General Cable factory acquisition part of African footprint expansion

Monday, Jul 12, 2010

One of the largest power cable manufacturers, General Cable, has acquired 
its first factory in South Africa, through the acquisition of wire and cable manufacturer Phoenix Power Cable, at the end of last year.

The factory now operates as General Cable Phoenix South Africa (GCPSA).

GCPSA manufactures medium- and high-voltage power cables, as well as overhead 
energy transmission and distribution cables. 
In the past 12 months, the business reported revenues of about $20-million. The former owners still hold a 10% interest in the 
business.

General Cable marketing director for 
sub-Saharan Africa Thelma Battiss says that the global General Cable group of companies has 46 factories in 23 countries around the world, four of which are scattered across Africa.

“General Cable has a vision to further 
expand its footprint in Africa and saw the need to broaden its manufacturing spectrum by acquiring Phoenix Power Cables,” she adds.

Battiss explains that, with this latest acquisition, the company will have the capability to supply electric utilities in the region with locally produced energy transmission and distribution cables.

General Cables rest of world CEO Mathias Sandoval says that investment in power generation, transmission and distribution, as well as residential and nonresidential construction, has grown significantly in sub-Saharan Africa over the past few years.

Further, he explains that robust mining investment, as well as infrastructure to support the growing population and the increasing wealth in the region, is expected to result in greater demand for power cable products to support infrastructure growth well into the future.

“The investments we have made in sub-
Saharan Africa enable General Cable to benefit from these favourable trends, while, at the same time, establishing an outstanding platform from which to further expand in the region,” he says.

General Cable is currently in the process of acquiring an additional factory in Southern Africa and will look to acquiring additional units in Western Africa and Eastern Africa.

Battiss states that the takeover of Phoenix Power Cable by General Cable will also create more job opportunities and should benefit 
the communities in the surrounding factory 
area.

Source:  Engineering News