5/7/2021: Italy’s Elettrotek Kabel SpA (EK) announced that it has completed the acquisition of Associated Wire Products (AWP), a Canadian leader in automation cables.

Founded in 1987 with headquarters in Burlington, Ontario (Canada), AWP is specialized in providing special cables for the industries. Elettrotek Kabel Group thus continues its growth in strategic sectors such as the industrial automation. The acquisition of AWP allows the expansion of EK’s presence in these markets by providing customers with excellent technical and commercial support.

Announcing the acquisition, EK President and CEO Roberto Gallingani explained, “The addition of AWP to our group represents an excellent value-add for Elettrotek Kabel Group’s Cables Automation division in the Canadian markets. We believe this is a strategic acquisition that will also allow AWP to continue expanding its capabilities while benefiting from the technical expertise and global footprint of Elettrotek Kabel Group.”

“Elettrotek Kabel established another important milestone,” said Nicola Malaguti, president and CEO of Elettrotek Kabel North America Inc. “We are confident that with this acquisition our presence in North America will continue to grow. AWP perfectly fits with the group, embracing the same business model and goals. This investment is essential to support Canadian customers and it confirms that Elettrotek is a leader in the cable industry.”

Founded in 2001, Elettrotek Kabel is a leading company in the design, manufacture and supply of special electrical cables used in harsh environments with a high cost of failure. It is one of the first companies in the world to manufacture and distribute special cables for the industrial automation, steel, mining, port and crane, marine and oil industries. The rapid expansion of the group has been possible thanks to the competence of the management team and their constant attention to the exclusive use of the highest quality products.

Founded in 1987, AWP is a Canadian leader in automation cables, with the main objective of meeting the customer’s needs by offering technical solutions and excellent service. AWP has never stopped listening to the needs of the market for over 30 years, and today is recognized for the highest guarantee of quality and reliability.

5/7/2021: OmniCable has agreed to buy Houston Wire & Cable Co. (HWCC) in a $91 million deal that would combine their complementary businesses, products and footprint to create a national leader in the redistribution field.

A press release said that the deal was approved by HWCC’s board of directors, and is expected to get approval at a May 25 meeting of HWCC shareholders. The publicly traded company would then become a private entity of Omni Cable.

The deal “will maximize OmniCable’s and HWCC’s highly complementary operations,” the release said. The combined company will also continue HWCC’s fastener redistribution business. Following the close of the transaction, each company will retain its own brands and its existing locations. “Our shared central focus on redistribution, logistical expertise, and unyielding pursuit of perfection for our business partners will drive both businesses to enhance the value that we bring to the marketplace,” said Jeff Siegfried, OmniCable founder and vice chairman.

HWCC, founded 45 years ago, is a large industrial distributor of wire and cable and fastener products in the U.S. market. Based in Houston, Texas, it has sales and distribution facilities strategically located throughout the U.S. OmniCable, a subsidiary of Dot Holdings Co., has 14 regional distribution centers to serve and support electrical distributors nationwide.

5/7/2021:  Whatever your political affiliation, President Biden’s American Jobs Plan infrastructure investment plan should be welcome news for many wire and cable companies.

The American Jobs Plan infrastructure investment plan promises big expansion in broadband internet and clean energy. The plan calls for $100 billion to bring more affordable and reliable high-speed broadband internet, or wireless broadband via 5G, into rural areas especially, but also urban areas, for 100% coverage across the country. The plan will also increase funding for Community Connect broadband grants, support towns that want to build municipally-owned broadband networks, and make available federally controlled telecom resources like towers, poles, and rights-of-way.

Lack of funding and infrastructure have hampered expansion in the past. The FCC estimates that as many as 42 million Americans don’t have access to high-speed broadband. The shut-in during the pandemic highlighted the importance of people having access to high-speed internet. By removing governmental barriers, Biden’s plan expects to promote competition among internet providers by encouraging companies to increase speed and decrease prices.
Of note, the broadband expansion is opposed by the cable internet industry, which calls Biden’s plan unnecessary. Internet & Television Association CEO Michael Powell said in a statement that America’s current modern digital network has been successful, and that it is wrong to suggest that “the government is better suited than private-sector technologists to build and operate the internet.”

For clean energy, the infrastructure plan extends Investment Tax Credits and Production Tax Credits to incentivize the installation of at least 20 GW of high-voltage-capacity transmission power lines, move the federal vehicle fleet to electric vehicles, and invest $15 billion in climate research and development projects.

How much is actually accomplished is another story, but the bottom line is that a lot of money could be funneled into applications that could accomplish good as well as create more wire and cable business.

5/7/2021: Steel and copper wire makers are facing shortages of raw materials that have already resulted in higher prices and manufacturing slowdowns. Covid-19 shutdowns, growing demand, lack of investment, lack of discovery of new deposits, truck driver shortage, strikes, delays at U.S. ports of entry, and supply chain disruptions have all contributed to the problem. Shortages of basic materials such as steel, steel plate, copper and aluminum have affected many industries from computer chip makers to solar panels.

The shortages are affecting manufacturers worldwide who are struggling to find domestic and imported sources. In Europe, finished steel distributors are having difficulty finding steel supplies. In India, shortages have caused some steel metal wire makers to operate below capacity and may close down if lack of supplies persists. High-grade wire rods, the main raw material for wire production, is especially sought after.

Raw copper supplies have been in decline due to lower investment and mine development, notes Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management. As a consequence, the higher bidder determines who gets the available materials. Such competition among manufacturers means higher prices are passed on to the consumer. Copper prices rose 100% from March 2020 to April 2021. To counter the shortage, large copper companies are increasing investment. For example, the Chilean government is spending $2.5 billion to expand existing mines; the Australian mining company BHP is allocating $900 million to find new copper and oil deposits.

On the bright side, higher material costs usually convert to higher profit margins. Shortages and price increases are expected to continue into 2022.

May 7, 2021. Obituaries

Tom Artinian has been named COO of the Performance Cable Systems and Materials Division of Hitachi Cable America Inc. (HCA), based in New Hampshire. He joined the company as executive vice president in 2020, and was a key contributor to the HCA executive team and a transformational leader. Prior to joining HCA, he served for two years as vice president of sales for Southwire Canada, and held key positions for 14 years at ECS Electrical Cable Supply Ltd., IEWC and EIS Inc. He holds a BBA degree in entrepreneurship/entrepreneurial studies from Johnson & Wales University. Based in Manchester, New Hampshire, Hitachi Cable America, Inc., is part of Japan’s Hitachi, Ltd., a multinational conglomerate whose products include copper and fiber optic cables.

Judd Wire, Inc., announced that Atsushi Shinchi has been promoted to company president. He is a graduate of KEIO University in Tokyo, where he studied mechanical engineering, and in 1995 began his career with the electronic wire division of Sumitomo Electric Industries (SEI), which acquired Judd Wire in 1988. His domestic and international assignments were directed towards the growth and advancement of the division (SEIW) and its employees. His most recent role was general manager of SEIW’s manufacturing department. Based in Turners Falls, Massachusetts, USA, Judd Wire is a high technology wire company that specializes in the use of electron beam crosslinked thermosets for wire insulation.

Permanoid Ltd. reported multiple personnel news items. Oliver Hingston been appointed commercial director of Permanoid Ltd. He previously worked eight years for Clynder Cables Ltd. in Manchester, U.K., where he started out as a purchasing assistant and became managing director. He replaced Wayne Butler, who retired after working for the company for 34 years. Gary Taylor has been appointed technical manager. He has worked for Permanoid for almost twenty years, first as purchasing manager and latterly as operations manager. He had previously worked for BICC Cables as a process engineer in both the UK and North America. He has extensive knowledge of cable design, manufacturing processes and materials. David Clarke has been appointed operations manager. He was previously the technical manager, and prior to that, served as quality manager, where he had extensive experience in cable making. Based in Manchester, U.K., Permanoid Ltd. manufacturers a wide range of electrical wire and cables.

TiniFiber® has named Dion King as a strategic accounts representative for the South East Region. The RCDD-certified electrical engineer worked for more than 18 years with Corning in positions that included global commercial training manager with Corning’s Telecommunications Business Group. He previously worked as a communication systems engineer with Mayer Electric Supply Co., Inc. He holds a B.S. degree in electrical engineering from the Georgia Institute of Technology and an MBA from Georgia State University. Based in Farmingdale, New York, USA, TiniFiber is a leading manufacturer of innovative, micro armored patented fiber optic cable solutions for diverse industry applications.

LLFlex has hired John Kay III as COO. He previously was president of The Morven Group, which provides operational support for manufacturing and distribution companies. Prior to that, he spent seven years as executive vice president of manufacturing and distribution for HVHC; and three years as vice president of operations for a division of Catalent Pharma Solutions. Earlier in his career, he was business unit project manager and plant manager, consumer packaging for Alcoa/Reynolds Metals. He holds a B.S. degree in mechanical engineering from the Virginia Military Institute, and an MBA in Operations Management & Finance from Carnegie Mellon University. He is a certified Lean Six Sigma Black Belt. Based in Louisville, Kentucky, LLFlex’s product lines include cable armor, wraps and tapes.

Troester GmbH & Co. KG announced that Thomas Holzer has joined the company’s management board. In addition to Managing Partner and CEO Peter Schmidt and COO Bernd Pielsticker, he will share the management responsibility for engineering and sales in the future. He has comprehensive knowledge in the sale, engineering and project management of special machines, as well as proven management and leadership experience. He held management positions at the paper division of Voith, a German technology company, where he held management positions in Germany, Indonesia, Austria, and China. He was responsible for global projects as well as the service and spare parts business for many years. He studied process engineering in Munich, then business management in Reutlingen and in Michigan in the U.S. Based in Hannover, Germany, Troester GmbH & Co. KG’s product lines include systems for producing cores and jackets, rubber lines, rubber cables and CV systems for medium- and high-voltage cables.

Glen Clark has joined Service Wire Co. as a regional sales manager based at the corporate headquarters, where he will serve commercial and industrial distributors, contractors and engineers while working with manufacturers’ representatives in Virginia, North Carolina, South Carolina, Georgia, Alabama and Florida. Tony Holderby, the regional sales manager for the company’s wire and cable electrical distribution markets in 12 states, will now add Michigan to his territory. He has more than 25 years of experience with Service Wire, working in all areas of the company from distribution to sales and logistics. Also, Rodney Smith, who is now serving the wire and cable electrical distribution markets of Kentucky and Tennessee, will also be responsible for serving the commercial and industrial markets of Indiana, Illinois, Wisconsin, Missouri, Iowa, Minnesota, Nebraska, North Dakota and South Dakota. He has more than 20 years of sales and management experience. Based in Culloden, West Virginia, USA, Service Wire Co. has three manufacturing and distribution facilities across the country.

After a career of more than 45 years, Harry Prunk has retired from the management board of Germany’s Sikora, where he was lauded for his key role in shaping the development of the company and success of its brand. He started with the company immediately after finishing his studies in electronics, and 11 years later, he was appointed managing director of Sikora. In 1981 he founded the first subsidiary, Sikora International Corp. in California, USA. Since transforming the company into Sikora AG in 2002, Prunk has been a member of the Management Board, which he chaired from 2011 to 2015, responsible for the sales, marketing and service. He was particularly involved in the internationalization of Sikora, which today has 14 subsidiaries and 300 employees. He plans to remain active in the industry.