It is understood that Wenzhou is China's largest pump valve manufacturing center, and the output value of the pump valve accounts for more than one-third of the total output value of the national pump valve. As a traditional pillar industry in Wenzhou, the industrial output value of the pump and valve industry in 2009 was 17.19 billion yuan. According to the “Wenzhou Pump Valve Industry Transformation and Upgrading Action Planâ€, after five years, the industrial output value of the above-scale industrial scale of the valve industry in Wenzhou City will exceed 35 billion yuan.
As Wenzhou valve companies are mainly concentrated in Yongjia County and Longwan District, Longwan is the earliest birthplace of Wenzhou Pump Valves, and is known as the “China Valve Cityâ€. On May 20, 2010, Kaixim Science and Technology Group, formed by Kaixim Valve Co., Ltd. and absorbing 18 growth companies such as Huahai Seals, was formally established in Longwan, Wenzhou City.
Zhang Chengxuan, chairman of Kaixim Valve Co., Ltd., said that after the group was established, the 19 companies were redeployed with personnel, technology, and funds to form a complete industrial chain. It is expected that the total production value of the group after its establishment can exceed 2 billion yuan. Two billion yuan, which is comparable to the 2009 annual output of the country's valve industry leader - Suzhou Neway Valve Co., Ltd. more than 1.6 billion yuan a lot higher. In fact, the formation of strategic alliances such as the integration and reorganization has become another choice for Wenzhou's pump companies to become stronger and bigger.
In Yongjia, China Xuanda Industrial Group and Zhejiang Naishen Corporation also chose to reorganize. The so-called 1N is a model of one large company joining N small and medium enterprises. After more than a year of running-in period, according to Chen Wenrong, Secretary-General of the Yongjia County Pump Valve Industry Association, the distributor of the two companies, the output value of the company was at least doubled this year. "If we do not join Xuanda and Naishen, it will take at least five years to do so."
After the integration of Xuanda Group, seven subsidiaries including Nason, Quality One, Lining, Anticorrosive Equipment, Import and Export, New Materials, and American Standard Valves have been established to form a scale effect. In 2009, the annual growth rate of the Group’s total output value was changed from the original 20% increase to 30%.
Chen Wenrong told reporters that after studying the internal structure of the restructured company, the cost can be optimized. This is also the actual effect received after the integration. To give a very simple example: every time a valve manufacturer makes a product, he has to obtain professional certification in the field where the product is located. For enterprises above the scale, each company has at least 10 certifications, and the annual maintenance costs of these certificates amount to several hundred thousand yuan. Such as large enterprises such as Shenjiang Valve, one year's certificate maintenance fees even reached more than two million yuan, at the same time the energy spent on this is no problem. After reorganization, similar resources can be shared, and companies can use more energy for development.
It is to see the various advantages of integration, Wenzhou City actively promote the process of integration and reorganization. The "Wenzhou Pump Valve Industry Transformation and Upgrade Action Plan" pointed out that by 2015, it will cultivate 1 or 2 international famous brands. This will enhance the "China's valve and valve capital" regional brand image and enhance the competitiveness of Wenzhou valve in the global market.
The consolidation and reorganization have enabled Wenzhou Pump Valve to have a bigger platform, but how to make products refined is an intrinsic embodiment of the competitiveness of individual companies.
As Wenzhou valve companies are mainly concentrated in Yongjia County and Longwan District, Longwan is the earliest birthplace of Wenzhou Pump Valves, and is known as the “China Valve Cityâ€. On May 20, 2010, Kaixim Science and Technology Group, formed by Kaixim Valve Co., Ltd. and absorbing 18 growth companies such as Huahai Seals, was formally established in Longwan, Wenzhou City.
Zhang Chengxuan, chairman of Kaixim Valve Co., Ltd., said that after the group was established, the 19 companies were redeployed with personnel, technology, and funds to form a complete industrial chain. It is expected that the total production value of the group after its establishment can exceed 2 billion yuan. Two billion yuan, which is comparable to the 2009 annual output of the country's valve industry leader - Suzhou Neway Valve Co., Ltd. more than 1.6 billion yuan a lot higher. In fact, the formation of strategic alliances such as the integration and reorganization has become another choice for Wenzhou's pump companies to become stronger and bigger.
In Yongjia, China Xuanda Industrial Group and Zhejiang Naishen Corporation also chose to reorganize. The so-called 1N is a model of one large company joining N small and medium enterprises. After more than a year of running-in period, according to Chen Wenrong, Secretary-General of the Yongjia County Pump Valve Industry Association, the distributor of the two companies, the output value of the company was at least doubled this year. "If we do not join Xuanda and Naishen, it will take at least five years to do so."
After the integration of Xuanda Group, seven subsidiaries including Nason, Quality One, Lining, Anticorrosive Equipment, Import and Export, New Materials, and American Standard Valves have been established to form a scale effect. In 2009, the annual growth rate of the Group’s total output value was changed from the original 20% increase to 30%.
Chen Wenrong told reporters that after studying the internal structure of the restructured company, the cost can be optimized. This is also the actual effect received after the integration. To give a very simple example: every time a valve manufacturer makes a product, he has to obtain professional certification in the field where the product is located. For enterprises above the scale, each company has at least 10 certifications, and the annual maintenance costs of these certificates amount to several hundred thousand yuan. Such as large enterprises such as Shenjiang Valve, one year's certificate maintenance fees even reached more than two million yuan, at the same time the energy spent on this is no problem. After reorganization, similar resources can be shared, and companies can use more energy for development.
It is to see the various advantages of integration, Wenzhou City actively promote the process of integration and reorganization. The "Wenzhou Pump Valve Industry Transformation and Upgrade Action Plan" pointed out that by 2015, it will cultivate 1 or 2 international famous brands. This will enhance the "China's valve and valve capital" regional brand image and enhance the competitiveness of Wenzhou valve in the global market.
The consolidation and reorganization have enabled Wenzhou Pump Valve to have a bigger platform, but how to make products refined is an intrinsic embodiment of the competitiveness of individual companies.
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