08/06/2010

Prysmian investment in China rises to Euro 120 million

The Prysmian Group announces new investments in China on the occasion of the Italian Business Mission to China, organised by the Italian Government, Confindustria, ICE and ABI. The project, worth about Euro 20 million (in addition to Euro 10 million already invested in 2009), will double production capacity and introduce new technology at the Baoying plant for High Voltage and Extra High Voltage cables and systems. This project brings the total resources invested by Prysmian in China to some Euro 120 million, since the Group’s entry in the country.

The aim is to further strengthen the Group's technological leadership, and market share, in China, particularly in the area of systems of up to 500 kV capable of carrying electricity to entire cities (Prysmian has been selected by China State Grid for the new 500 kV EHV cable system in the Anhui province). The plant will be equipped with a second tower for Vertical Continuous Vulcanization, a technology that is one of the most advanced in the industry. Prysmian has also signed a technology co-operation agreement with the Wuhan Institute of Technology (a Chinese government body) to carry out research and develop new technology in the sector of EHV cables and systems.

Present in China since 1996, the Prysmian Group is one of the top Italian companies operating in the country with sales increased to Euro 160 million in 2009 (domestic sales reported a + 28% growth). Headquartered in Beijing, Prysmian employs around 1,000 staff in 5 plants that manufacture HV power transmission cables and systems, special cables for industrial applications, optical fibre and copper cables for the telecommunications sector. Prysmian is particularly focusing on strong growth in the businesses of HV cables and systems, special cables for industrial applications, especially in the area of renewable energy, and optical fibre for telecommunications.

China represents upwards of 20% of the worldwide cables market. The Chinese government has announced the construction of approximately 26,000 km of new power lines, with the Group ready to take up these development opportunities, thanks to its local investments not only in technology and products but also in developing production capacity and human resources.

Prysmian's more strategic customers include the principal national grid managers such as China State Grid, Beijing PSB, Shanghai PSB and Jiangsu PSB, leading wind farm development companies such as Guo Dian United Power, Gamesa, Suzlon and SE Wind, transport sector companies like CRC (Chang Chun Railway Company), Beijing Metro and Alstom, and some of the largest local telecommunications companies such as China Mobile and China Unicom.