Wire and cable industry will investigate consolidation this year

Over the years, the domestic wire and cable industry market is confusion, uneven and disorderly, irrational competition, not only seriously affect the healthy development of the industry as a whole, but also seriously affect the infrastructure security and people's lives and property. These has aroused great concern of the State General Administration of Quality Supervision, Inspection and Quarantine. It is reported that this year's State General Administration of Quality Supervision, Inspection and Quarantine will investigate wire and cable industry and make measures to compclete overhauled.

Currently, wire and cable industry widespread serious problems in seven areas, namely: shoddy work, the lowest bid, excess capacity, the use of substandard raw materials, buyers and sellers market position of inequality, stagnant technology research and development as well as industry concentration is not high. To make wire and cable industry to carry out fair, orderly and reasonable competition and development, we must eliminate these negative phenomena.

Therefore, some enterprise propose the following recommendations:

1. Quality Supervision departments should strengthen the supervision of the cable manufacturers, checking  if cable products in the market compliance with national standards, and strictly check the actual supply is consistent with the design requirements, otherwise exposure through the media.

2. When selected integrity cable manufacturers, according to firm size, level of technology, service capacity, 20-30 integrity cable manufacturing enterprises selected from national cable manufacturing companies, each province or neighboring provinces, autonomous regions retained for at least 2-3.

3. To establish blacklist system of penalties, required honesty enterprise to attend the meeting, signed the guarantee, to ensure product quality, if there are problems, that is, columns into the procurement blacklist and disqualified from corporate integrity.

4. Appeal to the cable purchaser to give up the `lowest bid` strategy. Because cable products are the national standard products, product structure, size, weight, material costs are unified and transparent. Recommendations offer cost analysis program in the bidding activities, the costs, management costs, tax costs and reasonable profit must be public transparent and the industry to develop appropriate cable sales guide price, the tender side to the subject of price bid evaluation.

5. Call for the cable purchaser to reduce the links during the payment process. Increase in raw material price fluctuations in the contract `oral convention`, change the `closed contract` price linkage mechanism, the formation of copper change.

6. Supervise cable manufacturing companies, and require the successful cable companies write cable-related technical specifications and design requirements into the contract text, once identified the enterprise fail to manufacture the cablbe-related products according to specifications and design requirements, will pursue their legal obligations according to the terms of the contract.