Who Owns Whom

Manufacture of Insulated Wire and Cable 2015

Yasmin Mahomedy | South Africa | 15 July 2015

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R 1 900.00(ZAR) estimated $ 120.93 (USD)*

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Report Coverage

The report on the manufacture of insulated wire and cables describes the current market, outlines developments within the sector and focuses on factors influencing the success of the local industry. The report also profiles 14 South African companies, including Aberdare Cables (Pty) Ltd, Atc (Pty) Ltd and Malesela Taihan Electric Cable (Pty) Ltd.

The Manufacture of Insulated Wire and Cables

This report focuses on South Africa’s wire and cable industry, a sub-sector of the metal and engineering industry, which is reliant on demand from all sectors of the economy. The sector is dominated by large power cable manufacturers who are all members of the Association of Electric Cable Manufacturers of South Africa (AECMSA).

Challenges

The local industry is not operating at its full production capacity for a variety of reasons including high operating costs and the lack of sizeable orders, especially from the mining, building and construction sectors. Imports are increasing, with copper and fibre-based low voltage telecommunication cables accounting for the largest value of imports, at 39% of the total electric wire and cables market. This is despite the sector being designated in the Preferential Procurement Policy Framework Act, which means the stipulated minimum threshold percentage for local production and content for the different types of electrical and telecom cables is 90%.

Opportunities

In its February 2015 Budget, government prioritised spending on infrastructure development, allocating R813bn over the next three years. R339bn will be spent on transport and logistics, which includes Transnet’s upgrade of its freight rail network, R166bn for energy, with Eskom receiving R138bn for energy infrastructure, and R117bn for water and sanitation infrastructure. This spending should provide growth for the local wire and cable manufacturing industry which is currently valued at approximately R8bn.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 9
4.1.2. Regulations 9
4.1.3. Enterprise Development and Social Economic Development 10
4.2. Continental 11
4.3. International 12
5. INFLUENCING FACTORS 13
5.1. Government Intervention 13
5.2. Government Infrastructure Programme 13
5.3. Imports 13
5.4. Labour 14
5.5. Economic Environment 15
5.6. Rising Input Costs 16
5.7. Technology 16
5.8. Cyclicality 17
5.9. Environmental Concerns 17
6. COMPETITION 18
6.1. Barriers to Entry 19
6.2. Research and Development (R&D) and Innovation 19
7. SWOT ANALYSIS 21
8. OUTLOOK 21
9. INDUSTRY ASSOCIATIONS 22
10. REFERENCES 22
10.1. Publications 22
10.2. Websites 22
ORGANOGRAM 24
COMPANY PROFILES 26
ABERDARE CABLES (PTY) LTD 26
ALCON MAREPHA (PTY) LTD 29
ALVERN CABLES (PTY) LTD 31
ATC (PTY) LTD 33
BGG CABLE MANUFACTURERS SA (PTY) LTD 35
CABCON TECHNOLOGIES (PTY) LTD 37
GENERAL CABLE PHOENIX SOUTH AFRICA (PTY) LTD 39
GENERAL CABLES (PTY) LTD 40
HELUKABEL SA (PTY) LTD 41
MALESELA TAIHAN ELECTRIC CABLE (PTY) LTD 43
NORCO CABLES (PTY) LTD 45
SILCOM (PTY) LTD 47
SOUTH OCEAN ELECTRIC WIRE COMPANY (PTY) LTD 49
TULISA CABLES (PTY) LTD 51