Wire and cable business opportunities and pressure coexist

Wire and cable business opportunities and pressure coexist The development of China's wire and cable industry has fluctuate. 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. There are many opportunities for China's wire and cable manufacturers.

Take Wuxi City where we are located as an example. Since May 2004, the Wuxi Planning Bureau commissioned the Japanese Central Reconstruction Engineering Consulting Co., Ltd. to compile and complete the “Wuxi Rail Transit Network Planning and Design”, and Wuxi’s rail network has already been very Clearly, including 6 lines, the total length of 247km, 117 stations.

In June 2006, the Wuxi Municipal Planning Bureau and the Wuxi Rail Transit Planning and Construction Leading Group Office adjusted the Wuxi rail transit line and changed the original six lines to five, with a total length of 157.77km and 111 stations.

From the perspective of the whole country, we have found that from 2010 to the present, China’s railway infrastructure investment has maintained a high level of over 700 billion yuan, and the construction of electrified railways has gradually reached a peak. Traction electrical equipment is one of the major equipment for electrified railways. The volume has greatly increased, and the market for rail transit cables, especially the locomotive cables, telecommunications and signal cables, has expanded significantly.

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.

In the face of the current low price competition in China's wire and cable industry, serious homogeneity, lack of independent research and development capabilities, and some high-end products relying on imports, it can not help but worry. I remember that a person in charge of the State Grid Corporation once reluctantly stated in an interview that, as an individual, he very much hoped that more domestic wire and cable manufacturers could obtain orders from the State Grid Corporation of China, but because of the lack of process technology, In the end, they can only hand over to foreign wire and cable manufacturers. In the face of such a large market for rail transit construction, we are really worried that domestic wire and cable manufacturers will be eliminated because they cannot meet the standards and requirements. Finally, we can only look at foreign wire and cable companies to our wire and cable market.

Faced with a market that may be missed, China's wire and cable companies must urgently improve their technological level, vigorously develop high-end wire and cable products, and achieve synchronization with foreign technologies. In addition, the wire and cable companies themselves must break the current monopoly of technology and allow more companies to participate in the joint R & D and manufacturing together. At a critical juncture, we must actively study the practices of Japanese wire and cable companies. Only by embracing them can we resist the intrusion of well-known foreign wire and cable companies. Finally, domestic wire and cable manufacturers must recognize that rail transit cables such as subways have high requirements for flame retardant, halogen-free and smoke suppression of cables, and thus produce targeted wire and cable products. At the same time, we must also address the geographical differences in China, in accordance with the different requirements of different regions, to manufacture the special requirements of East China, West China, South China, North China, wire and cable accessories.

For example, in view of the objective conditions such as hot and humid climate in the south and multiple ants, TETRA digital trunking system will inevitably be affected to a great extent as a locomotive wireless dispatching system. In order to solve this problem reasonably and effectively, repeaters must be introduced in the system. Rail transit is usually powered by strong power (DC750, DC1500, AC27500, or AC25000). Therefore, it is necessary to consider the interference of strong currents on leaky cables and use the leaky cables to solve the TETRA digital trunking system coverage in tunnels. For this reason, the market for such leakage cables is very broad.

In addition to the large-scale construction of rail transit, the construction of ships has also provided development opportunities for the Chinese wire and cable market. According to relevant statistics, China’s shipbuilding output in 2000 was 5 million tons, and by 2005 it had been raised to 12 million tons. By 2010, China’s shipbuilding output will have reached 25 million tons. Especially in recent years, with the increasing emphasis on shipbuilding by the central government, China’s shipbuilding industry will grow rapidly with the rapid development momentum in the next 5-10 years. The wire and cable industry in the upper reaches of the industrial chain has even more opportunities for development.

However, the requirements for shipboard cables and rail transit cables are similarly strict. Due to the particularity of the environment in which the ships are located, the cables used in ships are basically halogen-free and low-smoke type special cables, which must at least meet fire prevention, waterproof, pressure resistance, and non-toxicity. Claim. By then, vertical water-sealed cables and umbilical cables will have a great deal of experience. The special wires and cables such as low-smoke cables and cords, marine power cables, and shipboard communication signal cables will also be reborn. In addition, special cables for military vessels and underwater vehicles, including torpedoes, decoy reconnaissance devices, etc., will welcome new students.

With the expansion of shipbuilding, the intensity of port construction will inevitably increase. Therefore, the huge wire and cable market brought about by port construction projects (including coastal and inland rivers) must not be ignored. With the start of port construction, it will bring huge markets such as power cables, lighting cables, communication cables, cables for electrical equipment, cables for port machinery, and so on.

After entering 2013, the huge market for wire and cable in China has gradually surfaced. How to seize the historical opportunities and how to increase technological R&D strength through independent innovation to meet the needs of both rail and shipbuilding and port construction, It is the biggest test for China's wire and cable manufacturers. In other words, China's wire and cable market should be seized by China's wire and cable companies, and it must not be cheaper for foreign wire and cable manufacturers. To this end, China's wire and cable companies should actively unite and win the domestic huge market through technology sharing, experience sharing, and financial support.

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