Leading European cable manufacturer Nexans (Paris / France; www.nexans.com) has signed an agreement with China’s state-owned Shandong Yanggu Cable Group (Yanggu, Shandong; www.ygcb.aaaoe.com) to create a 75:25 joint venture based on the latter’s power cable business in the People’s Republic. No name has yet been given for the new jv which would be valued at about EUR 140m. The deal is expected to be completed within the next 6-8 months, pending the approval of the relevant authorities.

Founded in 1985, Shandong Yanggu is one of China’s leading power cable producers with sales of EUR 150m in 2010. The group’s 1,200 employees manufacture extra and high voltage, medium voltage and low voltage power cables at three different sites.

Commenting on the deal, Nexans CEO Frédéric Vincent said: “China is the largest, fastest growing market for energy infrastructure in the world. This investment reinforces our presence in this exciting market and is consistent with our long-term strategy to grow in emerging markets.”

In late 2010, Nexans was outbid by China’s Tianjin Xinmao Group (Nankai, Tianjin; www.xinmaochina.com) in its bid to acquire Europe’s third-largest cable manufacturer Draka (Amsterdam / The Netherlands; www.draka.com) – see Plasteurope.com of 30.11.2010.