J-Power Systems Eyes New Cable Plants in China, North America, Europe

J-Power Systems, which is high voltage power cable making joint venture of Sumitomo Electric Industries and Hitachi Cable, targets to double the sales in fiscal 2015 ending March 2016 while the firm plans 75 billion yen of sales in the year to March 2011. The firm tries to expand the business by new plants in China, North America and Europe to supply direct current XLPE cable for power generation on the ocean in the local markets.

The firm builds new cable plants in India and Saudi Arabia. The firm studies potential new offshore plants to double the sales. The firm eyes new plants in China, North America and Europe where high voltage cable demand will increase for transmission.

The firm establishes high valued products of direct current XLPE cable to serve such offshore markets. The firm expects the cable can contribute to long distance transmission projects including sea floor cable for power generation on ocean.

Direct current XPLE cable has advantage in higher transmission capacity and no oil supply facility compared with traditional oil impregnated paper insulated cable for sea floor cable. The firm can distinguish itself from competitors as one of the limited suppliers of the direct current XPLE cable.

The firm renewed record profit for 2 years in a row through the year ending March 2010 when the firm got order for high valued cable products from offshore buyers. However, the firm expects lower profit in the year ending March 2011 due to lower price under severe competition. The firm tries to improve the productivity, procurement and distribution cost through the companywide effort targeting more than 5% cost cut in the year ending March 2011.