Wire and cable in China into 9 production capacity can be eliminated in the low-end 30% Enterprises
Pole star smart grid online news: "Chinese wire and cable enterprises will be eliminated in 30% to 2015." Liu Long of general manager of Chinese cable material exchange recently told reporters. When reporters questioned the prediction, he cited a number of facts and opinions of the industry.
He said, Chinese wire and cable market has more than 7000 manufacturing enterprises, 1 yuan of output value, employing nearly 700000, the total for the first in the world. Industrial concentration in Guangdong Province (Dongguan City, Jiangsu Province, mainly to the wire), (Yixing City, mainly to power cable), Hebei province (Ningjin County, mainly in low voltage cable), Anhui province (Wuwei County, special wire and cable), Henan, Chongqing, Shandong etc.. In recent years, with the China sustained and rapid economic growth, wire and cable products have a huge market space. Because of facing the problem of bottleneck of energy, electric power shortage in China's economic development, China has continued to increase power investment, so that the wire and cable industry entered a period of leap forward development. But because of the tremendous industry output value and profit, plus domestic cable companies more than 90% production concentrated in low-end products, so there are a large number of small enterprises to enter the industry. As a result of the global financial crisis, the domestic economic structure adjustment and other reasons, the domestic wire and cable enterprises generally low operating rate and excess capacity, a lot of small businesses and even rush into danger, shoddy, causing the industry product qualified rate is only about 1/3. So, quality, technology, brands have the advantage of the enterprise must be eliminated.
Wire and cable industry is the supporting industry of our country foundation, its product variety, range of application is very wide, the use of even can be said that all social sectors and economic related departments cannot do without wires and cables. Including electric power, construction, communication, manufacturing industry etc.. In addition, wire and cable or transmission of electric energy, the transmission of information and manufacturing all kinds of motor, instrument and meter, realize the basic equipment indispensable to electromagnetic energy conversion, is the future of electrification in the information society, the necessary basic products. "Eleven five" period, China's wire and cable industry sales output value of the average annual growth of significant. In 2011, China's annual finished wire and cable production value is more than 1 trillion yuan, becoming the world's largest wire and cable production country of more than America. But in 2012 the industry average profit is only 4%, has been lower than the industry average profit Chinese electrician.
Liu Long told reporters, compared to the wire and cable industry and Europe and the United States, China is still in a state of big but not strong, and foreign well-known wire and cable brand still has a big gap. For example America 3 enterprises accounted for the national scale 54%; Japan 7 accounted for 86%; 12 UK accounted for 95%; Chinese 19 large-scale accounted for only 11.7%. Because of China's wire and cable industry concentration degree is low, the low barriers to entry, some small business to the pursuit of high profits, copper clad bad copper, or copper clad steel, copper clad aluminum cable to do, these enterprises shoddy, shoddy phenomenon is difficult to stop. Although a lot of small enterprises to enter the industry, but many of them will be in the future competition eliminated. These companies will be eliminated, because the industry is wide into severe out of the industry, its threshold in the market, the market will naturally eliminate these enterprises.