On November 3, FDHJ Alloy Technology Group, a leading manufacturer of silver alloy wire electrical contact materials in China, issued an announcement stating that the application for non-public offering of shares was approved by the Securities Regulatory Commission. According to the company’s previously released fixed increase plan, the company plans to raise The capital is 245 million yuan, which is mainly used for the intelligent manufacturing of electrical contact wire materials, precious metal material recycling projects and supplementary working capital.
FDHJ said that in recent years, the development of China's electric power, smart home, new energy vehicles and other industries has brought a broader demand for electrical contact wire products. Under the background of rapid industry growth, expansion and intelligent transformation will effectively solve the company The bottleneck of production capacity and the improvement of production efficiency will help the company further consolidate its dominant position in the industry.
Broad market demand for electrical contact materials
FDHJ's main business is the research and development, production and sales of various high-performance electrical contact materials. The products are widely used in low-voltage electrical appliances, electronic information manufacturing industries and other industries.
In recent years, China's electric power, smart home, new energy vehicles and other industries have shown rapid growth, which has greatly promoted the rapid development of the low-voltage electrical field, and has brought a broad demand market for electrical contact wire products. According to the prediction of the Electrical Alloys Branch of the China Electrical Equipment Industry Association, during the "13th Five-Year Plan" period, the average annual compound growth rate of China's electrical contact material output will remain at 7%-8%. In 2020, China's contact material output will reach 3092 tons.
Qian Xiangjin, a distinguished professor of Zhejiang University School of Management, said in an interview with Hay Think: "Benefiting from the increasing demand for low-voltage electrical appliances in the field of power transmission and distribution in power engineering, the electrical contact material industry will maintain steady growth in the next few years; home appliances, office equipment The development of industries such as, automotive and other industries also provides a strong guarantee for the continuous growth of the electrical contact material industry; in addition, the continuous expansion of electrical contact materials in emerging fields such as aviation and military industry provides new driving forces for the sustainable development of the entire electrical contact material industry ."
In addition, Qian Xiangjin also pointed out: "The electrical contact material industry is a typical capital and technology-intensive industry. From the perspective of the overall industry development, a small number of companies with core technology, stable quality and high-quality customer structure have gradually occupied the main market. With the gradual increase in industry concentration and the manifestation of the benefits of large-scale operations, these leading companies will become the main obstacles for new entrants in the industry."
FDHJ is a leading manufacturer of electrical contact materials in China. The company`s main domestic customers include Chint Electric, Delixi, Hongfa, Liangxin Electric, Bull Group, etc., and its main foreign customers include Schneider, ABB, Siemens, Omron, Tyco, Emerson , Legrand, etc., have significant advantages in customer resources.
FDHJ stated that in the context of the rapid growth of the industry, the company must firmly grasp the development opportunities, further develop the electrical contact wire product market, and increase the company's market share. The planned increase in the investment project to add a new production line of automated electrical contact wire and replace the existing production line will effectively solve the company's capacity bottleneck and help the company to give full play to the scale effect and meet the rapidly growing market demand.