China Transformer Business Status quo

Overcapacity of Lower-end Transformer Industry

Even though there are various Power Transformer Manufacturers in China, but most of the merchandise from several companies are largely centered on the low-end items that below 110kV, resulting while in the low-end transformer excess capacity. Transformer items are the main gear in low-voltage products, along with the minimal technological material establishes the market entry boundaries will not be higher, therefore the domestic enterprises herd, the production capacity is relatively saturated, item sales are within a condition of perfect competitors, disorderly competition out there resulting in critical disrupted the market get, that is not conducive for the healthful development of the entire transformer sector. Potential exceeds the market need will guide to market place disorderly competitors intensified. Given that there are tons from the isolation Power Transformers Manufacturerr in China, transformer is oversupply, price cutting war is intense, what the user preferred in tender exercise is the value issue and for that reason it really is difficult to the producers to speculate a large number of inputs, to ensure that the generation process cannot go on, the price is not high, then there'll be no revenue hence making a vicious cycle.

Isolation Transformer Transformer Industry High-end R & D is not Enough

Objectively speaking, China Power Transformer technology is at the international level of the beginning from the 1990s, and a small amount is within the level of the world at the stop of the 1990s, China's transformer market, compared with foreign advanced countries, you can find still some gaps in research and growth and application of new materials, professional tools manufacturing, production technology and talent pool, etc. At present, China's transformer business presents a pyramid structure, the higher the voltage level, the stronger technical barriers. Not more than 10 manufacturers have the ability to produce transformer above 500 kV, along with the manufacturers with the production ability of manufacturing transformer 220v to 12v usually are not more than 30.

Transformer Business Critical Blind Investment

Given that the entry barriers are very minimal, within the past few years, China's transformer industry new entrants into the capital and enterprise showed a rapid upward trend and this will continue for some time. Brightest blind investment capital on the transformer business also led for the transformer industries' industry concentration is low, competitors is disorderly, loss-making enterprises and other non-health phenomenon. Blind investment has not only exacerbated the reduced stop of surplus ability within the transformer business in China, but also intensified competitiveness out there, to some extent contributed on the "price war", resulting within a severe waste of resources.