Furukawa Electric Concludes 11kV Power Cable TAA with Uncomtech

Furukawa Electric announced on Wednesday the firm concluded a technical assistance agreement (TAA) with Uncomtech, Russian largest electric cable company headed in Moscow, and Kirskabel, Uncomtech’s productive subsidiary headed in Kirs. TAA covers production of 110kV power cables. Kirskabel has already started 110kV power cable production in July for power companies’ type tests. Kirskabel tries to obtain power companies’ approvals within 2009 and start commercial supply in early 2010.

Viscas, Japanese joint venture between Furukawa Electric and Fujikura to manufacture high-voltage power cables, also provides technical support and cable combining parts to Kirskabel. Kirskabel’s 110kV power cable for type tests will apply Viscas’ parts and cable combining technology.

Mid-term demand growth for high-voltage power cable is expected in Russia and CIS areas. Furukawa Electric regards TAA as the first step in Russian high-voltage power cable market. At the same time, Furukawa Electric aims to cultivate new demand for the group’s products, such as cable protection pipes, utilizing Uncomtech’s sales network in Russia and CIS.

Uncomtech is the top company of electric cable business in Russia, which holds 2 productive subsidiaries, Kirskabel and Irkutskkabel. The annual revenue was above US$ 450 million in 2008. Kirskabel’s annual revenue was above US$ 140 million in 2008.