Experts expect: This year the transformer industry will reshuffle

With the rapid development of China's national economy, the demand for electricity is also increasing. As the main equipment in power transmission and transformation systems, transformers have also been developed. Transformer manufacturers and transformer traders have mushroomed.

The relevant person in charge of the Transformers Branch of the China Electrical Appliances Industry Association solemnly reminded, “At present, China’s only local companies such as TBEA, Baohe, and West Transformer have a combined capacity of more than 500 million kVA, plus 500 thousand. The production capacity of V, 220 kV, 110 kV transformer manufacturers and 110 kV product manufacturers, the total capacity of the transformer industry in China is about 3 billion kVA, and the market demand will not exceed 1.3 billion. Volt."

More than market demand for production capacity will lead to increasingly fierce market competition. On the one hand, the profits of enterprises have been declining. In the 1970s and 1980s, the average profit rate of the transformer industry was about 20%, about 8% two years ago. Last year, the average profit rate of products below 500 kV was only 2% to 3%, and many companies took Into the era of negative interest rates; the other hand, is the stability of product quality has posed hidden dangers, due to the current oversupply of transformers in our country, price competition is fierce, the user in the bidding activity is the preferred condition is the price factor, so the manufacturers are difficult to carry out A lot of investment, so that the production process can not be developed, product quality does not go, the quality does not go, the price will not be high, there is no profit so as to create a vicious cycle.

According to the current situation analysis, experts expect that the transformer industry may shuffle this year. In the next few years, companies that fail or fail to obtain orders will be eliminated due to the continuous increase in market demand.

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