General Cable Corp., a Highland Heights, Ky.-based manufacturer of wire and cable products, announced that it has "acquired a substantial portion of the wire and cable assets of Phoenix Power Cables, of Durban, South Africa."
The business will operate as "General Cable Phoenix South Africa" (GCPSA) going forward. The former owners, the Ramkisson family, will hold a 10% interest in the business, according to General Cable.
GCPSA manufactures low- and medium-voltage electrical power cables as well as overhead energy transmission and distribution cables. In the last 12 months, the business reported revenues of approximately $20 million.
Over the last several years, General Cable has increased its presence as a supplier of power cables in Sub-Saharan Africa and is the No. 2 producer of copper rod in the region, according to the company. With the acquisition of GCPSA, and its majority interest in National Cables -- the largest cable distributor in South Africa -- "the company will have the capability to supply electric utilities in the region with locally produced energy transmission and distribution cables."
"Investment in power generation, transmission and distribution as well as residential and non-residential construction has grown meaningfully in Sub-Saharan Africa over the last several years," said Mathias Sandoval, executive vice president, president and chief executive officer of General Cable Rest of World. "Robust mining investment as well as infrastructure to support the growing population and increasing wealth in the region is expected to result in greater demand for electrical power cable products to support infrastructure growth well into the future. The investments we have made in the region position General Cable to benefit from these favorable trends, while at the same time establish an outstanding platform from which to expand further in the region."
