Development status of China's industrial valve industry

Development Status of China's Industrial Valve Industry

Overall, benefiting from industrial development, urban construction, and global economic integration, China's industrial valve industry has experienced rapid growth. During this process, some long-term accumulated drawbacks within the industry have gradually become apparent: ① The industry is highly competitive and has low concentration. The competition in the Chinese valve market is fierce, but there is a lack of large-scale and world-class industrial valve enterprises, so the competition in the industry is mostly concentrated in the low-end product field. In addition, international valve giants have successively invested in building factories in China, further intensifying the competition in the Chinese industrial valve market; ② The research and development capabilities for mid to high end products are relatively weak. Similar to other traditional manufacturing industries, the low-end production capacity of the industrial valve industry is severely overcapacity, while the supply of mid to high end products is in short supply.

The overall R&D capability of China's domestic industry in mid to high end products is weak, mainly through the introduction of foreign production processes and processing equipment, imitating the appearance design of similar foreign products to produce products, and lacking independent innovation ability. These problems cannot be fundamentally improved in the short term, which greatly restricts the healthy development of the industrial valve industry. In addition, the Chinese industrial valve industry is also facing five major task pressures: reducing production capacity, reducing inventory, deleveraging, lowering costs, and filling gaps. To complete the task, the industry is currently increasing efforts to remove low-end production capacity, insisting on independent research and development of high-end products, and promoting the development of valve technology to a higher level. Leading enterprises in the industry are integrating high-quality resources through mergers and acquisitions, and moving towards world-class industrial valve enterprises. Under the exemplary role of leading enterprises, the industry as a whole is transitioning from production-oriented manufacturing to service-oriented manufacturing, gradually shifting from the low-end market to the mid to high end market.