Cabling powerhouse Alcatel (Paris, France), which earlier this year announced it would spin off all cable and components activities into a new independent company, recently gave that company a name: Nexans. The spin-off decision was made to better channel both intellectual and financial resources.
Nexans will target five markets under the cable and components umbrella, including "smart" buildings, power utilities, automotive, railway network, and telecommunications. These five markets have been targeted for the purpose of furthering the overall goal of Nexans: to grow the business within the cable and components industry.
In turn, Alcatel will shift its primary business focus to growing its other industries, such as wireless and Digital Subscriber Line (DSL). Both Alcatel and Nexans will maintain headquarters in Paris. Companies formerly encompassed under the Alcatel name, such as Berk-Tek (New Holland, PA), will not experience any change in operations and will retain their industry focus.
"Nexans has successfully restructured production, which will enable it to benefit fully from the recovery in the market." says Gèrard Hauser, future chief executive officer of Nexans and current chairman of Alcatel Cables and Components. "Nexans' aim is to pursue a dynamic external growth policy and further its development on the international scene, thanks to a sound financial structure and low indebtedness."
According to a company spokesperson, as an individual entity, Nexans will rank among the top three companies in the cable industry with approximately 18,500 employees in more than 20 countries. An initial public offering is planned for the near future, most likely listing on the Paris Bourse-the national stock market of France.
The name "Nexans" is derived from the Latin root word nexus, meaning connection or link, and was selected to illustrate the role that cables and systems play in the world of high technology. This is reflected in the company's new slogan, "The future runs through Nexans." More information may be obtained at www.nexans.com.
-Michelle Abrams