Nexans opens its first plant in Russia
Ouglich site will produce power cables for the building and infrastructure market
Ouglich, November 20, 2008 – Nexans, the worldwide leader in the cable industry, held a grand opening ceremony on November 20 to mark the official launch of production at its Ouglich plant in Yaroslavl Oblast, Russian Federation. The new plant is Nexans’ first manufacturing facility in Russia, and represents, with an amount of 35 million euros, the first major investment by a non-Russian cable manufacturer in the country. 180 jobs are being created in the Yaroslav region thanks to the opening of this plant. Many operators have attended training courses in other factories of the Nexans group.
The plant addresses building and infrastructure markets in Russia and other CIS (Commonwealth of Independent States) countries. Initially, Nexans in Ouglich will primarily manufacture low and medium voltage power cables for underground and aerial applications. However, in order to take advantage of the rapid expansion of the Russian building and infrastructure market, the new plant will also start to offer advanced halogen-free and security cable solutions.
At the opening, Gérard Hauser, Chairman and CEO of Nexans, said: “We strongly believe that Russia offers great potential for growth. For Nexans especially, it offers a promising long term market. The rhythm of development of this country and its requirements for energy infrastructures offers huge opportunities for a worldwide industrial group like Nexans. The new plant in Ouglich is definitely a crucial boost to Nexans’ presence in Russia”.
Nexans in Russia
Nexans has operated in the Russian market for more than a decade, with involvement in large-scale national projects. For instance, during the last few years, Nexans cables have been installed at Zhiguli hydropower plant, on the offshore oil platform of Prirazlomnoe, as well as at the Baikonur space launch pad. The first important High Voltage underground cable projects rated up to 500 kV in Moscow and St. Petersburg were accomplished due to the major contribution made by Nexans cables and cable laying technology.
In 2007, Nexans generated sales* of 77 million Euros in Russia, at constant metal price. The Group has been the most important foreign cable manufacturer in the Russian and CIS markets for many years.
* sales by destination
With energy as the basis of its development, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables and cabling systems. The Group is a global player in the infrastructure, industry, building and Local Area Network markets. Nexans addresses a series of market segments from energy, transport and telecom networks to shipbuilding, oil and gas, nuclear power, automotive, electronics, aeronautics, handling and automation. With an industrial presence in 39 countries and commercial activities worldwide, Nexans employs 22,800 people and had sales in 2007 of 7.4 billion euros. Nexans is listed on NYSE Euronext Paris, compartment A. More information on www.nexans.com