Creation of a production joint venture in Japan for submarine high voltage power cables
Paris, July 25, 2006 – Nexans, the worldwide leader in the cable industry, today announced the signature of agreements with Viscas (JV Furukawa Electric Co., Ltd. and Fujikura Ltd) to create a production joint venture dedicated to the manufacturing of submarine high voltage power cables.
Viscas, a Japanese company, is a major worldwide player in the High Voltage cable business. It employs about 800 people with annual revenue of 430 million euros in 2005. It will transfer its existing Tokyo Bay plant to the new entity.
The new company will be named NVC. It will be owned 66 percent by Nexans and 34 percent by Viscas. It will employ eventually 90 people.
This transaction will allow Nexans to increase by a third its submarine high voltage cable and service potential activity over the next 4 years in order to meet the needs of a fast-growing market. Thanks to this alliance, Nexans will be able to meet its customers’ demand faster than by building a new production facility.
The Tokyo Bay plant will continue to implement the oil-filled manufacturing process, whereas Nexans will bring in its mass-impregnated technology the use of which will be reserved for Nexans’ needs.
The joint venture will supply its production exclusively to its two shareholders, and will not have any independent commercial activity.
The agreement is subject to the approval of Japanese authorities. Closing is expected year end.
Nexans is the worldwide leader in the cable industry. The Group brings an extensive range of advanced copper and optical fiber cable solutions to the infrastructure, industry and building markets. Nexans cables and cabling systems can be found in every area of people’s lives, from telecommunications and energy networks, to aerospace, automotive, railways, building, petrochemical, medical applications, etc. With an industrial presence in 29 countries and commercial activities worldwide, Nexans employs 20,000 people and had sales in 2005 of 5.4 billion euros. Nexans is listed on the Paris stock exchange. More information on www.nexans.com
Viscas Corporation was established on September 26, 2001 as a joint venture of The Furukawa Electric Co., Ltd. and Fujikura Ltd. On that date the Company began operations as a provider of underground power transmission lines. On January 1, 2005, Viscas launched an ambitious program of expansion, extending its operations to include such areas as underground power transmission, overhead transmission lines, distribution cables, and related sales activities in Japan and overseas. As a result of this ongoing effort, Viscas is emerging as a comprehensive provider of power transmission and distribution solutions, boosting operations in all areas of the electric-power sector. The Company has recently completed a far-reaching reorganization, to manage this broad spectrum of business interests in a way that responds nimbly to the needs of its customers.