NEWS RELEASE                                   SEPTEMBER 2009

China will be the Largest Purchaser of Industrial Control Valves by 2012

By 2012 Chinese purchasers will be buying valves valued at $2.4 billion.  The Chinese market will be 10 percent larger than the U.S. market and nearly four times larger than Japan.  This is the conclusion in Industrial Valves: World Markets published by the McIlvaine Company www.mcilvainecompany.com.

Three of the top ten and six of the top twenty purchasers in 2012 will be Asian.

Top 20 Industrial Control Valve Markets ($ Millions)

Country                                  2012

China                                       2,443

United States                           2,229

Japan                                          651

Russia                                         514

Germany                                     495

Brazil                                          477

India                                           454

Canada                                       377

United Kingdom                          309

South Korea                               296

France                                        274

Mexico                                       253

Italy                                            252

Saudi Arabia                               241

Spain                                          172

Indonesia                                     170

Australia                                      161

Taiwan                                         156

Iran                                             154

Venezuela                                    131

The valve market in Asia has continued to expand during the recession while the market in Europe and the U.S. has contracted.  Several of the large publicly owned valve companies have small market shares in Asia.  This has led some analysts to under estimate the size of the world market.  The growth in sales by small Asian valve companies has more than offset the reduced sales at the big international companies.

The Asian market has benefited from the stimulus package instituted by China, especially the municipal water segment.  The power industry in Asia is another strong segment.

The total world valve market including butterfly, ball, gate, plug, and other valve types will rise to $54 billion in 2012.  Thousands of companies manufacture valves.  Tyco, the largest supplier, has 5 percent of the market.  Flowserve and Emerson each have less than 3 percent.  Only 55 companies have more than 1 percent market shares; so the market is very splintered.