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The trend of pump industry in China - Jiekai tell you.

Currently, the concentration of pump industry is not high, there’s not an enterprise have an absolute advantage in chemical pumps and industrial pumps manufacturing. Competition among companies is severe. In my view, may appear the following trends in the tide of industry consolidation.

1. The traditional state-owned enterprises are Gradually disappearing, this situation makes us worry.

Once upon a time, many enterprises which were tremendously popular in the pump industry have passed their prime. One the one hand, the production of traditional pump and generic pumps were dropping seriously. Some have fallen to less than 1/4 of the original production.The other hand, the production capacity of high-tech pumps and special pumps come up which come up in the recent years are idling cause insufficient orders.

Xiangtan Electric Manufacturing Corporation had negotiated to purchase and regroup Changsha pump factory for 3 years. In the March 22, 2004,they had succeeded finally and it becomes a subsidiary of Hunan Electric shares. The move broke a new ground, motor enterprises merged state-owned enterprises of large pumps. There was said that “North Shenyang, Changsha South” at one time, but now the condition breaks our hearts. In fact, inflexible system, backward management are the key factors cause the condition. Reforming the system can solve the problem is undoubtedly. To the traditional state-owned enterprises, only change the mechanism as soon as possible and improve market competitiveness can Strive for greater development space.

2. Emerging private enterprises become the backbone of the market.

Many private chemical pump entrepreneurs, in Jiangsu and Zhejiang area were first originated, rose rapidly with their scientific and flexible operational mechanism and Sound and comprehensive sales network. In today's market of pumps, the number and the output values of private enterprises has been much more than the state-owned enterprises’. According to the latest statistics, the output values of State-owned enterprises and state-holding enterprises only accounts for about 30%, private enterprises’ are more than 50%. The annual output values of private enterprises are in the top few places in the enterprises of pumps. We can say, private enterprises are the main body of the industrial and the backbone of the market, they will play an increasingly important role in the future China chemical pump development.

3.The prospects of SMEs are slim.

Due to the traditional chemical pumps are labor-intensive products, the entry barrier is not high,then derived thousands of small and medium enterprises all round the country. They are mostly dependent on the larger enterprises, some places even all people went in to pump industry. Many of them are no technical, no sales network and no after-sales service. They are forced to survive the pressures and motivated by profit. Ignoring the quality of products and services. Making the profit with the low cost and the price. Necessarily, many small and medium enterprises will be eliminated.

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