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LS Cable may see a 5% y-o-y fall in its copper consumption in the current year. This will be the second consecutive year that copper consumption dropped, as the company already experienced a 5% y-o-y plunge in 2008 to 270,000t. Copper accounts for about 30% of the company's production costs. LS Cable has announced that it is focusing on higher value added products such as underground and extra high-voltage cables in developing regions including the Middle East, China and other Asian countries.

Kuwait - LS Cable & System wins $110M order LS Cable & System announced that it had secured a 400kV extra-high voltage cable project valued at $110 million (about KRW130 billion) from the Ministry of Electricity and Water of Kuwait. LS Cable & System said it will supply and install 400kV extra-high voltage conductor with insulated cables and connectors on a turnkey basis. LS Cable & System said that unlike ordinary extra-high voltage cable using pure copper for the conductor, the conductor with insulated cables to be installed will be a high-tech cable in which the strands of wire comprising the conductors are coated with enamel to reduce transmission resistance. This raises transmission capacity by more than 20%. When this type of conductor with insulated cable is used, the overall weight and thickness of the cable can be reduced, as much as the transmission resistance falls, greatly reducing the cost of cable manufacturing and power grid implementation.

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.

"The Kazakhstani project is designed to resolve power deficiencies caused by expansive urban and industrial development in Almaty, the capital city. LS Cable & System will provide products, such as 127km of 220kV level extra high-voltage transmission cables and joints, and technical consultation until August next year. In addition, 140km of OPGW (optical ground wire, see glossary) and 1,100km of 220kV level gap conductors (see glossary) will be supplied together with installation support by year end to San Lorenzo and Guarambare for national backbone power and communication network implementation in Paraguay. "

LS Cable & Systems, the world's third largest manufacturer of wire and cable, reaffirmed on 23rd November that it is seeking to become the world's largest wire and cable manufacturer by 2020, and that it is targeting the value-added cable market in India as part of its strategy. The company, which according to chief executive officer Koo Cha-yol "has 33 manufacturing firms, 64 operational bases and four research centers in 26 countries," generates 60% of its sales abroad. LS Cables & Systems has been expanding these overseas sales through acquisitions, in recent years buying American cable maker Magnet Wire in 2008, and Chinese cable maker Hongchi in 2011, giving it access to the world's largest markets.

South Korea-based LS-Nikko Copper, the world's second-largest copper smelter, said on Thursday it would cut copper cathode output by about 10 percent due to weak demand in its first such move in more than four years.

Superior Essex has announced it is to close its magnet wire plant in Chauny, France at a cost of €12 million ($18.8 million). The plant, which dates back to 1922, was bought by Superior last year and operates under the company's Essex SAS subsidiary. The closure of the plant will bring production capacity in line with demand the company said. Just under $16 million of the charges related to the closure is for employee severance costs with the rest for equipment relocation and disposal. A review of the plant began three months ago before the sale of Superior Essex to LS Cable was agreed. Meanwhile LS Cable said its first half operating profit increased by over 50% with the Middle East and China leading global demand through the development of utilities and phone lines to meet power needs and internet usage. The chief executive of LS Cable, Christopher Koo, said orders from the Middle East are likely to increase by 80% this year to $450 million. Mr Koo said he expects global cable demand to increase by 4% a year to 2011, with China increasing by 8% annually.

LS-Nikko Copper Inc. forecast copper demand in South Korea, Asia's third-biggest metals buyer, may improve "gradually" later this year and in 2010 buoyed by economic stimulus measures and a shortage of scrap material.

"Borealis and Borouge now introduce the next generation HVDC insulation compound, Borlink LS4258DCE, which, along with the accompanying HVDC semicon Borlink LE0550DC, enables the use of extruded cable technology at significantly higher voltage and transmission levels in instances where paper cables are traditionally used. "