China Transformer Industry is in Urgent Need of Rectification

In the increasingly open international market, the transformer production enterprises in China need to change the competition in the industry confusion leading small situation, investment, merger and reorganization is an important channel for domestic enterprises through its own restructuring in order to achieve the adjustment of industrial structure, funding, production scale, scientific research strength, thereby enhancing the competitive strength of the entire industry, to compete with international leading multinational companies. Since the distribution EI core transformer industry access threshold is low in China, the overall technical level is not high, and many manufacturing enterprises in the industry, but most of the enterprises are smaller in scale, less market competitiveness, weaker brand, so to promote industry consolidation and to optimize the structure of production capacity is imperative.



The Scale of China's Transformer Industry
As to 2011, China's mains isolation transformer industry has 3035 production enterprises, only 12 large enterprises, zero increase compared with the previous year; 314 medium-sized enterprises, an increase of 18 over the previous year, accounting for less than 15% 35 losses, losses amounted to 246 million RMB; small business are 1814, an increase of 126 over the previous year, accounting for get 89%, 263 losses, losses total increase by 13.76% over the same period last year. The transformer manufacturing industry in 2010, in volume terms, the vast majority of small businesses accounted for more than 89%, and there is an upward trend; proportion of large enterprises declined slightly over the previous year; medium-sized enterprises accounted for 10.52%, compared with the previous year, a decrease of 0.03 percentage points. From the point of view of assets of the proportion of the asset size, medium-sized enterprises accounted for the proportion of the industry, which was 42.44%, declined compared with last year; asset size of the small businesses accounted for 32.37 percent, ranking second; the large enterprise asset size of the industry as a 25.19%, an increase of 2.72 percentage points over the previous year.

Transformer Industry Development Prospects
In recent years, the transformer manufacturing industry enterprises powerful combination, merger and reorganization of the momentum is increasingly prominent. Through the re-integration of advantageous resources, to achieve the rapid promotion of the enterprise's comprehensive strength, while improving operational efficiency and service capabilities to further strengthen the market, to form the more powerful competitiveness. Modern M & A is no longer blindly emphasized confrontation competition, and powerful alliances become the primary means to gain a competitive advantage, which is a major feature of economic globalization. Due to the mutual supply of natural gas in China from west to east, north and south, and the implementation of the national network, transformer demand will maintain a stable growth trend.

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