Valve foreign trade has received the attention of many valve enterprises

In our valve industry, many enterprises share the same feeling that it is difficult to do valve domestic sales business, especially after the baptism of the market economy, the market competition is quite fierce. Due to the low entry threshold for entering the valve industry and the low technological content of valves, the same industry is rushing to compete for market share; It is difficult to open up new markets and invest relatively high marketing costs. Even after signing contracts, closing transactions, and delivering products, it is also difficult to settle funds, and some funds are in serious arrears; Domestic sales enterprises are under the same blue sky, and under the premise of equal products and quality, they are nothing more than mutual pressure on prices. They often compete for an order and become red faced, competing in the market, hurting the relationship between enterprises, and the development of enterprises is also slow; More importantly, our valve industry has a severe overcapacity, with about 20% of the production capacity of enterprises being depleted, which hinders the improvement of economic efficiency, affects the development speed of enterprises, and further hinders the investment in product development and equipment updates. Faced with such a huge overcapacity, fierce competition at home and serious arrears of funds, it is better to go abroad and explore the international market. In the modern era of new economy, how to open up new markets mainly depends on having the spirit of innovation, continuous progress, and self challenge, keeping up with the times, opening up overseas international markets, in order to drive the development and improvement of enterprises, walk out a new path of development, maintain rapid development of enterprises, and always remain invincible in market competition

There are many advantages in valve export

Achievements in valve export sales. According to a survey, in our valve industry in Jiangsu, about a quarter of valves are currently sold for export, and about a third of valve enterprises in southern Jiangsu. Many enterprises have developed from small batches to large batches and gradually shifted to all export sales; On the basis of domestic sales, some have developed from zero breakthroughs in foreign trade to cooperative and joint ventures with foreign investors, becoming one of the international valve giants in China"s manufacturing enterprises; Some valve enterprises have gone from being timid in exporting to exploring bravely, and their foreign trade business has become increasingly prosperous, becoming major exporters of valve exports. We have many successful examples in this regard, such as Suzhou Newway Valve Company. After registering the company in the United States for one dollar, obtaining an international letter of credit, and then transferring to domestic rental factory production and manufacturing, daring to start a business and innovate and develop. After more than 8 years of operation, the enterprise has become larger and larger, with 85% of valve products being sold back to the international market. Now, it has become the largest valve export manufacturer in China; CNNC Suvalve is also a major exporter in the valve industry. They have won the international market with their brand advantage and vigorously expanded the international market. Now, their export proportion has accounted for one-third of the total sales of the enterprise; Since the joint venture and cooperation with Kerry Valve Company in the United States, the original Nantong Valve Factory has continuously increased its valve foreign trade, and all valve products are exported. Now, it has become one of the important export bases for valve products in our province. Enterprises such as Yancheng High and High Pressure Valve Co., Ltd., Yancheng Oak Valve Co., Ltd., Yancheng Tongshang Valve Co., Ltd., Suzhou Sidade Valve Co., Ltd., and Yancheng Minli Machinery Co., Ltd. are also actively exploring the international market. The export of valves has been soaring, rising year by year, and they are emerging as valve exporters in the valve industry. According to relevant data, the export of valves in our province has become a new economic growth point in the export of mechanical products, with an annual growth rate of 25% and 35% increasing in recent years. Why has valve export sales been booming in recent years? The main reasons are multifaceted.

Developed countries have strong environmental awareness

Foreign countries attach great importance to environmental awareness and also consider valve enterprises as environmental pollution industries. Generally, valve factories are not allowed to be established in cities with prior evolution. Due to the impact of necessary casting, forging, welding, electroplating and other processes in valve production on the environment, investment costs in environmental protection are high. At present, many developed countries internationally have stopped producing labor-intensive valves, especially general valve products themselves. Most of them have been transferred to developing countries for production, or purchased valve products that meet their standards, or sold in other countries. Some have invested in establishing factories or joint ventures, and the products are then resold. The key is that the manufacturing cost of foreign valves is high, so it is better to buy valves and switch to other countries for manufacturing. Many countries and some multinational companies have shifted valves to China or third world countries for manufacturing. In recent years, there has been a new trend of foreign investment in China to manufacture valves and import valves in bulk, which also provides new opportunities for the development of China"s valve industry. This is an example in Japan. Some of their valve manufacturers are mostly assembly type, and most of the valve parts are imported. Many domestic valve manufacturers are their main partners. Some domestic manufacturers are their supporting manufacturers and early supporting role for valve export, but they can"t receive orders for complete valves all the time. They buy Chinese raw materials and semi-finished valve parts, leaving pollution to China, Assemble clean components from China. The only processing cost that Chinese people receive is the whole piece of fat earned by foreigners. Many developed countries have transferred valves to third world countries for manufacturing, and China is one of the transfer countries.

Low valve prices in China

At present, the price of domestic export valves is quite low. Foreigners come to China to purchase valves at a low price. The cost of domestic valve raw materials and labor productivity is low. Many valves are only a quarter of the international market value, and some are even lower. Foreigners have made a lot of money. Some manufacturers seem to be very busy in valve export business, but they have not made much money in closing accounts at the end of the year; Many foreigners use the low prices in a certain region of China to suppress the export price of their valves. Many manufacturers sacrifice local interests to lower valve prices in order to receive orders, which has left foreigners exploiting loopholes. The domestic labor production cost is also low, and the wages of employees are low. However, employees are willing to work more, work more overtime, and receive more compensation. In addition, the weak awareness of labor protection in China means that even if the enterprise violates the Labor Law, employees are unwilling to break with the enterprise and dare not challenge the boss. It is difficult to find a job, and losing a job is equivalent to facing unemployment. In this regard, foreign employees are different. They have high salaries and are unwilling to work overtime, which is also one of the reasons why developed countries have shifted valves to Chinese manufacturing.

Rich domestic resources

China not only has abundant material resources and abundant raw and auxiliary materials, but also has a vast territory and abundant mineral resources. These are the main raw and auxiliary materials for valve manufacturing, which foreign investors value as a good resource in China. Moreover, domestic labor and technical human resources are also abundant, with labor everywhere. Some vocational schools offer a large number of mechanical training majors, providing many technical personnel for manufacturers. Many manufacturers are also strengthening technical training and guidance to cultivate their own professional talents; Many manufacturers have conducted extensive research on valve manufacturing, and their internal quality and appearance shape have reached world standards. Many enterprises have obtained ISO9001 quality management certification and international API system certification. Some have also obtained European Community CE and fire safety certification, and have the ability to produce various types of valves according to API6A and API6D standards, making the quality of domestic valves meet world standards. Some valves have already exceeded international standards. China has already established its own valve brand, such as the "H" brand of CNNC Suvalves, Suzhou Newway"s "NEWAY" brand has already been loudly called on the world valve stage. It is worth worrying that in some major project equipment international bidding in our country, many valves are imported from abroad, but the origin is from our own country. Some valves have been transferred from home to abroad, and even transferred to China. If the large profits are made by foreigners, it is incredible.

Forming an industrial cluster for investment and development

After China"s reform and opening up in recent years, various aspects have been streamlined, especially strengthening the efforts to attract investment. The development zones have a good investment environment, convenient transportation, and formed a concentrated industrial cluster, creating conditions for foreigners to invest and establish factories in China. In recent years, many international valve merchants have come to China to invest and establish factories. They are optimistic about the Chinese valve market and have formed a scale in just a few years. For example, the "Toyama Valve" established solely by Japan in Suzhou, they see Suzhou as a new valve manufacturing base, with sufficient labor resources, fast transportation, and a good investment environment. In just one or two years, it has formed an annual production capacity of over 100 million yuan, and all the valves produced are sold back to the Japanese market; Kerry Valve Group of the United States has established a joint venture and cooperation factory with a Chinese enterprise. Currently, it has opened four branches in China, forming a certain industrial chain, and all the valves produced are sold back to the international market. At the same time, Chinese people are proud, not only do valves go abroad, but also many valve manufacturers invest and establish factories abroad, such as Suzhou Valve Factory which has already established factories in Iran; Suzhou Newway has also registered and established branches abroad, some with offices overseas. Suzhou Newway has established sales offices in important regions such as Southeast Asia, Europe, the Americas, and the Middle East, and 85% of its valves are sold abroad; At present, China"s valves have been sold to more than 40 countries and regions abroad and have entered the world valve market. China"s valve exports rank around 10th among the world"s valve exporting countries.

Incomplete domestic sales rules

Actually, many valve manufacturers would rather do valve foreign trade business than domestic sales? There is also a common feeling among peers that the settlement of domestic sales funds is abnormal. Many customers have signed contracts, do not keep their promises, default at will, and cannot receive the money after delivering the goods. They must be in arrears for a period of time, causing you to repeatedly claim, and some need to work hard to recover the money. Some only receive 40-50% of the advance payment, while others are difficult to receive; Some quality assurance deposits also have to be delayed for a long time, and some payment for goods still needs to be delayed. Some people need to expend energy and go to court to get paid. Can do export business, and the settlement of funds is quite straightforward. As long as the goods are delivered and accepted, the funds will be received within the period specified in the contract. Foreign merchants are quite trustworthy and never intentionally default on funds. So some valve manufacturers believe that although the profits for export are a bit thin, they are confident that the funds will be credited. Despite the proliferation of valves in China, valve export sales have become quite popular. The export volume is doubling again. However, in the international valve market, many Chinese enterprises have no real autonomy and cannot play a leading role. The price is up to foreigners the final say, and the rules are also made by others. Sometimes foreign countries are quite strict with China"s valve exports, and artificially set the threshold. Many developed countries come to China to purchase extremely low-end valves and then sell them at higher prices to developing countries. They make a lot of money, while domestic enterprises can only play the role of laborers.

Integrating into the big market to promote progress, unlimited opportunities for valve foreign trade

With the further improvement of the world economy, international energy has become tense again in the past two years, with the rise and continuous fluctuations of oil and gas prices. Developed countries are also stepping up energy development and utilization construction. Major oil producing countries abroad and the Middle East region, which is the world"s export destination, are accelerating the increase in daily oil production. Many countries have increased their natural gas extraction and investment; It is understood that in the short term plan in the future, countries in the Middle East will have to expand the mining output of oil on a large scale. For example, Kuwait"s largest northern oil and gas development project is currently in progress; Qatar will build the world"s largest natural gas liquefaction product processing plant; The United Arab Emirates plans to increase crude oil production through the construction of large-scale projects, with a planned daily crude oil production of over 3 million barrels; Abu Dhabi National Oil Company plans to invest 1.5 billion yuan annually in some projects over the next five years, of which 40% will be used for the oil industry. And for each project implementation, the biggest supporting device for the project is the valve. In addition, due to the severe destruction of oil fields and pipelines in countries such as the Middle East and Iraq due to war, long-term repairs are needed, but the demand for valves during repairs is also high; With the rise of international oil and gas prices and energy shortages, China has recently increased cooperation with countries such as Russia, Kazakhstan, and Japan to develop its energy industry. The highest demand for the implementation of these oil and natural gas projects is for high and medium pressure valves such as API gate valves, globe valves, check valves, ball valves, and related flat valves for long-distance pipelines. And these valves are the leading products of major domestic manufacturers and also the strengths of domestic valve peers. If we seize the opportunity, we will win more foreign trade opportunities. In fact, we already have a well-known valve brand on the world valve stage. We have already performed together with foreigners and have the ability to surpass the advanced level of world valves. How does our valve industry explore the international market, integrate into the cycle of the international market, play a leading role, and have a certain degree of initiative.

We have a lot of work to do in this regard:

Joint venture and cooperation with foreign investors

In recent years, our company has focused on strengthening various basic work, and the quality of valves has reached international standards. We have the conditions to do foreign trade business and enter the international market, and valve products can fully go abroad. As long as we seize the opportunity, seize the opportunity to deal with foreigners, have more contact, communication, and exchange, and boldly explore the international market, exports will follow suit. Many enterprises start from scratch, and as long as it is involved, they will continuously improve some issues in their dealings with foreign merchants, and foreign trade business will become smoother and smoother. Although there are certain risks in exporting valves, if one is good at summarizing, improving, and enhancing, the enterprise will thrive and develop. In a joint venture, we cannot abandon our principles. If we should adhere to the price, we must adhere to it; Make more products with independent intellectual property rights, make your own branded products, and try to minimize or avoid making OEM products; In a joint venture, it is best for the Chinese side to hold a controlling stake and have their own initiative; At the same time, in joint venture cooperation, it is necessary to learn to be good at negotiation, adhere to principles, and not let foreigners lead by the nose, in order to achieve a win-win situation as much as possible.

Focus on cultivating foreign trade talents

Enterprises should cultivate a group of talents who understand the rules of international market games, deal with foreign businesses, and are proficient in foreign trade business. They should also focus on cultivating talents in the fields of international logistics and circulation. And learn to master the acceptance rules for valves ordered by foreign purchasers, and learn more about foreign valve standards and technical specifications. Improve the current problem of neglecting valve appearance quality and valve leakage in China. We also need to improve the process flow in processing and manufacturing to improve the processing quality of valves; Borrow the external brain to expand one"s intelligence circle. After all, our valve technology is not as good as others, and there are many aspects that need improvement. We need to gather knowledge and gather knowledge to improve our valve technology level.

Strengthen export work

Valve products can be exported through two channels: direct export and indirect export. Direct export refers to the direct sale of products by an enterprise to the international market. The enterprise has a product export license issued by the state, including through overseas intermediaries to sell to local relevant markets. The enterprise directly sells valve products to local customers and users through sales agencies established abroad. Indirect export, on the other hand, refers to the process in which enterprises entrust domestic import and export companies and relevant intermediary trade institutions to indirectly sell valve products to foreign users and merchants. This is the simplest form of foreign trade business, where orders are received while processing and manufacturing are completed. Although the investment is not significant, the risk is not significant, and the flexibility is strong, this type of business lacks initiative and international market feedback is limited, Enterprises cannot directly deal with foreigners, and those with very limited profits cannot earn much money. As a valve industry colleague, as long as you have confidence, look ahead to the future, and adhere to the concept of becoming bigger, stronger, and better, and sincerely deal with foreigners, not only do you have a lot of foreign trade business, but you will also make continuous progress from it.

Strive in multiple ways to liven up export sales

While strengthening domestic sales, enterprises actively explore international markets, use various channels to open up international channels, and use license trade to develop foreign trade. At present, there are not many valve industry peers using license trade, but foreign investors have authorized the use of commercially valuable rights and technologies, including trademarks, patents, etc. We have not made good use of them. Many industry peers lack management experience, famous brands, and unique technologies, resulting in the loss of many foreign trade business opportunities. If we