VISCAS, Nexans to Launch Paper Insulated Cable Joint Venture

Tokyo based extra high tension power cable maker, VISCAS Corporation announced on Tuesday the firm will launch paper insulated cable making joint venture with Nexans SA of France, which is European major electric wire and cable maker. They will supply oil filled cable mainly for European market from the joint venture based in Futtu plant of VISCAS. They target 3-4 billion yen of annual sales for the joint venture after the start operation in October. Nexans controls 66% of the joint venture with around 3.1 billion yen of capaital and VISCAS has 34% share in the joint venture. The joint venture supplies paper insulated cable products including oil filled cable, pipe type oil filled cable and mineral insulated cable. They expects 70% of the sales for the joint venture represents mineral insulated cable in the first 3 years while the 30% of the sales is oil filled cable. VISCAS sells oil filed cable making facilities to the joint venture while VISCAS leases the land and plant building to the joint venture. The joint venture sells all products to VISCAS and Nexans. Nexans sends top manager for the joint venture with 5 directors and 90 employees. The demand of continuous current mineral insulated cable will expand for many submarine cable projects when European Union encourages integration of power supply network among the member countries. European major 3 electric wire suppliers including Nexans cannot meet the growing demand when they keep the full capacity operations.