Nexans will form JV worth US$200m
By Richard Fu |
June 22, 2011, Wednesday
|
Print Edition
Print Edition
FRANCE-BASED Nexans said yesterday it is forming a joint venture with Shandong Yanggu Cable Group valued at 140 million euros (US$200 million).
The move will help boost Nexans' presence in China's power cable market. Based in Yanggu, Shandong Province, the Chinese company is a key supplier to the State Grid Corp of China and power generators.
Nexans will hold a 75 percent stake in the venture and Shandong Yanggu will hold the remainder. The deal is expected to take six to eight months to complete.
Tian Zhongjun, governor of Yanggu County, said yesterday in Shanghai that Yanggu aims to build the largest copper industry base in northern China in five years. The county is home to more than 50 cable makers, the major consumer of copper.
Yanggu aims to boost annual capacity of copper cathode, which is used in cables and tubes, from 400,000 tons to 900,000 tons in five years, Tian said at the 5th China International Exhibition for Copper Industry.
Ma Shiguang, secretary general of the China Nonferrous Metals Fabrication Industry Association, said China's production capacity for copper products will increase to 16 million tons a year by 2015 from 12 million tons now. China's copper product output grew 13.6 percent to 10.1 million tons last year, according to the association. That's more than half of the world's output.
Industry officials have called for consolidation among China's 1,200 copper processors to make the industry more competitive.
The move will help boost Nexans' presence in China's power cable market. Based in Yanggu, Shandong Province, the Chinese company is a key supplier to the State Grid Corp of China and power generators.
Nexans will hold a 75 percent stake in the venture and Shandong Yanggu will hold the remainder. The deal is expected to take six to eight months to complete.
Tian Zhongjun, governor of Yanggu County, said yesterday in Shanghai that Yanggu aims to build the largest copper industry base in northern China in five years. The county is home to more than 50 cable makers, the major consumer of copper.
Yanggu aims to boost annual capacity of copper cathode, which is used in cables and tubes, from 400,000 tons to 900,000 tons in five years, Tian said at the 5th China International Exhibition for Copper Industry.
Ma Shiguang, secretary general of the China Nonferrous Metals Fabrication Industry Association, said China's production capacity for copper products will increase to 16 million tons a year by 2015 from 12 million tons now. China's copper product output grew 13.6 percent to 10.1 million tons last year, according to the association. That's more than half of the world's output.
Industry officials have called for consolidation among China's 1,200 copper processors to make the industry more competitive.
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