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Chinese and foreign pump giants start "R&D battles"
The competition between domestic and international brand companies is no longer limited to market share—it has now expanded into the realm of research and development. After a year of preparation, Fujian Far East Electric Group has introduced new models, and on March 8, Fujian Far East Mechanical and Electrical Products R&D Co., Ltd. was officially established. Over the past two years, global pump giants such as Germany’s KSB, Vickers, Denmark’s Grundfos, the U.S.’s Flowserve, ITT Flygt, Japan’s Ebara, Mitsubishi, and Hitachi have all moved their R&D centers to China.
“This shift reflects that the battle for technological leadership between Chinese and foreign firms has entered an intense phase,†said a senior expert from the Shenyang Pump Research Institute in an interview on March 19. According to the head of Wiler Pumps China, “China is transitioning from a manufacturing powerhouse to a technological leader, and this must be taken seriously.â€
Wiler Pumps already has a large R&D team in China, with strong and targeted research conditions. In fact, multinational corporations have shifted their focus in China from expanding production capacity to product innovation. For example, Hitachi set up an R&D and production base in Wuxi, sending a high-ranking executive to lead operations. After establishing a wholly-owned subsidiary in China, KSB immediately began recruiting top local talent.
Meanwhile, local brands, once at a disadvantage in R&D, are now accelerating their efforts to catch up as their price advantage diminishes. At the opening ceremony of Fujian Far East’s R&D company, Chairman Chen Jianming revealed that the new entity will focus on the theoretical and practical applications of pumps, motors, and water supply systems. It will also attract top domestic talent and implement world-class R&D strategies to enhance the competitiveness of electromechanical products.
Over the next three to five years, the company aims to build a strong R&D team and achieve significant progress in independent innovation, energy efficiency, and environmental protection, ultimately becoming a top-tier R&D center in China. However, compared to multinational corporations, the R&D capabilities of local companies remain limited, and many R&D institutions fail to fulfill their roles effectively. Even the Shenyang Water Pump Research Institute, one of the earliest in the country, still has only dozens of researchers.
Qian Yichao, president of the China Drainage and Irrigation Machinery Industry Association, emphasized: “Technological development is a long-term process, closely tied to the market. The conversion of scientific achievements into real productivity requires time and careful planning. Alongside long-term goals, we need strong leadership and top talent to make R&D effective. We must improve product value and build strong brand recognition for the industry.â€
Industry analysts believe that before China joined the WTO, local companies relied on low prices and cheap labor, slowing the entry of foreign products. Now, with the end of the WTO transition period, the competition has become more direct, technologically driven, and aligned with national policies on energy conservation and environmental protection. Whoever adapts faster will win the next round of market battles.
In Fuan City, the motor pump industry cluster in Longdong District has grown significantly, with small and medium-sized pumps accounting for one-third of the national export volume. The establishment of Fujian Far East’s R&D company is expected to help adjust the regional industrial structure and drive broader technological advancement.
Fujian Far East Electric Group, which saw sales revenue exceed 200 million yuan in 2007, is now investing heavily in R&D. As market demands for high-end products rise, the company faces challenges due to its lack of core technology. “Many government procurement projects were lost because we lacked the necessary technology,†said Chen Jian, General Manager. “Winning such projects would elevate our status.â€
Chen Jianming stated that the R&D company is not just for internal use but aims to upgrade the entire electromechanical industry. Future efforts will focus on integrating industry, academia, and research to enhance core competitiveness. In addition to Far East, other major domestic pump companies like Tianjin Ganquan have also partnered with top universities to establish their own R&D centers.
“First-rate research requires first-rate talent,†said Chen Jianming, emphasizing the company’s plan to recruit and train top R&D professionals nationwide. This signals the start of a new competition for skilled workers, with demand for high-level R&D talent expected to reach tens of thousands in the coming years.