BEIJING, July 26 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, analyzes China's power transformer market.
With the new round of investment coming to China, power transmission equipment manufacturing enterprises should be booming in sales over the next few years. As an important branch of power transmission and distribution, the transformer manufacturing industry will also see soaring sales. As China strengthens the national power network, transformer demand maintain a stable growth trend. Generally speaking, China's power transformer industry is still operating at a level comparable to the international community in the late 90's and early 21st century. Compared with foreign advanced countries, there is still a technology gap.
At present, China's transformer market shows signs of oversupply. Price competition is becoming more intense and brutal. When observing dry-type transformers as an example, the 1995 average profit margin was 22%. Due to the influx of manufacturing enterprises, six years later it dropped to about 5%, and as steel, copper and other raw material prices continued to rise in price, the transformer industry struggled to keep up. Now, because of excess capacity, dry-type transformers have been included on a list of restricted development.
Large multinational companies account for 20-30% of China's transformer market, and with their advanced technology, abundant funds and brand advantage, continue to expand foreign market share and bring great impact on China's domestic companies. In order to get a slice of the pie, a number of transformer manufacturing factories from abroad have continued unremitting efforts to adapt transformer development to the Chinese market.
Product development direction:
First, voltage levels have turned to high level development.
Voltage levels will turn to 750kV and 1000kV development. The high cost of superconducting transformers has been the biggest obstacle to the market. In superconducting transformers, the cost of superconducting materials account for 70% to 80%. Superconducting material is used in PIT processes. This will improve the mechanical properties of superconducting materials' thermal performance while significantly reducing the cost of materials. This will greatly reduce the time to market for superconducting transformers.
Second -- energy conservation, small size, low noise, high impedance, explosion-proof type development.
Such products are small or medium size. China will issue preferential policies to encourage the replacement of old transformers with high energy consumption and transformation, to develop and promote the production and sale of high efficiency transformers.
In summary, China's transformer business should be aware of opportunities and challenges. There should be improvement in testing methods and conditions as soon as possible. Enterprises should seize this historic opportunity to meet new challenges: re-start the information technology and completely change the old business management system, ultimately linking up to the world of new development. Only through expansion of production capacity can China ensure the healthy development of enterprises into the fast lane.
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