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At the second China (Wuhu) Wire and Cable Products Expo held recently, Zhang Ronghan of the Ministry of Industry and Information pointed out that the average profit margin of the domestic cable industry is very low, hovering at 3%-4%. At the 2013 Wire and Cable Industry Association meeting, Gao Qingguo, honorary chairman of the China Wire and Cable Branch Industry Association, said that the domestic cable manufacturing industry is 80% to 90% of the homogenized products of low-end products. It is understood that the fierce competition of low-end products, the relative lack of high-end products is an important factor leading to the low profitability of the cable industry.
At present, representative green and domestic cables at home and abroad mainly include flame-retardant cables and fire-resistant cables. These cables have higher added value and higher profits than conventional cables. Therefore, research and development and production of environmentally friendly cables are likely to shift the company from low-end products to high-end markets, and the benefits will be improved.
With the continuous improvement of the world's environmental protection requirements, international environmental laws and regulations are also increasing and increasingly strict. Adopting EU RoHS directives, such as wire and cable products, they cannot enter the European market without certification. In order to obtain opportunities for exporting products, foreign countries continue to reduce the production of traditional cables instead of producing environmentally friendly cables.
