WCA May 2007

Industry News

Opportunities for all The 2007 China International Wire and Cable Industry Conference and Exhibition (Wireshow 2007) will highlight the opportunities on offer for the wire and cable companies in China’s coal mining industry. Wireshow visitors, between 5 th and 7 th September, will hear that a total of 70% of energy output in China depends on coal – making the industry highly profitable and lucrative. However, along with such huge profits, the coal mining industry also faces huge potential risks. Throughout many of the country’s mines, a lack of equipment, ageing rails and cables need replacing to ensure safe production. State Administration of Work Safety has been ensuring that 8,648 mines have been brought up to standard. Many mines were forced to suspend their operations until they conducted safety improvements to a national standard. According to the experts from Shanghai Electrical Cable Research Institute Since June 2006 the

(SECRI), the safety rectification of China’s coal mine industry in a big way will undoubtedly create a great market for the wire and cable industry. Small and medium-sized coal mines must employ wind finding meters, self- self device and gas detectors when conducting cabling in the tunnels and connecting dual blowers, dual loop (dual power system) and independent ventilation and drainage systems, and large-sized coal mines need to replace old rails and cables. With an eye on the future, the Notice of Cabling in Mining Areas, issued by the State Administration of Work Safety in January, 2007, the cabling system selected must ensure the adequate allowance for transmission to ensure network upgrade in the next three to five years. At present, Category 5e and Category 6 cabling systems should be selected. The coal mines that have over-standard cabling distance between work area and machine room should use optical fibres as a backbone and enable switch cascade by means of internal optical fibre modules.

The enforced rectification of the mining industry by the Chinese government not only ensures work safety, but provides great business opportunities for the wire and cable industry. Shanghai Electrical Cable Research Institute (SECRI) – China Email : info@secri.com Website : www.secri.com What’s in a name? Techint Technologies has changed its name to Tenova. The new name keeps, through the prefix ‘Te’, a strong link with the Techint Group and with Technology, and through the word ‘nova’, a clear commitment to innovation. Tenova is a network of companies providing innovative integrated solutions for complete process areas. Orders have gone beyond the $1bn mark and are expected to increase. Tenova – Italy Fax : +39 0246 93026 Email : info@tenovagroup.com Website : www.tenovagroup.com

Record year for DSM – but 2007 warning Despite announcing record sales and operating profits from 2006, DSM has warned that operating profit in 2007 is likely to be lower. The Dutch company saw an operating profit of €835m – 6% higher than in 2005. Net profit also rose 4% to €547m. At €186m, the operating profit from continuing operations for the fourth quarter of 2006 was €6m, 3% higher than in the same quarter in 2005. Net profit amounted to €89m, down 21% from the fourth quarter of 2005. Peter Elverding, Chairman of the DSM Managing Board, said: “In 2006 we launched more than 25 new products and applications. We also started several investment projects, especially in performance materials, which will contribute to sales growth in the near future. “We increased our presence in emerging economies; our sales, investments and workforces in these regions grew strongly, especially in China. We made important additional steps towards operational excellence and fixed costs increased only slightly. “All this happened in a business context that was not unambiguously positive. Economic growth developed very satisfactorily, but raw-material and energy prices reached unprecedented levels and were highly volatile, while the US dollar remained weak. Nevertheless, we succeeded in posting a record operating profit for the second year in a row.” Royal DSM NV – Netherlands Fax : +31 45 571 97 53 Email : info@dsm.com Website : www.dsm.com

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Wire & Cable ASIA – May/June 2007