Finolex, J-Power Systems of Japan forming jt venture
Finolex Cables Ltd (FCL) has entered into a joint venture partnership with Japan-based J-Power Systems Corporation to manufacture extra high voltage cables at a new facility at Urse near Pune, and offer complete turnkey solutions in these systems.
Finolex J-Power Systems Pvt Ltd, the new joint venture entity, is a 51:49 partnership between the Japanese company and FCL, and is J-Power Systems’ first joint venture overseas. Dr Kiyoshi Shimojima, President, J-Power Systems and Mr Deepak Chhabria, Managing Director, Finolex Cables, signed the agreement here today.
The manufacturing unit will be equipped with a modern production facility like Vertical Continuous Vulcanising tower to produce cross linked polyethylene (XLPE) insulated power cables from 60 to 500 kV grade.
Elaborating upon the company’s plans, Mr Chhabria, said that the venture involved a financial outlay of Rs 135 crore in the first phase of development, with commercial production commencing within a couple of years.
“We will have an initial installed capacity of 1000 km cables per annum and expect to export 20 per cent of the production. Our area of operation will be all countries except Japan,” he said, adding that the targeted annual turnover was Rs 600 crore. The joint venture will also offer complete services of turnkey installation along with supply of power cables and jointing and termination accessories.
Cables manufacturer J-Power Systems is an equal joint venture between the $4.6-billion Hitachi Cables and Sumitomo Electric Industries of Japan and did business worth $660 million in 2006.
Finolex Cables is the flagship company of the Rs 3,000-crore Finolex group and manufactures low voltage and high voltage cables. The company has four manufacturing units in India and is setting up a high voltage cable plant at Urse and a light duty cable plant at Roorkee that will go on stream in April 2008.
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