Aluminum replaces copper to lift the technical revolution in the cable industry

“We have successfully developed aluminum alloy cables, achieving an annual output value of 500 million yuan! We’ve also filed several invention and utility patents,” said Shen Yinfu, the chief executive of Kaisate Group Co., Ltd., with a smile. “As of today’s noon, nearly 50 dealers from across the country have confirmed their participation in the upcoming aluminum alloy cable conference on March 2nd!”

Kaisate Group Co., Ltd. was originally Shaoxing Zhengming Copper Co., Ltd. “For years, we were just a supporting player for domestic cable manufacturers, producing copper cores,” Shen explained. “I’ve always been looking for a chance to step into the spotlight. Finally, a message gave me the opportunity to become the protagonist!”

It happened at the end of 2009. A friend working at the Shanghai Cable Research Institute told him that a major breakthrough had been made in the development of aluminum alloy materials, signaling a potential shift in the copper industry from its current 'universal' state.

As Shen delved deeper, he learned that the demand for wire and cable products was booming, causing copper prices to skyrocket and putting immense pressure on the cable industry. Looking ahead, with the rapid growth of smart grids, nuclear power, railways, and construction industries, the demand for cables is expected to rise sharply, leaving a vast market potential for the future.

In September 2010, Shen acquired Hangzhou Yonghe Cable Co., Ltd. for RMB 10 million, entering the cable industry. He then relocated the company's R&D center to the University of Shanghai for Science and Technology, adopting a collaborative model where the university would produce while the company funded the research. This approach helped strengthen the integration of "industry, academia, and research." By the end of 2011, the 100-million-yuan aluminum alloy cable production project was officially launched. In October of last year, the aluminum alloy cables entered the trial production phase, and soon after, they received certification from relevant national authorities.

The reporter found out that aluminum alloy cables use a completely different production process compared to traditional cables. Compared to copper cables, they offer comparable or even superior performance in terms of safe current carrying capacity, conductivity, safety, and conductor resistivity, especially in cut-off flow. They overcome many of the shortcomings of pure aluminum as a conductor and solve key technical issues related to safety, electrical performance, and mechanical properties. In countries like the United States and Canada, aluminum alloy wires make up as much as 90% of all cables, while China is still in the early stages of development.

According to an official from Shangyu City Government, Kaisate Group has successfully replaced copper with aluminum, seizing the commanding position in the aluminum alloy cable market and securing an early advantage. This move is expected to help grow this emerging industry and bring it to new heights.