[China Cable Network] Currently, a prominent trend in the wire and cable industry is that while there are numerous enterprises, many of them remain small in scale, resulting in insufficient market competitiveness and creating contradictions between supply and demand. Increasingly, voices within the industry are converging on a single message: cable companies must undergo mergers and restructuring.
Regarding mergers and restructuring, the cable industry, as well as relevant government departments, all have their own views and suggestions.
On December 23, Miao Wei, Minister of Industry and Information Technology, stated while introducing the progress in comprehensively deepening reform and accelerating the advancement of a new type of industrialization that the real decision-making power and autonomy over corporate mergers and acquisitions still rest with the enterprises themselves, not with the government.
Regarding this, Zhang Shengli, a veteran in the cable industry and chairman of the Anhui Province Wire & Cable Chamber of Commerce, also expressed a similar viewpoint. He said that no matter how cable companies choose to transform, restructure, or pursue acquisitions in the future, their first priority should be determining how company leaders position their businesses.
Ultimately, mergers and acquisitions within the wire and cable industry all depend on the companies themselves, as businesses retain ultimate autonomy and decision-making authority.
Currently, government departments are also working hard to achieve a shift in their functions, encouraging and facilitating corporate mergers and restructurings, while striving to create a relatively fair and impartial environment for businesses undergoing such transformations.
The wire and cable industry is currently facing numerous challenges. Zhang Ronghan, Director of the Heavy Equipment Division at the Equipment Industry Department of the Ministry of Industry and Information Technology, once pointed out that China's cable industry suffers from low market concentration and weak competitiveness. Although China has already become the world's largest manufacturer of cables, its industry remains highly fragmented—top-10 Chinese cable companies collectively hold only 7% to 10% of the domestic market share. In contrast, the top 10 U.S. cable manufacturers (such as General Cable, Belden, Corning, Southwire, and others) account for approximately 70% of the global market; Japan's seven leading cable firms (including Furukawa, Sumitomo, Teikoku, Hitachi, Showa, and others) capture over 66% of the market; and France's five major cable companies (like Nexans, Nexans New Technologies, and others) dominate more than 90% of the French market.
Wu Changshun, Director of the National Wire and Cable Quality Supervision and Inspection Center, believes, "Mergers and acquisitions among cable manufacturers—led by publicly listed companies and large corporations—to integrate with related wire and cable enterprises will become the future development trend of the wire and cable industry."
Anhui Province's Wuwei County ranks second among China's four major hubs of the wire and cable industry. Regarding mergers and acquisitions among local cable companies in Wuwei County, County Mayor Zhang Zuwu stated that, as a key base for the cable industry, it’s not about having more enterprises being better—but rather, the bigger and stronger the companies are, the better. The Wuwei County Party Committee and County Government have consistently guided cable companies toward asset restructuring, fostering innovation and growth, and providing robust support to help businesses go public. Currently, over ten enterprises in Wuwei County are undergoing asset restructuring.
As the local leader overseeing the wire and cable industry, I hope to guide regional cable enterprises toward asset restructuring and corporate listings, helping them overcome their current challenges through reorganization and ultimately grow stronger and more competitive.
As enterprises directly involved in mergers and acquisitions within the cable industry, many cable companies also hope to find new opportunities through these restructuring efforts.
Ding Shanhua, Executive President of the Jiangsu Provincial Optical and Electrical Cable Chamber of Commerce, stated that mergers and acquisitions among cable companies aim to truly achieve complementary advantages. Although the effects of restructuring may not be immediately apparent in the short term, such consolidation is crucial for the cable industry as a whole.
