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| Wenzhou's Self-Owned Valve Brands Set Foot on the Gulf |
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| China Wenzhou Guide Feb.10, 2009 |
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In order to shake off their dependence on OEM, Wenzhou's self-owned valve brands open a new way to enter the Gulf market. On 8th, February, 2009, China Win-Win Group Limited signed a memorandum with FGCCC to agree on China-Gulf Arab Nations Summit Forum on Oil Engineering Equipment and China Valve Supply Exhibition to be held at the end of May this year in Dammam, Saudi Arabia for the purpose of helping Wenzhou valve brands explore the huge valve market in the Middle East.
The six Gulf Arab nations own about two thirds of the global oil resources to be the oil base in the world. "In recent years, the reconstruction and expansion of petrochemical projects in these countries have created a huge demand for petrochemical valves. It is estimated that the market value is around USD 600 billion." Said Liu Jialin, the Chief Representative of FGCCC China Office. Therefore, valve manufacturers from all over the world have thronged for orders, but there are still few valve brands from Wenzhou.
Though Wenzhou's self-owned valve brands seldom show in the Gulf, their valves have occupied a certain proportion in the market, since many valve manufacturers enter the Gulf by OEM. In this way, the profit of Wenzhou manufacturers is diluted by those intermediaries. What's important, the self-owned valve brands from Wenzhou can not make their names in the Gulf.
"As far as the product quality is concerned, Wenzhou valve actually has been in line with the world. Moreover, many valves are better in cost performance. However, Wenzhou valve can only enter the Gulf market by OEM." Said Chen Wenrong, the Deputy General-Secretary of Yongjia Valve and Pump Association. Since most oil companies are state-owned, Wenzhou valve manufacturers face great difficulties to be the suppliers of the Gulf for lacking a negotiation platform to talk to the authorities face-to-face.
The cooperation between FGCCC and China Win-Win Group is aimed to break the trade barrier for Wenzhou valve manufacturers. Recently, members of FGCCC China Office have investigated several leading valve manufacturers in Wenzhou and speak highly of Wenzhou valve. They have also expressed their willingness to start the trade cooperation in valve between Wenzhou and the Gulf and introduce Wenzhou's valve brands to the Gulf nations as soon as possible.
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