Cable industry need integration, leading enterprises is expected to benefit
In recent years, China wire and cable industry has made achievements in attract people's attention, has become the second largest after the car industry industry in our country, the product variety to meet the rate and the market share of more than 90%. In the world, Chinese electric wire and cable output has more than American, become the world's largest cable producer. However, Chinese wire and cable industry also appeared such as excess capacity, industry concentration is too low, disorderly competition and so on in the high-speed development of the. Raw materials rising force of wire and cable industry funds chain tight, into with foreign cable products, more and more fierce competition in the local market, Chinese cable industry must now through mergers and acquisitions to enhance competitiveness, to adapt to the changing environment.
Opportunities and challenges facing the cable industry
China's sustained and rapid economic growth, providing a huge market space for the wire and cable industry, according to China Mechanical Industry Association statistics, in the past 15 years, the wire and cable industry with an average annual growth rate of more than 15%, in recent years, China's wire and cable industry vigorous development and obtained remarkable achievements. In the "relevant industry 1025" planning, electric power, railway, rail transportation, energy, construction, communication, ship, automobile industry still maintained a large scale of investment, which will provide a rare opportunity for a lot of wire and cable industry, and it will continue to be China's promising industry in chaoyang. Specific to the national grid planning, 2009 ~2010 is smart grid planning pilot stage, "1025" smart grid will be entered the construction phase, as the backbone grid of UHV strong smart grid in China, so also will enter the peak of construction, to 2015, the national total installed capacity will reach 1436000000 kilowatts, "1025" during the annual growth of 8%. Reportedly, China's "Twelfth Five Year Plan" period of national grid power grid investment will exceed 1.7 yuan, new power capacity is expected to reach 380000000 kilowatts, while the "electric power installed eleven new five" during the period of only 265000000 kw. This also means that the wire and cable industry once again usher in a new stage of development.
Although the rapid development of the industry, but it is facing excess capacity, product safety, product structure is backward, industry gross margin decline in the level of serious challenges. First of all, the current wire and cable industry production concentration is low. Before the 19 large companies market share of only 11.70%, 409 medium-sized enterprises accounted for 36.90% market share. Most enterprises Limited is the low level competition in size, price and other aspects. Secondly, the main raw materials prices rose sharply, resulting in wire and cable enterprise funds tight, slow capital turnover. In addition, the world of wire and cable industry has formed a few big giant monopoly pattern, foreign products to enter the market of special cable Chinese, intensified competition, some enterprises have been facing a crisis of survival. We pay attention to Sanpu Pharmaceutical (joining a stock, participate in the stock market simulation Chairman Mr. Jiang Xipei in his "user: Chinese mature manufacturing of hope" in an article pointed out that, at present, China's wire and cable industry scale of production investment out of control, the industry has a serious surplus production capacity, low-level repeat construction phenomenon is serious, whether it is low voltage, medium voltage cable, or high pressure, extra high tension cable production capacity is surplus, industry wide production capacity has greatly exceeded the market demand, causing a lot of products serious pile up in excess of requirement, led directly to the entire industry into a low price competition status and product quality levels decline; at the same time, the industry into the "threshold" is low, concentration is not high, 7000 production enterprises more than 95% small and medium enterprises, many simply do not have the production capacity, quality control and detection means necessary "workshop enterprises" to mingle with the industry, coupled with rising raw material benefits of operating pressure, make the fake and shoddy, crudely made, Jerry, shoddy phenomenon is banned repeatedly more than, non-standard products not only popular, buried the huge hidden trouble of safety, but also make the legal production of enterprises and dealers said of an aged person.
The degree of concentration in the industry needs to be improved
Large enterprises is expected to benefit
The production capacity of the domestic cable industry has greatly exceeded the market demand, causing a lot of products serious pile up in excess of requirement, led directly to the entire industry into a low price competition status and product quality levels continue to decline, but in the long run, low technological content of the domestic cable industry capacity expansion is not sustainable, the following three reasons: first, the power grid three production stripping, the past in the power supply systems of sales channels is the power company three enterprise production control, but with the transparent supply company three production stripping and bidding process, these enterprises to lose the channel advantage. Tender forms gradually improve, the grid system to centralized procurement channels of dachang. Second, along with the power and construction market for high-end, quality preference is more and more strong toward the price preference to low price competition, small businesses will face will be more and more survival pressure. Third, wire and cable industry has the characteristics of heavy light material, the higher demands on the flow of capital scale and capital turnover efficiency, large fluctuations in raw material prices, so that SMEs liquidity scale is difficult to meet the need of situation, increased the difficulty of enterprise capital management. The end result is a small enterprises gradually withdraw from the market, industry concentration will be significantly enhanced, the large cable companies will benefit.
This trend has been listed in the cable enterprises gradually reflected, because the cable companies have been listed in this industry are belong to the larger scale and technical advantages of the company. They rely on the specialization and scale from the two aspects of the depth and breadth of expansion. Specialized in the more advantage of high-end market segments, to enjoy the high profitability of the high-end segment brings; scale will have a cost advantage, and