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Withstood The Test Cost Of Gas Prices With A Giant, Self

In the upstream raw material prices continued to go up

, the machinery to follow the trend of soaring, far-right marketing; but knowing that beyond the cost of tolerance, remains low, it is the extreme left marketing.

Before, leading enterprises in China with a million and Gas Group, announced on its flagship product

Gas Water Heater For price adjustment, the average increase of 5%% -10%%. Million and the Group Executive President Yeyuan Zhang claimed that: "In the current situation of rising raw material prices, the gas prices with no longer, they are violating the laws of the market, and even the attitude of consumers is not responsible."

Manufacturers the cost of the test stand


Year (2006), the precious metal prices soaring, record highs.

Copper Price over 8000 U.S. dollars mark, an increase of 83%%, aluminum prices rose to the highest in 18 years, although the recent price drop, but still remained at high prices; steel also rose 30%% -50%%. Steel and copper prices rose and base material of copper, steel, aluminum gas appliance industry implications, miserable. With gas water heater, for example, its shell all steel, and

Water tank , Body, Nozzle And the inlet valve and other parts are mainly copper, the steel, copper materials, water heaters, the total material cost accounts for 80%% of the cost. Meanwhile, the current

Stainless steel Panel Best-selling gas stove, the panel materials are all stainless steel structure, coupled with gas stove sub firearms, brass and other major components are manufactured with copper, steel, copper and material costs accounted for the total cost of materials, gas stoves, 90 %% or more. Now gas with very low profit margins, many products the edge in fact at a loss. Soaring prices of raw materials into the fuse enterprise funds tight, gas with the prices reasonable, if not, expect the entire industry will be severely affected, a number of small and medium businesses can not afford to stop production or switch.


It is reported that gas appliance industry, the mainstream manufacturers have already tried several ways, clenching withstand the pressure of rising raw material. Million and will take three measures: first, to ensure the production scale of enterprises. Size is to reduce the unit cost of the basic guarantee. Raw material prices soaring, many companies break the price of their bottom line, therefore Recently many enterprises had to stop production to watch, but with the market demand for gas has not been so reduced. To meet consumer demand, million, and operating at full capacity, to expand production capacity. Million and gas production capacity in the country with the biggest of this already, in the case of rising costs, increased capacity for bargain purchases, to 10,000, and the scale advantages become more pronounced. Second, the use of the advantages million and capital operation, to ensure sufficient gas resources with the main industry. Has, in addition to a main gas outside the million and the Group also operates in the capital into the financial, automotive parts industry, with a view to the main industry for the million and provide a strong backing. This time of rising raw materials, million and the capital advantage just come into play, and resolve financial stress for some time. 3, 10000, and in the management system, saving a great deal of reform, such as the implementation of paperless office, the implementation of all aspects of public procurement tenders, streamlining administration and so on. It is because of various means to reduce operating costs, which makes the million and self-

Digestion

Many of the raw material prices continued to rise the pressure, had been no increase in the sales price.

by: Frbiz
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