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Fuzhou major sourcing hub for power generators

Makers project exports will remain on the upswing in the months ahead.

Fuzhou continues to strengthen its position as a major China sourcing hub for power generators. Trailing only the city of Ningde as the largest supply center in Fujian for the line, the area accounts for 30 percent of the province’s output and exports. Fujian itself is a locus of R&D and manufacture for the sector, representing 30 percent of the nation’s production and overseas shipments.

Power generator makers in Fuzhou, which contribute 10 percent to China’s total yield and international deliveries, leverage the city’s 20 years of experience in the segment to grow their business. There are currently more than 150 companies, equivalent to 10 to 15 percent of the country’s aggregate supplier population. About 30 percent of the businesses are local midsize and large operations, and joint ventures. Many expect the manufacturing base to continue expanding in future, a trend that will boost the overall competitiveness of the city’s industrial sector.

Besides finished products, most makers offer a wide range of generator components such as alternators, pumps, mobile light towers, motors, buttons and LCD screens. Enterprises cooperate with international power generators or core component providers, including Honda, Yamaha, Cummins, Perkins, Leroy Somer and Stamford, to improve their technologies. They likewise take advantage of major JVs such as Honda Mindong Generator and Jiaxin-Soqi Power, a subsidiary of Yamaha and Fuzhou Jiaxin. These JVs have helped bolster technical know-how and R&D in Fuzhou.

The key local players include Fuzhou GFF Keypower Equipment Co. Ltd, Fuzhou Fufa, Fujian Minghui and Fujian Everstrong. They generally have strong R&D capability, with in-house product development teams comprising at least 30 personnel.

Besides improving quality, makers in Fuzhou offer lower prices than their counterparts in other local sourcing centers such as Zhejiang, Jiangsu and Sichuan provinces. Fuzhou manufacturers likewise continue to enhance QA and aftersales service. Fuzhou APT Power Co. Ltd, for instance, provides remote technical control service. Fuzhou GFF Keypower uses imported components to ensure reliable performance. Many companies plan to expand service offerings to include technical consultations on installation, testing and training of presales personnel, and tracking and maintenance service for aftersales.

Suppliers are riding on growing overseas demand to boost exports and project at least 5 percent increase in shipments this year. Most enterprises have bolstered their export ratios in anticipation of an upswing. Fujian Tico Power Equipment Co. Ltd and Fuzhou APT allot 90 percent of output to international shipments. They project shipment volume will climb as much as 20 percent in coming months. Fuzhou GFF Keypower, which sends 95 percent of yield abroad, sees a 50 percent rise in foreign sales.

Southeast Asia, the Middle East, South America and Africa are the major markets.

Despite the overall positive outlook, makers admit being anxious about rising costs and the appreciation of the yuan. Many companies anticipate labor outlay to increase another 10 percent. To cushionthe impact on margins, enterprises are looking to integrate production lines to reduce spending.

A growing number of suppliers are investing in value-added models to bolster competitiveness. Some are collaborating with international players under efforts to build their own brands.

Broadening product selection
With international brand makers such as Caterpillar, Mitsubishi and Perkins dominating the high end, Fuzhou manufacturers concentrate mainly on entry-level and midrange power generators. They, however, offer different types, including diesel, gasoline, portable, towable, industrial, wind and solar varieties.

The first five categories continue to be the top sellers. Diesel versions, in particular, remain popular because of their higher efficiency and power output, better reliability and low maintenance. This product type accounts for 95 percent of output in Fuzhou GFF Keypower, and 80 and 60 percent in Fuzhou APT and Fujian Tico, respectively.

Fuzhou makers will concentrate R&D efforts on diesel water-cooling power generators. Many are working on units with lighting, light tower and ultrasilent attributes,

Fujian Tico, which plans to develop five to 10 new models every year, emphasizes lighting and light tower in addition to durable housing design. The annual two or three new products from Fuzhou APT will underscore lighting and automatic fire extinguishing system. Fuzhou GFF Keypower, meanwhile, will launch five to 10 new variants with ultrasilent and load bank features.

Many companies will likewise reduce noise levels further. Fuzhou APT and Fuzhou GFF Keypower are using better anechoic coating to reach 65 to 68dBA and 56dBA, respectively.

Entry-level power generators from Fuzhou use domestically sourced gasoline or diesel air-cooling engines. Some engines adopt water-cooling technology. The products utilize local alternators and deliver less than 15kW power output and 75 to 80dBA noise level. They come in cold-rolled steel housings and list under $2,000 each.

Midrange models may have local or imported diesel water-cooling engines but domestically procured local alternators. Units support 15 to 120kW power output, 65 to 75dBA noise level, low-oil and overvoltage protection and security alarm. They use soundproof cold-rolled steel housing. Prices range from $2,000 to $9,500.

Upscale releases exceeding $10,000 rely on imported diesel water-cooling engines and alternators. They deliver more than 150kW power output and 55 to 70dBA noise level. Besides features found in intermediate products, these ultrasilent models have lighting and light tower functions. The casing may be cold-rolled steel or aluminum alloy.

Most Fuzhou makers expect prices to rise by 5 percent in coming months due to climbing labor costs and the yuan’s appreciation.

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Note: This article "Fuzhou major sourcing hub for power generators" was originally published by Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through e-magazines and trade shows.

All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates' respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.

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