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Power Wire

Cautiously optimistic about Electric Wire

Industry statistics show that in the coming years, China's wire and cable industry growth rate will be higher than the national economy, the pace of development is estimated to reach over 10%. In particular, the power wires and cables average annual growth of up to 15%.

According to various aspects of comprehensive information to determine that the next two years, the main transmission and distribution equipment sub-industry sales revenue, predict the next few years wire and cable sales revenue in 2008 to 353 billion yuan in 2009 to 398 billion yuan in 2010 413.6 billion yuan.

This cable company is undoubtedly a huge opportunity, however, in the face of intense domestic and international cable manufacturers to compete for the full of hope in 2008, Jiangsu five-party deputy general manager Zhang Xinhua Cable Co., Ltd., said the wire cable industry cautiously optimistic attitude. Optimistic: sustained and rapid development of wire and cable industry, In recent years, to speed up construction of power grids, special high voltage engineering have put the building to the wire and cable industry created a huge market. According to statistics, nearly 15 years, the industry average annual growth of more than 15%. Second only to the automotive industry in China has now become the second largest industry.

China holds an important position in the global counterparts. Wire and cable output value has exceeded the United States as the world's largest wire and cable producer. From the world pattern, Europe, Japan and the United States has long been of strategic mergers and acquisitions and restructuring. Products division reorganization, the target market re-positioning, the formation of large-scale or specialized production. Is characterized by a high degree of industrial concentration, the top ten companies accounted for total sales income of the country or regional markets for more than two-thirds.

A clear trend is that the world wire and cable manufacturing emphasis continues to shift to Asia, driven in China, Vietnam, the Philippines and the Middle East industry's rapid development. On the whole, the industry through a large number of technology introduction, digestion and absorption, as well as independent research and development, has become a huge production capacity.

Accompanying cable material, cable equipment manufacturing industry has also formed a more complete package system. The competitiveness of large enterprises in the market has obvious advantages, strong profitability. Operating capacity of small and medium enterprise assets better. At present, the industry market-oriented operation mechanism markedly enhanced the rapid development of private economy has become the basic force for economic growth in the industry. Particularly in economically developed coastal regions of the wire and cable manufacturing industry have obvious advantages, the regional differences further expanded. Terms of assets, the state-owned economic sectors accounted for only 15% of foreign-funded enterprises accounted for nearly 25%, while the private economic sectors in over 60%. The wire and cable industry sales in the top ten enterprises in the vast majority of private enterprises.

East region into a wire and cable industry's most important manufacturing regions, accounting for 50% of the value of the assets and the formation of 60% of sales, and won 70% of the profits the industry. Caution: Industry highlights several major problem is not solved In the fast development, the industry highlighted several major problems to become the fetters of progress. In the wake of the external environment changes and is subject to market competition, the world's wire and cable industry has formed the pattern of several giant monopolies; 2 is the main raw material price of copper rose sharply, leading to tight money supply wire and cable businesses, cash flow is slow. Particularly foreign specialty cable products to enter the Chinese market has aggravated the bitter competition, some companies have faced a new crisis. It is understood that, at present, China's small and medium wire and cable companies have reached over 7,000. Due to lack of research and development capabilities of these enterprises, most enterprises in the low-end products make an issue of middle and low surplus of products, high-end products in short supply. At present, the cable industry about tens of thousands of enterprises, the majority of enterprises are small, industry highlights the phenomenon of repeated investment and surplus production capacity. Such as the urban and rural power grids, many production companies had swarmed overhead wires, cross-linked power cables; great importance to developing high-tech when there are many enterprises put into production high-voltage cables and optical fiber cable; In recent years, and numerous enterprises to invest in production of automotive type electric wire , in particular foreign investment in domestic high-voltage cables, fiber optic cable and specialty cable market and make the competition more intense. Industry brand influence is weak, resulting in wire and cable industry disorderly competition. Really major projects at the national capacity of only 50 have won the bid over.

Price competition has become a magic weapon numerous SMEs. As the wire and cable materials is a typical heavy industry, light industry, the prices of raw materials accounted for 70% of the total cost of ~ 80%. Therefore, the pros and cons of raw materials has greatly affected the quality of wire and cable products. With the copper and aluminum materials, rising prices, coupled with rising energy and transportation costs, prompting further increase business costs, the industry profit margins. Led some businesses to cut corners, or for different customers to produce so-called "enterprise standard" products, so that the strict control of production according to mandatory national standards into by so-called "tailor-made" security guarantees enterprise standard production. The reason why small businesses can provide ultra-low-cost products, is nothing more than make a fuss about the raw materials, product quality can be imagined. Quality and increased risk of unfair competition. Market standardization, not enough, local protectionism is still serious. Wire and cable, as one of China's major basic industries, in terms of degree of market discipline or the importance attached by the government on, do not reach a certain height. Nationally, the current unified market has basically taken shape, but not between different parts of the invisible threshold broken, local protectionism is still serious. Some local governments require the use of local products mandatory, and some regulatory authorities only check foreign enterprises do not check local businesses. These acts, called the law examination, actually closed to protect, leading to products not in accordance with laws of the market circulation and impede the development of integration in the market standardization. Price of voice is weak, the market disorder.

Cable industry customers are mostly large-scale projects of national or state monopoly industries, such as electricity, telecommunications, railways and so on. Cable companies can not dialogue with a strong buyer's market equity. Some enterprises have not only not received advances, but also to the customer to pay Zhibao Jin. Bidding mechanism is currently very confusing, most of the "lowest price" standard, resulting in product quality can not be guaranteed. Emphasis on basic research and applied research is not enough, the lack of core competitiveness. Although the "take-ism" to make wire and cable companies have a group of good equipment, but did not really formed the core competitiveness. Enterprises as the mainstay of technological innovation awareness and system lags behind the pace of economic development, so that the field of wire and cable lack of independent intellectual property rights, the key technology is often controlled by others, a serious constraint to the high-end technology, high-end product development. According to statistics, at present, China's only 30% of the cable types acceptable to international markets and participate in the level of competition. Outlook: wire and cable industry to continue getting better and better prospects for the development Electric Wire & Cable is the country's economic construction in an important industry, after 50 years of construction, especially the reform and opening up 20 years of rapid development of product variety to meet the rate is now as high as more than 95% of the domestic market to meet the rate was as high as 90%. Experts predict that the country attach importance to basic facilities, such as the development of the information highway, communications, industry take-off, electricity equipment, the upgrading and energy conservation requirements and so will the variety of wire and cable, and levels continue to put forward new demands .

Jiangsu five-party deputy general manager Zhang Xinhua Cable Co., pointed out that currently, China's only 30% of the cable types acceptable to the international market and may participate in the level of competition, as well as 70% of the cable types need to improve product standards and grades of future, there will not be much demand for a period of growth, but the variety and level of demand will be a strong period of development. To this end, five-Cable Co., Ltd. Jiangsu actively adjust their thinking to establish a technology innovation strategy, optimizing product mix, continuously improve the competitiveness of enterprises. First of all, speed up the integration of resources, through macro-policy guidance, actively promote the industry and enterprise restructuring, and promote industrial structure optimization. To actively promote the formation of large enterprise groups and SMEs in specialized production and the formation of large-scale industry, and professional production systems. Secondly, the industry associations to play a role in the development, build a bridge between business and government.

At the same time give better play to safeguard the overall interests of the industry and standardize the industry, the role of market order. Continuously increasing product quality supervision and spot checks on the basis of the intensity in the whole country to form a unified, standardized, transparent, and open markets. Third, actively promote the brand strategy, through the integration of advantageous resources, raising the level of driving industry as a whole. Is necessary to science and technology, with enterprises as the main body, strengthen their self-research and development capabilities, and vigorously develop new products and promote upgrading of products. Industry backbone enterprises to collaborate and promote joint application of basic research and product reliability research, so that product design, manufacturing and operating level, to gradually increase. Fourth, the technological transformation of enterprises to increase efforts to proceed from basic production processes, actively adopt high-quality and efficient technology and equipment, out of high energy consumption and pollution on the environment of obsolete material. Emphasis on resource conservation, product technology, production technology, to enhance capacity for sustainable development and enhance product-line automatic detection capability. Fifth, we vigorously promote the application of environmentally friendly production technology, and actively develop environmentally friendly wire and cable products. Meanwhile, efforts to improve enterprise management level, actively promote the institutionalization of management, and meticulous management and market-oriented operation to raise the overall enterprise-wide operational efficiency, promote the industry to achieve industry growth pattern.

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