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Nexans, the French cable maker, announced that its new cable plant in Qatar starts commercial production. Nexans's joint venture (JV), the Qatar International Cable Company (QICC) is located in Mesaieed Industrial City, which is 40 km from Doha. The new facility employs more than 100 staff, and it is expected that it will generate annual revenues of more than US$100 million by 2011. Nexans said that the plant will engage in the production of LV, MV and low-end HV power cables for energy infrastructure and building projects. It will also produce special cables for the oil and gas industry. Potential target markets include Qatar, the GCC and Yemen. The power cable plant occupies 19,000 sq.m. on an overall plot of 70,000 sq.m., close to a harbour that is reportedly developing as the largest in the Middle East. QICC was established in 2008, as a JV between Nexans (30%), Special Projects Company and Al Neama Industrial Co.

As designed, the cities will have a total of four times the geographic area of Hong Kong, three times the population of Dubai, and - so the Saudis claim - an economic output equal to Singapore's. The coastal King Abdullah Economy City is designed to house two million in an area twice the size of Hong Kong. Entirely funded by domestic and foreign private investors, this is the only one of the four planned cities that is currently under construction. Aside from the seaport and residential area, KAC will also house a sprawling industrial zone, a central business district, a sea resort, and a multi-university education campus.

A report today from CIBC World Markets says the skyrocketing cost of transportation is leading to inflation and taking away the edge that many Asian countries have had in offering cheap labour.

It is believed that a cash crunch is reducing orders in the Chinese power sector, which accounts for 60% of the country's copper demand. Analysts predicted strong copper demand in H1 as the country was eager to repair the damages to power networks caused by the heavy snow in the early part of the year. However, repairs have so far mainly been made to aluminium and fibre-optic cables. Cash flow problems at copper rod and wire plants have occurred following the government's tight credit policy and high copper prices. Some 30% of copper wirerod production capacity is being reported idle. The cash shortages have also delayed copper buying from active copper fabricators, further dampening consumption of the metal. China, a net importer of copper, exported 31,000 tonnes of refined copper in April, up 227% year-on-year, with the possibility that the country might have been re-exporting the metal since late February. China's General Administration of Customs reported that 14,000 tonnes were exported to South Korea, six times that from the same period last year. This perhaps confirms that traders were re-exporting copper it has imported to LME-approved warehouses to take advantage of the discount between Shanghai and LME copper prices.

Neans focuses on "priority markets"

In the past few days world leading cablemaker Nexans has announced one acquisition, one new joint venture and one asset disposal. On the 30th May, Nexans acquired Intercond a leading Italian manufacturer of special cables for industrial equipment and subsea applications. The company had sales of €90m and employs 150. "This [€90m] acquisition fits totally in the Group's strategy by increasing the proportion of its business in high value-added special cables", said Gerard Hauser, Chairman and CEO of Nexans. On the 2nd June, Nexans released a press report confirming that it has formed a joint venture to create a wire and cable plant in Qatar, the country's first manufacturing facility. Qatar International Cable Company (QICC) is owned 29% by Nexans with the balance being owned by Special Projects Company and Al Neama Industrial Co. The new plant in the industrial city of Mesaleed, 40km from Doha, and will employ 210 people. By the end of 2009 it will begin manufacturing low and medium voltage cables for buildings and energy infrastructure as well as special cables for the oil and gas industry. This JV will generate sales of $150m per year by 2010 at current copper prices. Finally, Nexans confirmed that it has completed the pre-announced sale of its copper telecom cable plant at Santander in Spain to the British company B3 Cable Solutions for €17m. These three actions continue to refocus the group's strategy on priority market segments.

This study concludes that introducing hydrogen into the energy system would, theoretically, reduce the total EU oil consumption by vehicles on the road by 40%, and by 2050. Also, on releasing the study results, the EU approved funding for a joint technology initiative to develop fuel cell and hydrogen technology. This recognition of hydrogen by the EU raises the possibility that hydrogen could realistically be used in future green solutions.

A timely article to remind readers about the status of wind turbines in the US. No longer a marginal form of electrical generation, wind turbine installed capacity in the US is on the up. Apparently, wind already supplies about 1% American electricity, powering the equivalent of 4.5 million homes. However, in spite of advances in the wind field, electricity generated via wind turbines is at this time costlier than that generated from fossil fuels. Also, wind power has the disadvantage of being intermittent and unpredictable, but this matter may be overcome with battery storage in some cases.

If we keep following the ruling paradigm of sustained global economic growth, we will soon run out of cheap and plentiful metal minerals of most types.