After years of continuous development, we have researched and served over 6,000 valve enterprises of various sizes, solidifying our position as a leading valve-producing nation. Valves, as components for fluid transmission, offer functions such as cutting off, regulating, guiding flow, preventing backflow, stabilizing pressure, diverting, or relieving excess pressure. Valves used in fluid control systems range from simple gate valves to highly complex automated systems, with a vast variety of types and specifications. They are capable of controlling the flow of various fluids, including air, water, steam, corrosive media, sludge, oils, liquid metals, and radioactive substances. With the growth of the national economy, the valve industry has seen rapid development.
During the 12th Five-Year Plan period, China will continue the support力度 for the pumping and vacuum equipment manufacturing industry from the 11th Five-Year Plan, which is poised to enjoy a valuable opportunity for expansion. With the acceleration of development in water treatment, petrochemicals, power, oil and gas, agriculture, and other industries, as well as the construction of key projects, the demand for pumping products will continue to expand. It is expected that there will be a sustained high demand in the future, with a robust market for the pump industry and a promising outlook.
During the 12th Five-Year Plan period, China has continuously increased its support for key projects and investment projects, further promoting energy conservation and emission reduction in key industries and enterprises, and developing a circular economy. Accelerating the implementation of key emission reduction projects, driving the construction of supporting pipe networks for rural wastewater treatment facilities. Strengthening the management of heavy metal pollution, enhancing the environmental protection efforts for key river basins such as the Three Rivers, Three Lakes, and Songhua River, and launching inter-provincial river basin water environment and ecological compensation pilot programs. Against the backdrop of a vast market, the valve industry has also been pushed to the forefront of key industry sectors.
China Valve Association statistics show that our valve industry is facing severe overcapacity, with about 40% of production capacity lying idle. In the face of such a significant overcapacity, the effective approach is to implement a diversified sales strategy and vigorously expand into international markets.
The global valve export market is valued at approximately 6-7 billion annually, with China's annual exports totaling 150 million, accounting for less than 2% of the share, indicating significant potential. To tap into the international market, first, focus on cultivating foreign trade talent, including professionals skilled in business and foreign languages. Second, master the use of the internet and information technology to widely network with clients and seize business opportunities. Third, collaborate with domestic foreign trade companies to expand exports through their channels. Fourth, for enterprises with the means, consider establishing sales outlets or factories overseas.
With the entry into WTO and the lowering of international trade barriers, as well as the adjustment of product structures, China is increasingly becoming a major manufacturing hub, presenting greater development opportunities for valve product manufacturing.
Strong demand for valve products in the market. The state-owned economy continues to develop steadily. Fixed asset investment is gradually expanding. Particularly, the start of several century projects such as 'West Gas to East,' 'West Power to East,' and 'South Water to North' requires a large number of valve products. Additionally, with the arrival of the industrial era, major users of valves in the petrochemical industry, power sector, metallurgy department, chemical industry, and urban construction will increase their demand for valve products.
We believe that under the impetus of the four major forces of industrialization, urbanization, reform, and globalization, the prospect of China's valve equipment manufacturing industry remains broad. The future development of the valve industry will mainly focus on high-endization, localization, modernization, and the pursuit of continuous innovation. Only by creating new markets for valve enterprises can they survive and thrive in the increasingly competitive pump valve industry.
