 18-inch gasifier pneumatic lock ball valve has been successfully applied to the Jinling Petrochemical project and is used in parallel with German products on the same device. The product quality, after-sales service, and price are all comparable to or better than similar German products.

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, Longwan, which has the title of “China Valve City”, has entered 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. The head of the Longwan Valve Association said that this is also the case. A strategy for brand building in the industrial area.

Two years ago, Zhengguang Valve Group, Yongjia North Town, was formed by six medium-sized companies. Jiang Jiang, Chairman of the Board, said that after the formation of the group, the company’s strength was strong and its brand awareness rapidly increased. Now it has become a member of the first-tier resources of large companies such as Sinopec and PetroChina, and its products are exported to over 20 countries in Europe, America, the Middle East, and Southeast Asia. And area.

AZ certification accelerates the integration of valves as special products for the industry. In the past two years, with the continuous deepening of the bidding system for domestic projects, AZ certification has gradually become an important condition for market access. The Wenzhou valve industry has also experienced the phenomenon of aggression, heavy orders, and small businesses. Can not get orders, Wenzhou's valve industry has emerged from this phenomenon of rapid integration, has successfully established more than 20 group companies.

Wuzhou Valve Co., Ltd. is a leading company in the valve industry in Longwan District. The company not only passed the AZ certification early, but also possessed large-caliber ball valve production technology with independent intellectual property rights. This year, due to too many orders from home and abroad, the group not only has full production plans for the year, but also continuously rejects some orders. Baoyi Group is the leading enterprise in the valve production base in Oubei Town, Yongjia County. Like Wuzhou, this year's production orders have been filled up. In stark contrast to the two big companies, a large number of small businesses were deserted because they did not receive orders for AZ certificates.

Ye Jixuan, president of the Yongjia Pump and Valve Industry Association, said that with the launch of the second West-East Gas Pipeline project and a 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 continued to grow. With the expansion, the market prospects are very promising, but AZ certification is an important “threshold”, there is no AZ 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. Du Yishan, head of the company’s propaganda department, told reporters that several companies had recently come to Baoyi Group to seek affiliation, and small companies seeking group affiliations were also their best ways to survive.

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