A consortium that includes RTI Connectivity Pte. Ltd. (RTI-C), AARNet Pty Ltd (AARNet) and Google, together with Alcatel Submarine Networks (ASN), part of Nokia, and NEC Corporation (NEC) announced that construction of the 9,500-km-long Japan-Guam-Australia Cable System (JGA) has officially begun.
A press release said that the undersea fiber optic cable system, designed for capacity of more than 36 terabits per second (Tbps), is expected to be completed in the fourth quarter of 2019.
JGA is being co-built by ASN and NEC. JGA South (JGA-S), the segment between Sydney, Australia and Piti, Guam, is a consortium cable including AARNet, Google and RTI-C. JGA North (JGA-N), the segment between the Minami-Boso, Japan and Piti, Guam, is a private cable with RTI-C as the sole purchaser. Both JGA-N and JGA-S will interconnect in Guam at GTA’s newly built landing station.
“We are honored to be selected once again by RTI-C to construct their third subsea cable,” said Toru Kawauchi, general manager of NEC’s Submarine Network Division said. “While both SEA-US and HK-G will provide horizontal East-West connectivity across the Pacific, JGA will now provide the much-needed vertical North-South connectivity, enabling high capacity communications to reach all corners. Further, JGA will be the second project after HK-G to be co-financed by the Japanese government-led Japan ICT Fund, and the third project supporting RTI’s investment after SEA-US and HK-G for the Japanese loan syndicate. We wish to further utilize these funds for many more cables in the future.”
JGA will further enhance and contribute to the much-needed expansion of communications networks from Japan and Australia, to Asia and the U.S., the release said. That, it noted, will improve network redundancy, ensuring highly reliable communications and expanding onward connectivity options in Guam.
Industry News
Germany’s Gustav Wolf GmbH announced that it has officially opened a factory in Rome, Georgia, that represents the first expansion of the business into the U.S.
A press release said that the 61,354-sq-ft plant, which was acquired from Swiss-based Brugg, has annual capacity of 3,000 tons of steel wire elevator rope, and that there are plans to expand that capacity. “We’re now manufacturing in the USA as well,” said Managing Director Dr. Ernst Wolf. “This represents an important step in the more than 130-year history of our company. It’s in keeping with our tradition to occupy the strongest markets on every continent.”
In the release, Wolf explained that with the addition, the company now has six rope plants on three continents. “Our aim is and has always been to be able to deliver our premium products to our customers within 24 hours. Establishing a base in the USA means that we can now accomplish this for all our customers throughout the world.” Asia, Europe and the U.S. represent a major market for specially constructed ropes, he said, adding that the idea of launching a U.S. plant stems back three years.
“For us, the start of production in Rome is an absolutely decisive component in the further international expansion of the Gustav Wolf Group,” Wolf said. “We want to and will grow with the markets. As a service provider, we help our customers in their dynamic development, thus securing local jobs as well.”
Reinhard Bänisch, the company’s division manager for steel wire ropes, said that there are high expectations. “From May onwards, we’ll be additionally installing some new machines. And that’s just the beginning. We plan to have 30 staff at the site and want to achieve a turnover of $12.3 million dollars.”
“Our ropes, produced for the major and leading elevator manufacturers, fulfill the highest standards,” said Richard Lindemeyer, who manages the U.S. site. He said that the elevator wire production would be exclusively for the American market.
The release said that company’s focus is not limited to wire rope. It cited Konrad Stahr, the company’s central quality officer, as noting that Gustav Wolf has other wire products. “We’re also one of the premium manufacturers in the ‘tire wire’ segment and a major supplier of the big tyie manufacturers such as Goodyear, Continental, Bridgestone and Pirelli,” said Konrad Stahr, the central quality officer at Gustav Wolf.
The Australian Anti-Dumping Commission (ADC) has ended an anti-dumping (AD) lawsuit on steel wire rods imported from Indonesia, South Korea and Vietnam.
A report at the ADC’s website said that there was dumping of the goods by Indonesia’s PT Ispat, but it was less than 2% and thus the case was dropped. It found that other exporters from Indonesia--and all exporters from Korea—represented a negligible amount, and were also dropped. Finally, it found that goods exported from Vietnam were not dumped, and thus it too was dropped, thus ending the matter.
Norddeutsche Seekabelwerke (NSW), a subsidiary of General Cable, has been contracted by Van Oord, an international marine contractor, to design, manufacture and deliver inter-array cables for Deutsche Bucht offshore wind farm.
Per a report in subsea world news, the NSW will deliver 45 km of medium-voltage submarine power cables for the Deutsche Bucht, which is owned by Northland Power. Delivery of the submarine cables is scheduled for spring of 2019, the company said.
Van Oord will deploy its offshore installation vessel Aeolus and cable-laying vessel Nexus for the installation works. The Deutsche Bucht offshore wind farm is located in the North Sea, approximately 95 km north-west of the island of Borkum. It includes 31 MHI Vestas Offshore Wind 164-8.0 MW (8.4 MW Power Mode) turbines, which will generate a total output of 252 MW..
Pourtier, a member of the Gauder Group, reports that it has received a multi-million euro order for a rigid stranding line from NKT Germany.
A press release said that Pourtier—which to date has commissioned more than 700 drum twisters and 120 rigid stranding and planetary lines—is supplying a new rigid stranding line, for 130 wires. It is designed to produce 3500 mm2 Cu round compacted cable and 4000 mm2 Al round compacted cables. The line is to be delivered early in 2019 to NKT’s operation in Cologne, Germany, commissioned. The order represents repeat business, as Pourtier has previously provided lines to ABB plants in Sweden and the U.S. that are now part of NSW.
The Cologne plant was described as a state-of-the-art cable factory, designed to facilitate optimal cable production and an optimum of environmental protection. It produces medium- and high-voltage cables and accessories, fiber optic products, superconducting cables, submarine cables and VALCAP® Grid monitoring systems.
“It is a source of major satisfaction and pride to be involved, together with NKT Germany, in this very interesting still technically challenging project,” said Pourtier President Thierry Collard.
The Chilean government has awarded Huawei Marine the contract to build a subsea cable connecting with the country’s far south.
Multiple media reports cited a statement from the Chinese technology giant, in which it said that it will partner with CTR (Comunicación y Telefonía Rural) to build the Fiber Óptica Austral (FOA), a 2,800 km connection from Puerto Montt to the Patagonian cities of Caleta Tortel and Punta Arenas through to Puerto Williams in the far south.
Subtel, as a Vice Ministry of Telecommunication and Transportation Ministry of Chile, will invest in the new FOA to connect Las Lagos, Aysén and Magallanes regions. CTR was awarded the contract to deploy and operate the network, while Huawei Marine will provide the end-to-end submarine cable solution. The system, which has a design capacity of 16 Tb/s, is expected to be completed by the end of 2019..
The U.S. Department of Commerce announced affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of carbon and alloy steel wire rod from Italy and Turkey and AD investigations of carbon and alloy steel wire rod from Korea, Spain, and the U.K.
The Commerce Department determined that exporters from Italy, Korea, Spain, Turkey, and the U.K. are dumping carbon and alloy steel wire rod in the U.S. at 12.41-18.89%, 41.10%, 11.08-32.64%, 4.74-7.94%, and 147.63% less than fair value, respectively. Commerce also determined that Italy and Turkey are providing countervailable subsidies to its producers of carbon and alloy steel wire rod at rates ranging from 4.16-44.18% and 3.81-3.86%, respectively.
In 2016, imports of carbon and alloy steel wire rod from Italy, Korea, Spain, Turkey, and the United Kingdom were valued at an estimated $12.2 million, $45.6 million, $40.7 million, $41.4 million, and $20.5 million, respectively.
Commerce also cited rates for individual companies in its findings, as follows.
In Italy, Ferriere Nord was assigned a dumping margin of 12.41% and a subsidy rate of 4.16% and Ferriera Valsider a dumping margin of 18.89% and a subsidy rate of 44.18%. All others were assigned a dumping margin of 12.41 percent and a subsidy rate of 4.16%.
South Korea’s POSCO was assigned a dumping margin of 41.10%.
In Spain, Global Steel Wire, CELSA Atlantic and Compania Espanola de Laminacion were assigned dumping margins of 11.08%; ArcelorMittal Espana, a unit of ArcelorMittal, a margin of 32.64%; and all others, 11.08%.
In Turkey, Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi received a dumping margin of 4.74%, Icdas Celik Enerji Tersane ve Ulasim Sanayi a margin of 7.94%, and all others, margins of 6.34%. Habas Sinai Ve Tibbi Gazlar Istih got a subsidy rate of 3.86%, Icdas Celik Eberji Tersane Ve Ulasim San a rate of 3.81%, and all others, a rate of 3.84%.
British Steel Ltd and Longs Steel UK Ltd were given dumping margins of 147.63%, as were all other U.K. exporters.
The petitioners in the case were Gerdau Ameristeel US, Inc., Nucor Corporation, Keystone Consolidated Industries and Charter Steel.
If the U.S. International Trade Commission (ITC) makes affirmative final injury determinations by or about the scheduled date of May 3, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.
From January 20, 2017, through March 20, 2018, the Commerce Department has initiated 102 antidumping and countervailing duty investigations – a 96% increase from the prior year.
Norddeutsche Seekabelwerke (NSW), a subsidiary of General Cable, has been contracted by Van Oord, an international marine contractor, to design, manufacture and deliver inter-array cables for Deutsche Bucht offshore wind farm.
Per subsea world news, the NSW will deliver 45 km of medium-voltage submarine power cables for the Deutsche Bucht, which is owned by Northland Power. Delivery of the submarine cables is scheduled for spring of 2019, the company said.
Van Oord will deploy its offshore installation vessel Aeolus and cable-laying vessel Nexus for the installation works. The Deutsche Bucht offshore wind farm is located in the North Sea, approximately 95 km north-west of the island of Borkum. It includes 31 MHI Vestas Offshore Wind 164-8.0MW (8.4MW Power Mode) turbines, which will generate a total output of 252 MW.
Upon its planned completion in late 2019, the wind farm will provide renewable energy to more than 178,000 households..
An optical fiber cable manufacturing factory in Cairo—co-established by China’s Hengtong Optic-Electric Co., Ltd., and Egypt’s HitekNOFAL Group—was inaugurated March 6 with the official opening of the plant.
Per reports from media and company websites, the new operation, called HitekNOFAL Hengtong Optix, is the first Egyptian-Chinese joint venture specialized in manufacturing fiber optic cables and accessories. The plant is located in the Bader Industrial City, which is in the northeast section of the Cairo governate. The 33,000-sq-m plant, highly automated, has an annual production capacity of more than one million km of fiber. “(HitekNOFAL) aims to cover the needs of the Egyptian market of fiber cables and plans to export to African markets by mid-2019, in parallel with the increasing production capacity of the factory. A second plant is also to be built, with the total cost over the next three years estimated at $30 million. The company plans to reach 80% of local components in the cable manufacturing process by 2021.”
Egyptian market’s demand for optical cables is growing year by year, and its main resource at present still depends on imports, said HitekNOFAL CEO Mohammed Nofal. He noted that over the past four years, Telecom Egypt has been working on replacing copper wires in all Egyptian governorates with fiber optic wires. As of June 2017, the company had replaced 40%, but will need much fiber to meet its goals. “Nevertheless, the co-founded factory with HENGTONG is expected to satisfy about 80% of the domestic needs within this year and achieve export in the middle of 2019.”
A report in Xinhuanet cited HitekNOFAL Marketing Manager Randa Tawfiq as saying that a key goal is to supply the “core,” which is the most difficult part in the process. The manufacture of this part of the cables is limited and is only carried out by a limited number of companies around the world and the company seeks to transfer this advanced (preform) technology to Egypt.” The factory will also manufacture micro-trenching cables, which is relatively new cable technology that allows the cable to be laid without extensive road digging.
Attending the inauguration was Yasser ElKady, Egypt’s Minister of Communications and Information Technology. Following the opening, he said that the government’s strategic plan to develop Egypt’s telecom infrastructure considers optical fiber cables an essential pillar.
Mohamed Nofal, chairman of HitekNOFAL Solutions, noted that his company has more than 30 years of experience in the field of telecom and cable solutions. The company’s goal is to train Egyptian workers to manufacture optical fiber cables in partnership with the Hengtong Group to cover domestic demand and exports abroad.
North America Steel & Wire Inc. (NASW), a U.S. manufacturer of copper- and zinc-coated wires located in Butler, Pennsylvania, has filed for Chapter 11 protection.
Per media reports, NASW plans to reorganize, and is scheduled to present a plan for this by June 27. At its website, the company notes that it also makes copper coated closing carton staples under the ISM Enterprises brand name.
According to the last information provided to the WJI Annual Reference Guide, NASW had 20 employees at its mill in Butler, where it makes specialty and industrial wires used in toys, food service products, recycling and pulp industries, and in the manufacturing of many types of fasteners. It also was cited as making welded and woven wire panels for residential and agricultural fencing. It can make carbon grades from C1004 to C1080.
South Korea’s LS Group held a groundbreaking ceremony on March 15 in Serbia, where it is investing $23 milllion to to build the plant, which it said is designed to produce 12,000 metric tons of magnet wire a year.
Per a report in The Korea Herald, LS Group Chairman Christopher Koo spoke at the groundbreaking ceremony of the magnet wire plant, which is located in Zrenjanin, some 90 km south of the Serbian capital in Serbia. The plant was described as the latest investment by the LS Group, which launched an electric car parts plant in Poland and a solar power plant in Japan.
LS Group Chairman Christopher Koo said the conglomerate’s Serbian investment is a part of growth strategy, and is expecting the Serbian plant to become the production center for its east European operation. It is scheduled to start commercial production in 2019.
The LS Group notes that its U.S. affiliate, Superior Essex, one of the world's largest wire and cable manufacturers, generated $2 billion in sales last year. It is the sole magnet wire supplier to U.S. electric vehicle producer Tesla.
Kanthal announced that the company reopened its drawing mill in Hallstahammar, Sweden, on March 14 to meet increased demand for heating, resistance and thermocouple wire.
A press release said that the decision was made based on a conviction that global demand for appliance and thermocouple wire will continue to grow over time. The new production line, it said, is designed in a flexible way to secure a sustainable and cost-effective wire drawing.
“We want to support our customers to grow and stay competitive,” said Kanthal Global Supply Chain Manager Christoffer Saarnio. “To be able to do this, we must ramp up our production of Kanthal® wire to secure short and reliable lead times. With the new production line, we will be able to meet increased demand for many years to come.”
Kanthal President Nicklas Nilsson said that he was pleased to see the reopening of the mill, which first started production in 1931, and was closed in 2013. “It’s great to close the circle and once again see the drawing mill up and running.”
Part of Sweden’s Sandvik Group, Kanthal’s product lines encompass wire made in a wide range of alloys and shapes, including conductive wire, resistance heating wire and resistance wire, spray wire and therocouple wire.
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