Wire and Cable Industry Future Market Opportunities

Premier Wen Jiabao pointed out in his government work report at the Fourth Session of the Tenth National People's Congress that it is necessary to shift the focus of infrastructure construction to rural areas. This is undoubtedly a huge business opportunity for the wire and cable industry, which has been mainly targeted at the two-network project and urban construction for many years.

The countryside is a vast world where the cable industry has great potential.

Premier Wen Jiabao’s date report said: To build a new socialist countryside, we must strengthen rural infrastructure. We must make up our minds to adjust the direction of investment and shift the country’s focus on infrastructure investment to rural areas. This is a major change. It is mainly to strengthen the basic construction of farmland with a focus on small-scale water conservancy facilities, strengthen the construction of flood prevention and drought relief and disaster reduction systems, and strengthen the construction of rural infrastructure, drinking water, biogas, power grids, communications and other infrastructure and human settlements.

In China's rural areas, although there are a large number of small wire and cable companies, they do not fully satisfy the demand for wire and cable in the vast rural infrastructure projects. Foresighted urban wire and cable companies should make preparations for the product's ideological progress to the countryside as soon as possible.

A person in charge of the Ministry of Rural Power of the State Grid Corporation of China stated that, in accordance with the requirements of building a new socialist countryside, in the next few years, the construction of rural power grids will focus on the goals of a strong and sustainable power grid, scientific management, high-quality services, and harmonious supply and demand.

As of 2005, the rural grid power sales amounted to 738.284 billion kwh, which accounted for half of the company’s total electricity sales. The renovation project for rural power grids that lasted for 7 years has basically been completed, and the appearance of rural power grids has been greatly improved. The investment in the first and second phase of the company's systems has exceeded 214 billion yuan, and the investment in the western rural rural network improvement project has completed 1.23 billion yuan.

At present, 588 counties of the State Grid Corporation of China have established optical fiber communication systems, built 613 county-level dispatch automation systems, and built 25 coordination and automation systems. 666 counties established production management information systems, 540 county companies established load control and demand side management systems, 970 county power supply companies achieved office automation, and nearly 565 million users achieved centralized meter reading management.

In 2006, the State Grid Corporation of Agricultural Power will work hard to ensure that the power supply reliability rate reaches 99.4%, the comprehensive voltage pass rate reaches 96%, and the comprehensive line loss rate is 7.2%. More than 95% of county power supply enterprises have established 95598 service systems, and more than 90% of rural power supply stations have met the requirements of standardized service windows. The fulfillment rate of service promises is 100%, and there are no major or above grid and equipment accidents with personnel liability.