by UK in Italy

Frbiz.com Reports Under The Financial Crisis, The Prospects For The Domestic Valve Industry

  Valve business as a parts supplier, its fate with the real estate, construction, industry, the solidarity of the project and other industries. The global financial crisis, ferocious, industry penetration between the extraordinary and the obvious negative effect on performance.

1, a negative effect on the financial crisis

Funding strand breaks into the hidden fuse

It is learned that this year, the stainless steel industry has been unprecedented “cold”, is currently at least 7 percent of the local operators have chosen stainless steel cut-off or semi-cut-off state, year on year last month, the value has shrunk at least a 6 into. Take stainless steel, one of the main materials, nickel plate, last year, its price is still 420 thousand yuan per ton, while the year has dropped to 70,000 yuan, stainless steel, the finished product market demand and prices at the same time there has been a significant decline. BAO Cun-lin had last year’s high prices to buy a lot of nickel plate, stainless steel this year, product selling prices low, sales of smaller cases, is bound to heavy losses, the funds were not promptly withdrawn from circulation. BAO Cun-lin operating factories in Jiangsu Hennessy to Special Steel Co., Ltd. covers an area the size from the original 10 acres to 30 acres, until now, 300 acres, the scale expanding front longer and longer, capital I is also growing. Cun-lin for the financing package has several hundred million dollars to the major bank loans, loan repayment has become their heavy burden, especially in this year’s financial turmoil, stainless steel Quotes overall downturn, saw the advent of repayment date, the situation is not good. Allegedly BAO Cun-lin has the appropriate authority for bankruptcy, but not approved.

A significant decline in market demand, the situation

Metallurgical industry, the “blast furnace” and “coke ovens” is the iron and steel, coking enterprises core equipment, once the ignition can not be easily stopped running, otherwise the furnace in serious jeopardy. The so-called “stuffy furnace” was in fact significantly reduce production of these enterprises in the last resort in a way that makes the stove in a warm state, to minimize costs, wait for the market warmed up. In the international financial crisis, and as the market’s sharp decline, China’s iron and steel, coke, textile and garments, and so a number of enterprises are now in cut-off, semi cut-off state. Although the production and business in trouble, but they are adhering to wait for the market recovery. Economic circles vividly calling them “boring furnace phenomenon.” The advent of the financial crisis is for, such as steel, construction and its upstream and downstream industry is undoubtedly worse. Limited financial resources, the demand dropped, upstream function properly, the downstream precarious precarious, some industry overcapacity, highlight the shortcomings of blind investment, forming a dilemma situation.

The negative effects of the financial crisis, to a certain extent slow down the pace of development of enterprises has become obstructed the development of enterprises to a large “cold,” its adverse effects, and we forget. Still, companies need to address the effectiveness of the financial crisis, in order to achieve their own development, but also see its positive side, in order to survive, and development side. In sum, the financial crisis brought us an unexpected warning.

Second, an active role in financial crisis

Order to reduce enterprise “survival of the fittest”

Not long ago, industry associations in Wenzhou fastener enterprises within the industry, a survey found that three years ago, also has more than 3,000 enterprises fastener industry and there are now only 2,000. Has been low, small, scattered Wenzhou fastener industry, an important feature of. Large proportion of houses rented cottage type enterprises for production, a little market share through price competition. However, in recent years, due to rising raw material prices the way, making the cost small businesses can not afford to raise the weight at the same time, with the expanding city of Wenzhou, more and more houses demolition, these small enterprises have lost production sites. The advent of the financial crisis played a role in fueling, thus “disappeared” for nearly 1,000 small businesses, most of them have been integrated into large-scale enterprises in the. Wenzhou fastener industry, efficiency and image of the much better than before. The reason is cottage-style small business reduced, and shoddy products less, dumping of products are declining.

Compaction policies to the letter

“The current plight of showing some industries, but also reflects the macro-control policy of the previous years have not been effective implementation of the problem. In order to iron and steel industry as an example, Jiangsu railway projects, while in 2004 the company was turned off, but then there are More ‘small iron of the’ company built up. “Hubei Province, who is familiar with the development of leading cadres in the steel industry so that” Among these lessons, it is worth a good reflection. If the macro-control policies have been effectively implemented, the steel industry now come to be is much better. “financial crisis, the arrival of a huge industry on the one hand to see it impact the other hand, saw some shortcomings of the enterprise itself, while the internal structure of the shortcomings of the industry are also exposed. In a market economy system, the macro-policy interventions become necessary.

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