Category: CENTERSKY

Analysis and Forecast of Downstream Sub-market Applications in the Grain-Oriented Silicon Steel Industry
China’s steel industry has entered a stage of fierce competition for existing market share. In 2023, crude steel production reached 1.005 billion tons, and steel product output reached 1.4 billion tons, representing a year-on-year increase of 1.1%. Driven by technological and industrial revolutions, the steel industry is accelerating structural upgrading and developing towards mid-to-high-end products. On the consumption side, demand for construction steel has declined, while demand for high-quality special steels such as medium and heavy plates, automotive steel sheets, and silicon steel has increased. High-end steel will become the main focus of future development, and grain-oriented silicon steel is expected to become a key development area for the steel industry.
Analysis of the supply situation of my country’s grain-oriented silicon steel industry
Silicon steel is an indispensable soft magnetic alloy material for national industry, agriculture, transportation, national defense, and people’s daily lives. It is the cornerstone of the green, low-carbon, and efficient development of the power industry and a key material for upgrading various electrical products. It is widely used in industrial motors, home appliances, new energy vehicles, transformers, and other fields.
Gross-oriented silicon steel, due to its high magnetic permeability, low coercivity, and high resistivity, is widely used in various types of transformers, including main transformers, distribution transformers, and dry-type transformers, primarily in the transformer (core) manufacturing industry. The manufacturing technology of oriented silicon steel is highly complex and has a narrow process window. Especially for high-grade, high-magnetic-induction oriented silicon steel, the technological barriers are extremely high, representing the highest level of steel manufacturing and being hailed as the “crown jewel” of steel products.
With the promotion and implementation of the national “dual-carbon” strategy and the continuous progress of electrification and intelligentization in society, the international and domestic markets for medium- and high-grade non-oriented silicon steel and high-magnetic-induction oriented silicon steel have shown a long-term stable growth trend. In recent years, my country’s grain-oriented silicon steel production has continued to grow, reaching 2.6502 million tons in 2023, accounting for 17.35% of total silicon steel production. Among them, high magnetic induction grain-oriented silicon steel (HiB) accounted for 59% of the production, while general grain-oriented silicon steel (CGO) accounted for 41%.

Analysis and Forecast of my country’s Grain-Oriented Silicon Steel
Production from 2020 to 2031

In 2025, China is expected to add 6 new grain-oriented silicon steel production lines, increasing capacity by 700,000 tons, mainly concentrated in North China and Central China.
Analysis and Forecast of Downstream Sub-application Areas in the Oriented Silicon Steel Industry
As a key raw material for transformers, reactors, instrument transformers, and other voltage regulation and transformation equipment, the development of grain-oriented silicon steel carries the green mission of energy conservation and emission reduction, and is one of the important supports for implementing the national “dual-carbon” strategy. With the support of national strategies and policies, high-quality grain-oriented silicon steel will have good development potential.

(1) Conventional Transformers
Driven by national energy policies, China’s smart grid construction has entered a new stage, and the intelligent transformation of distribution transformers is accelerating. The State Grid plans to transform 294,800 distribution transformers during the 14th Five-Year Plan period, and the Southern Power Grid has invested 187 billion yuan in rural power grid transformation and upgrading. Transformer power loss accounts for about 40% of the transmission and distribution process. In 2023, China’s transformer power loss was approximately 240 billion kWh, generating 236 million tons of CO2 emissions. Upgrading the grade of grain-oriented silicon steel will help upgrade transformer energy efficiency, reduce power loss, improve energy utilization efficiency, and contribute to carbon emission reduction.

(2) Ultra-High Voltage Projects
With the accelerated construction of wind and photovoltaic power generation bases, ultra-high voltage transmission has become a key solution to the problems of new energy grid connection and cross-regional power transmission. The State Grid Corporation of China plans to invest 380 billion yuan in ultra-high voltage (UHV) power transmission projects during the 14th Five-Year Plan period, with UHV equipment investment accounting for 25%, of which transformer equipment investment is close to 100 billion yuan. This will drive demand for supporting equipment and further increase consumption of grain-oriented silicon steel.

(3) New Energy Power Generation
It is estimated that by the end of the 14th Five-Year Plan period, wind power and photovoltaic installed capacity will reach 599 million kW and 763 million kW, respectively. By 2030, wind power and photovoltaic installed capacity will reach 800 million kW and 1.025 billion kW, respectively, and by 2050, they will reach 2.2 billion kW and 3.45 billion kW, respectively. New energy power generation requires a large number of transformers; a 1GW wind power or photovoltaic base requires 500 transformers. It is estimated that by 2025, the investment in the new energy transformer market will exceed 120 billion yuan, and by 2035, it will exceed 1 trillion yuan. With the future trend of a significant increase in wind power and photovoltaic installed capacity, transformers and upstream grain-oriented silicon steel will also experience explosive growth. In summary, transformers, as key equipment for power generation and transmission, are the most important downstream industry for grain-oriented silicon steel, with silicon steel costs accounting for approximately 30% to 40% of the production cost of a single transformer. With the implementation of ultra-high voltage projects across China, the transformer market is showing a growth trend, and the significant increase in power transformer production will drive the growth in demand for grain-oriented silicon steel.

I.Background of R&D Center Upgrade
In recent years, with the country’s emphasis on high-quality innovation and development in the manufacturing industry, and the increasing global demand for environmental protection, energy conservation, and intelligent technologies, Jiangyin Centersky Electrical Appliance Co., Ltd, a long-established manufacturer of electromagnetic silicon steel sheets, has deeply recognized the importance of technological research and development. In recent years, the company has invested in and continuously upgraded its R&D center, gradually improving its technological innovation capabilities and market competitiveness, keeping up with domestic and international market demands, and promoting the company’s high-quality development in the electrical industry.

II. Upgrade Content of R&D Center

1.Hardware infrastructure upgrades and talent development:
To better meet market demands, improve product performance, and provide more efficient services to customers, the company has successively introduced several advanced domestic equipment platforms, including high-precision testing instruments and automated testing equipment, to improve experimental R&D efficiency. Simultaneously, it is continuously equipping its R&D laboratories with more advanced supporting equipment for the R&D and testing of new products and processes.
The company is also gradually increasing its efforts in talent recruitment, hiring more professional and technical personnel with an international perspective and high levels of expertise, and cultivating more outstanding R&D talent through cooperation with universities and research institutions. Currently, technical personnel account for 26% of the company’s total workforce, and employees with college degrees or above account for 38%.

Digital Transformation:

Leveraging modern information technologies such as the internet and big data, the company has achieved fully digital management of the entire R&D and production process. Through real-time network scheduling, the company has achieved precise interaction across all departments, including design and R&D, production, quality inspection, warehousing, and logistics. Paperless IoT real-time monitoring allows for comprehensive and seamless control from raw material to finished product, breaking the traditional production model and greatly improving efficiency and quality from R&D to production.

III. Keep up with policy trends

In recent years, Centersky has actively integrated into national strategies, committed to developing new energy-saving and environmentally friendly technologies, and focusing on products such as rail transit and special electrical equipment. The company continues to drive technological innovation in areas such as industrial power transmission and distribution automation systems, power transformers, and special transformer systems, further enhancing its competitiveness in the international market.

Going forward, Centersky will continue to invest in and upgrade its production and R&D, enabling it to take solid and powerful steps on the path of technological innovation and high-quality development. Adhering to the development philosophy of “Sincerity and Expertise,” the company strives to become a benchmark enterprise in the industry through continuous technological innovation and management optimization.

The October breeze swept through the pomegranate tree in front of the R&D center, its branches laden with fruit, their burnt-yellow, translucent red skins enveloping the glittering seeds. Light and shadow flickered beneath the tree, perfectly reflecting CENTERSKY (EI LAMINATION) ‘s flourishing glory.

The story of this pomegranate tree dates back to 2003, the year CENTERSKY Electric moved into its brand-new factory. Mr. Xu, the general manager, said, “I hope that CENTERSKY will be like the pomegranate seeds, united and unyielding.” So, he planted a pomegranate tree, barely one meter tall, in the yard. In 2005, the tree bloomed for the first time. The vibrant orange-red petals, resplendent in the May sun, became a symbol of CENTERSKY’s early bloom.

Time passed, and in 2020, when CENTERSKY ‘s new office building rose from the grounds, no one was willing to part with the old tree, a treasure trove of memories and companionship. So, workers carefully transplanted it, along with its soil, to the green belt of the old office building, now located below the R&D center. From then on, a new story was added to the annual rings of this pomegranate tree.

Through the passage of seasons, the pomegranate tree bears witness to far more than this.
Twenty-two years have flown by, and the once one-meter-tall pomegranate seedling is now nearly two stories tall. Its branches are twisted, its crown like an umbrella, its roots straining through the cracks in the concrete, yet it always produces flowers more vibrant than ever. It has witnessed every step of CENTERSKY’s transition from semi-manual and semi-automated production to intelligent manufacturing: its continuous expansion from Phase I to Phase IV; its international expansion and global success; and its unwavering dedication to the electrical industry over the past half century, as CENTERSKY employees have transformed from “followers” to “leaders,” carving their own unique mark in the
tide of the time.

Now, the pomegranate tree in front of the R&D center has grown tall and majestic.
Month by month, year by year, this pomegranate tree grows alongside those who pass beneath it! Apprentices entering the workplace shed their youthful innocence in the tree’s shadow, newly graduated interns take root and grow here, and once-young professionals shoulder the responsibilities of the department. Generations of CENTERSKY employees, their successes and failures, are all inextricably linked to the pomegranate tree and the splendor of CENTERSKY.

Today, the first thing anyone sees when entering CENTERSKY(EI LAMINATION) is the pomegranate tree. It stands quietly at the entrance, silently accompanying the peaceful years here. The scars on its branches are medals of growth, and the pomegranate red on its branches is the background of its splendor. Beneath the pomegranate tree, CENTERSKY’s story continues. Its original aspiration of “dedication and dedication” and the soil that nurtures dreams are as fiery and bright as the pomegranate red!