Innovation is necessary for the development of wires and cables

In the wire and cable industry, there is another branch that goes beyond ordinary products, which is special wire and cable with special requirements for their performance. Although these cables may not have as much usage as regular wires and cables, they are irresistible temptations.

According to data, low-level competition and rising raw material prices in the domestic wire and cable industry have led to a decrease in average profits, ranging from 2% to 5%. Among them, wire and cable products that emphasize safety or meet environmental requirements (such as low smoke, halogen-free, fire-resistant, flame-retardant cables, etc.) have a gross profit margin of over 40% due to their high added value. And some products have insufficient domestic production capacity and require a large amount of imports to meet domestic demand.

These cables are commonly used for electrical equipment in special fields such as nuclear power, wind power, ships, locomotives and vehicles, buildings, and petroleum and petrochemical industries. In marine cables, the application of halogen-free low smoke flame-retardant cables accounts for about 80% of the total, and the flame-retardant performance requirements meet *; Halogen free low smoke flame-retardant cross-linked polyolefin insulated cables have been widely used in locomotives and vehicles; There are also requirements for halogen-free and low smoke electrical wires in buildings

The requirements for wires and cables vary depending on the usage environment. For example, when we entered the early locomotive market, we needed cables with low smoke and flame retardancy, and cables used in the carriage also needed to be flexible. In the emerging wind power market, cables for fans need to be resistant to low temperature, distortion, and sunlight. Cables used in the petroleum industry require high temperature and oil resistance.

Nuclear power cables

　Innovation is necessary for the development of wires and cablesIt is expected that by 2020, 27 to 32 million kilowatt nuclear power units will be built. That is to say, starting from 2004, the newly installed nuclear power capacity will reach about 30 million kilowatts in 2016, with two to three nuclear power units starting construction each year. By 2020, the proportion of nuclear power in the total power generation capacity will increase from the current 1.8% to 4%. Due to the large amount of water required for the operation of nuclear power plants, the main layout of nuclear power plants is planned to consider the southeastern coastal provinces. Regarding the investment issue of nuclear power construction, foreign economic experts believe that to complete such a large-scale nuclear power project construction, according to conservative estimates, the investment would be over 40 billion US dollars. China National Nuclear Corporation hopes that the average localization rate of newly built nuclear power plants can reach 60%, with an estimated 24 billion US dollars (about 200 billion RMB) worth of goods

Possible localization. From the analysis of China's wire and cable industry, with further improvement in equipment and product development based on the current level of cable manufacturing, the localization rate of wire and cable can reach over 95%.

The main nuclear power plants currently under construction in China are pressurized water reactor systems.

The pressurized water reactor is the dominant type of reactor in China in the near and medium term. According to the existing nuclear power plant reactor types, approximately 120 million to 150 million yuan worth of wires and cables are required for every 1 million kW nuclear power plant. Based on the 2020 nuclear power installed capacity of 40 million kW, an additional 3 billion yuan worth of wires and cables are needed for new nuclear power installations. But after the introduction of third-generation nuclear power technology, this number may change because there are reports that the structure of nuclear power plants built using AP1000 nuclear power technology will be simplified, and the number of wires and cables used will also decrease significantly.

Wind power cables

The potential market brought by wind power cannot be ignored. The development speed of wind power in China can be described as "astonishing", with a continuous growth rate of over 100% in installed capacity in the past two years. As of the end of 2007, a total of 6458 wind turbines were installed nationwide, with an installed capacity of 5.89 million kW, continuing to rank fifth and exceeding the 2010 target of 500 kW wind power installation by 20%. Compared with the end of 2006, the cumulative installed capacity growth rate in 2007 was 126%, and the new installed capacity growth rate reached 145%. This emerging industry has also brought a large demand for wires and cables.

This industry can be regarded as an emerging market for wires and cables. In the past 2-3 years, domestic enterprises have only begun to pay attention to the research and production of wind power cables, so most of the market is still occupied by foreign enterprises. Except for Sino foreign joint ventures, most Chinese enterprises have just started to develop wind power cables, with only five having mature experience. Among them, Tianjin Jinshan and Xinjiang Tebian started earlier.