Viscas Establishes Overhead Power Transmission Wire JV in China

Viscas Corporation, Japanese power transmission and distribution cable maker fifty-fifty owned by Furukawa Electric and Fujikura, announced on Thursday the firm concluded a joint venture contract with Chinese electric cable maker, Shenyang Cable Industry, to manufacture and sell overhead power transmission conductors in Shenyang City of Liaoning Province, China. Viscas plans to serve wide-range product lineup for new installations and replacement of overhead power transmission conductors in China. The JV targets annual net sales at 4 billion yen in 2012.

The JV will be established in May 2011 with capital fund of 1.088 billion yen, 51% of shares controlled by Viscas and 49% by Shenyang Cable Industry. The plant is scheduled to start operation in August 2011. The JV utilizes Shenyang Cable Industry’s existent land, factory building and facilities while introduces additional production facilities. The plant will be operated with 130 employees in 2012. The annual output is projected at 18,500 tonnes in the first year and 35,000 tonnes 5 years later.

Chinese domestic demand for overhead power transmission conductor is increasing by 3-6% per annum and expected to exceed 1 million tonnes in 2012 when electric power needs are rapidly growing. The demand is strong for installation of new overhead power transmission lines while the demand is also expected to increase for replacement of conventional lines to uprating lines.

Shenyang Cable Industry has producing and marketing power for overhead power transmission conductors in China. Viscas can serve design and production technologies for specialized conductors such as uprating aluminium wire. The JV plans to supply wide-range items to Chinese electric power companies.

Viscas’ annual net sales are estimated at around 62 billion yen in fiscal 2010 ended in March 2011. The overseas sales rate was about 50%. The sales of overhead power transmission conductors and accessories totaled approximately 7 billion yen.