Business Articles - Water treatment industry intense competition
- Date: 2010-08-12 - Word Count: 899
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Prospects in the market for water treatment industry, due to technical threshold low, a large number of SMEs have been involved in a price war whirlpool, the industry source said could do 10 percent profit margin has been hard to come by, including Veolia, including foreign investment giants have difficulty in water treatment market, "a dominant."
After attending "The Second China Suzhou Energy-saving environmental protection products and technology exhibition", the Shanghai Water Conservation Foundation, the Secretary-General Liang Ping, a group of figures, Shanghai, Suzhou River comprehensive treatment project, a total invested more than 3 before and after the 10.0 billion while the other one the outskirts of Shanghai, "10000 River Action" total invested funds are more than 6 billion yuan.
Shanghai sewage treatment capacity has increased annually at the same time, as compared with the actual demand, there are still no small gap. "2007 Shanghai Communique of water resources," revealed that: in 2007 total volume of urban sewage in Shanghai 2.252 billion cubic meters, up 1.6%, equivalent to average daily volume of urban sewage 6.1698 million cubic meters. 2007 Shanghai urban sewage treatment plant sewage treatment capacity of 4.5108 million cubic meters / day, an increase of 212.8 thousand cubic meters / day, the city's urban sewage treatment rate of 73.1%. Liang-ping said that the rest of the urban water also is not optimistic.
The market has always been a sensitive sense of smell, Wenzhou, the capital of the treatment, including energy-saving environmental protection industry to show growing interest. Wenzhou Chamber of Commerce, vice president of Shanghai Federation of Industry QIU Xue-Fan said: "The Wenzhou Chamber of Commerce has been organized Wenzhou enterprises to participate in two consecutive years, visits to water treatment projects, including energy-saving environmental protection, including exhibition, to explore the market opportunities which may hide, but the water treatment industry, the current profitability is not ideal. "
Attracted by the water treatment market prospects, the domestic appeared a large number of small and medium sized water treatment business. Yang, general manager of Suzhou Hi-tech Co., Ltd. Changzhi purification told "First Financial Daily", only one in Suzhou, the water treatment business for more than the number of about 100. While another industry is estimated that the total number of water treatment companies around 10000. Yang Changzhi said that in Suzhou, the market size of more than 100 million water treatment company very little, usually less than 10 million small and medium enterprises, aimed mostly only a few hundred thousand or one million to 200 million water treatment project.
The emergence of a large number of water companies, so that the price war intensified, profitability levels significantly decreased. Yang Changzhi said that now water treatment industry is a market fully competitive industry, a project to do down, if we can achieve 10% net profit is already quite good, and the same project, if a bit for large-scale enterprises, profit margins may be has not yet reached 10%. Beijing Union University, the Hai Yu Zhen Wang Yazhen head of Water Treatment Technology Co., Ltd., said: "In order to attract customers, and sometimes some of the projects is still at a loss to do so. In general, the normal water treatment operations should be about 30% profit margins."
Water treatment technology maturing, technology is a treatment to reduce the threshold of one of the main competitive SMEs. Yang Changzhi presentations, 80 years of the last century such as reverse osmosis water treatment technologies were introduced to the country, to the mid to late 90s, reverse osmosis technology to mature a large number of domestic enterprises to adopt. Water treatment equipment, especially pure water preparation equipment, technology, content is not particularly high, needs parts, components and so on to achieve standardization, in order to commence treatment to provide the conditions for the large number of enterprises. In the less demanding preparation of industrial pure water, the industry said that in the fierce competition, even if the water giant Veolia, etc. can not control the entire market.
However, in technical higher and require more complex high-end water treatment projects, foreign companies still account for dominance. Yang Changzhi said that, like biological agents, pharmaceutical intermediates, separation, the water demand is particularly high, these projects often by Veolia, GE, Dow Chemical and other foreign giants contract down. Domestic firms can only After the completion of the project to do some system maintenance work.
Some of the key water treatment equipment and technology controlled by the hands of foreign companies. U.S. Pentair produce high-end water purification equipment, marketing staff of the Center in Suzhou, told reporters that a set of water-purification equipment worth about 6,000 yuan, of which about one third of the valve head, the world's only Pentair in the within two or three companies can produce, accounting for about 70% international market share, so do not worry about competition from Chinese companies.
Ya-Zhen Wang believes that water treatment to restore normal market order, and to avoid price war, in addition to the cheap enterprises to overcome the psychological, but also need to increase the functional departments of the State water quality enterprises and high-quality technology, the promotion efforts. Changzhi Yang admits that domestic enterprises have accumulated on its own financial and technical strength, it will be difficult with foreign water companies will compete.
After attending "The Second China Suzhou Energy-saving environmental protection products and technology exhibition", the Shanghai Water Conservation Foundation, the Secretary-General Liang Ping, a group of figures, Shanghai, Suzhou River comprehensive treatment project, a total invested more than 3 before and after the 10.0 billion while the other one the outskirts of Shanghai, "10000 River Action" total invested funds are more than 6 billion yuan.
Shanghai sewage treatment capacity has increased annually at the same time, as compared with the actual demand, there are still no small gap. "2007 Shanghai Communique of water resources," revealed that: in 2007 total volume of urban sewage in Shanghai 2.252 billion cubic meters, up 1.6%, equivalent to average daily volume of urban sewage 6.1698 million cubic meters. 2007 Shanghai urban sewage treatment plant sewage treatment capacity of 4.5108 million cubic meters / day, an increase of 212.8 thousand cubic meters / day, the city's urban sewage treatment rate of 73.1%. Liang-ping said that the rest of the urban water also is not optimistic.
The market has always been a sensitive sense of smell, Wenzhou, the capital of the treatment, including energy-saving environmental protection industry to show growing interest. Wenzhou Chamber of Commerce, vice president of Shanghai Federation of Industry QIU Xue-Fan said: "The Wenzhou Chamber of Commerce has been organized Wenzhou enterprises to participate in two consecutive years, visits to water treatment projects, including energy-saving environmental protection, including exhibition, to explore the market opportunities which may hide, but the water treatment industry, the current profitability is not ideal. "
Attracted by the water treatment market prospects, the domestic appeared a large number of small and medium sized water treatment business. Yang, general manager of Suzhou Hi-tech Co., Ltd. Changzhi purification told "First Financial Daily", only one in Suzhou, the water treatment business for more than the number of about 100. While another industry is estimated that the total number of water treatment companies around 10000. Yang Changzhi said that in Suzhou, the market size of more than 100 million water treatment company very little, usually less than 10 million small and medium enterprises, aimed mostly only a few hundred thousand or one million to 200 million water treatment project.
The emergence of a large number of water companies, so that the price war intensified, profitability levels significantly decreased. Yang Changzhi said that now water treatment industry is a market fully competitive industry, a project to do down, if we can achieve 10% net profit is already quite good, and the same project, if a bit for large-scale enterprises, profit margins may be has not yet reached 10%. Beijing Union University, the Hai Yu Zhen Wang Yazhen head of Water Treatment Technology Co., Ltd., said: "In order to attract customers, and sometimes some of the projects is still at a loss to do so. In general, the normal water treatment operations should be about 30% profit margins."
Water treatment technology maturing, technology is a treatment to reduce the threshold of one of the main competitive SMEs. Yang Changzhi presentations, 80 years of the last century such as reverse osmosis water treatment technologies were introduced to the country, to the mid to late 90s, reverse osmosis technology to mature a large number of domestic enterprises to adopt. Water treatment equipment, especially pure water preparation equipment, technology, content is not particularly high, needs parts, components and so on to achieve standardization, in order to commence treatment to provide the conditions for the large number of enterprises. In the less demanding preparation of industrial pure water, the industry said that in the fierce competition, even if the water giant Veolia, etc. can not control the entire market.
However, in technical higher and require more complex high-end water treatment projects, foreign companies still account for dominance. Yang Changzhi said that, like biological agents, pharmaceutical intermediates, separation, the water demand is particularly high, these projects often by Veolia, GE, Dow Chemical and other foreign giants contract down. Domestic firms can only After the completion of the project to do some system maintenance work.
Some of the key water treatment equipment and technology controlled by the hands of foreign companies. U.S. Pentair produce high-end water purification equipment, marketing staff of the Center in Suzhou, told reporters that a set of water-purification equipment worth about 6,000 yuan, of which about one third of the valve head, the world's only Pentair in the within two or three companies can produce, accounting for about 70% international market share, so do not worry about competition from Chinese companies.
Ya-Zhen Wang believes that water treatment to restore normal market order, and to avoid price war, in addition to the cheap enterprises to overcome the psychological, but also need to increase the functional departments of the State water quality enterprises and high-quality technology, the promotion efforts. Changzhi Yang admits that domestic enterprises have accumulated on its own financial and technical strength, it will be difficult with foreign water companies will compete.
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