Transformer manufacturing company in China about 1500. Nearly 30 manufacturers of transformers 500kV above; 220kV and above enterprises is about 50; 110kV and below production enterprises within the statistical range with a certain scale of production about 130 or so.

Overcapacity in serious condition. The past three years, China's annual output of the transformer demand of about 1.3 billion kVA. China's transformer industry production capacity of about 30 million kVA, which Shen, West, Paul Group's production capacity of about 500 million KVA. A few years ago, the rapid development of China's power construction, the transformer rapid increase in demand, resulting in a considerable part of the Transformer company to quickly expand production capacity, and even individual enterprises doubling production capacity. Since 2009, the National Electric Power Construction is slowing down, and the decreased demand for domestic transformer. In particular, the State Grid Corporation of South Network centralized tender for procurement of transformers, the low bid to lead to business competition is fiercer than ever.

In addition, due to fierce competition in the domestic market, the price below cost, causing some companies began to take the overseas route, exports, foreign factories. In addition, many companies have started to focus on the development of new, energy-saving, environmentally friendly, intelligent products. Domestic transformer enterprises, economic efficiency was significantly decreased, many enterprises in the edge of the loss or losses. A large number of distribution transformer business, and even the expense of product quality away malicious competition situation (three-quarter margins fell to 46%).

In addition, the transformer decline in product quality, accident rates. Distribution transformer country pumping pass rate was 70%. The past five years, health products online running transformer accident rate is rising, resulting in an accident Voltage Transformer for grid security is threatened.

Affect product quality, several undesirable phenomena: aluminum and copper, contract fraud, aluminum can do transformer coil and secondary film re-use ", magnetic properties, surface insulation, loss, excessive noise, transformer capacity shortage pounds short of two ".