Sourcing Center: Zhejiang advances manufacturing sector through digitalization

Attracting more

In the manufacturing sector for relays, the province is home to more than 30 percent of homegrown suppliers. Most of these companies are operating on a small or medium scale in Ningbo and Yueqing.

This pool is anticipated to continue growing, as Zhejiang's comprehensive industrial chain has been attracting new investment in recent years.

A new entrant is major relays company Hongfa, which spent $190 million for the construction of a facility in an area of 271,469sqm at the Zhoushan Ocean Industry Park. The scheduled start of mass production was in 2021. The factory has an annual capacity of 4.8 million relays for the new energy market and 120 million units for industrial applications, and is anticipated to rake in up to $335 million in sales annually.

Relays that can be sourced from Zhejiang-based suppliers include power, industrial, automotive and signal types widely used in the communications, home appliances, automotive, industrial control, power, space and aviation fields.

While the majority of these companies focus on entry-level and midrange products, large manufacturers will put greater emphasis on the midrange and high-end markets. This is because 5G communication and new energy vehicles are the forecast hot applications in the coming years and will drive R&D toward small size, and high voltage, reliability and stability.

For key materials and components such as coils, cores, springs and bolts, Chinese suppliers turn mainly to domestic providers. They source inputs from foreign companies only when required.

Costs rose in 2021, resulting in a 5 to 10 percent price increase. Manufacturers interviewed by Global Sources Electronic Components could not rule out the possibility this trend will continue in 2022.

China relays

A major production hub for relays, China owns over 50 percent of the global market, according to estimates by industrial consultants Puhua Policy.

Despite the pandemic, the country's relay industry saw a 5 percent YoY increase in 2020, realizing $4.27 billion, according to AskCI. Export value, however, suffered a slight drop with $1.277 billion compared to $1.28 billion in 2019 as reported by Zhiyan Consulting.

In the next one or two years, the worldwide market will grow by 5 percent. China will possibly have a higher rate, according to companies interviewed, based on continued output expansion activities to meet demand in the EV, home appliances and industrial control sectors. The transition to smart manufacturing is expected to contribute to this trend as well.

There are an estimated 500 manufacturers of relays in China. In addition to Hongfa, the major players include Sanyou, Huigang, Ningbo Forward and Tianbo.

Ningbo FBELE Electronics Co. Ltd

Year established: 2005 Head office location: Ningbo, Zhejiang Key export products: Relays Export ratio: 50% Main export markets: Europe, North America, Asia

Model: Fb-T73-DC12V-C-S MOQ: 2,000 units Delivery: 15 days Description: Relay; 125, 250VAC rated voltage; 10, 15A rated current; CE, CQC, UL

Inquire now

Ningbo Yod Electronic Technology Co. Ltd

Year established: 2014 Head office location: Ningbo, Zhejiang Key export products: Relays Annual export sales: $3.85 million Export ratio: 70% Main export markets: Europe, North America, Asia

Model: 660-12V-1U Open Mold-0 MOQ: 500 units Delivery: 7 days Description: Automotive relay; miniature, 4P; 12V, 25A; 20.5x15.5x22.5mm; PCB board, insert mount variants available

Inquire now

Yueqing Cherry Electric Technical Co. Ltd

Year established: 2010 Head office location: Yueqing, Zhejiang Key export products: Relays Annual export sales: $2.8 million Export ratio: 50% Main export markets: Europe, North America, Asia

Model: 3UA59;1-25A MOQ: 100 units Delivery: 7 days Description: Thermal relay; 660 or 1,100V rated insulation voltage; 0.1 to 630A main circuit current; CE, RoHS

Inquire now

Zhejiang Aokai Electric Co. Ltd

Year established: 2008 Head office location: Yueqing, Zhejiang Key export products: Relays Annual export sales: $2.03 million Export ratio: 45% Main export markets: Europe, North America, Asia

Model: ANR200-1K-48V MOQ: 1 unit Delivery: 7 days Description: Relay; for agricultural vehicles; 12, 24, 36, 48V coil rated voltage; 200A main circuit rated current; 4 to 10W coil consumption; 20,000 operations electrical life span, 300,000 operations mechanical life span; IP50

Inquire now