China Transformer Industry Status quo

Overcapacity of Lower-end Transformer Business

Although there are many Power Transformer Manufacturers in China, but the majority of the products from many manufacturers are mainly focused on the low-end products which beneath 110kV, ensuing inside the low-end transformer excess capability. Transformer merchandise are the main equipment in low-voltage products, as well as the lower technological material establishes the market entry obstacles usually are not high, therefore the domestic enterprises herd, the production potential is pretty saturated, solution sales are inside a state of perfect competitiveness, disorderly opposition in the market ensuing in serious disrupted the marketplace order, this really is not conducive on the healthy growth from the total transformer sector. Ability exceeds the marketplace need will lead to industry disorderly competitiveness intensified. Given that there are many in the isolation Power Transformers Manufacturer in China, transformer is oversupply, price battle is intense, what the user favored in tender activity would be the value issue and thus it truly is hard for that companies to take a position a large amount of inputs, in order that the manufacturing procedure cannot go on, the cost just isn't substantial, then there will be no profit hence creating a vicious cycle.

Isolation Transformer Transformer Business High-end R & D isn't Enough

Objectively speaking, China's Oil Type Transformer technology is at the international level on the beginning of the 1990s, and a small amount is inside the level from the world at the end of the 1990s, China's transformer business, compared with foreign advanced countries, you can find still some gaps in research and growth and application of new materials, professional equipment manufacturing, generation technology and talent pool, etc. At present, China's transformer sector presents a pyramid structure, the higher the voltage level, the stronger technical limitations. Not more than 10 producers have the ability to produce transformer above 500 kV, as well as the companies with the manufacturing capacity of manufacturing transformer 220v to 12v are not more than 30.

Transformer Market Severe Blind Investment

Considering that the entry obstacles are very minimal, within the past few years, China's transformer sector new entrants into the capital and enterprise showed a rapid upward trend and this will continue for some time. Brightest blind investment capital for the transformer business also led towards the transformer industries' market place concentration is reduced, competitors is disorderly, loss-making enterprises and other non-health phenomenon. Blind investment has not only exacerbated the low stop of surplus capability inside the transformer business in China, but also intensified opposition available in the market, to some extent contributed to the "price war", ensuing inside a serious waste of resources.