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Kobelco, a diversified Japanese group with interests ranging from copper to construction machinery, announced on 19th November that it is licensing one of its leading copper alloy products, used in terminals and connectors, to German firm Wieland. The company said that the deal would allow it "to establish a global supply network for copper alloys, especially for automotive applications." The announcement marks the second time Kobelco have expanded their global presence in the copper alloys market through such an agreement, with the company licensing the same technology to Aurubis Buffalo Inc for US manufacturing and distribution in 2008.

Gaisky GOK, a subsidiary of UMMC, the Russian miner and producer of copper semis, announced on 26th November that its net revenue for the first nine months of the year increased by 6.89% to RUB12.28B (US$395M). However, the company's net profit fell by 6.4%, to RUB2.53B (US$81M) in the same period compared to a year before. Gaisky GOK is based at the Gaisky field and controls three quarters of the copper reserves in the Orenbursky region of Russia. UMMC manufactures semis products from its Kirov non-ferrous plant and recently acquired a new round rolled production line from German company TUF-CERT according to its website.

* Aurubis Group, the large German copper smelter and semis producer, announced on 13th December that its operating earnings before tax for the fiscal year Q4 2011-Q3 2012, had increased to EUR296M from EUR292M the previous year (US$385.5M from US$380.3M). Despite the headline increase in profitability, which was driven by the group's smelting unit, Aurubis reported that profits from "copper products were considerably down on the prior-year level due to weak markets for rod and shapes." Operating profits at the group's semis business fell to EUR10.1M this fiscal year from EUR49.7M the prior year (US$13.2M from US$64.7M), with Aurubis citing "the economic influences of the European debt crisis" as a factor weighing on the demand for copper products. Aurubis reported that copper tube output had fallen by 18% to 646,000t in 2011/2012 from 785,000t in 2010/11, copper continuous cast shapes output had fallen by 17% to 164,000t from 197,000t , whilst the output of flat rolled products fared better with output roughly unchanged at 217,000t.

Nexans, the large French wire and cable maker, announced on 7th February that its full year operating revenues, at constant non-ferrous metals prices, increased by 6% to EUR4.87B (USD6.60B). However, the company noted that acquisitions were responsible for the increased revenues and organic sales growth was roughly flat compared to 2011. Nexans reported mixed revenue growth by sector, with the group's Industrial Cables unit and the Distributors and Transformers unit showing organic sales growth, whilst the Nexans reported contraction in its Power Transmission and Utilities and Operators businesses. In the Industrial Cables unit, high double-digit growth was noted in the demand automotive wiring harnesses, with the company highlighting its strong position with German autos companies as a decisive factor. The company also noted strong growth in supplying cables to the oil industry and the aeronautical industry. Weak European growth was noted in Nexan's Automation and Capital goods business, as well as in the railways sector, with Nexans noting that they expect railway investment to pick up in China in H2 2013.

From Nexans' Q1 2012 financial report, we can infer that the European wirerod market was supported by a very strong automotive sector, driven by demand from German premium auto manufacturers, as well as increased infrastructure investment in France and Scandinavia, and a rebounding construction sector in Northern Europe. Demand in Southern Europe, meanwhile, continues to be subdued.

German company Kromberg & Shubert has launched the construction of a EUR20.0M(US$26.1M) car cables plant in south-western Macedonia. The construction works, which are performed by Turkish company Pera Construction, are expected to be completed by the end of the year. The plant is located in the Zabeni free industrial zone, near the city of Bitola, and is expected to employ over 2,500 people. Kromberg & Shubert manufactures on-board networks, cables, plastic technology and mechatronics.

The German copper cathode and semis fabricator, Aurubis, has reported its concerns over the Federal Government's decision to phase out nuclear power. Aurubis said that the new legislative package, which involves the decommissioning of seven base load power plants, does not ensure that electricity will remain secure and affordable for the company. As such, it believes that power supply now represents a significant downside risk to its operations. In the event of a momentary power failure, the company would suffer a half-day cathode production loss. A sustained power shortage or blackout could cause substantial damage to plant equipment as liquid melts solidify. Aurubis said that steps were required to be taken to expand the power grid and increase power plant capacities. The company currently uses 1Bn KWh/y, approximately the same amount as 600,000 inhabitants.

Salzgitter announced that it has increased its stake in Norddeutsche Affiniere, a German copper producer, whose subsidiaries Schwermetall Halbzeugwek and Prymetall achieved 2007 production of 239,000 tonnes and 62,000 tonnes respectively. The steel and technology company acquired a 5.8% stake in Norddeutsche on the 15th of July and yesterday increased this by a further 5% to 10.8% total.

Salzgitter, one of Europe's leading steel and technology corporations has acquired a 5.8% stake in the German copper producer Norddeutsche Affinerie. Both companies have "agreed to investigate medium to long-term opportunities to cooperate for example in the fields of production technology, research and development as well as in procurement and sales for the benefit of both companies". There are currently no further plans for Salzgitter to increase its share in Norddeutsche, the company said.

Prysmian Cables & Systems has announced the signing of a four year frame agreement to design and supply flexible pipes for offshore oil and gas extraction with Petrobras of Brazil. Prysmian said it is to invest around $110 million constructing a new plant in Brazil and that the deal with Petrobras represented a major step forward in the company's operations in the Oil, Gas and Petrochemical services industry. Prysmian also announced the acquisition of the German cables manufacturer Facab-Lynen. Facab-Lynen generated sales of €62 million ($96 million) in 2007 and Prysmian said the acquisition will enable the company to further increase its production capacity and develop its market position in the special cables market, particularly in the fast growing renewable energy sector.

Deal worth $900 million

LS Cable and Superior Essex have announced the signing of a definitive agreement for LS Cable to acquire Superior Essex. The board of directors for both companies approved the agreement under which Superior Essex share holders will receive $45 per share making the deal worth $900 million. The acquisition, once complete will create the world's third largest wire and cable manufacturing company with Superior Essex continuing to operate under its current name as a wholly owned subsidiary of LS Cable. Nexans and Prysmian are the world's first and second ranked cable makers. LS Cable has a strong presence in the power and communications cable sector and in the Asian and Middle Eastern markets. Superior Essex is the world's largest magnet wire producer and leads in the North American communications market as well as having operations in North America, Europe and China.

BERLIN (Reuters) - Germany's ruling parties have reached a deal on reduced support for the solar energy sector which involves cuts of 8 percent in 2009 and 2010, and 9 percent in 2011, Social Democrat politician Hermann Scheer told Reuters.

The Ukrainian government will support the plans of Leoni Wiring Systems to expand its production in the country. Leoni is a German automotive wiring harness manufacturer serving the European auto industry. Company representatives announced their plans to expand production in Ukraine and increase the number of employees by 1,000. It was reported that Leoni decided to expand production in Ukraine due to difficulties faced at its production facilities in Africa.

German wiring harness maker Leoni reported EUR2.96 billion revenues in 2010, up from EUR2.16 billion a year ago and well above its forecast for EUR2.80 billion. Revenues were fuelled by sales growth in BRIC markets as well as in the US. Strong demand for automotive components and the increase in copper prices provided additional support to revenues, especially in Q4 2010. The company realised earnings before interest and tax (EBIT) of EUR131 million in 2010, reversing a EUR116 million loss in 2009. EBIT in 2010 beat Leoni's projections, which stood at EUR120 million. Leoni reiterated its full year revenue target of EUR3.10 billion for 2011, and said the unrest in Tunisia and Egypt, where it has several production sites, will not have a substantial impact on its performance.

German integrated copper producer Aurubis reported a 47% y-o-y increase in net income to €258M in H1 FY2010-2011 (1st Oct 2010 - 31st Mar 2011), up from €161M. H1 revenue increased by 42% y-o-y from €4.5B to €6.5B. This outcome was mainly the result of higher copper prices and continued demand for copper caused by the global economic recovery. However, demand from China steadied in Q2 due to a tighter credit environment, as did demand from Europe, due to increasing economic instability. The wire and cable industry performed well, experiencing strong demand from the automotive and domestic appliance sectors. Likewise, copper strip was supported by demand from the coinage as well as special material sectors. On the other hand, copper tube and flat rolled products struggled to recover as a result of strong competition from lower cost substitutes.

Local news sources reported that Codelco, a leading copper producer based in Chile, received requests from some U.S. and European clients to cancel an undisclosed quantity of orders for copper cathode. A spokesperson from Codelco attributed these moves to increased global economic uncertainty. Amongst the company's 150+ clients, major customers include Nexans, Southwire, its German subsidiary Codelco Kupferhandel and the American Copper Partners. However, Codelco is not anticipated to struggle selling any stock originating from the cancelled orders due to demand from China.

German automotive wiring harness maker Leoni reported sales of €2.96B in FY2010, up from €2.16B in the previous year. The 37% y-o-y increase was attributed to the sustained improvement in global economic conditions, particularly in the automotive sector, whose world output advanced by one fifth on the previous year. Leoni commented that the substantial rise in the price of copper accounted for 9% of the sales increase.