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Pump industry 7 billion yuan "cake" attractive market-driven enterprise alliances
In recent developments, a reporter learned from the Second China (Yongjia) Pump & Valve Expo and Technology Innovation Report that the Chinese pump and valve industry is poised for significant growth in the coming years. With the expansion of petrochemical, power, and national infrastructure sectors, the market is expected to offer substantial opportunities. For instance, Sinopec alone has allocated over 700 billion yuan in investments across oil fields, refining, and chemical industries in the next two years, generating nearly 7 billion yuan in demand for pumps and valves.
This growing demand is pushing companies in the sector to move away from fragmented operations and instead form alliances and groupings. This shift aims to foster technical collaboration and eventually lead to the formation of large-scale enterprises capable of competing globally.
It is estimated that in projects like refinery construction, ethylene plants, and other petrochemical facilities, piping investment accounts for 15% to 20% of total costs, while pump and valve investment typically represents about 50% of the piping budget. As major projects such as 10-million-ton oil refining units, million-ton ethylene engineering, and coal-to-oil or coal-to-olefins initiatives are underway, the demand for large valves is rising sharply.
According to Xu Dan, deputy head of the piping design center at Sinopec Group, several key projects are currently planned or under construction. These include the Puguang Gas Field and Tahe Oilfield Project with an investment of 1.823 billion yuan, a 979-kilometer crude oil pipeline project costing 4.8 billion yuan, the PRD oil product pipeline project spanning 1,141 km with an investment of 2.54 billion yuan, and the Chuolu Natural Gas Pipeline project estimated at 13 billion yuan.
In the refining sector, numerous major installations are being built, including 10-million-ton atmospheric and vacuum units, 2.9-million-ton catalytic cracking units, and 3.2-million-ton wax oil hydrogenation facilities, among others. Projects such as the Qingdao 13-million-ton refining renovation, the Tianjin 1-million-ton ethylene integration, and the Yanshan Petrochemical 10-million-ton expansion are also contributing to the demand for pumping and valve systems.
Despite this potential, China's current development of new pump and valve technologies remains limited, with serious product convergence and low technological content. Zhang Yubao, Secretary-General of the China General Machinery Industry Association, pointed out that critical valves used in nuclear power plants, large refineries, and major infrastructure projects are largely imported, indicating a gap in high-end manufacturing capabilities.
Ye Jixuan, president of the Zhejiang Yongjia County Pump Valve Industry Association and chairman of Xuan Da Industrial Group, emphasized that with nearly 1,000 pump and valve companies in Yongjia, the industry struggles to grow without unification and group formation. He urged the sector to avoid low-level duplication and price wars, advocating for focused specialization, orderly competition, and the pursuit of alliances and large groups to reach international standards and compete globally.