France’s Nexans has announced plans to build the first ever cables production facility in Qatar.
The cables maker has entered into a joint-venture agreement with local industrial group Al Neama Industrial and Special Projects Company to set up the plant, in which Nexans will hold a 29% stake.
The factory will located in Mesaieed, some 40 km from the country’s capital Doha and will employ more than 200 staff. It will produce low and medium voltage infrastructure cables as well as special cables for the oil and gas industry. Startup is scheduled for the end of 2009.
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Nexans said the plant would generate revenues of US $150 million by 2010, based on current copper prices, which are expected to grow by 10% each year.
“This cooperation between powerful Qatari investors and Nexans…constitute a perfect match,” said Wolfgang Bedorf, executive vice president for the rest-of-the-world area for Nexans, “Today, a fast-growing market is opening up to us; being the first cable manufacturer to establish ground presence in Qatar will also be a definite advantage for us.”
Elsewhere, Nexans has wrapped up the €17 million sale of its telecommunications copper cables business in Santander, Spain, to the UK’s B3 Cable Solutions. The unit recorded sales of 55 million in 2007.
