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Manufacture of Insulated Wire & Cable
The insulated wire and cable industry in South Africa is largely dependent on infrastructure development. Reduced public sector infrastructure spending and challenges such as unstable power supply, rising input costs and a severe lack of technically trained professionals to provide cables at the same cost and quality as competing countries, is making the manufacturing environment significantly more difficult for local manufacturers. There is no confirmed value of the annual turnover of the industry, but the electrical cable market’s turnover is valued at approximately R8bn per annum.
Mixed Corporate Results
Despite the challenges, South Ocean Electric Wire, which manufactures low voltage electrical copper cables and wire, increased revenue by over 20%, while Reunert’s cable factories operated at sub-optimal capacity utilisation levels, mainly due to a significant reduction in demand from Eskom, municipalities and Telkom. ARB Holdings said the cable market was very challenging, with decreases in volume and margin as the lack of government spend created significant excess capacity.
The South African Chamber of Commerce and Industry estimates that cable theft costs the economy between R5bn and R7bn annually. Industry players are testing or using a number of methods to deter cable thieves including traceability, securing cables, using alternative metals, and cable and conductor identification.
This report covers the manufacture of insulated wire and cable, and includes information on the size and state of the industry in South Africa, on the continent and internationally, and the factors influencing its success. There are comprehensive reports on 11 companies in the sector including the major players such as South Ocean Electric Wire Company and Aberdare Cables. Other profiled companies include power cable supplier Alcon Marepha, which concluded a settlement agreement with the Competition Commission after admitting to collusive tendering.