Group items tagged

PKC Group Oyj, the Finnish wiring, cable and electronic manufacturer, signed an agreement to buy AEES, the North American wire harness manufacturer, for €109M in cash and €1.25M in newly-issued PKC shares. PKC principally produces wiring harnesses for the automotive industries in Europe and South America. The company cited the rebounding market environment and AEES' strong North American regional market share as a leading supplier to the heavy and medium truck production sectors as reasons for the takeover.

Luvata Oy, Espoo, Finland, formerly Outokumpu Copper Products Oy, has stated that its $40 million copper tube mill in Guadalupe, Mexico will begin production on schedule this September. 50% of the total plant capacity will be reached with one line during September with the second line coming on line by the end of quarter four. Once full production is reached, the plant is expected to add 50,000 tons a year to Luvata's copper tube capacity in N.America. Luvata is moving ahead with its plans for this facility despite a slowdown in the North American HVAC market. The company remains cautiously optimistic about the future, stating, "based on feedback from clients, the U.S. housing market will begin to turn around by the second half of 2009 or in 2010." Strong demand in China, where Luvata has also built plants, as well as from other developing countries has helped maintain Luvata's positive outlook for the viability of the plant. The plant will face stiff competition. Henan Golden Dragon is also building a US$80M copper commercial tube mill in Coahuila, Mexico, and Mexico's IUSA has also announced plans to increase commercial tube production. In the USA, Kobe Wieland Copper Products LLC is also undertaking a US$71M upgrade of its North Carolina copper commercial tube mill.

Finish copper fabricator Luvata intends to improve its supply chain with the prospect of economic recovery. The company anticipates that the market will recover by the end of Q1 2010 and recognises that it needs to prepare so as to regain market share. Senior Vice President of procurement Bob Kickham said that once the market starts to recover, copper prices may increase again. Given the ongoing fears of substitution toward aluminium, a more streamlined and efficient supply chain will provide considerable support to copper.