General Cable Forms Joint Ventures in India
HIGHLAND HEIGHTS, Ky.--(BUSINESS WIRE)--April 17, 2007--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.
General Cable Corporation
Michael P. Dickerson, 859-572-8684
Vice President of Finance
and Investor Relations