J-Power Systems to Start Operation of Plants in India, Saudi Arabia

Japanese major high voltage power cable maker, J-Power Systems starts commercial operation at plants in India and Saudi Arabia in 2011 when the export is less attractive under higher yen rate. The fifty-fifty joint venture between Sumitomo Electric Industries and Hitachi Cable eyes additional capacity in emerging countries when the firm aims to double its sales to around 150 billion yen in fiscal 2015 starting April 2015.

J-Power Systems plans to start test operation at Indian joint venture with Indian company in mid 2011. The JV supplies cable mainly in India at first stage and eyes export to neighboring countries depending on the demand. J-Power Systems expects Saudi Arabian plant will complete construction in May-June starting test production in mid 2011.

J-Power Systems expects its revenue decreases by around 4 billion yen to 76 billion yen in fiscal 2010 from fiscal 2009. The firm expects the lowest level net profit in fiscal 2010 while the firm posted the highest profit for 2 years in a row through fiscal 2009. The firm expects the profit decreases more in fiscal 2011 and fiscal 2012 when the firm has low profitable backlog for offshore projects under yen appreciation. The firm eyes new plant in China and Brazil to improve the profitability in offshore business while the firm tries to get more order for sea bottom cable project in USA and Europe.