Materials usage in the European cable industry

Transcription

1 Materials usage in the European cable industry Cristina de Santos Energy & Infrastructure Unit Manager - AMI Consulting

2 AMI S COVERAGE OF THE CABLES INDUSTRY AMI Databases AMI Consulting AMI Conferences AMI Magazines Slide 2

3 OUTLINE Demand for cable Europe Largest cable industries in Europe European cable extrusion industry Global usage of compound in the cable industry The European cable industry Cable extrusion plants geographical distribution Factors affecting the European cable industry Conclusions Slide 3

4 Demand for cable

5 Europe Investment in infrastructure In Billion EUR - Automotive production Railways Telecommunications Energy works Other transport Other civil engineering 25,000,000 20,000,000 15,000,000 10,000,000 1, , Investment in construction In Billion EUR 5,000,000 0 Residential construction Non residential construction Sources: Euroconstruct 2016 LMC Automotive Slide 5

6 Germany Investment in infrastructure Automotive production Railways Telecommunications Energy works Other transport Other civil engineering 6,150,000 6,000,000 5,850,000 5,700,000 5,550, Investment in construction ,400,000 5,250,000 Residential construction Non residential construction Sources: Euroconstruct 2016 LMC Automotive Slide 6

7 Italy Investment in infrastructure Automotive production Railways Telecommunications Energy works Other transport Other civil engineering 1,200,000 1,000, , , , Investment in construction , Residential construction Non residential construction Sources: Euroconstruct 2016 LMC Automotive Slide 7

8 France Investment in infrastructure ,100,000 Automotive production Railways Telecommunications Energy works Other transport Other civil engineering 1,950,000 1,800,000 1,650, Investment in construction ,500, Residential construction Non residential construction Sources: Euroconstruct 2016 LMC Automotive Slide 8

9 United Kingdom Investment in infrastructure Automotive production Railways Telecommunications Energy works Other transport Other civil engineering 2,000,000 1,500,000 1,000, Investment in construction , Residential construction Non residential construction Sources: Euroconstruct 2016 LMC Automotive Slide 9

10 Spain Investment in infrastructure Automotive production Railways Telecommunications Energy works Other transport Other civil engineering Investment in construction ,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Residential construction Non residential construction Sources: Euroconstruct 2016 LMC Automotive Slide 10

11 European cable extrusion industry

12 GLOBAL USAGE OF COMPOUND IN THE CABLE INDUSTRY Rest of the World Africa & the Middle East Europe North America Asia Pacific Source: AMI Consulting 2017 China Slide 12

13 The European cable industry Mature market Over 350 plants Average usage of compound per plant: 3.6 ktpa Over 1 million tonnes of compound used in 2016 Source: AMI Consulting 2017 Slide 13

14 CABLE EXTRUSION PLANTS - geographical distribution Other EE countries Other WE countries Benelux France Italy 21% Germany 16% United Kingdom Germany Spain France 10% Spain 9% Scandinavia Italy Poland Over 350 extrusion plants in Europe United Kingdom 9% Source: AMI Consulting 2017 Slide 14

15 Factors affecting the European cable industry

16 ECONOMIC CRISIS Main consequences in the industry Declining cable demand Reorientation of the business towards cable conversion activities Restructuring processes, principally in company groups Growth in capacity in East and Central European countries Slide 16

17 CLOSED DOWN PLANTS VS NEW PLANTS General Cables industries Andover Whirlpool Polska DANFOSS NKT Tele-fonika LEONI Prysmian ECN Cable Group Scame Desco Brawa CET Electric Patelec Auto-Kabel Belden ACAR Cables especiales de Murcia Teleco Cavi Jonex Ppph Aspock Portugal Mobil-Werke Gamrat Industrias Plasticas Numancia Twentsch Kable SN Barelec Haavi Cables Commscope Profiplast Suprajit Europe Madison Wire Extrucable Nextis Nexans Polycavi Ask Poland Stasinski Plastline Nova Draka Cablerias Auto Nova Cavi Cellfast Ibotec B3 Dura Automotive Ascable-Recael ITC/CDT Concordia Heatsolve Emtelle SE Bordnetze Bulgaria ProPS S.R.O Hitachi Cable Europe Prysmian Slovakia & Romania Slide 17

18 MARKET CONSOLIDATION Market dominated by groups Business groups 82% Source: AMI Consulting 2017 Privately owned 18% Slide 18

19 MARKET CONSOLIDATION Omerin Flexelec Prysmian Draka Plastelec Group Paramount TKH Group Compagnie Générale Des Plastiques AEI Cables CAE Group Murray Capital Fugro British Telecom Brand-Rex JDR s Marine cable B3 After TS Cables merged with Profiplast, it became the Omerin Group Source: AMI Consulting 2017 *Acquired companies Slide 19

20 MARKET CONSOLIDATION Plastelec Group Berne S.A.S. TE Connectivity Deutsch Carlisle, USA Tecnikabel SPA Omerin Group Ducab Cable Leviton Manufacturing Nokia Borsan Group Belden s Thermax-Raydex business Plasticavi Italiana ADKA, Plastelec Group and Q-S technologies AEI cables Brand-Rex Alcatel Salvi Cavi Speciali SRL Prysmian increased its shares in the Oman Cable Industry Source: AMI Consulting 2017 *Acquired companies Slide 20

21 Most relevant merger 11 Prysmian Group Prysmian merged with Draka into Prysmian Group, becoming the largest cable producer in the world 16 The group closes at least 4 plant, but invests in new plants in, for example, Romania & Slovakia. The group has over 80 plants worldwide. 05 Goldman Sachs acquires Pirelli Cavi & Stemi Energia and Pirelli Cavi e Sistemi Telecom. Both companies merged into Prysmian 15 Integration process finalises. The group has now 86 plants having closed 12 since the acquisition. Prysmian increased its shares in the Oman Cable Industry Slide 21

22 RESTRUCTURING OF OPERATIONS Plant specialization - economies of scale Offshoring activities - cost optimisation Product differentiation - increased margins Slide 22

23 GLOBAL NATURE OF THE MARKET Slide 23

24 CPR REGULATION Slide 24

25 HIGHER TECHNICAL PERFORMANCE REQUIRED Fire performance Jacketing (oil, chemicals.) Resistance to high temperatures Environmental considerations Slide 25

26 OTHER FACTORS Specialization on niche cables / higher added value products Overcapacity Lower profitability & margins Transport costs Competition from cheaper imports Slide 26

27 Conclusions

28 Latest report from AMI Consulting Publication date: April 2017 Author: Cristina de Santos Slide 28

29 Conclusions Consumption of polymeric materials by type Source: AMI Consulting 2017 Slide 29

30 GLOBAL First AMI Consulting s global report on the cables industry! Publication date: April 2018 Author: Cristina de Santos Slide 30

31 Thank You! Cristina de Santos