In current three years, the annual demand for energy transformers is about 1.three billion kva in China, plus the production capacity of as higher as three billion kva brought a "digest problem" towards the industry. The domestic energy transformers companies are facing a serious overcapacity scenario. The savage imbalance in between provide and demand begins the panicky marketplace competitors, particularly in 2011. But only some years prior to, the electric energy building created so quick in China, and it resulted inside the speedy raise production of electric transformers. A pretty substantial quantity of transformers suppliers expaned combined transformer their production capacity straight away. Because 2009, the speed in the electric energy building is forced to slow down, as well as the domestic demand of transformers decreased. Bidding & Purchasing became the main purchasing method inside the industry, and low bid led towards the unprecedented fierce competitors of enterprises. After that, the economic benefits of domestic transformer enterprises has greatly declined, many businesses inside the losing edge. A massive variety of energy distribution enterprises even choose to participate within the dog-eat-dog circumstance regardless with the product quality. Thus, transformer product quality decline , the accident rate to rise. According towards the reports from AQSIQ, there are several undesirable phenomenas that the current electrical switchgear transformers suppliers have in common: treating the copper with the aluminum, and secondary utilization of silicon steel sheet. Take the silicon steel sheet as an example, after running for more than ten years, the inner magnetic property and insulating layer on the surface have been changed fundamentally. If we recycle it to re-weld it for second-use, it will must enhance its reluctance, and cause quality problems of too much noise, no-load current and great loss etc. All of those are at risk from the safty of energy transformers. So what should the transformers enterprises do to change the current predicament, and what is the future with the domestic transformers industry? Considering the global environment, the government will surely boost the rate of renewable energy sources metal-enclosed switchgear so HVDC light energy transmission will must be the trend within the neat future. What change will be brought towards the traditional transformers industry become a worthy topic. Inside the new developing scenario, transformers enterprises should adjust their product structure to follow the marketplace trend, and only by this way, we can gain an competitive position within the marketing environment of excess production capacity.