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Cable companies should take the innovation as the lifeline

Information Source:Henan Huadong Cable Co., Ltd  Release date:2014-04-24

Engaged in cable industry in China, there is a general consensus -- the future of low-end cable product margins will be less and less, coupled with raw material price fluctuations, artificial cost growth, will be more profit margin squeeze, unprofitable until the cable production enterprises. On the contrary, as the country set off a new round of the construction of new energy, high-end cable products will be popular, and due to the high technical content, high-end cable R & D higher threshold, thus ensuring its objective profit rate. But up to now unfortunately, China high-end market tend to be owned and joint venture companies occupied, even large cable of domestic production enterprises, in the high-end market, is also difficult to reflect the competitive advantage.

In fact, as early as 2011 "wire and cable industry" Twelfth Five Year "development planning" (hereinafter referred to as the "planning") issued by the Chinese CEEIA wire and cable branch organization and began, cable industry domestic and should pay attention to the development of high-end products in advance is the industry 's future development direction. For example, in the "planning", referred to the "three goals", research projects and new product recommendations, and pointed out the direction for the development of the industry.

"The three goal"

Maintain the industry economy steady growth, improve the quality and efficiency of development; to promote energy saving and emission reduction, the development of the industry of green environmental protection, low carbon economy. To the "Twelfth Five Year Plan" period, the size of industry sales growth 6-8%. Energy saving and environmental protection from the "eleven five" has been China economic development theme, wire and cable industry should be cut, to promote green products and industry.

Enterprises should be stronger and bigger, to do the fine, the industrial cluster to upgrade the level of development, optimize the industrial structure. Through acquisitions, mergers, joint, restructuring activities, strive to "1025" end the formation of large enterprise groups 2-5 home sales amounted to 300-500 billion and has a certain international competitiveness in the industry, the formation of 8-15 home sales reached 10000000000 Yuan and the specialized characteristic enterprise with strong international competitive ability in the professional products field, regional cable industry the formation of clusters a number of unique products, professional manufacturing capability, supporting more complete, the different development, the formation of a number of characteristics of professional production and regional competitive advantage of small and medium enterprises.

Innovation is the lifeline of enterprise, cable companies want to enhance competitiveness, should strengthen the independent innovation, efforts to change the mode of economic development. Strengthening the technological innovation ability of enterprises, enhance R & D personnel and the proportion of R & D investment than structure; advocating the establishment of industry strategic technology alliances, joint research; for the "Twelfth Five Year Plan" period, a number of high-end products industry, some industry breakthrough technology bottlenecks and products bottleneck problem.

Research project

In "the wire and cable industry" Twelfth Five Year "development planning", cable branch consists of a list of 9 scientific research projects, which are basic application, high voltage XLPE cable marine engineering series cable, optical fiber preform product and its manufacturing technology, wire and cable materials recycling technology, superconducting cable, 500KV cable and accessories, overhead transmission line in China composite reinforced core material reliability and application, high solid content of paint and coating process, loading flow and real-time load flow study.

The development of new products

"The wire and cable industry" 1025 "planning" for the enterprise to recommend some new product development direction, including 220KV high voltage cable accessories, complete sets of R & D for nuclear power station with 1E class K1 cable localization, aerospace cable development and perfection, high-speed rail with cable, optical fiber, all kinds of photoelectric composite cable, compatibilization heat resistant aluminium alloy development, the development of high voltage insulation of DC cable wire, plastic, anti ice self damping wires, low corona wires, corrosion resistance wires, wire series development.

After the practice in recent years, we also found that, "planning" mentioned and that is clearly the correct. The current in the wire and cable market, the common cable market surplus products, special cable the focus of future products will tend to high-end technology, environmental protection, low carbon. Therefore, the future direction of industry investment in the industry of high-end products, ultra ordinary cable, special cable material of high pressure and special cable direction, mainly including: nuclear power cable, submarine cable, oil platform cable, wind power cable, cable, special cable of submersible pump used in coal mine, green cable etc..

Taking the typical special cable as an example, the basic principle of China "eleven five" plan and the 2020 development of electric power is to deepen reform, strengthen power grid construction, vigorously develop renewable energy, optimizing the development of hydropower, actively develop nuclear power, suit one's measures to local conditions to develop natural gas power generation, actively develop new energy power generation, the development of low carbon economy, pay attention to the ecological environmental protection, increase the intensity of technological transformation, improve energy efficiency. According to the plan, by 2020 will achieve 27-40 1000 MW nuclear power units, the proportion of nuclear power will rise from the current 1.8% to 4%, and even up to 7%-8%.

At present, some enterprises in the wire and cable industry has cable production capacity of nuclear power, such as the Jiangsu on cable, nuclear, Ningbo East, Qingdao star cable, Far East cable and other companies, but the market still has a big gap, needed to import large quantities of nuclear island cable.

Current low-end high-end products, wire and cable industry in China are in short supply, suggest that the wire and cable industry should be based on the national economy industrial policy requirements and market demand, and actively adjust the product structure, vigorously develop the high-end products, to seize the new industrial growth point.

In summary, in recent years, the industry's main business income increased steadily year after year, in addition to suffer financial crisis effect significant in 2009, the annual growth rate is low, can maintain a fairly high growth rate, from 2010 to 2011 were maintained at around 30% in 2012, due to the entire national economy, decline. Continuous high growth industry revenue, the demand of the industry still has some room for growth.

But because of the past few years, Chinese simply rely on extensive investment and stimulate economic growth, investment in infrastructure construction, infrastructure construction in the short term can not be repeated, the state investment in infrastructure growth will decline in the future, which will directly affect the electrical wire and cable industry overall growth, the future of wire and cable industry growth will fall.

Fortunately, with the constant development of new energy sources, will directly benefit the high-end cable products demand, it can be said, China cable industry, more advanced technology to the world!

HUADONG Henan Huadong cable group is specialized in the research,development,and production of ABC Cable,Rubber Cable, mv medium voltage power cable,Control/Instrumentation Cable,Mining Cable, Bare Conductor(AAC/AAAC/ACSR/ACS), Huadong Cable Supply the price of 16mm armoured cable,Mc Interlocked Cable, 4 core 240 mm cable price at competitive.
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