Zhenyan Guo, Vice Director of China Electrical Equipment Industrial Association (CEEIA) has spoken about the impact of COVID-19 on the transformer industry in an interview with the CWIEME.
Mr Guo cited the resumption of work as a key short-term concern for the transformer industry. Lack of clarity over the situation, combined with the decision when to restart work being on each enterprise individually, makes for a difficult situation.
“Currently, the situation of COVID-19 is not that clear, so I think at this time protecting the safety of employees should be the main priority for enterprises,” said Guo.
“On the other hand, since the transformer industry is among the entire industrial chain, the resumption of the industry is also affected by its own upstream and downstream industries. In addition, the user’s bidding, the supply of raw materials and component parts have been delayed, so in the short term, the transformer industry is largely affected by the pandemic.” he continued.
Guo’s was optimistic about the industry’s long-term situation, however.
“In the long run, the development plan for power demand will not be affected too much because this had already been confirmed at the end of 2019. However, recently people have been forced not to work and this has led to a slowdown in overall progress. Once enterprises are formally resuming work, I personally think that the output planning will still be carried out as originally planned. The only question is how to increase production capacity in a short period of time and make up for the previously vacant time.” he said.
In the interview, Guo expressed concern over the general level of preparedness in the industry, saying that he felt many companies had no plan on how to deal with an emergency situation.
“In my view, I think that many companies do not have much experience when encountering emergencies and what’s more, they may not have considered the possibility of emergencies in their early company plan. As a result, many companies are in a state of passive waiting, because they do not have an effective solution.
As far as the current situation is concerned, in my opinion, the transformer enterprises need to learn how to incorporate emergencies into their mid-to-long-term plan and reserve experience for future responses.” said Guo.
Ultimately, Mr Guo felt that the transformer industry needs to become more adaptive and responsive in order to maintain competitive strength, but that safety remains an immediate concern.
“It is imperative that companies adjust operating strategies based on the ever-changing needs of the clients, improving the capability and competitive strength of the company. At this moment, I hope everyone can protect themselves and their families, which is a way to protect our country.
Safety is still a top priority at the moment. As for production, I believe finding how to effectively improve production is a common problem for transformer enterprises. In a word, everything needs to be considered on the premise of safety.”