Cable industry merger and reorganization decision-making power in the enterprise
【Cable Network News】 At present, one of the more obvious phenomena in the wire and cable industry is the large number of companies, but many companies are small in size, and the market competitiveness of enterprises is insufficient. The market supply and demand relationship is in conflict. The same voice has appeared more and more frequently in the wire and cable industry – cable companies need to merge and restructure.
Regarding mergers and reorganizations, the cable industry and related government departments all have relevant views and suggestions.
On December 23, Miao Miao, Minister of Industry and Information Technology, stated that when comprehensively deepening reforms and accelerating the advancement of new-type industrialization, it was proposed that the true decision-making power and autonomy of mergers and reorganizations of enterprises are still in enterprises, not in the government.
In this regard, the cable industry veteran - Anhui Province Wire and Cable Chamber of Commerce Zhang Shengli also expressed similar views. He said that in the future, no matter how a cable company transforms, restructures or acquires, it must first look at how business leaders position themselves.
In the final analysis, the merger and reorganization within the wire and cable industry depends on the company itself, and the company has the ultimate autonomy and decision-making power.
At present, government departments are also working hard to achieve functional changes, encourage and promote mergers and acquisitions, and do their utmost to create a relatively fair and just environment for mergers and acquisitions.
The wire and cable industry is currently facing many difficulties. Zhang Rongji, director of the Heavy Equipment Division of the Department of Equipment Industry of the Ministry of Industry and Information Technology, pointed out that the cable industry in China has a low degree of concentration and is not competitive. Although China is already the world's largest cable manufacturing country, its concentration is extremely low. China's top ten cable companies only account for 7%-10% of the domestic market share. The top 10 cable manufacturers in the United States (such as GM, Baitong, Corning, and South Line) accounted for about 70% of the market share; Japan's 7 largest cable companies (such as Furukawa, Sumitomo, Tengcang, Hitachi, Showa, etc.) Accounted for more than 66% of market share; France's five major cable companies (Nikesen, Xinte, etc.) accounted for more than 90% of the French market share.
Wu Changshun, director of the National Wire and Cable Quality Supervision and Inspection Center, believes that “the acquisition of a cable manufacturing company with a listed company and a large group to merge and integrate relevant wire and cable companies will become the future development trend of the wire and cable industry.”
Wuwei County of Anhui Province ranks second in the four major wire and cable industry clusters in China. Regarding the merger and reorganization of local cable companies in Wuwei County, the county governor Zhang Zuwu stated that as the cable industry base, not as many companies as possible, but the larger the company The stronger the better. The Wuwei County Party Committee and County Government has been guiding cable companies to achieve asset reorganization and listing of companies from the aspects of asset restructuring, support for new services, and service companies. At present, more than a dozen companies in Wuwei County are restructuring their assets.
As the parent of the wire and cable industry, it is hoped that the local cable companies will guide the restructuring of the assets of the local cable companies and the listing of the companies. The restructuring will get out of the current predicament and become stronger and stronger.
As a company directly involved in the merger and reorganization of the cable industry, many cable companies also hope to find new outlets in mergers and acquisitions.
Ding Shanhua, executive chairman of the Jiangsu Optical Cable Association, said that the merger and reorganization of cable companies is to truly complement each other. Although the effect of restructuring may not be obvious in the short term, merger and reorganization is very important for the cable industry.