Nexans connects with wider business network through Hainan project

In February 2007, Nexans secured a $182 million contract, the largest ever for a Norwegian company in China, from China Southern Power Grid (CSG) EHV Power Transmission Company and Guangdong Nandian Power Equipment Co to manufacture and install a 500-kV submarine power link between Hainan Island and the mainland in Guangdong province.

"It is a well-known project because it's the first submarine project in the world with this voltage level in nearly 25 years," says Project Manager and China Sales Director Jan Nyborg.

"Our main advantage is the high voltage and the long length of the cable. There are thousands of cable manufacturers in the world but only two or three can do this."

The 30-km submarine cable link capable of carrying up to 600 mW of power will be laid at a depth of 100 m and is scheduled to commence operation in July 2009.

Based in Oslo, capital of Norway, Nexans Norway has five manufacturing plants across Norway and continues to widen its scope.

Today it has facilities in more than 30 countries.

"We have been working quite extensively in China since 2000, mainly for the Hainan project. Through this, we have established a large network. We have seen that the oil and gas industry has a demand for submarine cables," said Nyborg.

The high-profile Hainan project has led to contacts for Nexans with Central Southern China Electric Power Design Institute, among others.

"In the last six months, we have received requests from people connected to the design institute who want to develop other projects that they now see as feasible. I am working on three other projects in China that are direct results of this contract. Suddenly, we are in the loop in all of Asia where China is involved," says Nyborg.

With oil giants like China National Offshore Oil Co (CNOOC), China National Petroleum Corp and China Petrochemical Corp entering into deepwater development, Nexans is now setting its sights on China's oil and gas industry. It has a contract to supply three cables for CNOOC this year.

"What really differentiates us is the turn-key capability that we can provide. This is the advantage. We see that our knowledge of subsea installation is on another level than our competitors. Both our plants in Halden and Tokyo Bay are special purpose plants for submarine cables. We have extensive knowledge in long length and deep water," said Vice-President Tom Martinsen.

www.nexans.no

(China Daily 04/14/2008 page27)