How Liaocheng’s Refrigeration Valve Industry Went Global

dofun 24 Feb / 24

How Liaocheng's Refrigeration Valve Industry Went Global

On the morning of February 23, 2024, spring filled the air at the Jiaming Economic Development Zone in Dongchangfu District, with production workshops humming across enterprises. Workers at Shandong Dongfa Refrigeration Technology Co., Ltd. were methodically processing refrigeration valves destined for overseas markets. Meanwhile, the company’s international trade team was preparing materials for the upcoming RUBEZH EXPOCENTRE exhibition hall—the Russian HVAC & Refrigeration Exhibition set to open on February 27.

Dongfa Refrigeration specializes in producing system valves for large-scale cold storage facilities. As a Shandong Provincial Gazelle Enterprise and a leading exporter of refrigeration valves in Liaocheng, the company has achieved technological leadership in low-temperature alloy materials and multi-functional combination valves through sustained industry-university-research collaboration. Its products have gained significant market share in Russia, Italy, Spain, Egypt, Pakistan, Brazil, South Africa, and other countries.

In Dongfa’s workshop, valves of various specifications are neatly arranged—from miniature valves with a diameter of just 6 mm to 350-mm “giants.” What they have in common is their wear and corrosion resistance, which has driven a steady increase in overseas orders. Vice General Manager Dong Chao recalled that as early as 2016, when faced with a domestic price war, the company decided to focus on continuous quality improvement.

Time has proven their strategy right. Through collaboration with Liaocheng University and foundry partners, Dongfa has secured multiple invention and utility model patents for low-temperature alloy materials and multi-functional combination valves, and has participated in formulating national standards. “Our products are based on independent intellectual property. The company currently holds 10 invention patents and over 10 utility model patents. In 2024, we plan to apply for 20 additional design and utility model patents, with two new invention patents already under substantive examination,” said Wang Chao, Deputy General Manager of Operations. After years of quality-focused development, Dongfa’s products now compete with top international companies in terms of air tightness and low-temperature reliability, successfully opening global markets.

Exhibitions: A Key to Global Expansion

“Trade shows have been instrumental in taking Dongfa global,” Wang Chao noted. “This year, we will participate in eight international refrigeration exhibitions overseas to promote our products worldwide and establish ‘Made in Liaocheng’ as a global brand.”

At the 2023 Shanghai Refrigeration Exhibition, Dongfa debuted its latest innovation—a multi-function combination valve. This product integrates six modules, reduces welding requirements, simplifies installation, and allows functional changes by switching modules. Its versatile applications break the monopoly long held by imported brands. Through ongoing R&D, Dongfa has also improved the quality and service life of constant pressure valves while reducing costs, gradually achieving import substitution in this segment.

Over the past three years, Dongfa has significantly increased investment in international trade—both in personnel and funding. The company has obtained a series of international quality certifications, upgraded its products and quality systems in line with foreign standards and regulations, and secured EU CE certification as well as EAC certification for Russia, Belarus, and Kazakhstan. Wang Chao added that certified products are now shipped worldwide via Qingdao Port as part of the Maritime Silk Road initiative.

Innovation-Driven Growth

“As low-carbon principles gain traction, energy-saving and eco-friendly technologies will play a vital role in cold chain development. We will continue to increase R&D investment, uphold technological innovation, and provide higher-quality products to domestic and international markets,” Dong Chao emphasized. He also mentioned that the high-end automated refrigeration valve production project in the Jiaming Economic Development Zone is advancing rapidly and will usher in a new growth phase upon completion.

Supporting enterprise innovation, exports, and the cultivation of “Little Giant,” single champion, gazelle, and specialized SMEs has been a recent priority for the Jiaming Economic Development Zone. Wang Wenli, Head of the Zone’s Economic Development Department, reported that three companies—Liaocheng Taitong Precision Machinery Technology, Shandong Dongfa Refrigeration Technology, and Xinpengyuan (Liaocheng) Intelligent Technology—were recognized as 2023 Shandong Gazelle Enterprises. To date, the zone hosts one national-level “Little Giant,” four national champion firms, five provincial gazelle enterprises, and 25 provincial/municipal specialized SMEs, laying a solid foundation for building a high-end equipment manufacturing hub.

“We have invested nearly 900 million yuan in the Tiexi area of the Jiaming Economic Development Zone to construct a high-end automated refrigeration valve production facility. The project spans more than 150 acres and will provide new momentum for the company’s future growth. In 2024, the zone will fully support enterprises in expanding R&D and production capacity,” Wang Wenli stated.

Editor’s Note: Enabling “Worry-Free Global Expansion”

As China continues to deepen its opening-up, Liaocheng’s companies are accelerating their global outreach. Shandong Dongfa Refrigeration Technology has strengthened its product quality and technological sophistication while expanding international trade efforts. By studying foreign standards, understanding overseas demand, and participating in global exhibitions, the company has secured substantial international orders, boosting both profitability and competitiveness. Its proactive approach to global challenges offers a valuable model for others.

Many local enterprises face saturated domestic markets, insufficient orders, and weak profitability, making international expansion increasingly urgent. While focusing on R&D and production, Liaocheng’s manufacturers should also actively explore global opportunities—participating in international exhibitions, engaging closely with overseas markets, and securing broader growth space for the year ahead. Relevant government departments should enhance supportive services, address talent shortages in international operations, improve sales channels, mitigate forex volatility risks, and reduce cross-border logistics costs to help companies expand globally with confidence.

Designated as the “Year of Gathering Strength for Breakthroughs,” 2024 will see Liaocheng implement “12 Enhancement Initiatives” aimed at overcoming bottlenecks to high-quality development. It is expected that more local companies will soon venture abroad, making “Made in Liaocheng” increasingly visible on the world stage.

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