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Egypt’s Sewedy Cables bullish on Europe, eyes Brazil
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September 23, 2010 8:46 by Reuters
Egyptian group El Sewedy Cables said on Wednesday it is increasing output this year and the next on the back of growing demand for its products in Europe, the Middle Eastern and Africa.
The Arab world’s biggest maker by market value of cables used in power transmission and telecoms plans to capture 2-3 percent of Europe’s market over the next three years, its investor relations director told Reuters.
Sewedy now holds about 1 percent of the cables market in Europe.
“Europe is our top export market, and it is generally one of the biggest consumers of cables used for maintenance and replacements,” Ahmed Homossani said in an interview.
Western Europe, which accounts for a fifth of global demand for cable, is looking for cables to replace ageing lines and to interconnect electricity networks.
Analysts say that the Middle East’s and North Africa’s investment plans of more than $60 billion also make it a major market. HSBC said in March the global cable market is expected to reach a value of $176 billion in 2011.
“The Middle Eastern and African markets are also promising as they are now moving faster following a slowdown during the global financial crisis,” Homossani said.
Sewedy plans to boost its output by 18.5 percent to 160,000 tonnes this year, with a further increase to between 185,000 and 190,000 tonnes planned for 2011.
Sewedy had forecast a 25 percent year-on-year rise in 2010 net profit, saying other cable makers had cut production to ride out the recession in Europe, offering the firm an opportunity to boost exports and increase profit margins in 2010.
The firm, which also produces equipment for wind farms, added it is eyeing wind markets in Brazil, Turkey, Pakistan and Libya, Homossani said.
Sewedy is also negotiating for a 50-megwatt wind power project in Pakistan, in a bid to open a new market in Asia.
(Editing by Mike Nesbit)