Fujikura Establishes Power Cable JV in Jordan

Fujikura announced on Monday the firm and Middle East Specialized Cable Company, a Saudi Arabian cable maker, established a joint venture to produce low and middle voltage power cables in Jordan. The JV will start commercial production in mid 2008 at a new plant established near Amman, the capital city of Jordan.The JV “MESC-Fujikura Cable Company Jordan” was established with capital of 20 million Jordanian dinars which equaled to approximately 3.4 billion yen. Fujikura holds 20% shares in the JV while MESC and Jordan investors control the rest.The JV will produce CV cables (cross-linked polyethylene insulated cables) for low voltage of 600V and middle voltage of 6-36 kV to supply for Middle Eastern market. The JV targets annual sales of 10 billion yen after several years.A new plant will be constructed in Mafraq region near Amman. In Mafraq, a power cable plant exists of Jordan New Cable Company, MESC’s subsidiary in Jordan to manufacture power cables.Fujikura has examined local cable production in Middle East where the economy growth is remarkable and power cable demand is sharply increasing. MESC has manufactured instrumentation cables and control cables since 1993 and currently posts annual sales of approximately 30 billion yen. MESC has aimed to engage into power cable production and sought a foreign partner with high technology and brand value.