Nexans withdraws from the winding wire sector
Nexans withdraws from the winding wire sector by selling its activities in Canada and in China
Paris, France – Nexans, the worldwide leader in the cable industry, announces 2007-01-31 the signature with Superior Essex of two agreements for the sale of its winding wires activities in Canada and China, for 32 million Euro (in cash and debt assumption). These agreements concern the plant of Simcoe in Canada and its 80% majority interest in Nexans Tianjin Magnet Wires and Cables company.
Pursuing Nexans’ policy of reduction of its upstream activities launched in 2005, these two agreements follow the sale of Nexans’ European winding wires and enamel businesses.
As of December 31, 2006, these two activities had 154 employees in Canada (Simcoe) and 176 in China (Tianjin). In 2006, they had sales of 69 million Euro at constant copper price.
These sales are subject to the approval of the Chinese and Canadian Authorities and to compliance with the shareholder agreement with the Chinese Partner in Tianjin. The closing is expected to take place in the second quarter 2007.
With energy cables as its core, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables (copper, aluminum and optical fiber) and cabling systems. The Group’s strategy is focused on infrastructure, industrial and construction markets. Nexans develops solutions for industry sectors such as shipbuilding, oil and gas, nuclear, automotive, electronics, aeronautics, handling and automation and includes an offering dedicated to public and private (local area) telecommunications networks. With an industrial presence in more than 30 countries and commercial activities worldwide, Nexans employs 21,000 people and had sales in 2006 of 7.5 billion euros. Nexans is listed on the Paris stock exchange, compartment A of the Eurolist of Euronext. More information on www.nexans.com