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Wire and cable industry bid farewell to overcapacity in 2011

2011 is an important year for the rapid development of China's wire and cable industry, profits, import and export trade, and other major economic indicators of growth are expected at the beginning of the year, is expected to achieve growth of around 23%, only Anhui Zhongsheng Cable Group sales reached 500 million yuan in January-February, to achieve such results, there are three main reasons:

First, the national macro-economic rebound, continuous and stable policy, which provides favorable macro environment for the development of wire and cable industry;

Second, the electricity industry promotes development of the rapid development of wire and cable industry, in recent years, the speed of China's power construction, the pace of the big surprise the world;

Third, the world's economic recovery and good external demand, but also further stimulate the recovery of export growth in electrical electrical products in China.

According to a report recently provided by the China Electrical Equipment Industrial Association, the excess low-end wire and cable industry in 2010 is a prominent problem, especially around regardless of cross-linked cable production capacity is already a serious excess of the actual situation is still a lot of the introduction of legislation Tower production line, resulting in redundant construction, waste of money and idle capacity. At the same time, the Chinese electrical appliances industries including high-end products, including ultra-high voltage rating of cables, special purpose cable production capacity, the vast majority of product or raw materials, dependence on imports, in the 2011 wire and cable industry in restorative bid farewell to the rapid development of overcapacity, obviously, bid farewell to the overcapacity is structural, in accordance with the national planning, from now until the end of the "12th five-Year" every year in China will add 70 million to 80 million kilowatts of installed power generation demand, electricity economic development is an important barometer of the overall situation is good for national economic development of wire and cable to provide a stable environment. The data show that the first two months of 2011, China's wire and cable to restore strong growth, an increase of more than 23% each month and sales rate has remained above 96% good sales performance.