The recently announced take-over by Italian-based Prysmian of the Dutch cable manufacturer Draka Holding N.V. changed the dynamics of the cable industry, as the new group has herewith overtaken the French company Nexans and is now the world’s largest player in the industry.
Describing the take-over as “a compelling industrial and strategic rationale”, Prysmian said it had brought together highly complementary know-how and a geographic footprint and product portfolio, on which to build a strong platform for future organic growth and industry consolidation.
The new group is a perfect fit geographically, with a global presence in more than 50 countries with over 90 factories and net sales of €5.8 billion (US$8.4 billion), based on 2009 aggregate figures. Geographically Draka is strong in northern Europe, while Prysmian is strong in southern Europe and increasing its coverage in fast growing emerging markets.
Prysmian – market
Based on port projects, ‘collapse’ of the equipment market over recent years, which could be seen in the massive drop in orders (e.g. ZPMC’s order book), had a knock-on effect throughout the cable sector as well, according to Thomas Kittel, Product Manager for crane cables at Prysmian in Germany. “Orders are returning but slowly and terminals seem to be more focused on refurbishment,” he says.