HIGHLAND HEIGHTS, KY., April 17 /CNW/ - General Cable Corporation
(NYSE: BGC) announced today that it will form two joint venture companies in
India with the Plaza Cable Group of Companies. The ventures, headquartered in
New Delhi, will incorporate all of Plaza's existing wire and cable assets.
Plaza, with annual revenues of approximately $25 million, currently
manufactures low and medium voltage energy and construction cables for the
Indian market. When completed, General Cable will hold a majority interest in
both companies with the remaining interest held by the current owners. The
Company expects to use available cash to fund both the initial purchase price
and any required short-term capital investments. The energy cable venture is
effective today, while the construction cable venture is expected to be
completed during the second quarter. Over the next two years the company plans
to invest up to $40 million to expand cable production of low, medium and high
voltage electric utility products.
"We have worked hard to create the optimal entry strategy for the Indian
market and believe the combination of Plaza's strong brand and business
network coupled with our technical resources and management expertise provides
us the best possible platform to grow our business in India," said Campbell
Whyte, President and Chief Executive Officer, General Cable Asia Pacific.
"India's energy cable market is expected to continue to grow in the 7%-8%
range over the next several years. With an experienced local management team
led by Aviral Garg, General Cable's India Country Manager, we will
significantly expand current production capabilities and capacity to serve
this growing market for energy infrastructure and construction cables in
India," Whyte concluded.
"This transaction, along with the recent acquisition in China, further
our strategy of global expansion into economies that are building (or
rebuilding) their energy infrastructure," said Gregory B. Kenny, President and
Chief Executive Officer of General Cable. "We have ambitious plans for further
growth in India and expect to quickly become a leading supplier in the Indian
market. We continue to actively seek additional acquisition opportunities to
grow our position in this strategically important market," Kenny concluded.
With nearly $3.7 billion of annual revenues and over 8,000 employees,
General Cable is a global leader in the development, design, manufacture,
marketing and distribution of copper, aluminum and fiber optic wire and cable
products for the energy, industrial, and communications markets. Visit our
website at www.generalcable.com.
Certain statements in this press release, including without limitation,
statements regarding future financial results and performance, plans and
objectives, capital expenditures and the Company's or management's beliefs,
expectations or opinions, are forward-looking statements. Actual results may
differ materially from those statements as a result of factors, risks and
uncertainties over which the Company has no control. Such factors are more
fully discussed in the Company's Report on Form 10-K filed with the Securities
and Exchange Commission on March 1, 2007, as well as any current and periodic
reports filed with the Commission. The Company undertakes no obligation to
release publicly the result of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
For further information:
For further information: General Cable Corporation Michael P. Dickerson,
859-572-8684 Vice President of Finance and Investor Relations