Realignment in US Building Wire: A multi-million dollar investment to raise capacity by 30% has been started by Cerro Wire & Cable at its Ogden, Utah plant. Cerro is a Marmon Group company and makes mainly building wire. Southwire Co., a competitor in this market, has purchased Alflex from Commonwealth Industries Inc. for US$ 60 million. Alflex makes armoured cable and flexible conduit products and employs 310 people. Alflex achieved revenue of US$ 31.8 million in the first quarter of 2004, and an operating profit of US$ 3.0 million. Prior to the purchase, Southwire was already in the process of expanding its armoured cable capacity at its plant in Carrollton, Georgia. Shareholders in the rapidly growing US building wire company Encore Wire Corp. have agreed to an increase the authorised shares of common stock from 20 million to 40 million. Meanwhile, the Alpine Group Inc. has sold its defence electronics subsidiary DNE Systems Inc. to UK-based Ultra Electronics Holdings plc for US$ 40 million. This leaves the building wire company Essex Electric Inc., which is 90% owned by Alpine, as the sole holding of the group.
The Merger Deal Between Belden and CDT is Finalised: Shareholders of both Belden and CDT have agreed to the long-expected merger of the two cable companies, to form Belden CDT Inc., effective July 1st 2004. In fiscal 2003 the combined revenues of Belden and CDT from continuing operations were US$ 1.1 billion.
Sale of Outside Plant Copper Telecom Cable Assets of Belden to Superior Essex Completed: The former North American outside plant telecom cable business of Belden Inc. now belongs to Superior Essex, the US$ 95 million sale having been finalised. Belden retains ownership of the telecom cable plants at Fort Mill, South Carolina and Phoenix, Arizona, equipment and production having been transferred to existing Superior Essex sites.
CommScope Relinquishes its Stake in OFS Brightwave: The Japanese cablemaker Furukawa Electric Co. Ltd. reaffirmed its commitment to fibre optic cable by acquiring the 9.4% stake in US producer OFS Brightwave LLC from CommScope Inc. that it did not already own. Furukawa Electric will return the equity stake it holds in CommScope, valued at US$ 132 million, as part of the deal.
Cable Investment by Honeywell: The US electronics and aerospace firm Honeywell has increased its stake in cablemaker Genesis Cable Systems LLC from 30% to 100%. Genesis makes cable for voice, video, data, access control, alarm and security and other home networking applications.
Whirlpool Sells its Mexican Harness Business to Gentek: The appliance wire harness business of Whirlpool in Mexico has been acquired by Gentek subsidiary the Noma Corporation for US$ 8.4 million. The facility concerned, named Whirlpool de Reynosa, S.A. de C.V., was constructed in 2003, integrating the operations of three former plants; it employs 3,000 people.
In Europe, Leoni Carries Out a Capital Increase: The bare wire, cable and wire harness company Leoni AG is to carry out a capital increase from
€ 19.8 million (US$ 24.3 million) to € 29.7 million (US$ 36.4 million) through a 2-for-1 share offer to existing shareholders. Leoni intends to use the proceeds primarily to fund acquisitions, but also for future large-scale projects in its Wiring Systems Division.
Auto Harness Company Developments in Japan: Cable and automotive wire company, Yazaki Corp. has announced that it intends to accelerate its imports of wire harnesses into Japan from foreign subsidiaries over the next year to account for 60% of its supply to the domestic market, compared to the current 50% level. Meanwhile, Sumitomo Wiring Systems Ltd. has discontinued its electric power line business operations as of July 1st 2004, transferring its existing business to Sumitomo Electric Industrial Wire & Cable Inc.
Harness Investments in Vietnam: A US$ 16.7 million investment in a new cable plant has been announced by Sumitomo Wiring Systems (SWS). The investment will be by Sumidenso Vietnam, a joint venture between SWS and Hanoi Electric Company. In another Vietnamese investment, the capacity of SD Vietnam Industries, an appliance wire harness subsidiary of Sumiden Shoji (another Sumitomo Electric group company), is to be doubled from Yen 1.2 billion (US$ 11 million) to Yen 2.4 billion.
Developments in Chinese Bare Wire and Winding Wire: The copper and aluminium wire processing company Changge Yongxing Copper Material Co. in Henan province is to raise its copper processing capacity through the addition of a 10,000 tpy copper wirerod line this year, with a further 18,000 tpy capacity expansion planned for 2005. US winding wire company Rea Magnet Wire is in the process of constructing a second plant as part of its Jingda-Rea joint venture with a leading domestic Chinese winding wire producer, Tongling Jingda. The new facility is due to become operational early in 2005.
Chinese Ministry Follows Up Optical Fibre Dumping Claims: The Chinese Ministry of Commerce has imposed temporary import tariffs of 7% to 46% on G 652 dispersion unshifted single mode optical fibre on a group of international suppliers accused by two domestic suppliers of dumping product onto the Chinese market through imports. Major fibre manufacturers, including Corning, Furukawa Electric, Sumitomo Electric, Fujikura, Samsung and LG Cable are subject to the dumping allegations. The ministry has extended the period of its investigation to January 1st 2005, admitting that the issues involved are complex.
Domestic Fibre Optic Investments in China: The electronics, software and optical company Tianjin Tiancai Co., Ltd. is ramping up production at its fibre drawing facility installed in 2001. Output this year is expected to reach 1.5 million core kilometres, reaching 75% capacity utilisation. Near Shanghai, another fibre drawing investment is planned by the newly formed optical communications division of Shanghai Worldbest Co. named Shanghai Worldbest OFIB Technology Inc. Planned capacity at the new plant is 2.0 million fibre kilometres.
Nexans Expands in Asia: Construction has begun at Nexans new special cables subsidiary Nexans (Shanghai) Wires & Cables Co., Ltd. in China. First phase production will be of shipboard, fire safety, rolling stock and other special application cables of thermoplastic and XLPE insulated types. A second phase, adding rubber insulated cable product lines, is planned. In Korea, Nexans, is to make two separate tender offers for the shares that it does not own in Korean affiliates Nexans Korea and Kukdong Electric Wire. Nexans currently holds slightly over 50% of the voting shares in both companies.
Asia Pacific Wire & Cable Shareholding Issue Resolved: The international subsidiary of Taiwan cable company Pacific Electric (PEWC), Asia Pacific Wire & Cable (APWC), has announced that the long-running dispute with Set Top International has been resolved. It had previously been reported in the press that former directors of AWPC had attempted to gain ownership control over the company through the APWC subsidiary Set Top.
Viscas Integration Delayed: After Japan's anti-monopoly watchdog had approved the transfer of the underground power cable businesses of Furukawa Electric and Fujikura Ltd. into the 50/50 joint venture Viscas Corp. late in July, the two companies said that they will delay the business integration for three months until January 1st 2005. The companies announced that the postponement was intended to ensure that no computer system trouble was encountered as a result of the integration.
Expansion in Telecom Cable in Vietnam: The Saigon Cable & Materials Company (Sacom) is to invest US$ 6.4 million in the building of two additional copper telecom cable plants in Vietnam.
Expansion in Energy Cable in the Middle East: A new cable plant of Ducab in Abu Dhabi is to have an installed capacity of 25,000 tpy conductor. Ducab's existing facility in Dubai is currently running to capacity at over 35,000 tpy conductor. Investment in the new plant, due to open in November 2004, is slated at Dh125 million (US$ 43 million).
Saudi Cable Raises Share Capital: A 28% capital increase is planned by
Saudi Cable Co. (SCC), taking its share capital up from Riyals 500 million (US$ 133 million) to Riyals 640 million (US$ 170 million).
Cable Plant Planned for Namibia: A memorandum of understanding has been signed between the Namibian Ministry of Mines and Energy and its counterpart in the Democratic Republic of the Congo (DRC) in order to set up a building wire company in Walvis Bay, Namibia.
Reunert Gains 100% Control Over African Cables: The stake of Reunert in energy cable producer African Cables has increased from 50% to 100% as it has bought out joint owner Pirelli Cables & Systems for R167 million (US$ 26.0 million). African Cables will form part of Reunert's electrical division alongside telecom cable company ATC and Circuit Breaker Industries (CBI).
Changes of Ownership in Central Europe: The managers of Elka Kabeli d.o.o. of Croatia have made a successful bid to purchase the company through their wholly owned investment vehicle, EPM Usluge, for 20 million (US$ 24.5 million). In Bulgaria, Turkish businessman Fuat Gyuven has bought a 90% stake in Elkabel, Bulgaria´s largest cable producer for BGN 9.75 million (US$ 6.13 million) from MG Corp.
Sevkabel Expands: The cable industry holding company Sevkabel Holding continues on a rapid expansion path. In recent weeks, it has announced the start up of production of radio frequency cables and MV XLPE power cables (the latter in co-operation with Reka Kaapeli Oy of Finland). The company has also announced the release of three-year bonds valued at RBL 500 million (US$ 16.8 million).
Expansions in Russian Wirerod: A US$ 25 million three-year credit line has been opened for the Novogorod Metallurgical Mill (NMZ) by Raiffeisenbank Austria. NMZ is in the process of commissioning a 40,000 tpy secondary smelter, the first such mini mill using Outokumpu technology. NMZ is part of the newly formed Ural Mining Company (UGK). Meanwhile, Urals Metal & Mining Co (UGMK), Russia's second largest copper producer, plans to install a 70,000 tpy wirerod line, as it expects to reach capacity at its existing 235,000 tpy unit this year. Russia's largest copper producer, Norilsk Nickel, is also moving into value added products, having increased its sales of wirerod by 70% in 2003 to 75,000 tpy.
Copper Business of Umicore in a Separate Unit: The Belgian metals company Umicore is to create a subsidiary for its copper activities, including copper production, shapes and wirerod activities. The new company, Umicore Copper, became operational on July 1st 2004.
NKT Downsizes in Copper Telecom Cable: The Austrian subsidiary of Danish-owned cablemaker NKT Cables, NKT Cables Austria, is to cease production of copper telecom cables in order to focus on the production of railway cables. The share of telecom cables in the Austrian subsidiary's output has slipped to around 20%, from 60% in 2000.
HTS Comes of Age?: Plans to ramp up production of second generation (2G) high temperature superconductor (HTS) wire have been announced by American Superconductor. The company plans to complete the conversion of its existing facility to a »pre-pilot« production line by spring 2006, then to build a new 300,000 metre/year facility by the end of 2007.
