Problems In The Dry-type Transformer Industry

A serious overcapacity, disorderly competition serious

According to conservative estimates, China’s current dry-type transformer capacity has reached 3 billion KVA, but the required volume in 2020 is only 1.3 billion KVA, and there is a large excess capacity.
In the fierce market competition, some enterprises in order to compete for orders, occupy market share of the main price war, resulting in dry-type transformer product profits repeatedly reduced.

In particular, for goods below the 220KV level, due to many manufacturers, most orders are in a small profit and stable situation.

Second, the problem of commodity quality is prominent

In recent years, because of the rising cost of labor and raw material prices, in order to obtain orders for profit, some manufacturers use “aluminum instead of copper, the use of secondary silicon steel sheet, insufficient volume” and other illegal means to reduce production costs to obtain profits, this kind of unfair competition has caused serious damage to the entire industry, low-cost competition not only makes the operation of those regular manufacturers difficult, And hurt the business environment of the entire industry.

According to the AQSIQ released in the third quarter of 2020 power dry transformer spot inspection results, 34 dry transformer manufacturers in 16 provinces in China carried out spot inspection, a total of 29 product samples were tested, of which 9 products did not pass, the rate of good products is only 69%, the scope of spot inspection includes large, medium and small manufacturers. According to statistics, the rate of good products of large, medium and small manufacturers is different.

The compliance rate of large enterprises is 75%, while the compliance rate of small and medium-sized enterprises is only 63% and 48%.

Third, the lack of new core competitiveness

With the increase of commodity homogeneity competition, the power industry energy consumption standards and everyone’s environmental awareness continue to increase, production costs continue to increase, the traditional dry transformer product profits decreased significantly, and now the dry transformer field has entered the era of low profits.

Dry-type transformer enterprises should pay more attention to commodity transformation, structural innovation and adjustment, continue to explore core competitiveness, and complete the sustainable development of operating efficiency while strengthening basic renovation and cost control.

The application of new materials promotes the upgrading and transformation of the field

The advent of new material dry transformers represented by amorphous alloy dry transformers means that the era of reducing energy consumption is coming, and reducing loss may continue to expand the competitive advantage of new material dry transformers.

If the large-scale production of new materials is completed, it can effectively reduce the cost of materials, which will inevitably lead to a great impact on those traditional manufacturers who still use silicon steel sheets, and these enterprises that master new material technology may be in a dominant position and seize a large share of the market.