2008 Report on China's Valve Market

Chinas valve market has achieved heady growth in recent years due to the favourable national policies and strong demand from downstream sectors. But the growth of the market slowed down in 2008 because of the global economic crisis in 2008, only up by 13.7% year-on-year, to a market size of RMB99.4bn.

Strong demand has attracted large number of foreign and Chinas home-grown market players to the field. There had been 6,300 valve producers in China by the end of 2008, with 2,000 of them each being able to deliver RMB5m annually. But the industrial concentration was low, and the top 20 of the valve producers accounted for only 21.3% of the market. Chinas home-grown producers could only deal with mid- and low-end products due to the lack of high technology. Thus China mainly depends on import to satisfy its top-end demand.

Being the indispensable devices for flow control, valves are extensively used in petroleum, chemical, power generation, pipelines, ship manufacturing, nuclear, low-temperature engineering, astronautic and ocean oil mining sectors. Petroleum and natural gas sector is the biggest consumer of valves, accounting for 37.4% of Chinas total consumption of valves, while energy industry 21.3%, chemical industry 11.5%, and water treatment 11.4%.

There is still plenty of room for Chinas valve industry to grow, with major driving forces as follows:
Chinese government is promoting the manufacturing in the country with favourable policies. As a fundamental sector, valve manufacturing will obtain great support.
Growing in a massive way, Chinas heavy industry will have increasingly stronger demand for valves. For example, with its medium- and large-scale coal-fired projects during Chinas 11th "Five-Year Plan" period (2006-2010), Chinas power industry will need 153,000 tons of valves altogether, or 30,600 tons every year. The total value of the demand would be RMB3.96bn, or RMB792m annually.

A huge volume of valves are needed for Chinas West-to-East Gas Pipelines, West-to-East Power Lines, and South-to-North Water Transferring System and other large-scale projects under construction or planned. SHOW LESS READ MORE >

Chapter One: Overview of Chinas Valve Industry
1.1 Development Environment
1.1.1 Governmental Policies
1.1.1.1 Policies on the Industry
1.1.1.2 Plans for Development
1.1.2 Overview of the industry
1.1.2.1 Development Cycle of the Industry
1.1.2.2 Barriers to Entry and Exit

Chapter Two: Industrial Chain of Chinas Valve Industry
2.1 Industrial Chain
2.1.1 Features of Operation
2.1.2 Linkages in the Industry
2.1.3 Problems
2.2 Upstream Industries
2.2.1 Steel Industry
2.2.2 Power Industry
2.3 Downstream Industries
2.3.1 Power Industry
2.3.2 Petroleum and Natural Gas Industry
2.3.3 Chemical Industry
2.3.4 Hydro Industry

Chapter Three: Operation of Chinas Valve Industry, 2004-2008
3.1 Supply
3.1.1 Production
3.1.2 Import and Export
3.2 Demand
3.2.1 Sales
3.2.2 Export
3.2.3 Potential Demand
3.2.4 Factors Influencing Demand
3.2.4.1 Development of Downstream Industries
3.2.4.2 Product Replacement Cycle
3.2.4.3 Depreciation Rate of Products
3.2.4.4 Promotion from Technological Innovation
3.3 Features of Operation
3.3.1 Sizes of Producers
3.3.2 Mix of Products
3.3.3 Regional Distribution

Chapter Four: Competitive Landscape in Chinas Valve Industry
4.1 Competitive Landscape
4.1.1 Large-Sized Producers
4.1.2 Small- and Medium-Sized Producers
4.1.3 Foreign Producers in China
4.2 Competition
4.2.1 Industrial Concentration
4.2.2 Differentiation of Products
4.2.3 Economic Effectiveness of the Industry
4.2.4 M&A
4.3 Industrial Competitiveness
4.3.1 Comparison of Return on Capital in Valve Industry and in General Equipment Manufacturing
4.3.2 Substitutes for Valves
4.3.3 Competitiveness of Chinas Home-Made Valves in the World

Chapter Five: Regional Valve Markets in China, 2004-2008
5.1 Eastern China
5.1.1 Output and Sales
5.1.2 Features of Development
5.1.3 Potential of and Outlook for the Region
5.2 Northern China
5.2.1 Output and Sales
5.2.2 Features of Development
5.2.3 Potential of and Outlook for the Region
5.3 South-Central China
5.3.1 Output and Sales
5.3.2 Features of Development
5.3.3 Potential of and Outlook for the Region
5.4 Western China
5.4.1 Output and Sales
5.4.2 Features of Development
5.4.3 Potential of and Outlook for the Region
5.5 Northeastern China
5.5.1 Output and Sales
5.5.2 Features of Development
5.5.3 Potential of and Outlook for the Region

Chapter Six: Major Foreign Valve Producers
6.1 Tyco International Inc.
6.1.1 Business Worldwide
6.1.2 Presence in China (Regions and Products)
6.1.3 Operation in China
6.1.4 Features, Advantages and Disadvantages of Products Sold in China
6.1.5 Major Competitors in China
6.1.6 Operational Strategies for Different Stages in China
6.2 Danfoss
6.2.1 Business Worldwide
6.2.2 Presence in China (Regions and Products)
6.2.3 Operation in China
6.2.4 Features, Advantages and Disadvantages of Products Sold in China
6.2.5 Major Competitors in China
6.2.6 Operational Strategies for Different Stages in China
6.3 KSB
6.3.1 Business Worldwide
6.3.2 Presence in China (Regions and Products)
6.3.3 Operation in China
6.3.4 Features, Advantages and Disadvantages of Products Sold in China
6.3.5 Major Competitors in China
6.3.6 Operational Strategies for Different Stages in China
6.4 Emerson
6.4.1 Business Worldwide
6.4.2 Presence in China (Regions and Products)
6.4.3 Operation in China
6.4.4 Features, Advantages and Disadvantages of Products Sold in China
6.4.5 Major Competitors in China
6.4.6 Operational Strategies for Different Stages in China
6.5 Watts
6.5.1 Business Worldwide
6.5.2 Presence in China (Regions and Products)
6.5.3 Operation in China
6.5.4 Features, Advantages and Disadvantages of Products Sold in China
6.5.5 Major Competitors in China
6.5.6 Operational Strategies for Different Stages in China
6.6 SpiraxSarco
6.6.1 Business Worldwide
6.6.2 Presence in China (Regions and Products)
6.6.3 Operation in China
6.6.4 Features, Advantages and Disadvantages of Products Sold in China
6.6.5 Major Competitors in China
6.6.6 Operational Strategies for Different Stages in China
6.7 Armstrong International Inc.
6.7.1 Business Worldwide
6.7.2 Presence in China (Regions and Products)
6.7.3 Operation in China
6.7.4 Features, Advantages and Disadvantages of Products Sold in China
6.7.5 Major Competitors in China
6.7.6 Operational Strategies for Different Stages in China
6.8 Yamatak
6.8.1 Business Worldwide
6.8.2 Presence in China (Regions and Products)
6.8.3 Operation in China
6.8.4 Features, Advantages and Disadvantages of Products Sold in China
6.8.5 Major Competitors in China
6.8.6 Operational Strategies for Different Stages in China
6.9 Caleffi
6.9.1 Business Worldwide
6.9.2 Presence in China (Regions and Products)
6.9.3 Operation in China
6.9.4 Features, Advantages and Disadvantages of Products Sold in China
6.9.5 Major Competitors in China
6.9.6 Operational Strategies for Different Stages in China
6.10 Koso
6.10.1 Business Worldwide
6.10.2 Presence in China (Regions and Products)
6.10.3 Operation in China
6.10.4 Features, Advantages and Disadvantages of Products Sold in China
6.10.5 Major Competitors in China
6.10.6 Operational Strategies for Different Stages in China

Chapter Seven: Chinas Major Homegrown Valve Producers
7.1 Zhuzhou Southern Valve Co., Ltd.
7.1.1 Profile
7.1.2 Operational Performance
7.1.3 Features of Products
7.1.4 Core Competencies
7.1.5 Outlook
7.2 SUFA Technology Industry Co., Ltd.
7.2.1 Profile
7.2.2 Operational Performance
7.2.3 Features of Products
7.2.4 Core Competencies
7.2.5 Outlook
7.3 Liangjing Valve
7.3.1 Profile
7.3.2 Operational Performance
7.3.3 Features of Products
7.3.4 Core Competencies
7.3.5 Outlook
7.4 Zigong High Pressure Valves Co., Ltd.
7.4.1 Profile
7.4.2 Operational Performance
7.4.3 Features of Products
7.4.4 Core Competencies
7.4.5 Outlook
7.5 Zhejiang Chaoda Valve Co., Ltd.
7.5.1 Profile
7.5.2 Operational Performance
7.5.3 Features of Products
7.5.4 Core Competencies
7.5.5 Outlook
7.6 Shanghai Lianggong Valve Factory Co., Ltd.
7.6.1 Profile
7.6.2 Operational Performance
7.6.3 Features of Products
7.6.4 Core Competencies
7.6.5 Outlook
7.7 Huanqiu Valve Group
7.7.1 Profile
7.7.2 Operational Performance
7.7.3 Features of Products
7.7.4 Core Competencies
7.7.5 Outlook
7.8 Guangdong Mingzhu Group
7.8.1 Profile
7.8.2 Operational Performance
7.8.3 Features of Products
7.8.4 Core Competencies
7.8.5 Outlook
7.9 Sanhua Holding Group
7.9.1 Profile
7.9.2 Operational Performance
7.9.3 Features of Products
7.9.4 Core Competencies
7.9.5 Outlook
7.10 Sanming Double Wheel
7.10.1 Profile
7.10.2 Operational Performance
7.10.3 Features of Products
7.10.4 Core Competencies
7.10.5 Outlook

Chapter Eight: Outlook and Forecast for Chinas Valve Industry
8.1 Outlook
8.2 Forecast for the Size of the Industry
8.2.1 Forecast for Demand, 2009-2011
8.2.2 Forecast for Output and Sales, 2009-2011
8.2.3 Forecast for Import and Export, 2009-2011

Chapter Nine: Investing in Chinas Valve Industry
9.1 Investment Opportunities
9.1.1 Investment Potential
9.1.2 Return on Investment
9.1.3 Investment Strategies
9.1.4 Investment Directions
9.1.4.1 Valves for Well-Top Equipment and Pipelines in Petroleum and Natural Gas Industry
9.1.4.2 Valves for Nuclear Power Generation
9.1.4.3 Valves for Petrochemical and Power Supply Industries
9.1.4.4 Valves for Environmental Protection Industry
9.1.4.5 Valves for Metallurgical Industry
9.1.4.6 Valves for Large-sized Chemical Processing Equipment
9.1.4.7 Valves for Urban Construction and Maintenance
9.2 Investment Risks
9.2.1 Market Risks
9.2.2 Technological Risks
9.2.3 Operational Risks

- Tyco International Inc.
- Danfoss
- KSB
- Emerson
- Watts
- Armstrong International Inc.
- Yamatak
- Caleffi
- Koso
- Zhuzhou Southern Valve Co., Ltd.
- SUFA Technology Industry Co., Ltd.
- Liangjing Valve
- Zigong High Pressure Valves Co., Ltd.
- Zhejiang Chaoda Valve Co., Ltd.
- Shanghai Lianggong Valve Factory Co., Ltd.
- Huanqiu Valve Group
- Guangdong Mingzhu Group
- Sanhua Holding Group
- Sanming Double Wheel