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Cable Industry Development

Apr 26, 2021

Before reform and opening up

In March 1897 (22nd year of Guangxu, Qing Dynasty), China's first underground power cable was put into use in Shanghai. The 2,700-meter-long rubber band-rim lead sheathed lighting cable used in that year was an imported product. It was not until forty-two years later (1939) that the first domestic cable was produced in Kunming (cable factory). Before 1949, the wire and cable industry had only more than 2,000 employees, about 500 production equipment, and the highest annual copper consumption was only 6,500 tons. Among them, the four wire factories in Kunming, Shanghai, Tianjin, and Shenyang share 5,700 tons of copper, accounting for 87.7% of the country's output, and the wire and cable industry is developing slowly. It was not until the founding of New China in 1949 that my country's wire and cable industry developed rapidly.

After the founding of the People's Republic of China, the wire and cable industry developed rapidly. In 1952, the number of conductors reached 15,300 tons, which was 2.63 times that before the founding of the People's Republic of China.

During the "First Five-Year Plan" period, the wire and cable industry began to develop in a planned and healthy manner. In 1953, there were 6 wire and cable factories directly under the Ministry of Machinery in Kunming, Shenyang, Tianjin, Shanghai, Xiangtan and Harbin. Among them, the Shenyang Wire Factory is one of the national key construction projects. It was expanded with the assistance of the Soviet Union. It was completed and put into production in 1956 and was renamed Shenyang Cable Factory. Shanghai Electric Wire Factory expanded the *** line workshop, the perfect line workshop and planned to build the cable workshop. In 1957, it was renamed Shanghai Cable Factory. Tianjin Electric Wire Factory imported Hungarian wire drawing machines and enamelled machines, and built a new enameled wire workshop. In 1963, it was transferred back to the Ministry of Electronics Industry and renamed the 609 factory.

At the same time, the state gradually carried out socialist transformation of the rapidly developing private wire factory, and took rectification measures against the phenomenon of duplication of products, backward technology, and low quality at that time. Shanghai merged 105 private factories at the time into 18 central factories, Tianjin merged 65 private factories into 10 cable factories, Beijing merged 17 factories into Beijing Wire Factory, and Guangzhou merged 18 factories into Guangzhou Electric wire factory, Wuhan merged 3 factories into Wuhan Electric Wire Factory, and Fuzhou merged 10 factories into Fuzhou Rubber Wire Factory. Through the reorganization of joint ventures, technology and governance have been improved, and production development has been promoted.

In order to solve the problem of special equipment for the wire and cable industry, the private Shanghai Xinye Iron Factory was reorganized into a public-private joint Shanghai Xinye Electrical Machinery Factory, which mainly produced cable equipment. From 1952 to 1957, a total of 221 sets of special equipment for wire and cable were produced.

In order to carry out scientific research and design work combining scientific research, process design, and process equipment design, the Shanghai Cable Research and Design Trial Winter was established in Shanghai in October 1957 to engage in research and design of wire and cable products, research on new materials and new processes, and process design of cable factories. Cable special equipment design and complete equipment selection and finalization work, and serve as the information center of the technical rear of the ministry and the wire and cable industry.

In order to improve the level of corporate governance, Shenyang Cable Factory compiled a "Production Organization Design" for continuous operation enterprises on the basis of studying Soviet corporate governance. Subsequently, Shanghai Cable Factory formulated the working procedures and methods for production operation plan, material cost quota accounting, new product trial production, production technology preparation, etc. Other major factories have also carried out planning, production, technology, governance and economic accounting work, which has improved the level of corporate governance.

In 1958, various wire and cable factories competed to develop, building large-scale five cable factories in Zhengzhou, Xi'an, Lanxi, Baiyin, Guiyang, etc. At the same time, large-scale expansion of three factories in Xiangtan, Kunming and Shanghai. Zhengzhou Cable Factory started construction in 1959 and completed the civil works of the *** line workshop, and continued to build after revising the design scale in 1963. The Xi'an Cable Factory was commissioned by Harbin Wire Factory to participate in the construction. After completing the civil engineering of the communication cable and electromagnetic wire workshops and producing some products in 1959, the production was suspended in 1962, and then the copper grid workshop was built and put into production. In 1965, it moved from the Shenyang Cable Factory to the communication cable workshop and put it into production that year, clarifying the communication cable as the product development direction.

From 1958 to 1962, Shanghai Cable Factory built new rolling workshops, cable workshops, communication cable workshops and expanded the first-line workshops, greatly expanding its production capacity. Xiangtan Cable Factory was expanded at a new location in 1959, and the electromagnetic wire and electromagnetic wire workshop was developed. In 1964, the production of electromagnetic wire, electromagnetic wire, plastic, rubber sheath, mining and marine cables was developed. Kunming Cable Factory expanded the *** wire, electromagnetic wire workshop, and cable workshop in 1958, and stopped construction in 1961 after the start of construction. The Shenyang Cable Factory completed the cable car room in 1960, and the Harbin Wire Factory expanded the rolling and aluminum wire workshop. Factory 609 was also expanded during this period.

During this period, a number of small and medium-sized wire factories established on the basis of joint reorganization, such as wire factories in Wuxi, Wuhan, Tianjin, Beijing, Qingdao and other places, were expanded, and some moved to build factories. In addition, Chongqing, Hengyang, Foshan, Nanning, Kaifeng, Suzhou, Hangzhou, Xi'an, Wuhu, Beijing, Xingtai, Yuci, Liaoyuan, Harbin and other places have established many wire factories, electromagnetic wire factories, and wire factories. Some wire and cable factories have also been established in the post and telecommunications and railway sectors.

During this period, some cable accessory factories were developed, such as Wuhan Cable Accessory Factory, Changsha Cable Accessory Factory, Wuxi Plastic Products Factory, Shanghai Wuning Hardware Factory, etc.

In 1958, Shanghai Cable Research and Design Office was renamed Shanghai Cable Research Institute. Between 1959 and 1960, various laboratories and machine repair workshops were built, and civil engineering of high-pressure buildings was completed. In 1961, the military high-frequency and submarine communication cables were transferred back to the Tenth Research Institute of the Ministry of National Defense and later developed into the 1423 Research Institute.

From 1967 to 1968, Hubei Hongqi Cable Factory was contracted and built by Shanghai Cable Factory. After completion, the main products were ultra-high voltage cables, submarine communication cables, marine cables, and cross-linked polyethylene cables. There is also the Changtong Wire Factory, which was merged with Shanghai Dilai Electric Factory in Lanzhou and Baiyin Cable Factory, Guiyang Wire Factory, which was jointly relocated by Shanghai Plastic Wire, Aluminum Wire and other factories, and Qingdao Wire Factory was partly moved to Xintai Wire Factory. Part of the Fuzhou Electric Wire Factory was moved to Nanping Electric Wire Factory, part of the Harbin Electric Wire Factory was moved to Mudanjiang Electric Wire Factory, Hangzhou Cable Factory and Wenzhou Electric Wire Factory were partly moved to Shanhe Electrical Equipment Factory, and Wuxi Cable Factory was moved to Guangde Electric Wire Factory. Part of the Guangzhou Electric Wire Factory was moved to Huaxian Electric Wire Factory, and part of the Shenyang Electric Wire Factory was moved to Fushun Qingyuan to build 8290 Electric Wire Factory.

From 1966 to 1976, a number of new factories were built, such as Changchun, Jilin, Ji'an, Qinggang, Zhaodong, Fuxin, Yanqing, Lishi, Pingyuan, Xining and other factories. The Ministry of Posts and Telecommunications has established the Houma Cable Factory, and the Ministry of Railways has established the Jiaozuo Railway Electrical Equipment Factory and Tianshui Railway Cable Signal Factory.

Since the reform and opening up

The convening of the Third Plenary Session of China's Eleventh Central Committee and the implementation of the Sixth Five-Year Plan brought the enthusiasm of employees in the cable industry to a high level. In 1979, the amount of conductors rose to 439,200 tons. After the center put forward the policy of "adjustment, reform, rectification, and progress" in 1979, the scale of my country's infrastructure has been greatly reduced, and the demand for wires and cables has decreased. However, with the development of the household appliance industry, the demand for some products such as fine enameled wires has surged. With the results of the adjustment, production rebounded. In 1985, the amount of conductors rose to 623,000 tons.

In the reform and opening up, the development of internal linkages has enabled cross-regional and cross-industry in-linked enterprises to develop rapidly. At the same time, township enterprises and local enterprises have emerged in large numbers, the number of which is unprecedented in the past. However, until the 1990s, state-owned enterprises had an unshakable dominant position in my country's wire and cable industry. In the 1980s, the North and the South formed two hegemonies, namely, the Shenyang Cable Factory and the Shanghai Cable Factory; in the 1990s, the three pillars of the Shenyang Cable Factory, the Shanghai Cable Factory and the Zhengzhou Cable Factory were formed.

With the in-depth development of reforms, since the mid-1990s, state-owned enterprises have gradually withdrawn from the stage of history, and the proportion of private enterprises in the industry has increased year by year. During the ten-year development of the Ninth Five-Year Plan and the Tenth Five-Year Plan, the economic composition of my country's wire and cable industry has also completed a major transformation. In the early stage of reform and opening up, it was mainly composed of a relatively single economic component with the state-owned economy as the mainstay and the collective economy as the supplement. After reforms and adjustments during this period, it has gradually transformed into a private enterprise as the main market, and foreign-funded enterprises seized a large number of high-end markets. A format in which the company’s market share is shrinking


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