One Of The Largest Populations On Earth Is Currently Using One Of The Most Inferior Materials Ever Produced For Almost All Of Its Pipelines And That’s About To Change…
“Discover Why This Company Has Been Trusted With Some Of China’s Biggest National Landmark Construction Efforts…Supplying Nearly 2,000 Different Projects”
ZK International Group Co., Ltd.
Latest Company News – January 10, 2018
This Trend Is Only Going To Help ZKIN Continue Its Significant Growth
Despite plastic’s potential health risks, high cost of maintenance and short useful life, it’s by far the most common material used for plumbing pipe in China.
It’s anticipated that the adoption of modern stainless steel piping in China will significantly increase over the next five years with ZKIN being one of the leading providers.
Modern-day countries such as Germany and Japan have 80 to 90% of their water pipe networks in stainless steel while China only has 3%.
Due to this fact, we anticipate serious growth in the market for years to come.
Pipelines: A High Growth Industry In Developing Countries
China is home to 20% of the global population yet only has 7% of the world’s freshwater resources, and roughly 250 million people (more than the total U.S. urban population) are expected to move into cities — some of which have not been built yet — within just the next 10-20 years.
This will bring total urban population to approximately 900 million people, or roughly 13% of the world’s population.
In less than ten years, China will have almost one quarter of the world’s 400 largest cities.
In addition to supporting urban growth, China will need to provide water for 400 million rural residents and meet the tremendous demands from agriculture, energy, and manufacturing sectors.
The seismic shift in population is having a significant impact on China’s urban infrastructure.
61.5% of ground water and 28.8% of key rivers are classified as unfit for human contact.
Over 20% of water supply is so polluted that it cannot be used for industrial or agricultural use — much less for human consumption (a factor that, combined with air pollution, causes an estimated 6% reduction in annual GDP, according to the World Bank).
The Chinese Government has recognized this and has set aside $610 billion, to spend on water infrastructure between 2011 – 2030.
In fact, one of the world’s most costly capital projects is the $68 billion North to South Water Diversion Project, which will link China’s four main rivers via more than 1,800 miles of pipeline, and divert water from the south of China to population centers in the north.
A Growing Need For Natural Gas
Considering the massive latent demand potential, China’s growing inability to meet its own gas needs is one of the most important developments in any energy market.
China has over 4x the population of the U.S., but consumes just 25% of the natural gas. As regional markets become more integrated, the entire globalizing gas market will quake as China becomes more developed and starts to consume gas like the West
Gas is China’s fastest growing major fuel, with demand quadrupling in the past decade.
Gas is now about 6-7% of China’s energy demand, double the market share in 2007 (China government seeks gas to be 10% of energy by 2020).
Cleaner, more efficient natural gas use is integral to China’s 5-year plan (The 13th Five-Year Plan 2016-2020) which calls for the replacement of coal in non-power sectors either with natural gas and/or electricity.
This is a very realistic and important evolution in China’s energy demand structure because power generation, which is the desired and highest form of coal use, only accounts for 55% of China’s coal use, compared to 95% in the U.S. today.
China’s coal use is eroding air quality and making fuel switching from coal to natural gas more urgent but also easier.
Major Advantages of Using Stainless Steel Pipe
In developed countries, stainless steel has been widely accepted as the best material for drinking water piping.
In Germany and Japan, 80%-90% of water pipe networks are stainless steel, while in China it is only 3%.
Stainless steel has consistently delivered significant performance over other materials in various applications.
Stainless steel is 1.5X stronger than PVC, 2-3x stronger than copper, and 8-10X stronger than PPR.
Typically, stainless steel can deliver 70+ years of service life vs. 10-20 years from alternative materials.
Lower Water Resistance
Compared to carbon and copper piping, stainless steel has 40% less water resistance.
This reduces scaling and deposits on the inner pipe wall which improves overall quality and can reduce electricity consumption by pump stations by as much as 50% provided all downstream pipes are stainless steel as well.
Lower Leakage Rate
Benefitting from its higher strength and better anti-corrosion features, stainless steel pipes and fittings have extremely low leakage rates.
In Tokyo, the usage of stainless steel decreased leakage from 20% in 1956 to 3% in 2010.
Stainless steel is 100% recyclable while plastic pipe can only be disposed of in landfills or incinerated, which both create risk for environmental pollution.
Solving China’s Pipeline Challenges
ZK International Group Co., Ltd. (NASDAQ:ZKIN) is the leading Chinese manufacturer and designer of high-performance stainless steel piping and fittings for the water and gas distribution sector.
ZKIN provides systemic solutions to construction projects that require sophisticated piping systems predominantly in China.
Their project teams work closely with urban planners and real estate developers designing and implementing sophisticated pipe and fitting solutions as well as providing engineering expertise.
ZKIN helps bring communities reliable and durable gas and water transmission systems.
What Differentiates ZKIN From Its Competitors
ZKIN plans to use its competitive advantages to increase its market share in the pipe and fitting manufacturing industry.
With its unique sales, supply chain, product, engineering, and quality control capabilities, ZKIN can deliver high quality solutions that meet client requirements with margins that can drive the business forward.
Extensive Sales Network
27 regional offices and 80 sales representatives in major urban hubs in China
Integrated Supply Chain
Production lines and machinery that can achieve higher margins and ensure superior quality and consistency
Solution-Oriented Products and Services
Intimately engage in client projects to understand project requirements and quickly manufacture high quality products
Technical and Engineering Capability
Technical teams regularly consult and develop solutions that best meet client objectives along with close collaboration with construction teams to deliver the best end product
Rigorous Quality Control Benchmarks
Quality control standards include ISO 9001:2008, DVGW, ISO14001:2004, Global Manufacturer Certificate (GMC), and German DVGW
ZKIN Stainless Steel Pipe and Fitting Products
ZKIN’s products consist of cold-rolled stainless steel strips, regular carbon and stainless steel pipe, light gauge stainless steel pipe, and connections and fittings
Specifications for piping is customized based on the design of client’s piping system architecture.
End users are provided environmentally-friendly and safe water and gas pipeline networks.
Specialty Steel Strips
- Cold-rolled stainless steel strips for sale and for internal use in the production of pipes
- Ability to produce stainless steel strips in-house allows ZKIN greater control over the quality and consistency of pipe and fitting products
- High-quality carbon steel and stainless steel pipes primarily used in water and gas transmission systems
- Carbon steel pipes are generally stronger than stainless steel, and therefore are typically used in applications that require high-pressure resistance
- Compared to carbon, stainless steel pipes are more corrosion resistant
Light Gauge Stainless Steel Pipes (LGSSP)
- LGSSP has 40% thinner walls than regular stainless steel pipes
- Without compromising safety performance, thinner pipe wall leads to a reduced manufacturing cost and weight and enhances installation flexibility due to smaller size
- LGSSP is an affordable option for household plumbing systems that require easy installation
Pipe Connections and Fittings
- High-quality pipe connections and fittings that are used to connect pipes
- Pipe fittings have wide applications for any piping and plumbing system in both industrial and commercial applications
ZKIN Valued-Added Services
In addition to creating pipe and fitting products, ZKIN also provides clients with value-added services to maximize the effectiveness of their solutions.
- ZKIN offers clients engineering experience on pipe design and construction that has been developed from projects throughout the past decade
- Engineers gain a clear understanding of clients’ projects and are prepared to solve any problem
- Pipe products are specifically customized to fit a client’s project
- Pipeline blueprints are reviewed in detail and suggestions provided on materials and specifications
- Representatives are assigned to construction sites to teach on-site client workers best practices on how to most effectively install ZKIN products
- Goal is to improve client’s installation efficiency and quality and set best practice standards for the industry
- Various on-site testing techniques are provided to ensure installation quality
- Designated to establish the National Stainless Steel Connection Research Lab by National Water Supply and Drainage Association (NWSDA) and qualified to conduct all tests under National Pipe & Fitting Standard
ZKIN’s Management Team
Chairman of the Board, Chief Executive Officer, and President
Mr. Huang has extensive experience in the manufacturing industry and has held president positions in two companies before joining ZKIN.
Hs has been appointed as the Vice Director of the China Construction and Building Standard and Safety Committee and is also a member of the National Pipe Standard Committee and National Building Water Supply and Waste Standard Committee.
He earned his EMBA from Renmin University of China along with a designation of Professional Engineer, and he was recognized as one of the Top 10 Wenzhou Entrepreneurship Award Winners.
Mr. Wang worked as General Manager in Ball Star Bearing Group and Shandong Hengdian Group before he joined ZKIN.
He brings extensive executive experience to his role in ZKIN as Vice President and oversees the company’s overall strategy execution and administration. He graduated from Nanjing University with an MBA degree.
Co-Founder and General Manager, Board Director
Mr. Wang held various positions in research and management since before co-founding ZKIN.
He has extensive experience in the manufacturing industry and holds an EMBA from Renmin University of China.
He is also a member of National Building Water Supply and Waste Standard Committee.
Co-Founder and Deputy General Manager
Mr. Wang held various positions in sales and marketing before co-founding ZKIN.
With rich experience in marketing and negotiations, and an extensive network with water/gas supply companies, he provides marketing leadership for the company.
He earned his EMBA from Renmin University of China and a designation of Professional Engineer.
Mr. Liu worked previously at Shenyang Jinde Pipe Group and Fujian Jinchang Plastic Ltd as a marketing manager before he joined ZKIN in 2007.
He has 16 years experience in metal pipe marketing management and has great relationships with water and gas suppliers and real estate development companies.
He earned his Bachelor degree and a designation of Professional Engineer.
Mr. Yu is an engineering expert and enthusiast.
He has directed significant R&D projects and drafted the industry standard for Press-type Carbon Steel Pipe & Fittings as requested by the National Department of Housing Construction.
He was awarded the Municipal Working Model by Wenzhou Municipality and the Provincial Working Model by Zhejiang Provincial Government.
A History of High Profile Projects
ZKIN has been responsible for supplying some of the largest national landmark construction projects in China including buildings featured in the 2008 Beijing Olympics.
China Pavilion of Shanghai Expo
National Swimming Center "Water Cube"
National Sports Stadium "Bird's Nest"
Beijing International Airport
ZKIN has successfully supplied over 2,000 projects across various industries including hotels, hospitals, schools, airports, commercial and government buildings, and stadiums.
Recent ZKIN Company News
Why We’re Watching ZKIN Closely
ZKIN is well-positioned for increased growth as it continues to deploy pipe and fitting systems in China’s construction boom.
As more developers better understand the use of stainless steel in their projects, ZKIN will continue to have a growing opportunity.
Not only can ZKIN manufacture high quality products, it also the capabilities to deploy services to ensure the products are implemented using the highest possible standards.
As always, trade smart and do your own research before making any investment decision.
This corporate profile is a paid advertisement and is provided for information purposes only; it should not be used as the basis for any investment decision. As of September 1, 2017, Essex Business Services, LLC has received compensation of fifteen thousand dollars from ZK International Group Co., Ltd. and expects to receive fifty-five thousand dollars monthly from ZK International Group Co., Ltd. for the next twelve months for the preparation, publication, and management of this corporate profile as well as other marketing and investor relations services. Essex Business Services, LLC and its principals currently hold no shares in ZKIN, but may buy or sell such shares at any time without notice. This compensation and position constitute a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. The information contained in this corporate profile is not an offer to buy or sell securities. We distribute opinions, comments, and information free of charge to any individuals who wish to receive them. However, this information is not provided to any particular individual with a view toward their individual circumstances. This corporate profile has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in this corporate profile. Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing. Information contained in this corporate profile may contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports and other documents filed with the SEC (https://www.sec.gov/edgar.shtml) or Nasdaq Stock Market (http://www.nasdaq.com). We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in this corporate profile, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC (http://www.sec.gov) and the Financial Industry Regulatory Authority ("FINRA”) (http://www.finra.org).