Ningbo Jintian Copper (Group) Co., Ltd.
Ningbo Jintian Copper (Group) Co., Ltd.

What Are the Unique Modes of the Enamel Insulated Wire Industry?

There are many kinds of products in the enamel insulated wire industry, and the application fields involve various industries such as motors, transformers, and home appliances. Industry barriers are divided into the following aspects:

1. The size and brand of enamel insulated wire

At present, there are not many large-scale enamel insulated wire companies in the market. Due to the continuous upgrading and adjustment of the industry, downstream products have become more and more rich in performance, and the requirements for enamel insulated wire are getting higher and higher. Supply, there is also a relatively complete after-sales service process.

In terms of brands, more well-known brands in the industry are more favored by the downstream. Therefore, manufacturers who meet these conditions will be favored by customers. Manufacturers with high brand awareness, sound sales network, and perfect customer service system are the first choice for customers. Or have unique varieties in the industry, form unique product advantages, and conduct differentiated competition, these manufacturers will be the first choice for customers. It is not easy for new entrants to form a brand effect and a perfect production and sales system in a short period of time, and it is difficult to occupy the market in a short period of time.

2. Technical aspects of enamel insulated wire

Many downstream applications of enamel insulated wires have strict quality requirements, especially enamel insulated wires for special purposes, such as coils that supply power transmission and transformation equipment for the national grid, which are related to the safety of national power operation. A little problem will cause great losses to the country. Therefore, there are strict requirements on the product quality and technology of enamel insulated wire manufacturers.

Therefore, at the technical level, the quality requirements of high-end enamel coil wires have brought high technical barriers to entrants in the industry. At the same time, in terms of the production process of enamel coil wires, the requirements for the accumulation of technical experience are relatively high. The entire production process includes There are more than 20 process parameters such as wire drawing, enameling speed, tension control, mold configuration, baking temperature, etc., and more than 100 control points. These must be reasonably designed and strictly controlled, and coordinated use requires a certain accumulation of experience. At present, there is also a lack of experienced and mature technical staff in the market.

It is difficult to solve the technical barriers of new enterprises, and it is difficult to coordinate various factors, including plant construction, raw material selection, process control and so on. Moreover, China adopts the production license method to manage the production of enamel insulated wire, such as flat enameled copper wire. Manufacturers must obtain relevant qualification certificates to be qualified for production. Since the national strategy attaches great importance to the industrial upgrading of the manufacturing industry, with the downstream technological progress and product upgrading, the upstream raw material side is put forward. There are also more requirements. Generally, multiple standard certifications such as the US UL safety standard test and the EU ROHS environmental protection certification are required to obtain customer approval.

3. The capital aspect of enamel insulated wire

The enamel insulated wire industry is a capital-intensive industry and has high requirements for the scale of capital and financing capabilities. The main raw materials for enamel insulated wire production are copper and aluminum.

In particular, the price of copper is high, the unit value is high, and it takes up a lot of money, and enamel insulated wire companies mainly purchase electrolytic copper and copper rods. The price of copper rods is also affected by copper prices. Higher copper prices will affect copper rod factories and enamel insulated wire companies, like enamel coated copper wire suppliers. Large capital pressure has been formed, and the procurement and turnover of raw materials requires a large amount of capital to ensure the normal operation of the company. Therefore, new entrants are facing greater financial pressures, making large-scale production difficult, and requiring high scale of investment in fixed assets and working capital.

4. The enamel insulated wire is in terms of the stickiness of the partnership

Since many types of enamel insulated wires are customized non-standard parts, especially enameled flat wires, there will be the problem of stickiness between enamel insulated wires and downstream customers. Build trust in terms of quality and supply stability.

Once the downstream has established a relationship with a stable supplier, it is sticky and difficult to replace. Therefore, the barriers for new companies to enter the industry partnership also need to be considered.