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Problems in the valve industry in China
Source: | Release time:2018-5-22 9:12:35 | Views:

1, the price war causes the enterprise to be difficult to survive. As many enterprises engaged in the production of valves, competitive competition is extremely fierce, the price war has been extremely normal, most of the enterprises are to reduce the price of products by actively reducing the market share. Long term price war, resulting in low profit valve enterprises, can only maintain normal production, want to ensure that it is difficult to make money. Looking at the increasing sales volume, the total sales volume and the profits of enterprises are decreasing.

2, the technological level restricts the R & D production of the enterprise. Domestic valve production is mainly middle and low grade products, lacking its core technology. Low level of technology directly affects the development of high-end valves. Most valve enterprises produce low-end universal valves. There is homogeneity between products. Similar products make competition between enterprises more intense. At present, the valves produced in enterprises have problems such as leakage, leakage, low quality and short life. Some products still remain at the international level in the early 80s of the last century. The key devices can not be independently developed and need to be imported.

3, the exchange rate risk affects the export profit of the valve. In order to avoid the price war between the domestic valve enterprises, many valves are exported to obtain certain production space, but the export is not an effective method to solve the current problems of the valve enterprises. Although many valve production enterprises seem to have large export numbers, they still make the domestic price war strategy and cause the malignancy. The competition is intensifying. In export transactions, there are often US dollars for settlement, and the exchange rate risk caused by the appreciation of the renminbi makes the valve enterprises miserable.

China's valve enterprises are basically small family workshops, the quality of the valves is low, and there is still a certain gap with the foreign enterprises. At present, the export of valve enterprises in China is limited to some smaller international markets, such as Ethiopia, Sultan, Iran, Iraq and some Southeast Asian markets. These markets are small in scale and the decision-making process is entirely dependent on price and limited profit margins. If Chinese enterprises want to continue to develop in the future, the most important thing is to increase the level of scientific research, to produce products with their own core technology, rather than to imitate production blindly. Only high quality and differentiated valves can enter the international market to obtain large export profits.

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