Industry News

Power cable industry development

Published by Author: Joey August 12,2022

Power cable industry development

Wire and cable have played a very important linking role in my country's infrastructure construction. With the continuous development of  the country, for the power cable industry, the traditional industry model has been unable to adapt to the development of the currency market for the changing currency market and demand. Therefore, for many enterprises, the transformation of the industry cannot be delayed.

Power cable,XLPE wire

Country's wire and cable industry is still a trend of continuous development, but there are also seven major problems, which seriously restrict the healthy and sustainable development of the industry. Take Beijing wire and cable industry as an example.

First, there is a surplus of mid-to-low-end products and a shortage of high-end products. There are about tens of thousands of enterprises in my country's power cable industry, but most of them are small in scale and low in product level. There are many wires and cables in some special and major fields that are lacking, and they can only rely on imports when needed.

Second, repeated production and repeated construction are prominent, with excess production capacity. It should be said that wires and cables are relatively easy to produce products, and the threshold for market access is also low. During the transformation of urban and rural power grids in the past few years, some enterprises "seized the opportunity" and rushed forward; In recent years, the pace of national infrastructure construction has been accelerated, the real estate industry has continued to heat up, and many companies have emerged as the times require.

Third, the phenomenon of local protectionism and monopoly is serious, and the currency market lacks regulation. Due to the overcapacity of wires and cables and the fierce competition in the currency market, some local governments have implemented local protection and forced the use of local products; some power departments only use products produced by enterprises in the system or products of related households, and other enterprises are difficult to enter. Some regulatory authorities also only check foreign products, not local and local products, resulting in unfair competition. In the low-end wire and cable currency market with relatively low technical added value, the situation of low price competition is quite common.

Some "workshop enterprises" that do not have the necessary means of production capacity, quality control and testing have been able to get involved in the industry and become the source of fake and shoddy, shoddy, cut corners, and shoddy cable products. and other means disrupt the competition order of the currency market and intensify the disorderly competition in the industry.

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