CABLE INDUSTRY
Number of European players falls / Three producers dominate / Italy largest polymer user
The European cable industry is now dominated by a few major players following a period of mergers, acquisitions and rationalisation, says the latest edition of "AMI´s Guide to the Cable Industry in Europe", published by Applied Market Information (AMI, Bristol / UK; www.amiplastics.com).
The top three European cable producers – Pirelli (www.pirelli.com), Nexans (www.nexans.com) and Draka (www.drakaholding.com) – accounted for over 35% of all polymer materials consumed for cable insulation and sheathing in 2004, the report says. Italy is now the largest market, accounting for 20% of polymer usage for cable applications in 2004. Germany´s market share fell from 230 t in 2000 to 202 t in 2005.
According to AMI, there are now only 340 cable production sites in Europe, due to rationalisation in the industry during the late 1990s, which was prompted by limited market growth, higher technical demands, reduced government spending, deregulation and the privatisation of power and telecom networks. After 2001, this activity decreased, as companies concentrated on survival in a western European market suffering from overcapacity and rising raw materials costs.
The survey shows that there has been a further period of restructuring since 2004, when the industry experienced a slight recovery. Moves included the purchase of Pirelli´s cable business by investment bank Goldman Sachs in July 2005, the acquisition of the German business of ABB and parts of NKT by Wilms, the merger of Belden and CDT and the merger of Draka and Alcatel´s (www.alcatel.com) optical fibre and fibre optic cable business.
Book Service:
AMI´s "Guide to the Cable Industry in Europe", 4th edition, 2005, 100 pages, paperback, EUR 285.00 + VAT: PIE-No. B 46992.
The top three European cable producers – Pirelli (www.pirelli.com), Nexans (www.nexans.com) and Draka (www.drakaholding.com) – accounted for over 35% of all polymer materials consumed for cable insulation and sheathing in 2004, the report says. Italy is now the largest market, accounting for 20% of polymer usage for cable applications in 2004. Germany´s market share fell from 230 t in 2000 to 202 t in 2005.
According to AMI, there are now only 340 cable production sites in Europe, due to rationalisation in the industry during the late 1990s, which was prompted by limited market growth, higher technical demands, reduced government spending, deregulation and the privatisation of power and telecom networks. After 2001, this activity decreased, as companies concentrated on survival in a western European market suffering from overcapacity and rising raw materials costs.
The survey shows that there has been a further period of restructuring since 2004, when the industry experienced a slight recovery. Moves included the purchase of Pirelli´s cable business by investment bank Goldman Sachs in July 2005, the acquisition of the German business of ABB and parts of NKT by Wilms, the merger of Belden and CDT and the merger of Draka and Alcatel´s (www.alcatel.com) optical fibre and fibre optic cable business.
Book Service:
AMI´s "Guide to the Cable Industry in Europe", 4th edition, 2005, 100 pages, paperback, EUR 285.00 + VAT: PIE-No. B 46992.
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02.02.2006 Plasteurope.com 699 [203499]
Published on 02.02.2006
German version of this article...