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my countrys fiber optic cable production capacity is seriously surplus, enterprises must pay attention to technological innovation

2021-04-25 09:50:32
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    my country's fiber optic cable production capacity is seriously surplus, enterprises must pay attention to technological innovation


    In recent years, the market's demand for optical fiber and cable has increased rapidly. In order to grasp the time window of market demand, major optical fiber and cable manufacturers have invariably expanded their production capacity. However, the centralized release of production capacity at the same time makes the market pressure very obvious.


    According to relevant data, at present, the total domestic market demand for optical fiber and cable is about 140 million to 150 million core kilometers, but the production capacity of domestic enterprises has reached 240 million core kilometers, and the production capacity has been severely surplus, which has caused a rampant price war in the domestic market. Profit margins continue to shrink. Lan Hai, vice president of Fiberhome Communications, said that at present, we must find a way out for excess production capacity. At the same time, we must also find ways to improve the profitability of the company. Only in this way can we ensure the sustainable and healthy development of the industry.


    The overall production capacity of optical fiber and cable is overcapacity, but some of these products are in short supply, such as low-loss, ultra-low-loss optical fiber, and over 100Gbits/s communication optical fiber. In recent years, Fiberhome Communications, a leading domestic optical fiber and cable enterprise, has relied on its technological advantages to take the road of differentiated competition, effectively eliminating overcapacity and avoiding homogenous competition and cruel price wars.


    According to analysis by industry experts, China Telecom’s centralized procurement of optical fiber and cable has seen an embarrassing situation in which many manufacturers do not eat much orders, which has actually sounded the alarm for the domestic optical fiber and cable industry. Blindly relying on scale expansion and homogeneous product competition, overcapacity is a matter of time, and vicious price wars will be inevitable. Domestic optical fiber and cable companies still need to pay attention to technological innovation, take the road of differentiated competition, and rely on product characteristics and technical content to win

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