SWCC Showa and TBEA Establish Cable Connecting Accessory JV in China

SWCC Showa Holdings announced on Monday the firm establishes a joint venture company in Shandong, China to manufacture cable connecting accessories for power transmission infrastructures with Chinese major transformer and electric cable maker, Tebian Electric Apparatus Stock (TBEA). The JV company will start production in November 2009 and aim annual revenue at 3.1 billion yen in 2012. Capital expenditure is scheduled at approximately 1.2 billion yen for 4 years by 2012, including construction of a new factory.

The capital is US$ 10 million, 49% invested by SWCC Showa Cable Systems, SWCC Shoes Holdings’ cable business company, and 51% by TBEA Shandong Luneng Taishan Cable, TBEA’s subsidiary manufacturing electric cables. The JV company will be established in Xintai City of Shandong Province where TBEA Shandong Luneng Taishan Cable is headed.

The JV company will supply connecting accessories for 66-220kV power transmission infrastructures mainly in China. At the initial phase, SWCC Showa Cable Systems will export semi-finished products and the JV company will manufacture the accessories. They aim to bring the JV plant into full production by the end of 2010 and eye construction of a new factory for locally integrated production by 2012.