General Cable Corp. said yesterday that it has entered into a joint venture with the Algerian government for majority ownership of E.P.E/EN.I.CA.BISKRA/SpA, also known as Enica Biskra. The company manufactures low- and medium-voltage power and construction cable.
Located in the province of Biskra, Algeria (approximately 260 miles southeast of Algiers), Enica Biskra is a leading provider of utility cables to the principal Algerian state-owned power utility and gas producer. In 2007, the company generated over 70 million euros of revenue.
General Cable said it plans to aggressively invest in the business over the next few years, focusing on upgrading and expanding facilities for making medium-voltage utility cables, as well as cables for industrial applications for both the domestic market and export into neighboring North African and European markets.
Gregory B. Kenny, president and CEO of General Cable, said the acquisition represents the latest step in positioning General Cable as a global leader in cabling systems for energy infrastructure, which began with the 1999 acquisition of BICC.
"General Cable expects to have as much as 200 million euros of annual revenue in the Middle East and North African region after giving effect to this investment project," Kenny said. "This acquisition establishes an important position in these markets and a platform to further invest and grow in the region."
