Materials usage in the European cable industryBringing the plastics industry together United Kingdom Slide 9 0. 500,000. 1,000,000. 1,500,000. 2,000,000. 2012. 2016. 2020. Automotive

Bringing the plastics industry together

Materials usage in the European cable industry

Cristina de Santos Energy & Infrastructure Unit Manager - AMI Consulting


AMI’S COVERAGE OF THE CABLES INDUSTRY

Slide 2

AMI ConferencesAMI Databases AMI Consulting AMI Magazines


• Demand for cable

• Europe

• Largest cable industries in Europe

• European cable extrusion industry

• Global usage of compound in the cable industry

• The European cable industry

• Cable extrusion plants – geographical distribution

• Factors affecting the European cable industry

• Conclusions

OUTLINE

Slide 3


Demand for cable


Europe

Slide 5

Sources: Euroconstruct 2016LMC Automotive

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2012 2016 2020

Automotive production 2012 - 2020 -

100.00

200.00

300.00

400.00

2012 2016 2020

Investment in infrastructure 2012 - 2020

Railways Telecommunications Energy works

Other transport Other civil engineering

- 200.00 400.00 600.00 800.00

1,000.00 1,200.00

2012 2016 2020

Investment in construction 2012 - 2020

Residential construction Non residential construction

In Billion EUR

In Billion EUR


Germany

Slide 6

5,250,000

5,400,000

5,550,000

5,700,000

5,850,000

6,000,000

6,150,000

2012 2016 2020

Automotive production 2012 - 2020 - 10.00 20.00 30.00 40.00 50.00 60.00

2012 2016 2020


Railways Telecommunications Energy worksOther transport Other civil engineering

- 50.00

100.00 150.00 200.00 250.00 300.00

2012 2016 2020


Residential construction Non residential constructionSources: Euroconstruct 2016

LMC Automotive


Italy

Slide 7

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2012 2016 2020


10.00

20.00

30.00

40.00

50.00

2012 2016 2020



-

50.00

100.00

150.00

2012 2016 2020



LMC Automotive


France

Slide 8

1,500,000

1,650,000

1,800,000

1,950,000

2,100,000

2012 2016 2020


10.00

20.00

30.00

40.00

50.00

2012 2016 2020



-

50.00

100.00

150.00

200.00

2012 2016 2020



LMC Automotive


United Kingdom

Slide 9

0

500,000

1,000,000

1,500,000

2,000,000

2012 2016 2020


10.00

20.00

30.00

40.00

50.00

2012 2016 2020


Railways Telecommunications Energy works

Other transport Other civil engineering

-

50.00

100.00

150.00

200.00

2012 2016 2020



LMC Automotive


Spain

Slide 10

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2012 2016 2020

Automotive production 2012 - 2020

- 5.00

10.00 15.00 20.00 25.00 30.00

2012 2016 2020



-

20.00

40.00

60.00

80.00

100.00

2012 2016 2020



LMC Automotive


European cable extrusion industry


Africa & the Middle East

Europe

North America

China

Asia Pacific

Rest of the World

GLOBAL USAGE OF COMPOUND IN THE CABLE INDUSTRY

Slide 12

Source: AMI Consulting 2017


The European cable industry

Slide 13


• Mature market• Over 350 plants• Average usage of compound per plant: 3.6 ktpa• Over 1 million tonnes of compound used in 2016


CABLE EXTRUSION PLANTS - geographical distribution

Slide 14

Germany16%

Italy21%

Spain9%

France10%

United Kingdom

9%Over 350 extrusion plants in Europe

Benelux

France

Germany

Italy

Poland

Scandinavia

Spain

United Kingdom

Other EE countries

Other WE countries



Factors affecting the European cable industry


Declining cable demand

Reorientation of the business towards cable

conversion activities

Restructuring processes, principally in

company groups

Growth in capacity in East and Central

European countries

ECONOMIC CRISIS

Slide 16

Main consequences in the industry


CLOSED DOWN PLANTS VS NEW PLANTS

Slide 17

Prysmian

Nexans

Tele-fonika

LEONI

Draka

Cablerias Auto

Brawa

Mobil-Werke Dura Automotive

Whirlpool Polska

Auto-Kabel

Cables especiales de Murcia

Polycavi

Jonex Ppph

B3Ask Poland

Ascable-Recael

ECN Cable Group

ACAR

Stasinski

Belden

Teleco Cavi

Nova CaviDANFOSS

Patelec

CET Electric Aspock Portugal

Gamrat

ITC/CDT

Cellfast

ScameIndustrias Plasticas Numancia

NKT

IbotecDesco

Heatsolve

Plastline Nova

Nextis

Profiplast

SN Barelec

Extrucable

General Cables industries Andover

Haavi Cables

Suprajit Europe

Madison Wire

Commscope

Concordia

Twentsch Kable

SE Bordnetze Bulgaria

Hitachi Cable Europe

ProPS S.R.O

Emtelle

Prysmian Slovakia & Romania


MARKET CONSOLIDATION

Slide 18

Privately owned18%

Business groups82%

Market dominated by groups




Slide 19

20082012

After TS Cables merged with Profiplast, it became the Omerin Group

Murray Capital Brand-Rex

*Acquired companies

Fugro JDR’s Marine cable

British Telecom B3

Prysmian Draka

20042008

Plastelec Group Compagnie Générale Des Plastiques

Paramount AEI Cables

TKH Group CAE Group

Omerin Flexelec




Slide 20

20122016Plastelec Group

TE Connectivity

Carlisle, USA

Tecnikabel SPA

Omerin Group

Ducab Cable

Leviton Manufacturing

Nokia

Borsan Group

Prysmian increased its shares in the Oman Cable Industry

Berne S.A.S.

Deutsch

Belden’s Thermax-Raydex business

Plasticavi Italiana

ADKA, Plastelec Group and Q-S technologies

AEI cables

Brand-Rex

Alcatel

Salvi Cavi Speciali SRL

*Acquired companiesSource: AMI Consulting 2017


Prysmian Group

Slide 21

05 Goldman Sachs acquires

Pirelli Cavi & Stemi Energiaand Pirelli Cavi e SistemiTelecom.

Both companies merged into Prysmian

11Prysmian merged with Draka into Prysmian Group, becoming the largest cable producer in the world

15 Integration process finalises. The group has now 86 plants

having closed 12 since the acquisition.

Prysmian increased its shares in the Oman Cable Industry

16

The group closes at least 4 plant, but invests in new plants in, for example, Romania & Slovakia.

The group has over 80 plants worldwide.

Most relevant merger


RESTRUCTURING OF OPERATIONS

Slide 22

Plant specialization - economies of scale

Offshoring activities - cost optimisation

Product differentiation - increased margins


GLOBAL NATURE OF THE MARKET

Slide 23


CPR REGULATION

Slide 24


HIGHER TECHNICAL PERFORMANCE REQUIRED

• Fire performance

• Jacketing (oil, chemicals….)

• Resistance to high temperatures

• Environmental considerations

Slide 25


• Specialization on niche cables / higher added value products

• Overcapacity

• Lower profitability & margins

• Transport costs

• Competition from cheaper imports

• …

OTHER FACTORS

Slide 26


Conclusions


Latest report fromAMI Consulting

Slide 28

Publication date: April 2017

Author: Cristina de Santos


Conclusions

Slide 29

Consumption of polymeric materials by type



First AMI Consulting’s global report on the

cables industry!

Slide 30

Publication date: April 2018

Author: Cristina de Santos

GLOBAL


Thank You!

www.ami.international.com

Cristina de [email protected]

Documents

Materials usage in the European cable industryBringing the plastics industry together United Kingdom Slide 9 0. 500,000. 1,000,000. 1,500,000. 2,000,000. 2012. 2016. 2020. Automotive