China's wire and cable industry welcomes a turning point in technology

China's wire and cable industry welcomes a turning point in technology Although China's wire and cable industry has gone through more than two decades and has made considerable progress, it still does not go beyond the big and weak circle, and there is still a big gap compared with world-class companies. There are many problems such as low industrial concentration, large number of enterprises, small scale, insufficient scale economy, insufficient independent innovation capacity, and outstanding product structural contradictions. Despite these problems, the cable industry in China is facing a new take-off opportunity, namely the opportunity to quickly improve its core competitiveness in development. With the constant changes in the world economic structure, the development of China's wire and cable industry has also ushered in a technical turning point, is bound to face restructuring, reshuffle.

In particular, in recent years, China's economic development has faced bottlenecks in energy and power shortages. The country has continuously increased its investment in electric power, and this industry has entered a period of rapid development. In order to implement the decision-making and deployment of the central government to increase infrastructure construction and stimulate domestic demand, the State Grid Corporation of China plans to increase investment and accelerate the pace of power grid construction. It is expected that the investment scale will exceed 1 trillion yuan in the next 2 to 3 years, including the urban rural network and the The network construction and transformation investment was 790 billion yuan. The construction scale is 260,000 kilometers for 110 (66) kilovolt and above transmission lines and 1.35 billion kVA of transformer capacity.

After entering 2013, China's wire and cable industry will usher in many opportunities for development. Similarly, the pressure on the shoulders of wire and cable companies will not automatically dissipate. It can be said that in 2013 and even in the coming 2016, the business opportunities and pressure of China's wire and cable industry will coexist for a long time.

The business opportunities in China's wire and cable industry have benefited from the accelerated pace of China’s rail transit construction. According to the "2012-2016 Wire and Cable Industry's Macro Investment Environment and Industry Development Trends Analysis Report," during the "12th Five-Year Plan" period, The speeding up of China’s railway construction will bring huge demand for locomotive cables, communications and signal cables. It is estimated that the average annual demand will reach 16-20 million kilometers and 7-10 million kilometers respectively; urban rail transit will generate annual demand for vehicle cables. 2.5-3 million kilometers; the annual demand for signal cables for traffic is 1.5-2 million kilometers. It can be seen that the increase in the mileage of railway operations will drive strong demand for rail transit. At the same time, the demand for wire and cable will rise with the same strong momentum.

This year, the Ministry of Railways plans to invest 800 billion yuan to complete the railway infrastructure, and our country’s railway mileage will also increase by 10,000 kilometers. According to the standard calculation method, general traction power supply accounts for 7%-10% of the total cost of rail transit projects, and 800 billion investment will achieve a market of traction of 80 billion yuan. This shows that China's wire and cable industry will usher in warm spring in 2013. The market demand is objective, but how to get a share of the rail transit construction depends on the strength of the wire and cable manufacturers.

Obviously, with the country’s increasing investment in rail transit construction, it not only brings a market to the wire and cable industry, but also places higher demands on wire and cable companies. How to meet the special requirements of rail transit for locomotive cables, communication and signal cables, special cable for tunnels, leakage and radio frequency cables, and power cables and lighting cables is the key to obtaining orders for wire and cable manufacturers.

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