EuroWire September 2023

Corporate News

A CCR aluminium line for internal consumption by cable makers

Vertical integration for cable manufacturers

manufacturer to have more control, but is also supported by economic benefits associated with rod sourcing as well as the elimination of rod premiums. Continuus-Properzi has a complete product portfolio that includes smaller lines for the continuous casting and direct rolling of aluminium and copper rod for the internal consumption of wire and cable producers. The company can supply complete lines, from the furnace set to the coiler(s), as well as fume-treatment systems, if required. The lines are engineered, designed and manufactured in Italy. The company can also supply furnaces to process and refine copper scrap, providing cost savings while promoting sustainability. Continuus-Properzi SpA www.properzi.com

This new strategy does not eliminate dependence on the supply chain, but it shifts the dependence further upstream to more consistent commodities markets. These commodities, which include sow, T-bars and ingots for Al rod production and cathodes for copper rod production, have essentially identical characteristics among the suppliers, regardless of the producer – something that is not necessarily true for wire rod producers. The wire and cable manufacturer uses these commodities to produce wire rod, enabling them to control the quality and consistency of the wire rod they produce while targeting the specific mechanical and electrical rod properties that are of most importance to their specific wire and cable products. This vertical integration is not only a strategic investment that allows the

The Covid-19 pandemic exposed the instability of the global supply chain in many aspects of industry, including wire and cable. The supply of quality rod, both alumin ium and copper, has become tighter in North America due to increased demand and diminished installed capacity. This has led wire and cable producers to look at their historic view on rod supply and to consider a strategic invest- ment for vertical integration into the production of aluminium and/or copper rod. As a result, Continuus-Properzi has had many requests for quotes from cable manufacturers looking for smaller copper and aluminium rod mills, to allow them to produce rod in-house to meet their production requirements.

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September 2023