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              Capacitor Industry financial crisis ever seen

              By China's rapid development of high-voltage DC transmission technology, led the industry in recent years, unprecedented development of power capacitors, the output value and output growth has remained high. In particular, the state promulgated and implemented 4 trillion yuan of investment plans for the industry to win new development. 

              However, the current financial crisis facing the industry in general affect the lag effect, and the decline in corporate profitability, cash flow shortages and other problems, caused great concern in the industry. 

              Big raise the overall level of

              As a professional in the field of power transmission equipment, power capacitor industry after years of domestic enterprise development and technical improvement, and in recent years, a joint venture set up factories in foreign famous enterprises to bring advanced technology and equipment, and promote its product technology and key process equipment technology improvement, technology and localization achieved significant results. 

              Up to now, the industry leading enterprise technology and equipment, production capacity has reached the international advanced level, continuously improve the overall level of industry, product variety, complete specifications, and have expanded to fully meet China's power industry and other areas of market demand, including a small amount of product exports has been achieved. 

              Since last year, the industry maintained a rapid development of the whole situation. According to incomplete statistics, since 2001, industry output increase for 20% of industry output in 2008 than in 2007, an increase of 19.24%. The first half of this year, the industry overall stable operating conditions. 

              Analysts believe that the industry benefited from the rapid development of two major reasons: First, China's electric power industry, as well as special high-voltage AC and DC Power Transmission Project's rapid development; Second, the state vigorously promote energy conservation policy, and the voltage quality, safety and Festival increasing emphasis on power requirements. These factors provide a good electrical capacitor industry, market opportunities, greatly promoted the industry as a whole technical level. 

              Production increased dramatically. Data show that in recent years, the industry leading products --- high and low voltage shunt capacitor, capacitor voltage transformer, complete set of devices (and make up, filtering device), production of electric capacitors have a big increase.

              According to incomplete statistics, last year completed the entire industry output of high voltage filter capacitors in parallel and up 35.9% over the previous year; self-healing low voltage shunt capacitor production increased by 13.7% over the previous year; sets of equipment (mainly reactive power compensation device and filtering device) yield of 17.3% over the previous year; electric capacitor production increased by 47.3% over the previous year. 

              Technical level has improved significantly. In recent years, the industry technical standards and innovation capabilities continue to improve. In particular, Xi'an West Electric Power Capacitor Co., Ltd., Guilin Power Capacitor Co., Ltd., Nissin Electric (Wuxi) Co., Ltd. and other industry leading enterprise has obvious advantages. 

              At the same time, the production of special high voltage of several parallel capacitors have been successfully put into operation in the State Grid Corporation of Jindongnan - Nanyang - Jingmen of UHV AC pilot demonstration project. Xi'an West Electric Power Capacitor Co., Ltd., Guilin Power Capacitor Co., Ltd. commitment to ± 800 kV HVDC lines --- Yunnan to Guangdong Electric Power Transmission Project to provide complete sets of equipment have been delivered using the capacitor. Guilin Power Capacitor Co., Ltd. was committed as a special high-voltage direct current transmission project Xiangjiaba to Shanghai to provide complete sets of power capacitor device smoothly. 

              Promote technical innovation paying off

              Concern is the power capacitor industry to win the fierce competition at home and abroad, continue to strengthen the infrastructure and the technological transformation of enterprises to achieve significant results, and promote the rapid development of the industry. 

              After years of development, the industry completed a certain amount of capital accumulation. But at the same time, a number of foreign companies such as ABB, Cooper and other companies forced to intervene to domestic power capacitor caused great pressure on producers. To reverse this situation, many companies actively involved in a lot of money, while building a new production line to expand capacity, on the other hand intensity of technological transformation, the purchase of world-class processing equipment. 

              Up to now, the industry key enterprises in the major manufacturing equipment and production lines have reached the current world advanced level. The large number of new process equipment industry, such as the Core in outsourcing and other advanced equipment in use, not only simplifies the production process, reduce labor intensity and lower production costs, but also reduces the leakage rate products, make products more attractive quality is more reliable. As the intensity of technical transformation investment continued to increase markedly enhanced the competitiveness of the industry. 

              First, the rapid growth of new product output value. According to statistics, last year's output capacitor industry of new products rose 35.64 percent. With the increasingly competitive market, many manufacturers aware of the blind is an effective way to conduct a price war, have increased research expenditures, research and development of new products for the high end market. West Yung, Kwai-Yung, Nisshin Electric and other companies of 1000 kV UHV engineering products in the successful operation, the technology to fill the domestic blank.

              Second, the industry infrastructure and renovation projects and the amount of rising. On the one hand is the industry's access to stable and rapid development in recent years, large enterprises for further and stronger, bigger and occupy more market share, have expanded production capacity, increased investment, new equipment, improved technology and so on. At present, the West Yung, Nisshin Electric, Gui Rong Corporation has completed construction of a new production base. On the other hand, SMEs to enhance competitiveness in the market, they have to expand production capacity or update equipment. Currently the industry key enterprises have been built world-class modern enterprise, markedly enhanced competitiveness.

              It is worth mentioning that the Xi'an West Electric Power Capacitor Co., Ltd. in the new plant is completed, is still invested in upgrading production facilities and planning some of the old plant transformation. Guilin Power Capacitor Co., Ltd. new production base of high voltage power capacitors, and invested nearly 200 million yuan for technical innovation, the project construction. Nissin Electric (Wuxi) Co., Ltd. purchased the German Heydrich vacuum impregnation system, the United States HILTON company Automatic Winding Machine, Automatic Winding Machine, India, test devices. New Northeast Electric (Jinzhou) Power Capacitor Co., Ltd. invested heavily in technical innovation, the company introduced two HILTON automatic rolling machine and two sets of Heydrich vacuum drying impregnation system, through technical innovation effectively address the production of high voltage shunt capacitor volume system and the impregnation process "bottleneck." 

              Future development of the deposit worries

              This year, the state launched a 4 trillion yuan of investment plans and the revitalization of ten industry plan, which trades on the power capacitor is a rare chance for the industry to win new development.

              However, the lagged effects of the financial crisis has begun to appear, it is expected to further increase its impact. Therefore, the situation is not optimistic about the future of the industry. 

              After the outbreak of the international financial crisis to impact on many industries, the power capacitor industry, the situation is more special. Before impact is not very clear. Capacitor Industry key enterprises increasing exports, a larger share of its market mainly in Asia and Africa, so the financial crisis did not affect their great. As of late last year, company Western Yung, Kwai-Yung company, Nissin Electric Company exports grew over 50%.

              But in fact, the recent financial crisis since the effect is already beginning to show, a group of small and medium enterprises, especially export and export more to Europe and North America based in Jiangsu and Zhejiang and Guangdong manufacturers and exports have different degrees reduced. 

              In addition, the industry has been presented in the rapid development of worries, many problems constrain the development of the industry. 

              First, costs rise significantly, decreased profitability. Last year in the first half, with the steel industry, power capacitors, film, foil and other materials prices continued to rise in the second half of the financial crisis, some under the influence of steel price decline, but remained at a high price. Meanwhile, corporate operating expenses rose sharply, the resulting profit margins decline. 

              Second, lack of enterprise funds, capital turnover is slow. Capacitor Industry users are basically national and local electric power grid companies, as market competition is more intense, the way most companies use credit. Accounts Receivable thus generally result in more capital to return slower phenomenon. Currently, the industry most of the corporate cash shortage, small and medium enterprises on a smaller scale, against the risk of poor access to bank loans is difficult, therefore more difficulties, some companies have plunged into semi-shutdown state.

              Third, production and marketing to maintain a certain growth, convergence is problematic. Industry-wide sales last year was 98.01 percent, down slightly from a year earlier, down from the surface, the overall data do not, but on a deeper problem is that the industry entered the slow output growth has been faster than sales growth stage. For example, the GUI allow the industry leading enterprise companies, industrial output still maintain a certain growth rate, but sales dropped over 10%.

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