J-Power Systems Establishes High Voltage Power Cable Plant in India

J-Power Systems Corporation (JPS), a joint venture between Sumitomo Electric Industries and Hitachi Cable to produce high voltage power cables, announced on Thursday the firm contracted with Finolex Cables, Indian low and middle voltage cable maker, to establish a joint venture plant for high voltage power cables in India. JPS holds 51% shares in the JV and Finolex Cables 49%. The JV will start commercial production of high voltage XLPE (cross-linked polyethylene) insulated cable in January 2010.The JV, provisionally named Finolex J-Power Systems, plans to obtain a plant site of 60,000 square meters near Pune, Maharashtra region of India and construct advanced facilities including VCV (vertical continuous vulcanizer). The JV is expected to post annual revenue at 13 billion yen in fiscal 2012 ending March 2013. The initial capital is 800 million rupees (2.4 billion yen).This is the first offshore plant for JPS. In India, infrastructure construction will be promoted rapidly and the demand for high voltage power cables is expected to increase significantly. JPS decided to establish Indian plant to provide 60,000-400,000 kilovolt XLPE cables for the domestic market with less delivery time and lower transporting costs.