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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 the accompanying Technology Innovation Report that the pump and valve industry is set to benefit significantly from the expansion of China's petrochemical, power, and national infrastructure sectors in the coming years. Over the next two years alone, Sinopec has allocated over 700 billion yuan for investments in oil fields, refining, and chemical industries, which is expected to generate nearly 7 billion yuan in market demand for pumps and valves.
This growing demand is pushing pump and valve companies to move away from fragmented operations toward strategic alliances and group formations, aiming for technical collaboration and eventual consolidation into large-scale enterprises. According to industry estimates, during the construction of refineries, ethylene plants, and other petrochemical facilities, piping investment accounts for 15% to 20% of total project costs, while pump and valve investments typically make up about 50% of the piping budget.
With the ongoing development of several large-scale projects—such as 10-million-ton oil refining units, million-ton ethylene plants, and coal-to-oil and coal-to-olefins projects—the demand for ultra-large valves is on the rise. Xu Dan, deputy head of the piping design center at Sinopec Group, highlighted several major projects currently in planning or under construction, including the Puguang Gas Field and Tahe Oilfield Project with an investment of 1.823 billion yuan, a 4.8 billion yuan crude oil pipeline project spanning 979 kilometers, and a 2.54 billion yuan PRD oil product pipeline project covering 1,141 kilometers. Additionally, the Chuolu Natural Gas Pipeline Engineering is expected to require an investment of around 13 billion yuan.
In the refining sector, multiple large-scale installations are being constructed, such as 10-million-ton atmospheric and vacuum units, 2.9-million-ton catalytic cracking units, and 3.2-million-ton wax oil hydrogenation units, among others. Projects like the Qingdao 13-million-ton refinery renovation, the Tianjin 1-million-ton ethylene integration project, and the Yanshan Petrochemical 10-million-ton expansion are also underway. These initiatives will support the development of ground metering stations, mixing stations, pipelines, and storage and transportation systems.
However, despite the growing market opportunities, China’s current development of new pump and valve products and technologies remains limited, with serious product homogenization and low technological content. Zhang Yubao, Secretary-General of the China General Machinery Industry Association, noted that key valves for nuclear power plants, large oil refineries, ethylene projects, coal-to-olefins, and critical infrastructure projects are still largely imported, indicating a significant gap compared to international standards.
Ye Jixuan, president of the Zhejiang Yongjia County Pump Valve Industry Association and chairman of Xuan Da Industrial Group Co., Ltd., emphasized that there are nearly 1,000 pump and valve companies in Yongjia County, but without collaboration or group formation, it is difficult for them to grow stronger. He urged the industry to avoid low-level duplication and price wars, instead focusing on specialization, division of labor, and orderly competition. The path forward, he suggested, lies in forming alliances, building groups, and aiming for international standards and markets.