China Valves companies need to master the international market right to speak 03 Sep, 2020

There is a statistic from foreign industrial countries is quite interesting: these countries valves value exceeds the sum of the compressor, fan and pump three output value, accounting for 5% of the machinery industry output. A phenomenon in these countries is more intriguing: In recent years the flow valve on the hot international markets from China's valve products more and more, but the right to speak in the international valve market is not in the hands of Chinese enterprises.


Role is still working


Since the production of the necessary valve casting, forging, welding, plating, pickling, etc. affect the environment, investment in environmental protection is large, so in recent years, developed countries will be labor-intensive production of valves, especially in the development of common valve moved countries, such as China. They usually buy the standard requirements of valve products to developing countries and then sold to developing countries and developed countries. Or do owned or joint ventures, products sold back again in developing countries. Realistically speaking, in this industry transfer among developed countries, China's valve business or get a lot of benefits.


There are many companies have achieved ISO9001 quality management system certification and the API certification, some companies have achieved European CE safety certification. Meanwhile, many of our valve business is fully capable of producing API standard gate valves, globe valves, check valves, ball valves, butterfly valves and other products, product quality can achieve ISO5208: 1993 inspection standards. China's valve products and thus also exports every year. Take the talk in recent years, in 2001 the export value of $ 380 million, in 2002 the export value of $ 430 million, in 2004 the export value of $ 656 million, showing that the export situation is very good.


More good news is that China's valve industry, manufacturers have set up factories abroad, such as Suzhou Valve Factory has factories in Iran. There manufacturers have offices in foreign countries, such as Zhejiang Founder valve plant has offices in Singapore, the Netherlands, Italy, almost all of the production of valves sold abroad. At present, China's valve has been exported to America, Canada, Germany, Italy, more than 30 countries and regions, has entered the world valve market, China's valve outlet valve exporter in the world, ranked No. 11 or so.


However, despite overwhelming domestic emission valve products abroad, in the international valve market Chinese companies are still no right to speak. Price is the people have the final say, the rules also people have the final say. From our very low in developed countries buy valve, then add the price sold to developing countries, they both profit and bought. While domestic enterprises can only act as a work role.


A lot of market opportunities


International valve market tolerate us? Obviously not. It is understood that the Middle East as a major oil producer and exporter in the world, countries are trying to increase the daily production of oil, but also increased the oil exploration and investment. In northern Kuwait's largest oil and gas development projects in the next few years is currently in progress; Qatar will build the world's largest liquefied natural gas processing plant products; UAE plans to build large-scale projects to increase oil production, crude oil production is expected to be over 300 million barrels ; Abu Dhabi national Oil Company plans to invest $ 1.5 billion projects in each of the next five years, of which 40% for the oil industry ...... and every project is the greatest demand valve products. On the other hand because of the Middle East, Iraq and other countries oilfields, pipelines destroyed badly, we need to import oil pipeline systems and valves, including API gate valve, gate valve, globe valve, check valve, flat-long pipeline valves and ball valves and so on. And these are the domestic valve manufacturer's main product, is our strength. Why do not we do these businesses own grab it?


Are eligible to stand to the front


In fact, as long as the awareness of the needs of the market, the domestic valve enterprises have become a great advantage to dominate the international market. As long as the methods are appropriate, we can stop their market reception to act as market protagonist.


First exports. Exports including direct exports and indirect exports. Direct export is an enterprise directly to the product sales in the international market. It also has two ways: first, through foreign brokers, sold to the local market. Second, enterprises in foreign countries set up their own sales organizations, products directly sold to local customers. Indirect export is an enterprise through domestic intermediaries to export their products. The export mode is one of the most simple choice, it does not need a full-time export sales, and does not require a lot of capital investment, and flexibility, with less risk. But the drawback is also very obvious that companies can not directly involved in international sales activities, basically out of control on the export market, market information feedback is limited, the market is difficult to make timely adjustments to change.


Second, the license trade. Trade was awarded the license has authorized the commercial value of the rights or technologies by an authorized person, including trademarks, patents, proprietary technology, and so the right to use. Due to the lack of domestic enterprises valve management experience, the famous brand and unique technology, the use of this approach much. But it is also a development direction, may encourage enterprises to cultivate and develop their own brands with independent intellectual property rights of technology.


Third, foreign direct investment. Foreign direct investment refers to the actual ownership and control of foreign companies directly involved in its management. From the perspective of equity point of view, it has two different forms, such as joint ventures. A joint venture enterprises in foreign markets with local companies operate a joint venture enterprise. Stake in the joint venture by buying local companies or co-funded a new business. Advantage of the joint venture is larger income, corporate marketing and production have control over and can get market feedback. The disadvantage is often due to the production and marketing have different views and conflict between the partners.


Also, such as a sole proprietorship. Sole proprietorship is an enterprise independently set up production plants in foreign countries. It can be through direct acquisition of existing local businesses, you can also create a new enterprise. Owned enterprises can profit advantage is exclusive, you can get more experience in international marketing and market opportunities, the parent company for overseas subsidiaries have full management rights and control rights. The disadvantage is that large investment, high risks, uncertainties and more.


We not only when the valve producing country, a major exporter, but also when the valve market dominated, really win the right to speak of the market. Valve business, have this faith?

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