It is almost finished for the industry transfer of diamond tool around the world. The concentration ratio of domestic industry is low. At present, China and South Korea have been the manufacturing base of diamond tool in the world and the developed countries in Europe and America keep a small quantity of capacity. Taking America for example, Chinese products account for 40%-50% of its import volume, about 70%-80% plus that of South Korea. There’re a large number of small tools processing enterprises in stone manufacturing bases, which tend to produce several kinds of products because of the lower requirements of entry into market for the diamond tool and low concentration ration of domestic industry. And there is a big gap between the profitability and scale enterprises. As the upgrade of diamond tool category and return of rate of gross profit, there’s integration trend of industry.

Huge substitution space for the diamond tool: The diamond tool belongs to emerging industry, there’s huge space for it to replace traditional tools. Taking ceramic field for example, coarse grinding step of ceramic production has began to use diamond grinding tool since the year before last. A group of ceramic production line will use the diamond tool worth 2 million on average. At present, there’re still 2000 lines not to be upgraded completely around the country. It still used the traditional soft grinding tool in the step of accurate and fine grinding, because the scratch technology needed to be solved. In recent two years, diamond tool is used in grinding wall and ground, which is mature in foreign countries while the just start in China. Generally speaking, as the permeability improvement of present field and exploration of new application field, there’s huge growth space of market scale for the diamond tool.