Analysis of the Prosperous Market Prospects of the Domestic Valve Industry

Although there are many restrictive factors in the development of China's valve products, the market prospect of China's valve industry is very broad in the future. This is mainly due to:

1. National policy support. As the country's policy of accelerating the revitalization of the equipment manufacturing industry is gradually advancing, the development of the general basic manufacturing industry will be further supported.

2. Strong demand for valve product market. The state-owned economy has continued to develop steadily. Investment in fixed assets has gradually expanded. In particular, the commencement of several projects of the “West-East Gas Transmission”, “West-East Electricity Transmission” and “South-to-North Water Transfer” projects require a large number of valve products; in addition, China is facing the arrival of the industrialized era, the petrochemical industry, and the power sector. The use of large valve manufacturers in the metallurgy sector, chemical industry, and urban construction will increase the demand for valve products. For example, in the “Eleventh Five-Year Plan” period, the electric power industry predicts the total valve demand for large and medium-sized projects in coal-fired power plants: total valve demand is 153,000 tons, annual average demand is 30,600 tons, and total valve demand is 3.96 billion yuan. The average annual demand is 792 million yuan.

3. With the entry of WTO, the reduction of international trade threshold and the adjustment of product structure by developed countries, China is gradually becoming the largest processing plant in the world, and the processing and manufacturing of valve products face greater room for development.

Therefore, as long as the company can seize the opportunity to strengthen research and development capabilities, and continuously improve product technology content and product quality, will be able to occupy a proactive position in the vast market competition.

1. Enterprises with technological innovation capabilities have a long-term competitive advantage. We can use high technology to transform traditional industries, actively introduce, digest, and absorb advanced technologies and equipment at home and abroad, improve the level of enterprise equipment, accelerate equipment upgrades and technological innovations, realize the optimization and upgrading of the valve industry and products, and increase the added value of products. This type of valve company will have a long-term competitive advantage.

2, the industry leading enterprises will get faster development. These leading enterprises have advantages not only in scale, but also in technology and capital. With the gradual improvement of the valve quality requirements of the market, such enterprises will gain development opportunities in the fierce competition. For example, at present, China is vigorously developing the nuclear power industry, and at the same time, the construction of the West-East Gas Pipeline, connecting oil pipelines in Central Asia and other construction projects, will be the leading enterprises of smart valves in China, such as Hongcheng Co., Ltd. Opportunities grow.