Electric Wire Majors Expand Bases in Emerging Countries

Offshore electric wire majors restarted to expand merger and acquisition activities. The makers in Europe, USA and South Korea expanded the business by acquiring local makers and establishing joint ventures in emerging countries. The activity increases since late 2009 after temporary slowdown after Lehman Shock. They try to expand the business especially for high voltage power cables.

LS Cable of South Korea, Taihan Electric Wire of South Korea, Prysmian Cables & System of Italy and General Cable of USA announced M&A or local joint ventures in emerging countries since September 2009. South Korean makers expand the export and M&A for high voltage power cables especially in past 2 years.

Many of M&A attempts are for middle and low voltage power cable and industrial cable makers. Local users in emerging countries require higher technology from Europe, USA and Japan when local makers can provide up to cable with 220 kilovolts class.

Major electric wire makers try to start local production of high voltage power cable sin 2-3 years after the acquisitions. They try to improve competitiveness through local production bases when major infrastructure projects are planned for power transmission and distribution in BRICs, Middle East and Africa.

J-Power Systems of Japan is building joint venture plants for middle and high voltage power cables in India and Saudi Arabia. Viscas Corporation has no offshore plant while the parent company of Furukawa Electric has Chinese plant in Shenyang and technology support tie-up with Uncomteck of Russia. Exsym Corporation has no plan to establish an offshore cable plant.