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Prysmian Group S.p.A. is an multinational company with headquarters in Milan, specialising in the production of electrical cable for use in the energy and telecom sectors and for optical fibres. Prysmian is present in North America with 23 plants, 48 in Europe, 13 in LATAM, 7 MEAT, 13 APAC.
It is the world leader in the production of cables for wind farms.[5][6] The company is listed on the Milan Stock Exchange in the FTSE MIB index.
On 4 December 2017, it took over 100% of the General Cable group in the US, to then complete the merger by incorporation the following year, after the antitrust approval by the respective countries.
History
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The beginning
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The company originated in 1879 as Pirelli Cavi e Sistemi. In 1881, it secured a contract to produce submarine telegraph cables for military engineering.[7]
In 1886, it opened a submarine cable production plant in La Spezia.[8] It later helped to lay the entire Italian telegraph network on behalf of the Italian state-owned company Telegrafi dello Stato, and to install the electrical grid for domestic use in Milan.[9] It also laid telegraph cables in the colonies of Italian East Africa.[9]
In 1925, it produced 5,150 km of submarine telegraph cabling for Italcable for communications between Italy and South America. Its collaboration with the Italian government continued with the laying of cables for the Italian interurban telephone network.
Prysmian
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In 2005, Prysmian S.r.l. was created by Goldman Sachs after acquiring Pirelli & C. S.p.A's Cables and Systems business. After restructuring the organisation of the group's internal activities, the company decided to sell down its investment in the cable market. The figure negotiated was EUR 1.3 billion: Goldman Sachs gave Pirelli 225 million and the rest (more than one billion) was a debt that would be paid off the back of the new business.[10] The company, led by Valerio Battista from 2005, was then a public company.[11]
Since 3 May 2007, it has been listed on the Milan Stock Exchange and on 24 September 2007 it joined the S&P MIB index of the biggest Italian companies.
At the end of 2009, Goldman Sachs decided to sell down its stake, which was completed in March 2010.[12][13]
In February 2011, Prysmian successfully made a takeover bid of EUR 840 million for Dutch company Draka, with headquarters in Eindhoven, which at the time was fourth in the world in the cable and optical fibre sector.[14]
In December 2017, it bought the American (and rival) company General Cable based in Kentucky. A transaction of almost three billion dollars, consisting of equity (1.5 billion) and financial debt. This merged the leading cable-making company in the world in terms of revenue (Prysmian) and the fourth (General Cable), creating a group with a revenue of EUR 10 billion, EBIDTA (earnings before interest, taxes, depreciation and amortisation) of EUR 840 million and over 28,000 employees.[15]
Acquisition of General Cable
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The General Cable group was valued at 3 billion dollars with a price premium of approximately 81% to General Cable's share value on the last day of trading.[16]
The acquisition was unanimously approved by the two Boards of Directors and would create a company present in 50 countries with 31,000 employees, which could generate revenue of 11 billion dollars a year, based on estimates from the 2017 financial statements. The integration was expected to cost 220 million dollars.[17] The price per share paid to General Cable was 30 dollars, versus a Prysmian dividend that was halved in 2011 after the acquisition of Draka, and stable at 43 cents per share. The General Cable group has one billion dollars of debt.[17]
Already the leading cable company in the world, with such "pro-forma" earnings, it would become twice as large as its second main competitor. Prysmian declared that it expects to increase its capital by more than 500 million in light of further acquisitions.[18]
The transaction was subject to approval by the antitrust authorities of the two countries.[19]
Its completion would create a market concentration in a strategic sector for public safety and economic development, which was already established by no more than ten competitors across Italy, the US and China. Other oligopolies exist in the fixed and mobile telephony sectors in various countries, partly due to the existence of natural monopolies.
Activity
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The company is the global leader in the cable systems sector. Specifically, Prysmian produces and lays underground and submarine cables for the transmission and distribution of electricity, as well as specialised cables for use in various industrial contexts, and medium- and low-voltage cables for construction and infrastructure. For telecoms, the Group produces copper cables, optical cables and optical fibre cables for the transmission of data, video and sound.
On the customer's request, Prysmian also Designs and produces key systems and takes care of post-installation maintenance.
Every year, Prysmian invests more than EUR 100 million[20] in research and development. This has allowed the Group to develop innovations like BendBrightXS 180μm,[21] the narrowest bend-insensitive optical fibre, and FlexRibbon,[22] which, with 6,912 fibres, is the optical cable with the highest number of fibres in the sector.
The company also developed the P-Laser technology[23] for cabling systems, which combines greater transmission capacity and eco-sustainability, using 100% recyclable materials and cutting carbon emissions by 40%.
By 2022, Prysmian has planned to invest around EUR 450 million[24] to net-zero the Group's CO2 emissions and improve the sustainability of its supply chain. An ambitious commitment, aligned with the objectives of the Paris Agreement, which would be executed with support from the non-profit organisation Carbon Trust.
For 2021, Prysmian confirmed the launch of the new Leonardo da Vinci cable-laying vessel,[25] which will be the longest in the world at 171 metres.
In Italy, Prysmian is active in Merlino, Giovinazzo, Pignataro Maggiore, Quattordio, Livorno, Pozzuoli and Battipaglia.
Since the acquisition of General Cable, it is present in more than 50 countries with 104 facilities and over 28,000 employees.[26]
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Nasdaq, January 2021.[27]
See also
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References
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The most crucial elements of an electrical transmission as well as distribution networks are electrical cables and wires. In both businesses and homes, electrical lines are often utilized for the distribution purposes. The cables and conductors are utilized for high voltage distribution and transmission activities. These wires as well as cables had numerous manufacturers globally, some of them are notable in the marketplace.
The wire and cable industry comprises companies that manufacture and supply wire and cable for various electronic parts, machines, and equipment. Also, these companies manufacture insulated electrical wiring and enclosed fiber optic cable.
An Overview of the Wire and Cable Manufacturing IndustryThe wire and cable manufacturing industry is involved in the production of insulated fiber optic cables, coaxial cables, and insulated nonferrous wires. The fiber optic cables comprise glass fibers in an insulated case.
The development in smartphone technologies which include fast-charging technology has led to the rising demand for fast-charging cables. In recent years, the wire and cable industry has continued to experience growth driven by development in the energy and telecoms industries. Fast charging cables comprise active copper cables that integrate one or more semiconductors to enhance the functioning of the cables.
The wire and cable industry comprises companies that manufacture and supply wire and cable for various electronic parts, machines, and equipment. Also, these companies manufacture insulated electrical wiring and enclosed fiber optic cable. Therefore, these companies manufacture aluminum, steel, or copper cables and wires widely integrated in various industries.
An electric wire is a thin strand concealed in a dielectric substance that enables electrical signal transmission. A cable refers to the combination of several wires. These wires are bent, wrapped, twisted, and joined to form a cable. To help in protecting the humans as well as the environment, wires and cables have an enclosure which is an insulating plastic material.
The Trends and Future of Global Wires and Cables MarketUrbanization and rapid development of infrastructure are primary drivers for growth. There is a great demand for power and energy in several sectors. This constant demand has been impacted by urbanization and development of infrastructure. We can see improvements in infrastructure in airport terminal buildings, metro stations, highways, bridges, and airport hangers.
The global wires and cables market is categorized based on geography, installation, voltage, and end-user. In terms of voltage, this market is categorized as low, medium, high, and very high. As regards installation, this market is categorized as underground and overhead. The overhead installation accounts for the biggest market share.
This is because the overhead installation is a widely integrated technique worldwide. Also, the overhead installation is the easiest and cheapest. Less populated countries adopt this technique. However, countries that are at a high risk of experiencing natural calamities like earthquakes adopt overhead cable installations.
In terms of end-user, the wire and cable market is categorized aerospace, telecommunications, energy, civil constructions, and others. The energy segment is said to account for the biggest share of the market. This is because of the technological developments and integration of electrical energy in different industries.
Top Wire and Cable Manufacturers in the World Sumitomo Electric Industries LtdThis wire and cable manufacturing company has its headquarters in Osaka’s Chuo-ku district. Sumitomo specializes in the production of optical fiber cables and electric wire. In 1897, this company was founded to supply copper wires for various applications. Now, this company supplies its products to five different business sectors which are environment and energy, automotive, information and communications, industrial materials, and electronics.
Sumitomo Electric Industries has about 400 subsidiaries in over 30 countries. Also, this company prioritizes research and development. Therefore, it invests hugely in research and development so as to create innovative products in the industry. Over the years, innovation has helped the development of significant projects like traffic control and telecommunication development.
Also, Sumitomo Electric Industries Ltd ensures all of its wire and cable products are industry grade. This company manufactures products that protect the environment and humans.
Dacon Systems IncDacon Systems specializes in the production of wire and cable. These products are designed to meet the particular requirements of customers. Dacon Systems supplies a wide range of products which include miniature cable for medical products and a high temperature cable for harsh environments. The product portfolio of this company includes teflon cable, motor wire, custom coax, high temperature cable, flexible wire, and miniature cable.
One of the benefits of choosing this wire and cable company is its adherence to industry standards. Dacon Systems Inc has an ISO 9001:2015 certification and other certifications in the industry. This wire and cable manufacturer has earned an excellent reputation in the industry. With over 40 years experience in wire and cable manufacturing, this company has been supplying high-grade wire and cable products to customers.
EIS Wire and CableEIS wire and cable produces various high performance control cables and instrumentation for various applications. These cable products provide superior features which make them a perfect choice for industries like refining and petrochemical, solar, power generation, pulp and paper, factory, and steel.
The ability of EIS wire and cable to meet the requirements of their customers makes it a preferred choice among customers. This company has vast experience in providing custom cable products to meet the specifications of the Audio Broadcast markets. EIS Wire and Cable’s products have gotten a reputation for functionality.
Also, this wire and cable manufacturer offers fast lead time and top notch customer support. With their specialization in the production of sophisticated cables, EIS focuses on meeting all considerations. Furthermore, the cables produced by this company enable clear signal transmission for today’s advanced sensors. EIS is capable of designing industry grade cables for demanding applications.
Hebei New Baofeng Wire and Cable Co. LtdHebei New Baofeng Wire and Cable Co. Ltd is among the leading wire and cable manufacturers in China. This manufacturer has high-quality inspection and manufacturing equipment which facilitates its manufacturing processes. As a group company, Hebei New Baofeng Wire and Cable Co. Ltd invests in research and development which helps in creating new innovations.
This company presented the world’s most advanced cable testing equipment and cable auto-producing lines. These include the world’s highest 750kV high voltage vertical production line, 10 to 110kV partial discharge testing equipment, and more. This company designed the China’s first 500kV extra high volage cross linkage cable in 2001.
Over the years, Hebei New Baofeng Wire and Cable Co. Ltd keeps providing high-quality wire and cable products which are exported to regions like Africa, Asia, and Europe. This company isn’t just a top cable manufacturer, it has vast experience and expertise in the production of high-grade wire and cable products. All of its products are designed with quality and safety in mind.
Prysmian GroupThis Italian-based wire and cable manufacturer has its headquarters in Milan. Prysmian Group specializes in the manufacturing of electrical cable ideal for use in telecommunications and energy sectors. Also, this company produces optical fibers and wind farm cables. It has great expertise and vast experience in the production of high-quality wires and cables.
In 2005, Prysmian was established by Goldman Sachs after it acquired Sytems division. Prysmian Group produces and installs submarine and underground cables for distribution and transmission of electricity. Also, it produces specialized cables to be integrated in different medium and low voltage cables for infrastructure and construction. The product portfolio of this group includes optical fiber cables, copper cables, and optical cables for data transfer.
Prysmian Group integrates know-how technologies in the production of wires and cables. This company’s products links communities to a digital world. Prysmian has operations in more than 50 countries across the world. This company believes that sustainability is a core part of their business and as such keeps reinforcing their technology. At Prysmian, you can get the best cable solutions to meet your needs.
HITACHI CableA worldwide firm specializing in electrical goods, Hitachi is Japanese. Hitachi is one of the best seller of electrical goods holding a turnover of about USD 32 billion according to 2021 updates. The company was established by an electrical engineer from Japan called Namihei Odiara during the year 1910. The Hitachi corporation initially began as a motor manufacturer before moving on to produce electrical cables and wires, which they sold from 1918 and then made Tokyo its headquarters.
After world war 2 the factories were devastated in Japan of which Hitachi was among them and they began repairing the corporation and they returned in 1959 renamed Hitachi Public LTD. Since they’re the best in the business for electrical goods and services, Hitachi hasn’t looked back since.
Hitachi Cable provides a broad range of goods and services, comprising electrical cables, wires, as well as copper products, and also electronic components, car parts, the information network hardware, as well as system integration services.
44 locations throughout the world house Hitachi Cable’s manufacturing and sales facilities. Goods and Services given by this company include Information Network, Coaxial Cable & Antenna, as well as Optical Products.
Hengtong Optic Electric ChinaWith its headquarters located in China, Hengtong is a manufacturer of power cables and wires. Cui Genilang, an electrical engineer, launched the business in 1993. The company is recognized for its diverse wire designs with its highest sales inside the eastern area. This Company is worth 4.08 billion USD on the open market.
HENGTONG, the leading global cable supplier, had already established technical service branch offices in 31 cities and provinces, established Research & Development, as well as manufacturing bases throughout Shenyang, Beijing, Chengdu, Guangzhou, Shanghai as well as developed marketing coupled with technical service institutions in Russia in addition to Middle Eastern nations, South America, South Africa as well as Southeast Asia through great marketability and sophisticated service concept.
Hence, its service network and global marketing has taken original form, and the products are extensively employed in metropolitan area network areas, high speed railroads, military space, highways, ports and ships, intelligent buildings etc.
In the meantime, HENGTONG has finished producing the entire line of products, including optical fiber cables and optical sensors to preforms.
Challenges Faced by Wire and Cable ManufacturersWire and cable manufacturers face a lot of challenges in their field. These manufacturers keep looking for ways to tackle the issues and challenges. Below are some of the challenges faced by wire and cable manufacturers.
Shifts in supply chain
Wire and cable manufacturers often have to deal with large consolidated customers like wholesalers and energy operators and as well large suppliers of raw materials. Also, a few wire and cable manufacturers can communicate directly with end customers. This gives them less power in the supply chain.
De-regulation
One of the problems with de-regulation is that it reduces barriers of entry. The telecom and electricity markets were monopolized by suppliers that bought in large quantities form cable suppliers. De-regulation encourage customers to negotiate more with cable manufacturers. Furthermore, the cost of transportation is estimated at below 5% of production costs.
Cyclical market
The wire and cable industry experienced declining demand for their products around the turn of the century. However, this problem has resurfaced again as the growth in the energy and telecoms industries contributed to this. Therefore, wire and cable manufacturers must respond actively to changing demand levels by finding a lasting solution to this problem.
Conversion industry
A good example of a conversion industry is the wire and cable industry. In this case, the cost of the end product depends on the cost of raw material. The cost of raw materials accounts for 60% of the cost of the final product. Therefore, wire and cable manufacturers must seek ways to facilitate the conversion processes in the company.
Furthermore, these manufacturers must pay attention on the working capital. The high cost of raw materials can consume a large percentage of the finances in a company.
ConclusionThe wire and cable manufacturing industry is involved in the production of insulated fiber optic cables, coaxial cables, and insulated nonferrous wires. The fiber optic cables comprise glass fibers in an insulated case. We have reviewed the best wire and cable manufacturers in this article.
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