Nexans takes a controlling share in the Korean company Daesung Cable thereby strengthening its position in Asia
Paris, March 7, 2001 - Nexans has just acquired 51% of the share capital of Daesung Cable, a company quoted on the KSE (Korean Stock Exchange). With a consolidated turnover of 135 million USD in 2000, 30% of which represents exports, Daesung Cable is the fourth-largest cable manufacturer in South Korea.
The company has its registered office in Choung Won (130 km south of Seoul), 5 production sites (2 in Korea, 2 in Vietnam, 1 in Tanzania), plus a minority share in a joint venture in China. It manufactures a large variety of power cables, copper and optical fibre telecommunications cables, and special cables notably for the automotive industry. Daesung Cable employs 550 people, 275 of whom are in Korea.
By taking over Daesung Cable, Nexans has expanded its development strategy in the Asian market and has therefore doubled its presence in both Asian power and telecom cable markets. This agreement also gives Nexans the possibility of making substantial savings in transport costs and improving its competitiveness in the region just when the Asian economy is picking up again.
The complementary facets of both companies' product lines and sales networks was a determining factor in Daesung Cable's decision to choose Nexans as its partner. Daesung Cable was seeking to conclude a strategic alliance to both develop its activities, especially in the export market, and enhance its technological developments.
Formed from Alcatel Cables and Components, Nexans is a worldwide leader in the cable industry. Nexans product portfolio includes an extensive range of cables and systems. Nexans solutions can be found in every area of people's lives, from telecommunications and energy networks, to aeronautics aerospace, automobile, building, petrochemical and medical applications. Operating in 20 countries, Nexans employs 19,000 people and had sales in 2000 of euros 4.8 billion. More information on www.nexans.com
Initially a family-run company founded in 1960, Daesung Cable went public in 1989. The company chairman, Mr S. Bae YANG (52 years), joined the company in 1976. Daesung Cable has had its head office at Choung Won (130 km south of Seoul) since 1998. Over the last 10 years, Daesung Cable has obtained ISO 9001 and 9002 certification and embarked upon a programme of expansion in Asia and Africa in particular, through the creation of subsidiaries and joint companies.