Eliminating Outdated Capacity Pump Valves for Enterprise Transformation and Development

Recently, the Ministry of Industry and Information Technology of China announced to the society on the 8th that 18 industrial industries eliminated the list of backward production capacity companies. The backward production capacity of these enterprises must be closed before the end of September this year.

The elimination of backward production capacity in these 18 industrial sectors in 2010 involved 2,087 enterprises. Among the industries that involved a large number of enterprises were 762 cements, 279 paper mills, 201 printing and dyeing, 192 coke, 175 ironmaking, 143 ferroalloys, and 84 tanning. From the perspective of the implementation of decomposition in various provinces, the provinces that have relatively heavy elimination tasks and involve a large number of enterprises include: 230 in Henan, 226 in Shanxi, 180 in Zhejiang, 165 in Hebei, 165 in Yunnan, and 128 in Guizhou.

According to the analysis of the list of enterprises with obsolete and backward production capacity, most industries with high pollution and high energy consumption, such as coking industry, steel industry, printing and dyeing, are all typical industries with high energy consumption and high pollution. Among them, the cement, paper, printing and dyeing industries have the largest number of companies shut down. With the increasing pressure of environmental protection, these industries are more urgently facing transformation and adjustment, accelerating the pace of technological innovation, and gradually transforming from extensive industries to intensive industries. Only by continuously promoting technological innovation and reducing consumption can not only save resources but also reduce pollution, so that the economic development and the environment can be coordinated.

Impact 1: The price of raw materials in the pump industry rose

Although in the list of industries that eliminated backward production capacity, there is no positive involving the valve and valve industry, but the steel industry as a raw material for the pump and valve industry has been greatly affected. The list of enterprises that eliminated backward production capacity shows that the proportion of iron and steel enterprises is relatively large. To a certain extent, the elimination of backward production capacity will restrict production capacity and result in production cuts. The steel industry's production cuts will also lead to short-term steel price increases, which will result in higher costs for the pump and valve industry, which may lead to short-term price fluctuations in the pump and valve industry. In order to ensure the same profit, the pump and valve industry can only adjust the market price, otherwise the small and medium-sized enterprises themselves have difficulties in capital turnover and will face the risk of bankruptcy. Therefore, influenced by policies, the valve and valve industry, which uses steel as its main raw material, is bound to be affected to some extent.

Impact 2: The workshop-type pump valve companies will face the risk of lagging production capacity.

In recent years, due to the country's favorable investment environment and the increase of infrastructure investment, the impact of the environment has brought continuous high growth opportunities to the pump and valve industry. As of the beginning of 2010, there were 803 large-scale and part-time pump manufacturing companies in China, 889 valve manufacturers, and 20,000 small and medium-sized enterprises. As a result, they caused price wars, shoddy and other vicious competitions, waste of resources, and high prices. Risky operations and other adverse consequences. According to incomplete statistics, the output value of pump products in China is more than 40 billion yuan each year. Every year, 20%-25% of the nation's power generation capacity is consumed in pump products. The number of pump products in China is more than 6,000.

From the development status of the pump valve industry, its development trend is also facing the risk of lagging out of production capacity. Taking valve companies as an example, there are currently 20,000 small and medium-sized valve companies. It seems that the valve industry urgently needs restructuring and adjustment. It can be seen from the list of eliminated backward production capacity that mainly private-owned SMEs dominate, and the large-scale state-owned enterprises only account for a small number of projects. The Chinese pump and valve industry has been driven by the market in recent years. Its manufacturers have rapidly increased, production levels have been greatly improved, and the output of pump valves has also increased substantially. However, small and medium-sized and private pump and valve companies have also rapidly increased and accounted for a large proportion. On the contrary, there are fewer large-sized pump and valve companies, and the brand name of the pump and valve industry is relatively poor. Compared with foreign pump and valve products, China's pump and valve products market competes. Poorer.

Valve companies look for directions in eliminating outdated production capacity policies

The author interviewed Mr. Xie Pubin, General Manager of Tianjin Tangyi Special Valve Manufacturing Co., Ltd., and expressed his own opinion on eliminating the impact of the backward production capacity policy on valve companies. Xie said: “In the face of the policy of eliminating backward production capacity, the valve The industry will certainly be affected to a certain extent, as long as it targets a number of small and workshop-type valve companies, the impact on large and medium-sized valve companies is relatively small.According to the policy direction of eliminating backward production capacity, mainly for some high pollution, high energy consumption Small companies, because small valve companies need to be vigilant in this regard, from their own side, continue to enhance the competitiveness of enterprises, or choose to restructure the company's strategic adjustment in the face of small and medium-sized steel companies affected by the policy, resulting in fluctuations in steel prices, as The market price of important raw materials and valves will also fluctuate, and in order to ensure the stability of profits, only sales channels can be expanded and the market can be expanded to ensure the smooth development of enterprises.Tianjin Tianyi Special Valve Manufacturing Co., Ltd., as a medium-sized valve company, is being eliminated. The impact of backward production capacity policy is relatively small, according to the current marketing A little, a special valve pond with large valve business jointly strengthen and promote common development. "

Under the big policy of eliminating backward production capacity, in the face of numerous small and medium-sized pump and valve enterprises, the valve and valve industry is in urgent need of restructuring and adjustment. The scale of small and medium-sized private enterprises is relatively small, the density of industrial clustering is low, and the technology and management mode are relatively backward. The adjustment of restructuring and restructuring can be carried out by eliminating the trend of backward production capacity. In the context of eliminating outdated production capacity, the pump and valve industry will appropriately phase out small-scale private enterprises, restructure and integrate small and medium-sized enterprises, expand the scale of large-scale enterprises, enhance the ability of independent innovation, build the brand effect of the Chinese pump industry, and increase international Market competitiveness; on the other hand, it is necessary to optimize the industrial structure of the pump and valve industry, effectively integrate resources, improve the overall grade and level of the pump valve industry, and promote the transformation and upgrading of the pump valve industry.

From the development status of the pump valve industry, its development trend is also facing the risk of lagging out of production capacity. Taking valve companies as an example, there are currently 20,000 small and medium-sized valve companies. It seems that the valve industry urgently needs restructuring and adjustment. It can be seen from the list of eliminated backward production capacity that mainly private-owned SMEs dominate, and the large-scale state-owned enterprises only account for a small number of projects. The Chinese pump and valve industry has been driven by the market in recent years. Its manufacturers have rapidly increased, production levels have been greatly improved, and the output of pump valves has also increased substantially. However, small and medium-sized and private pump and valve companies have also rapidly increased and accounted for a large proportion. On the contrary, there are fewer large-sized pump and valve companies, and the brand name of the pump and valve industry is relatively poor. Compared with foreign pump and valve products, China's pump and valve products market competes. Poorer.