Cable manufacturer Jiangnan Group (01366.HK) expects to win more orders and boost its business following the Chinese government’s plan to step up the development of ultra-high voltage (UHV) power transmission lines, chief financial officer Chan Man Kiu told the Hong Kong Economic Journal.
The construction of extra high voltage power grid is expected to be accelerated after Premier Li Keqiang pledged to develop such networks at a National Energy Commission meeting earlier this month. However, a tight liquidity environment may squeeze out some smaller players.
Orders received by Jiangnan Group this year have showed signs of improvement, compared with the same period last year, prompting the company to operate full swing even during the Spring Festival holiday, Chan was quoted as saying.
The group is eyeing more orders from State Grid Corporation of China, given the state-backed firm’s increased capital expenditure plan on UHV network construction this year.
With a vertical production line that can produce aluminum alloy suitable for the production of cables suitable for use even in remote areas, Jiangnan Group is capable of delivering more UHV orders from the national grid company, Chan said.
State Grid Corp. is said to be targeting fixed-asset investment of 381.5 billion yuan (US$61.02 billion) for network expansion this year, compared with the 337.9 billion yuan actual investment in 2013.
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