Jun 04, 2021 Leave a message

The development history of cables in recent years

Since the reform and opening up

The convening of the Third Plenary Session of China's Eleventh Central Committee and the implementation of the Sixth Five-Year Plan brought the enthusiasm of employees in the cable industry to a high level again. In 1979, the amount of conductors rose to 439,200 tons. After the center put forward the policy of "adjustment, reform, rectification, and progress" in 1979, the scale of my country's infrastructure was greatly reduced, and the demand for wires and cables decreased. However, with the development of the household appliance industry, the demand for some products, such as fine enameled wires, soared. With the results of the adjustment, production rebounded. In 1985, the amount of conductors rose to 623,000 tons.


In the reform and opening up, the development of internal linkages has enabled cross-regional and cross-industry in-linked enterprises to develop rapidly. At the same time, township enterprises and local enterprises have emerged in large numbers, the number of which is unprecedented in the past. However, until the 1990s, state-owned enterprises had an unshakable dominant position in my country's wire and cable industry. In the 1980s, the North and the South formed two hegemons, namely, the Shenyang Cable Factory and the Shanghai Cable Factory; in the 1990s, a three-pronged format of Shenyang Cable Factory, Shanghai Cable Factory and Zhengzhou Cable Factory was formed.


With the in-depth development of reforms, since the mid-1990s, state-owned enterprises have gradually withdrawn from the stage of history, and the proportion of private enterprises in the industry has increased year by year. During the ten-year development of the "Ninth Five-Year Plan" and the "Tenth Five-Year Plan", the economic composition of my country's wire and cable industry has also completed a major transformation. In the early stage of reform and opening up, it was mainly composed of a relatively single economic component with the state-owned economy as the mainstay and the collective economy as the supplement. A format in which the company’s market share is shrinking. The following is the ownership format of my country's wire and cable industry at the end of the Tenth Five-Year Plan:



State-owned enterprise


Joint venture


Private, joint-stock enterprises


Calculated by assets


15%


25%


60%


Calculated by output value


4.05%


25%


70%


Wires and cables are used to transmit electrical (magnetic) energy, information, and realize the conversion of electromagnetic energy. Wires and cables in a broad sense are also referred to as cables for short. Cables in a narrow sense refer to insulated cables.


Wire products used to transmit electrical (magnetic) energy, information and realize electromagnetic energy conversion.


The product is mainly used for the transmission of strong electric energy in the power generation, distribution, transmission, transformation, and power supply lines. The current passing through is large (tens of amperes to several thousand amperes) and high voltage (220V to 35kV and above).


Status quo

The wire and cable industry is the second largest industry in China after the automobile industry, with a product variety satisfaction rate and a domestic market share of over 90%. Worldwide, China's total wire and cable output value has surpassed that of the United States, becoming the world's largest wire and cable producer. With the rapid development of China's wire and cable industry, the number of new companies has continued to rise, and the overall technical level of the industry has been greatly improved.


The sustained and rapid growth of China's economy has provided huge market space for cable products. The strong temptation of the Chinese market has made the world focus on the Chinese market. In just a few decades of reform and opening up, China's cable manufacturing industry The huge production capacity formed has made the world look at it with admiration. With the continuous expansion of China's power industry, data communication industry, urban rail transit industry, automobile industry, shipbuilding and other industries, the demand for wire and cable will also grow rapidly, and the wire and cable industry still has huge development potential in the future. In November 2008, in response to the global financial crisis, my country's government decided to invest 4 trillion yuan to stimulate domestic demand, of which more than 40% will be used for the construction and transformation of urban and rural power grids. The national wire and cable industry has a good market opportunity again. Wire and cable companies in various regions seize the opportunity to welcome a new round of urban and rural power grid construction and transformation.


Whether China’s cable industry is currently or outside, there is almost no need to worry about market space issues. China’s various industries have ushered in great development. As an important supporting industry of the national economy, the wire and cable industry, "where there is construction, you need to use it. "Wire and cable", so the market is huge. However, we also see that the demand for special cables will increase in the future. Special cables have always been known for their high technical content requirements, high profit margins, high thresholds, and large market space. However, in the research and development of special cable products On the one hand, it is precisely the weak underbelly of China’s local cable industry, which led to the situation where the high-end market is dominated by foreign giants. For this reason, how do domestic cable manufacturers pry into the gap in the high-end market to create a world of domestic cable production Important issues considered by enterprises.


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