Unqualified wire and cable manufacturers will be retired

The Guiding Opinions on Improving the Quality of Wire and Cable Products jointly issued by the six departments including the Ministry of Industry and Information Technology and the General Administration of Quality Supervision, Inspection and Quarantine require that new production capacity be controlled from the source of production, does not meet industrial policy requirements and does not meet production licenses and mandatory product certifications. If required, it will not be issued.

The competent department of the industry will implement an industry withdrawal mechanism. For production enterprises that no longer meet the requirements of industrial policies, have outstanding product quality problems, or cause quality accidents, the enterprises’ production licenses and compulsory product certification certificates shall be revoked according to law, and enterprises shall be ordered to withdraw from the wire and cable industry. The above measures will lead to a smaller number of existing participants in the market and ensure a reasonable profit margin for this industry.

In order to purify the growth environment of outstanding companies, the two major power grid companies, State Grid and China Southern Power Grid, have also taken relevant measures this year, which has had a positive impact on the performance of related listed companies. Xin Pu, deputy director of the China Southern Power Grid Materials Department, said that China Southern Power Grid has established a large supplier base, and the evaluation of suppliers is divided into two aspects, one is the evaluation of soft qualifications, that is, a variety of qualifications , performance, business license, etc.; on the other hand, is the supplier's production capacity, on-site evaluation, and product control management system and implementation. As the two major power grid companies increased their demand for cable quality, the price war phenomenon eased, and the profitability of leading companies has improved.