10/04/2010 12h19

Nexans Ficap evaluates expansion with an eye on the pre-salt and energy

Valor Econômico – 10/04/10

With the expectation that in the next two or three years are registered peaks in the demand for cables in the areas of transmission of energy, transport and oil and gas, the French Nexans assesses the improvement of its plants in the country. For the business in Brazil, under the name of Nexans Ficap - inherited in the acquisition of all the operations of the Chilean Madeco by multinational in 2008 -, the company foresees growth of 10% this year, in relation to the sales of US$ 380 million in 2009, and it bets on strong growth until 2014, in view of the large infrastructure projects, of the exploration of oil in the pre-salt layer, of industrial investments and of the rise of new markets, such as wind power.

According to the Commercial and Marketing Vice President of Nexans for South America, Chaim Tencer, the multinational still has installed capacity in the country to support the growth expected for 2010. However, in case the pace of growth is maintained next year, the three plants in operation in the country - in the city of Rio de Janeiro and in Lorena and in Americana, both in the State of São Paulo - will get close to the limit.

According to Tencer, the strong bet in that niche is based on estimates of the Federal Government that point to growth of 38% in the national system of transmission of energy, which in 2009 was in 95.6 thousand kilometers. "These figures refer to lines that may have more than one cable. Thus, the growth potential is even greater", he explains. Nexans estimates it is responsible for 35% of such market, which would assure it the title of leader, competing with large companies like CBA, Phelps Dodge and Alubar. The area of oil and gas should also keep its upward trajectory in the composition of income of Nexans Ficap, which makes special cables for vessels and platforms in Rio de Janeiro. "With the pre-salt, we will have peaks of consumption between 2012 and 2013 and we will be able to enlarge the unit. We are waiting the development of the program".

Worldwide, the different markets are catered by Nexans according to the competitiveness of its plants and customs issues - thus, each region assumes a manufacturing inclination. The presence of skilled professionals is also a matter of consideration, and such fact has recently strengthened the role of Brazil for the businesses of the group. A Brazilian team has just developed a power transmission cable, which will undergo the testing phase in January and may be exported to all over the world. According to Tencer, the new product promises to double the transmission capacity, at a cost 30% lesser than the current alternative of the market. Made of aluminum, the cable would also allow increasing the power in the country. A pilot installation will be made for Light (in Rio) in January. "We have here a group of excellence for the international development of transmission products, also made possible because the local market is strong".

However, another segment in the area of energy has been awakening the interest of the multinational, that of wind farms. This technology has not been produced by Nexans in the country and it will be imported from France. "This is the great advantage of belonging to a global company and that, for Ficap, represented an important portfolio increase", he says.  Ficap belonged to the Madeco group, acquired two years ago by the French company for US$ 825 million, and the name was maintained on behalf of the strength it has in the Brazilian market. Before that, the multinational purchased Alcatel Cabos, which resulted in its ingress in Brazil 10 years ago, and Furukawa Cabos de Energia, in 2003.