Materials usage in the European cable industryBringing the plastics industry together United Kingdom...
Transcript of Materials usage in the European cable industryBringing the plastics industry together United Kingdom...
Bringing the plastics industry together
Materials usage in the European cable industry
Cristina de Santos Energy & Infrastructure Unit Manager - AMI Consulting
Bringing the plastics industry together
AMI’S COVERAGE OF THE CABLES INDUSTRY
Slide 2
AMI ConferencesAMI Databases AMI Consulting AMI Magazines
Bringing the plastics industry together
• 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
OUTLINE
Slide 3
Bringing the plastics industry together
Demand for cable
Bringing the plastics industry together
Europe
Slide 5
Sources: Euroconstruct 2016LMC Automotive
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2012 2016 2020
Automotive production 2012 - 2020 -
100.00
200.00
300.00
400.00
2012 2016 2020
Investment in infrastructure 2012 - 2020
Railways Telecommunications Energy works
Other transport Other civil engineering
- 200.00 400.00 600.00 800.00
1,000.00 1,200.00
2012 2016 2020
Investment in construction 2012 - 2020
Residential construction Non residential construction
In Billion EUR
In Billion EUR
Bringing the plastics industry together
Germany
Slide 6
5,250,000
5,400,000
5,550,000
5,700,000
5,850,000
6,000,000
6,150,000
2012 2016 2020
Automotive production 2012 - 2020 - 10.00 20.00 30.00 40.00 50.00 60.00
2012 2016 2020
Investment in infrastructure 2012 - 2020
Railways Telecommunications Energy worksOther transport Other civil engineering
- 50.00
100.00 150.00 200.00 250.00 300.00
2012 2016 2020
Investment in construction 2012 - 2020
Residential construction Non residential constructionSources: Euroconstruct 2016
LMC Automotive
Bringing the plastics industry together
Italy
Slide 7
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2012 2016 2020
Automotive production 2012 - 2020 -
10.00
20.00
30.00
40.00
50.00
2012 2016 2020
Investment in infrastructure 2012 - 2020
Railways Telecommunications Energy worksOther transport Other civil engineering
-
50.00
100.00
150.00
2012 2016 2020
Investment in construction 2012 - 2020
Residential construction Non residential constructionSources: Euroconstruct 2016
LMC Automotive
Bringing the plastics industry together
France
Slide 8
1,500,000
1,650,000
1,800,000
1,950,000
2,100,000
2012 2016 2020
Automotive production 2012 - 2020 -
10.00
20.00
30.00
40.00
50.00
2012 2016 2020
Investment in infrastructure 2012 - 2020
Railways Telecommunications Energy worksOther transport Other civil engineering
-
50.00
100.00
150.00
200.00
2012 2016 2020
Investment in construction 2012 - 2020
Residential construction Non residential constructionSources: Euroconstruct 2016
LMC Automotive
Bringing the plastics industry together
United Kingdom
Slide 9
0
500,000
1,000,000
1,500,000
2,000,000
2012 2016 2020
Automotive production 2012 - 2020 -
10.00
20.00
30.00
40.00
50.00
2012 2016 2020
Investment in infrastructure 2012 - 2020
Railways Telecommunications Energy works
Other transport Other civil engineering
-
50.00
100.00
150.00
200.00
2012 2016 2020
Investment in construction 2012 - 2020
Residential construction Non residential constructionSources: Euroconstruct 2016
LMC Automotive
Bringing the plastics industry together
Spain
Slide 10
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2012 2016 2020
Automotive production 2012 - 2020
- 5.00
10.00 15.00 20.00 25.00 30.00
2012 2016 2020
Investment in infrastructure 2012 - 2020
Railways Telecommunications Energy worksOther transport Other civil engineering
-
20.00
40.00
60.00
80.00
100.00
2012 2016 2020
Investment in construction 2012 - 2020
Residential construction Non residential constructionSources: Euroconstruct 2016
LMC Automotive
Bringing the plastics industry together
European cable extrusion industry
Bringing the plastics industry together
Africa & the Middle East
Europe
North America
China
Asia Pacific
Rest of the World
GLOBAL USAGE OF COMPOUND IN THE CABLE INDUSTRY
Slide 12
Source: AMI Consulting 2017
Bringing the plastics industry together
The European cable industry
Slide 13
Source: AMI Consulting 2017
• Mature market• Over 350 plants• Average usage of compound per plant: 3.6 ktpa• Over 1 million tonnes of compound used in 2016
Bringing the plastics industry together
CABLE EXTRUSION PLANTS - geographical distribution
Slide 14
Germany16%
Italy21%
Spain9%
France10%
United Kingdom
9%Over 350 extrusion plants in Europe
Benelux
France
Germany
Italy
Poland
Scandinavia
Spain
United Kingdom
Other EE countries
Other WE countries
Source: AMI Consulting 2017
Bringing the plastics industry together
Factors affecting the European cable industry
Bringing the plastics industry together
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
ECONOMIC CRISIS
Slide 16
Main consequences in the industry
Bringing the plastics industry together
CLOSED DOWN PLANTS VS NEW PLANTS
Slide 17
Prysmian
Nexans
Tele-fonika
LEONI
Draka
Cablerias Auto
Brawa
Mobil-Werke Dura Automotive
Whirlpool Polska
Auto-Kabel
Cables especiales de Murcia
Polycavi
Jonex Ppph
B3Ask Poland
Ascable-Recael
ECN Cable Group
ACAR
Stasinski
Belden
Teleco Cavi
Nova CaviDANFOSS
Patelec
CET Electric Aspock Portugal
Gamrat
ITC/CDT
Cellfast
ScameIndustrias Plasticas Numancia
NKT
IbotecDesco
Heatsolve
Plastline Nova
Nextis
Profiplast
SN Barelec
Extrucable
General Cables industries Andover
Haavi Cables
Suprajit Europe
Madison Wire
Commscope
Concordia
Twentsch Kable
SE Bordnetze Bulgaria
Hitachi Cable Europe
ProPS S.R.O
Emtelle
Prysmian Slovakia & Romania
Bringing the plastics industry together
MARKET CONSOLIDATION
Slide 18
Privately owned18%
Business groups82%
Market dominated by groups
Source: AMI Consulting 2017
Bringing the plastics industry together
MARKET CONSOLIDATION
Slide 19
20082012
After TS Cables merged with Profiplast, it became the Omerin Group
Murray Capital Brand-Rex
*Acquired companies
Fugro JDR’s Marine cable
British Telecom B3
Prysmian Draka
20042008
Plastelec Group Compagnie Générale Des Plastiques
Paramount AEI Cables
TKH Group CAE Group
Omerin Flexelec
Source: AMI Consulting 2017
Bringing the plastics industry together
MARKET CONSOLIDATION
Slide 20
20122016Plastelec Group
TE Connectivity
Carlisle, USA
Tecnikabel SPA
Omerin Group
Ducab Cable
Leviton Manufacturing
Nokia
Borsan Group
Prysmian increased its shares in the Oman Cable Industry
Berne S.A.S.
Deutsch
Belden’s Thermax-Raydex business
Plasticavi Italiana
ADKA, Plastelec Group and Q-S technologies
AEI cables
Brand-Rex
Alcatel
Salvi Cavi Speciali SRL
*Acquired companiesSource: AMI Consulting 2017
Bringing the plastics industry together
Prysmian Group
Slide 21
05 Goldman Sachs acquires
Pirelli Cavi & Stemi Energiaand Pirelli Cavi e SistemiTelecom.
Both companies merged into Prysmian
11Prysmian merged with Draka into Prysmian Group, becoming the largest cable producer in the world
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
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.
Most relevant merger
Bringing the plastics industry together
RESTRUCTURING OF OPERATIONS
Slide 22
Plant specialization - economies of scale
Offshoring activities - cost optimisation
Product differentiation - increased margins
Bringing the plastics industry together
GLOBAL NATURE OF THE MARKET
Slide 23
Bringing the plastics industry together
CPR REGULATION
Slide 24
Bringing the plastics industry together
HIGHER TECHNICAL PERFORMANCE REQUIRED
• Fire performance
• Jacketing (oil, chemicals….)
• Resistance to high temperatures
• Environmental considerations
Slide 25
Bringing the plastics industry together
• Specialization on niche cables / higher added value products
• Overcapacity
• Lower profitability & margins
• Transport costs
• Competition from cheaper imports
• …
OTHER FACTORS
Slide 26
Bringing the plastics industry together
Conclusions
Bringing the plastics industry together
Latest report fromAMI Consulting
Slide 28
Publication date: April 2017
Author: Cristina de Santos
Bringing the plastics industry together
Conclusions
Slide 29
Consumption of polymeric materials by type
Source: AMI Consulting 2017
Bringing the plastics industry together
First AMI Consulting’s global report on the
cables industry!
Slide 30
Publication date: April 2018
Author: Cristina de Santos
GLOBAL
Bringing the plastics industry together
Thank You!
www.ami.international.com
Cristina de [email protected]