Chinese enterprises should act as the international market valve of new characte

Developed industrial countries from abroad there is a quite interesting statistics: The value of these countries over the valve compressors, fans and pumps the sum of the three output, accounting for the entire machinery industry output value of 5%. A phenomenon in these countries is more interesting: Over the past few years, the international valve market hot on the movement of the valve products produced in China, more and more the international valve market, the right to speak not in the hands of Chinese enterprises.

    Is still the role of migrant workers

    As the valves necessary for the production of casting, forging, welding, plating, pickling, etc. affecting the environment, in environmental protection investment is large, so in recent years, developed countries, the valve will be labor-intensive production, in particular the common valve to move to developing countries such as China. They are usually purchased in developing countries meet the requirements of the standard valve product, and then sold in developing countries and developed countries. Or wholly owned or joint ventures in developing countries to do business, product re-sold back. Realistically speaking, the transfer of industries among the developed countries in this, our valve business or get a number of benefits.

    Many companies have achieved ISO9001 quality management system certification and API certified, and some enterprises have also made the European Community CE safety certification. At the same time, China's many valve companies are completely capable of producing API standard gate valve, globe valve, check valve, ball valve, butterfly valves and other products, product quality and fully to achieve ISO5208: 1993 test standard. Therefore, China's valve products and exports every year. Take the recent years, say that in 2001 the export value of 380 million U.S. dollars, in 2002 the export value of 430 million U.S. dollars, in 2004 the export value of 656 million U.S. dollars, showing that the export situation is very good.

    Even more gratifying is that China's valve industry, manufacturers have set up factories abroad, such as the Suzhou Valve Factory, have already set up factories in Iran. There are manufacturers with offices in foreign countries, such as Zhejiang Founder valve plant in Singapore, the Netherlands, Italy, has offices in almost all the valves produced for sale abroad. At present, China's valves have been exported to the United States, Canada, Germany, Italy, more than 30 countries and regions, has access to the world valve market, China's valve outlet valve in the world exporting countries ranked 11th or so.

    However, despite the overwhelming gush of domestic valve products abroad in the international valve market, Chinese enterprises are still not right to speak. The price people have the final say, the rule is people have the final say. Developed countries from China to buy a very low valve, and then sold to developing countries to further increase prices, they not only benefit they bought. While domestic enterprises can only act as a working role.

    Lot of market opportunity

    Is an international valve market can not tolerate us? Clearly not. It is understood that the Middle East, as the world's leading oil-producing and exporting region, countries are trying to improve oil output, but also stepped up oil exploration and investment. In the next few years, Kuwait's largest oil and gas development project is in the north in progress; Qatar will build the world's largest liquefied natural gas processing products; United Arab Emirates plans to the construction of large-scale projects to increase crude oil production, crude oil production is expected to be more than 3 million barrels; Abu Dhabi National Oil Company in the next 5 years on some of the projects annual investment of 1.5 billion U.S. dollars, of which 40% for the oil industry … … and every item of greatest need is the valve products. On the other hand in the Middle East, Iraq and other countries oil fields, pipelines destroyed a lot and need to import oil system and the Pipeline valves, including the API valve, gate valve, globe valve, check valve, long-distance pipeline valves and valve plate and so on. These are the domestic valve manufacturer's main product is our strength. Why do not they do these grab business?

    Eligible to stand to the front

    In fact, as long as the learned needs of the market, the domestic valve companies dominate the international market, a great advantage. As long as the methods are appropriate, we can stand on their own to the market's prospects, as the protagonist of the market.

 The first export. Direct exports and indirect exports, including exports. Direct export is an enterprise directly to product sales in the international market. It also has two ways: First, through foreign brokers, sold to local markets. Second, enterprises in foreign countries set up their own sales organizations, products to sell directly to local customers. Indirect exports are an enterprise through domestic intermediaries to export their products. The export approach is one of the most simple option which does not require full-time Leave me, but also does not require huge capital investments, and flexibility, with less risk. But there is also very clear that the companies can not participate directly in international sales activities, basically out of control on the export markets, market information feedback is limited, changes in the market is difficult to make timely adjustments.

    Second, the licensing trade. Permit trade is authorized by the person authorized to grant the right to have a commercial value, or techniques, including trademarks, patents, proprietary technology, and the right to use. The valve operation of domestic enterprises due to lack of management experience, well-known brands and unique technology, the use of this approach much. But it is also a direction of development may encourage enterprises to cultivate their own brands with independent intellectual property rights and development 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 equity point of view, it has two different forms, such as joint ventures. A joint venture enterprises in foreign markets, joint ventures with local enterprises operating a business. Joint venture through the purchase of the shares of local enterprises or co-finance a new enterprise. Joint venture has the advantage of higher returns, business marketing, and manufacturing have control over and can get the market feedback. The disadvantage is that between partners is often a result of the production, marketing, conflicts arising from different views.

    Also such as sole proprietor. Sole proprietorship is an independent company set up factories in foreign countries. It can be through direct acquisition of existing local businesses, you can create a new business. Proprietorship advantage is that the profit can be exclusive, get more experience in international marketing and market opportunities, the parent company of the overseas subsidiaries have complete right to manage and control. The disadvantage is that large investment risks, uncertainties more.

I am an expert from China Hardware Suppliers, usually analyzes all kind of industries situation, such as hinged lid plastic containers , corrugated steel containers.

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