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2022
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06
The capacity utilization rate of the transformer industry in central Jiangxi is only 50%.
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Industry News
【Summary Description】In 2012, the growth rate of product output in China's electrical engineering industry slowed down. Among the 22 major products that were key statistics from January to December, only 68% saw an increase in output, while the remaining 32% experienced a year-on-year decline. The output of the leading product, power generation equipment (generator sets), from January to December was 12,683.22 million kilowatts, a decrease of 8.9% compared to the same period last year.
I. Basic Situation
In 2012, the growth rate of product output in China's electrical industry slowed down. Among the 22 major products monitored from January to December, only 68% saw an increase, while the remaining 32% experienced a year-on-year decline in output. The output of power generation equipment (generator sets), which is the leading product, was 12,683.22 million kilowatts from January to December, a decrease of 8.9% compared to the same period last year.
In the transmission and distribution equipment sector, the output of transformers was 143,132.18 million kilovolt-amperes, a year-on-year decrease of 0.36%. The output of high-voltage switchboards was 1.6198 million units, a year-on-year increase of 13.12%, and the output of low-voltage switchboards was 33.1385 million units, a year-on-year increase of 4.48%. As the most important electrical equipment, the output of AC motors in 2012 was 25,691.32 million kilowatts, a year-on-year decrease of 3.55%.
Generally, an utilization rate of over 80% is considered reasonable for normal market competition internationally. However, in 2012, the capacity utilization rates for China's thermal power equipment industry, hydropower equipment industry, and nuclear power equipment were between 70% and 75%. The utilization rate for photovoltaic capacity was less than 60%, and the utilization rate for wind power capacity was less than 70%. The capacity utilization rate for the transformer industry was only about 50%.
The three major power station boiler manufacturers have a total capacity of 90 million kilowatts, but the actual output is only 50 million kilowatts, resulting in a capacity utilization rate of only 55.56%. There is a serious overcapacity issue.
China's nuclear power equipment capacity is around 12 sets, but only 3 sets have been approved, leading to a serious underutilization of capacity. (It is hoped that the government will expedite the approval of nuclear power projects while ensuring safety, to resolve the recent overcapacity in the nuclear power equipment industry and prevent future supply shortages.)
Due to overcapacity, there is severe vicious competition in the market, leading to high operating costs. Additionally, the unequal status between electrical equipment manufacturers and users has resulted in high levels of inventory and accounts receivable for manufacturers. The ratio of accounts receivable and inventory to operating income is shown in Table 3. The prices of power generation equipment products have been continuously declining; compared to 2008, the price of boilers for million-kilowatt units has decreased by about 340 million yuan, the price of steam turbines for million-kilowatt units has decreased by about 120 million yuan, and the price of generators for million-kilowatt units has decreased by about 20 million yuan.
The price of wind turbines dropped from 6,500 yuan/kilowatt in 2008 to 5,400 yuan/kilowatt in 2009, and then fell below 4,000 yuan/kilowatt in 2010. Currently, the quoted price for wind turbines has dropped to 3,750 yuan/kilowatt.
In recent years, the prices of transmission and transformation equipment have dropped significantly, with most products priced close to their cost, leaving companies with no profit. In this situation, product quality has been severely compromised; coupled with the continuous rise in price levels, these companies are unable to provide salaries that match the socio-economic environment, making it difficult to stabilize their workforce and exacerbating the issue of high employee turnover. Frequent turnover not only leads to talent loss but may also take away some core technologies from the original companies, causing greater losses.
Taking 550kV GIS as an example, when domestic companies were unable to produce 550kV GIS, the price of foreign products reached 70 million yuan. When a domestic company was able to collaborate on production, the price dropped to 40 million yuan, and as more companies began to produce independently, the price fell to about 10 million yuan. In recent years, the selling price has only been about 4 million yuan. The average price for each 110kV GIS compartment was around 800,000 yuan in 2006, but in the first batch of bidding by the State Grid in 2012, the winning bid for each compartment was less than 400,000 yuan, a decrease of over 50%. This is just the listed price of the products; considering the rising social prices, the actual price is even lower.
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