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Wire and cable industry overcapacity or wealth

Information Source:Henan Huadong Cable Co., Ltd Release date:2014-05-09

"To resolve the channels on the excess capacity is not only related to the hit, because has formed production may be wealth, not simply turned off, so a batch to high-end industry transformation and upgrading, to make it effective capacity, can grow up to have wealth." Su Bo of undersecretary of Ministry in Chinese sponsored by the development research center of the State Council Development Forum, said.

Explained that the level of excess capacity, or for the cable industry brings a new way, become the driving force for further development, will become a kind of wealth.

1 trillion annual output value of the scale has let the whole world see China cable industry boom also saw the crisis of overproduction. The current crisis, the government and enterprises without trying to resolve, the innovation of science and technology, overseas markets, mergers and reorganization, eliminate backward production capacity...... This will become the future development of the enormous wealth of wire and cable industry.

Many cable industry professionals are well aware of the importance of innovation, Chinese corporate vice president of the Federation, the Far East Holdings Group chairman of the board Jiang Xipei stressed, any innovation in spite of all pay the price and time, but there is no innovation and no future. Hengtong Group Limited company chairman Cui Genliang to Cui said, as the enterprise innovation is a must, not today, innovation, will die tomorrow. Not to move or retreat, unremittingly, innovation is actually, such enterprises can foothold in the forefront of the industry, development can follow the global industry technology.

With this understanding, the financial resources for scientific and technological innovation a lot of manpower and material resources, input cable companies have the ability in the pressure of excess production capacity, more new products bring forth the new through the old, let the enterprise can continue to develop in the increasingly fierce competition environment.

"Wire and cable industry of domestic excess capacity in urgent need of huge overseas market to digest." Hengtong Group Co. Ltd., deputy party secretary Xiao Yaoliang in the two General Assembly session of the Jiangsu chamber of Commerce said photoelectric cable. For many cable companies, products are sold abroad has not just for the purpose of processing capacity, has risen to the company's international strategy, open up a new blue ocean.

Chinese Machinery Industry Federation executive vice president Cai Weici pointed out, is expected to differentiate machinery enterprises will be further intensified in the future, annexation and reorganization of enterprises will continue to accelerate the. This is also the most realistic portrayal of the wire and cable industry. Vice chairmen of capital Entrepreneurs Club Bian Hua rudder call a spade a spade and said, now is a good time for mergers and acquisitions. He said, if can M & A to others that you have strength, if can be M & A that you are worth, mergers and acquisitions and mergers and acquisitions are successful, otherwise it will become rubbish, not their ability to pipe to let people have the ability to manage.

The merger and reorganization of enterprises is the effective measures to strengthen the integration of resources, to achieve rapid development, enhance competitiveness, is to resolve the contradiction, the serious oversupply of production capacity to adjust and optimize the industrial structure, an important way to improve the quality of development benefits. In March 24th, "opinions" of the State Council on further optimization of the merger and reorganization of enterprises market environment, "opinion" is more detailed solution to the enterprises in the merger and reorganization of the problem, can promote the merger and reorganization of enterprises between cable.
Chief engineer of the Ministry of Zhu Hongren in the Ministry, the national development and Reform Commission held in Beijing television and telephone conference, the elimination of backward production capacity in recent years is the area of practice proved one of the effective methods to resolve the excess capacity. He pointed out that, the Ministry will develop 2014 - 2015 out plan, strive to complete the "Twelfth Five Year Plan" and eliminate backward production capacity target task 1 years ahead of schedule.
Chinese Appliance Industry Association Deputy Secretary General Wu Shimin think of wire and cable branch, resolve the problem of excess production capacity restriction policy of serious industrial implementation of the cable industry, for saving energy and reducing consumption, such as the establishment of green manufacturing industry entry threshold and dynamic adjustment. This will eliminate some of backward production capacity of cable industry.

The current overcapacity really bothering the cable industry, believe that with the joint efforts of the government and enterprises, excess capacity will be a kind of wealth.

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