China Wire and Cable Industry Chain Report, 2009

From 2000 to 2008, China's generating capacity increased from 1,300 TWh to 3,451 TWh, with an average annual growth rate of 33%. China kept investing in power construction and made generating capacity rise promptly, in order to solve the shortage of power supply and promote the development of China's industrialization process.

Generating capacity has grown rapidly, but power grid construction is left behind. The increasing load calls for stricter quality requirements on the transmission. To further improve the quality of power grids, China plans to invest RMB1.2 trillion in medium and low-voltage XLPE cables as well as EHV cables according to "Eleventh Five-Year Planning".

State Grid increased the new investment of RMB12.0 billion in 2008, and the investment will reach RMB1.16 trillion in the next 2-3 years. In a year or two, China Southern Power Grid will increase the annual investment of RMB30 billion in urban and rural power grid construction and reform, so together with the originally planned RMB110 billion, the total investment will amount to RMB170 billion.

Just only the investment in grids will bring considerable demand for wire and cable. In China, 3G construction, high-speed railway construction, urban rail transit construction as well as automotive industry will also have great demand for wire and cable. Therefore, China‘s wire and cable market will develop steadily fast.