Finolex to make upto 500kV cables in India in JV with J- Power Systems Corp.

The JV will be equipped with state-of-the-art production facility such as VCV (Vertical Continuous Vulcanising) tower to produce high voltage XLPE (Cross Linked Polyethylene) insulated Power Cables.

Pune, Maharashtra, December 13, 2007 /India PRwire/ -- Electrical and Communication Cables major, Finolex Cables Ltd (Finolex) has today entered into a Joint Venture Agreement with J-Power Systems Corporation (JPS) of Japan to offer complete turnkey solutions in Extra High Voltage (EHV) cable systems in India and abroad.

The JV will be equipped with state-of-the-art production facility such as VCV (Vertical Continuous Vulcanising) tower to produce high voltage XLPE (Cross Linked Polyethylene) insulated Power Cables. Since such cables are installed in the trunk lines of high voltage power transmission grids in the urban areas, extreme quality and reliability are required.

The JV shall be named “Finolex J-Power Systems Pvt Ltd.” The JV is expected to be established in Jan 2008, near Pune, in Maharashtra for manufacture and sale of high voltage power cables upto 500 kV grade. The Joint Venture shall also offer complete services of Turnkey installation and connectorization of the complete circuit along with the supply of Power Cables and Accessories (Jointing Kits).

J-Power Systems Corporation is a Japanese Cable manufacturer specialized in High Voltage Power Cables and Systems, established in 2001 as an equally owned joint venture between Hitachi Cable, Limited and Sumitomo Electric Industries, Limited, the global leaders in the field of EHV Cable technology.

On this occasion, Mr. Deepak Chhabria, Managing Director of Finolex Cables said, “This is a significant development for Finolex. It is a matter of honour that global leaders in EHV cable business have partnered with us. With this Finolex completes its Electric Cables Product range from the lowest voltage grade of 48 Volts in Auto Cable to the highest voltage of 500,000 Volts in Power Cable segment. Finolex is the only company in India with this unique distinction”.

On the issue of demand for EHV Cables, Mr. Deepak Chhabria elaborated, “The consumption and hence the requirement of power is ever increasing in all the cities. This is leading to a high demand for cables for bulk power transmission. HV and EHV cables are mostly used for carrying power in populated urban areas where overhead transmission is impossible due to non-availability of corridor”.

“This is a landmark development in our operations in the EHV Cable field. We value the contribution of Finolex to the Indian Cable Industry and therefore preferred them as our business partners. The JV will reinforce our strengths and help us consolidate our leadership position in the Asian region. The JV will also enable us to competitively service our customers in Asian and African markets. Incidentally, this is our only JV in the world so far” said Dr. Kiyoshi Shimojima, President of J-Power Systems.

The Planning Commission and the Kohli Committee have pegged investment targets in power generation in the 11th Plan. Investment of around Rs.2,488 billion (Rs.2,48,800 crores), will be needed to create 62,213 MW of new power generation capacity during the 11th Plan (2008-2012). As a corollary, investment in power transmission is pegged at Rs.695 billion (Rs.69,500 crores) in the 11th Plan. Distribution and rural electrification would generate investment of Rs.1,100 billion (Rs.1,10,000 crores) and an additional requirement coming from APDP (Accelerated Power Development and Reforms Program) to upgrade the existing network would generate further demand for cables.

In India, urbanization is a continuous process. Existing cities are growing and new cities are coming into existence. Hence there is a greater need to convert the overhead transmission power lines to underground high voltage/extra high voltage power cables for safety reasons. The investments in power sector and the process of urbanization shall translate into a large demand for HV/EHVpower cables.

Notes to Editor

About Finolex Cables Limited

Finolex Cables Limited is India's largest and leading manufacturer of electrical and telecommunication cables. Finolex offers a wide variety of Electrical and Communication Cables. Its wires and cables products are used in applications such as automobile, lighting, cable TV, telephone and computers to industrial applications, touching every person in his daily life. Finolex has added Electrical Switches and Compact Fluorescent Lamps to its range of products.

About J-Power Systems Corporation

Hitachi Cable Ltd. (HCL) and Sumitomo Electric Industries Ltd. (SEI), the renowned leaders in Japan for High Voltage Cable manufacturing have jointly established J-Power Systems Corporation or "JPS". The combination of these two giants in development of techniques, manufacturing capability and engineering know-how has paved the way in creating a corporate structure with greatly enhanced supporting capabilities for their customers.

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