Presentation Regional Analysis: Latin American Cable Markets Philip Radbourne Director Research, Wire & Cable Team Integer Research Ltd, London Office International Cablemakers Federation Congress 212, Rio de Janeiro 2-6 October 212
Latin American Cable Markets Introduction Global Wire & Cable industry Overview of Latin America cable markets Leading suppliers Conclusions questions & answer session 1
Integer Research Ltd London office Founded in 22 in London We track range of industries, from cable, power systems, metals, mining, through chemicals and emissions 4 staff in London, 95% of business outside the UK Team in Detroit, USA since 29. Opened up offices in Beijing and Tokyo in 211 Running Advanced Cable Asia Conference in Shanghai in November 212 2
Our Experts & Authors of the ICF Survey Philip Radbourne is Research Director at Integer Research Ltd. He is one of the founders of the company. Philip has more than 13 years of experience in business analysis and consulting. Josie Armstrong is Business Manager for Integer s wire and cable business. Josie has experience in managing and undertaking single client assignments covering a range of industries including wire and cable, aluminium, copper, steel/iron ore, coal, uranium, and fertilizers. Worked for BP Australia, and time working in China. Dr Robert Davies is a Principal Consultant at Integer Research. Over 19 years experience in the cable industry, Robert has worked in various corporate planning and strategic planning roles in the UK and east Asia. Ex BICC & Brand-Rex. Dr Niall Macfadyen is a Principal Consultant at Integer Research. Niall has worked in the cable industry for more than 2 years, gaining a range of operational experience in fibre optic cables and electronics, R&D, sales and product management. Ex Tyco & Pinacl. Andrea Valentini is a Senior Analyst and regular contributor to consulting assignments and publications for Integer s wire and cable business. Now runs our Tokyo office. Italian, speaks Arabic, Spanish, Portuguese and now Japanese. Ex Italian Chambers of Commerce in Cairo. 3
Latin American Cable Markets Introduction Global Wire & Cable industry Overview of Latin America cable markets Leading cable suppliers and manufacturing clusters Conclusions & questions 4
Latin American was steaming ahead in 28, but will growth rates continue? Puerto Madero, Buenos Aires Berrini, Sao Paulo, Economist cover from 28 5
Brazil overtook the UK, to become the 6th largest economy in the world in 211 16 GDP, US$ billion 14 12 1 8 6 4 2 Source: IMF, EIU 6
Global GDP collapsed in 29 6 5 GDP, constant prices, Yr-on-Yr % change 4 3 2 1-1 2 21 22 23 24 25 26 27 28 29 21 211 212 Source: IMF, EIU 7
14 12 1 8 6 4 2-2 -4-6 -8...led to largest decline in world cable % change in cable volume market for 3 years 2 21 22 23 24 25 26 27 28 29 21 211 212 Source: Eurostat, Integer, Industry sources 8
35 Brazil dominates Latin American economic output and cable demand 3 25 2 Cable demand in 211, US$ million GDP, US$ billion 15 1 5 Source: IMF, IBGE, ECLAC, Integer, Industry sources 9
Brazil dominates Latin American market cable demand 5 45 4 35 3 25 2 15 1 5 Insulated cable demand, US$ million 23 24 25 26 27 28 29 21 211 Bolivia Uruguay Paraguay Ecuador Venezuela Peru Chile Colombia Argentina Brazil Source: Integer, SINDICEL, IBGE, Industry sources 1
Brazilian cable imports reached US$861 million in 211, China leading supplier 1 9 8 7 6 5 4 3 2 1 Insulated cable imports, US$ million Telecom/Data/Signal Cables Signal & Control Cable Power Cable - >1kV, MV, HV, EHV Low Voltage Energy <1kV Fibre Optic Cable Enamelled/Magnet Wire - Round Enamelled/Magnet Wire - Other Coaxial Cable/Electronic Wire/Data 23 24 25 26 27 28 29 21 211 Source: UNComtrade, GTIS, Integer, SINDICEL 11
Latin American Cable Markets Introduction Global Wire & Cable industry Overview of Latin America cable markets Cable suppliers and manufacturing clusters Conclusions & questions 12
Cable production and demand dominated by São Paulo state Barranquilla Cali Size of green circle related to number of cable plants Lima Santiago São Paulo Buenos Aires 13
São Paulo state is dominant cable producing region in Latin America Cundinamarca Carabobo Cable production in 211, US$ million Paraná Lima Cali Rio de Janeiro Santiago Minas Gerais Buenos Aires São Paulo 5 1 15 2 25 3 14
A sample of leading Brazilian cable producers in 212 15
A snapshot of cable producers in rest of Latin America 16
Nexans leads Latin American market in 5 45 4 35 3 25 2 15 1 5 terms of insulated cable production US$ million Venezuela Uruguay Peru Colombia Chile Brazil Argentina 17
A review of the leading Brazilian insulated cable producers Production revenues of Top 15 cablemakers in Brazil in 211, US$ million Insulated cable revenues in 211, US$ million Auto Wire Building Wire Flexible & Cords (cable) Magnet Wire Magnet Strip Power Infrastucture Energy Industrial & Special Signal & Control OEM Cable Electronic & Coaxial Cable Copper Telecom LAN cable Fibre optic cable Condupasqua IPCE Corfio SIL Sao Marco Condumax Induscabos General Cable Wirex Furukawa Nambei Cordeiro Nexans PPE Prysmian Source: Integer, IBGE, Sindicel, Data excludes ACSR and bare conductor 18
A review of the leading Argentine cable producers Argentina has a deep cluster of cable makers that have all expanded through the recovery in demand over the last 5 years Insulated wire and cable production in 211, US$ million Magnet Wire Auto Wire Building Wire Flexible & Cords (cable) Magnet Strip Power Infrastucture Energy Industrial & Special Signal & Control OEM Cable Electronic & Coaxial Cable Copper Telecom LAN cable Fibre Optic Cable Argenplas Epuyen Nexans CEARCA Marlew CIM ET IM SA Prysmian Source: Integer, ICF, Industry Sources CyA Fonseca Cableplast CIBASA SA Erpla LVH SA Anicor Derluz Conduplast Cademsa/Cobrhil Plásticos Centurión Conducom SA Furukawa Nasello Tecno Indusil CEDAM Felrro AC Argentina Cetya S.A. Conductores RG American Dulah Indecable S.A. 19
Latin American Cable Markets Introduction Global Wire & Cable industry Overview of Latin America cable markets Cable suppliers and manufacturing clusters Conclusions & questions 2
Chinese exports of cable to Latin America have overtaken those of the US in 211 21
For further information and questions on the survey, please contact Josie Armstrong Business Manager Wire & Cable josie.armstrong@integer-research.com Philip Radbourne Director Research philip.radbourne@integer-research.com Tel: +44 2 753 1265 Fax: +44 2 753 1266 Integer Research Ltd London office, Invicta House 18-114 Golden Lane London, EC1Y TL, UK 22