This year’s edition of the Wire China show will be held at Shanghai from September 26-29, 2016. In this interview, Axel Bartkus, General Manager, Messe Düsseldorf (Shanghai) Co Ltd elaborates about the highlights of the show.

As Asia’s foremost trade fair for the wire and cable industry, Wire China 2016 will feature renowned domestic companies such as HOSN, Hefei Smarter, Jiangsu Handing, Langfang Xinming, Shanghai Kingstone, Shanghai Originaldow and Tianjin Huayuan as well as foreign enterprises like Dow Chemical, Borouge and Borealis, Eurolls, Fiber-Line, Wanhua Chemical, DSM, LG Chem, Lubrizol, Technora, DISA, Polyone, KOS, etc. The exhibitors will showcase the latest advancements in wire production and refining machinery, processing equipment, auxiliary processing materials, special wires and cables measurement and control technology as well as products, services and solutions in related professional fields. To address the changing trends within the industry and needs of the different target groups, Wire China 2016 has expanded two of its segments – wire and cable materials and wires and springs – and worked together with the Shanghai Fastener & Tech Show to create the new fastener special zone. Excerpts from the interview:

Could you provide an overview of the Wire China show as to the number of exhibitors, special themes, country-wise participation, etc?

As about 1,000 exhibitors and over 30,000 trade visitors are expected to attend this second-largest trade show of wire and cable industry in the world, Wire China 2016 will be an excellent platform for idea exchanges, networking, exhibiting, and face-to-face business talk. The special zones featuring fasteners, wire and cable materials, wires and springs will provide a customised exhibiting occasion to enhance the effectiveness of business matching. Global and Chinese industry players are participating in this show, including companies like Dow, Borouge & Borealis, Eurolls, Fiber-Line, Wanhua, DSM, LG Chem, Lubrizol, Teijin, DISA, PolyOne, KOS, Dainichiseika, Furukawa Electric Group, Gauder, Suzuki Garphyttan, Nexteck, Zumbach, Kalmark, Totoku, Maillefer, Bekaert, Sandvik, Hefei Smarter, Shanghai Kingstone, HOSN, Yong Xiong, Handing, Xinming, Shanghai Kechen, etc. The international pavilions will include Germany, USA, Italy, Austria, UK, Japan, South Korea and Taiwan.

What is the current status of the wire and cable industry in China?

The ‘Made in China 2025’ plan will drive China’s wire and cable industry into a new round of development opportunities. China is the world’s No.1 manufacturing and consuming country of wire and cable. The industry has maintained a consumption scale of more than 1 trillion yuan for many years. In 2014, it hit a record at 1.4 trillion yuan. The sales revenue of the cable industry rose by 4.6% in 2014, among which the physical quantity (conductor usage) grew by 7%. From 2015-2016, the production value and physical quantity increase of China’s cable industry is predicted at 5-8% and 7-10% respectively. In 2015, China entered the economic ‘new normal’. As an industry closely linked to the national economy, the wire and cable industry will enter the ‘new normal’ as well.

From a technological perspective, Made in China 2025, internet+ and other concepts have emerged one after another. The wire and cable industry will unleash huge innovation capacity and new vitality, and breed new commercial modes. In terms of national strategy, the ‘One Belt and One Road’, and ‘Going Out’ strategies will inject primitive power to help the cable industry grow bigger and stronger. With the development of the new-generation information and communication technologies represented by Internet of Things, big data and cloud computing, the world is entering the era of internet+ and the wire and cable industry is embracing the new opportunities of smartness, intelligence and wisdom. In the next decade, China will witness explosive growth in its new energy industries like wind, solar, nuclear, etc. which will further drive the demands for wind energy cable, photovoltaic cable, nuclear energy cable and other special cables.

Accompanied by the progress of urbanisation, the inevitable development of smart cities will most significantly benefit the development of communication cables. Also, driven by the awareness of green and energy-saving development, smart grid has also become an important field receiving close attention in various countries all over the world, and has posed another opportunity for the wire and cable industry. Meanwhile, with the rapid development of the Chinese economy and the continuous acceleration of the urbanisation process, the fields of high-speed railway, urban rail transit and new energy automobiles have entered a quick growth stage, and thus promoted the wide applications of bare wires, electrical equipment wires and cables, power cables and communication cables. In addition, power, energy, construction, communication and other national infrastructure construction and major project industries have also maintained a trend of heavy investment and rapid growth.

What are the challenges that need to be overcome in the global wire and cable industry?

We are facing the challenges posed by global economic upheaval, a worldwide steel crisis, new climate regulations spanning the globe, and a classic industry on its journey into the new Industry 4.0 digital age. However, there are large markets in developing countries and this will boost the global wire and cable industry. For example, ten years before the sub prime mortgage crisis, the entire global production and consumption of wire and cable in developed countries accounted for about two-thirds of the world. Today, the consumption of wire and cable in China and other developing countries account for two-thirds of the world, in which Chinese consumption accounts for one-third of the world.

In China, according to industry experts, influenced by excessive capacity, low-end competition, price drop of bulk commodities like copper, aluminium, petroleum and so forth, the growth of the wire and cable industry will gradually slow down, with the current growth rate maintaining at about 2.7%. However, the supply side reform, internet+ One Belt, One Road and other policies launched by the Chinese government will effectively alleviate the problems currently existing in the industry, and maintain the progressive trend of the total demand for wires and cables in China. The related material and equipment manufacturing industries will also benefit from this trend. For Chinese companies, the main challenge is product and equipment upgrade to cope with the global market changes.

What has been the response from Indian companies?

India is Wire China’s important exhibitor and visitor source, especially the latter. We think highly of the India market and have received active response from Indian companies in previous editions. Considering Chinese equipments and products have the advantage of good value for money and India is near to China, Indian companies prefer to look for suppliers at Wire China rather than participate as an exhibitor. For example, 261 Indian visitors, including four Indian groups, visited wire China 2014, accounting for 13.62% in Asia visitors, excluding China.

Do you feel that the language barrier prevents sharing of information and technology between Chinese and other companies?

Looking forward, it’s imperative for the wire industry in China to strengthen cooperation with foreign companies. In the meantime, leading Chinese wire companies are raising their awareness of going global. Both the wire industry and the wire market in China will be more open-minded to communicating and cooperating with international counterparts with a view to achieving positive results. Many Chinese companies have specialized staff good at foreign languages, especially English. I do not think the language barrier is a problem.

– HUNED CONTRACTOR