The enterprises have always been low-profit in cable industry of China. When the copper cable manufacturers face the big fluctuation of copper prices, their abilities to resist risk in the form of a “closed contract” are extremely weak. And the cost of copper accounts for more than 70% of the total production cost in these cable manufacturing enterprises. Therefore, cost reduction through finding raw material substitute becomes the only feasible way to survive for manufacturers by the irresistibly external reason of copper price rise. So the development and application of copper clad aluminum become the focus of discussion for the cable manufacturers again recently.
At present, the production equipment and technology of domestic copper clad aluminum have been mature. And the Ministry of Information Industry also made industrial standards in 2000.
However, it’s a business opportunity for the major manufacturers in Dalian, Xi’an and other regions which firstly developed the production line of copper clad aluminum wire. They invest large numbers of labors, materials and funds to enlarge the production capacity.
Up to now, there are over ten manufacturers of copper clad aluminum equipment with nearly 300 production lines that can be put into operation. The annual capacity will reach above 10,000 tons according to the capacity of 700 kg for each production line.