With its insignificant level of plastics consumption, the cable industry represents only a small share of the overall polymer market. In 2001, the industry consumed just above 1m t of thermoplastics, less than 3% of the total consumption. Cables are produced in as many as 300 production units across western Europe while a few large producers dominate the entire cable industry. These are the findings published in the third edition of “AMI´s guide to the cable industry in Western Europe – Consolidation and Change in the Western European Cable Industry” issued by Applied Market Information Ltd. (AMI, GB-Bristol; www.amiplastics.com), a UK market research company.

Despite the fact that the number of producers has remained constant for years, AMI reports changes in their corporate structures. Restricted market growth, more exacting technological demands, lower governmental subsidies and the privatisation of electricity and telephone networks have triggered a general trend towards more rationalisation and producers with an exclusive focus on cable production. Therefore, renowned producers such as Alcatel, BICC and Siemens have already divested their cable activities.

A few international producers dominate the market
As a result, the market is now dominated by a few major European companies with international activities. AMI rates Nexans (www.nexans.com) as the most important of these companies. Nexans was released from Alcatel as an independent company in 2001. Because the French company retained activities in the area of cables for optical fibres, high- frequency cables and underwater cables, it still remains one of the leading European cable producers with its core business in the area of communication technology and internet equipment. Since the nineties, Pirelli (www.pirelli.com) has become the established number two in the market. The company expanded when it acquired the electricity cable segments from BICC in Italy and Britain, Siemens in Germany and NKF Holding in the Netherlands and Finland. These companies have divested all of their activities and opted out of the cable production business altogether.

In 1999, BICC sold its remaining power cable activities to the US company General Cable. The British special cable segment Brand-Rex was sold to Caradon (now: Novar; www.novar.com) in 2000. Siemens divested its optical fibre segments to Corning (www.corning.com) and automotive cables to Leoni (www.leoni.com). The remnants of NKF Holding is now owned by Draka Holding (www.drakaholding.com), which has become the third largest group in Europe after several acquisitions such as the purchase of Delta´s cable activities and the cable divisions of ABB.

The three largest producers consume 42% of the total of plastics used in cable production. Each of the other companies consumes no more than 3%. The European market is therefore consolidated and fragmented into niches and regions, says AMI.

With 20% of the total plastics consumption, Germany remains the largest market for cables in western Europe, but the gap to other markets is closing steadily. The second largest consumer country is Italy with 18.3% and France with 16.9%. Spain and Britain represent 10% each.

A lot of activity in the area of cable materials
PVC and PE are the main materials used for cable production. Despite environmental concerns and regressive results in the market over the past few years, PVC still represents 61% of the overall consumption of plastics and remains the most widely used material for this application. According to AMI, PVC compounds still provide positive properties and good processing characteristics at a low price. Many cable producers are traditionally equipped with their own compounding facilities.

PE has experienced a rising consumption compared with traditional materials for cable production. It is mainly used for telecommunication, data transmission or power current cables. Standard PE formulations such as LD, LLD or HD/MD represent 14%. PE-LLD offers enhanced properties for low and high temperatures, abrasion and impact resistance. Cross-linked PE chains may remedy detriments occurring at maximum operation temperatures or improve insufficient mechanical properties. Therefore, PE-XL is the most important insulating and sheathing material for power current cables, representing 12%. More exacting fire safety requirements have led to an increased demand for PE-based “LSF0H” materials, which create very little smoke and no halogens when burned. They hold 5% of the market.

Among the remaining polymers, elastomers for cable sheathings represent 4%, the largest remaining segment of the market. However, they are being steadily substituted by superior polyolefin types. PP is rarely used for cables. Nonetheless, AMI predicts more growth for this material because it is suitable for applications in telecommunications and particularly for optical fibres. High-profile materials such as PBT, PA, PU, silicone or flouropolymers for special cables play an insignificant role in this market.

AMI´s cable report describes the situation of the western European cable industry and provides a list of production sites, the type of cable produced there and the type of plastic used for its production.

Book Service: “AMI´s guide to the cable industry in Western Europe”, 3rd edition 2002, DIN A4, paperback, 85 pages, original price: EUR 275.00 + VAT. PIE-No. B 45944.