Nexans Olex

COMPANYPROFILE

Nexans Olex Leading manufacturer of electrical

cables in New Zealand

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Nexans Olex

Nexans Olex Leading manufacturer of electrical

cables in New Zealand Written by: Thomas Melville

Produced by: Wayne Masciotro >>>

A commitment to excellence in products, people, and customers

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New Zealand based Nexans Olex has more than 65 years experience manufacturing and

providing a full range of general purpose fixed and flexible cables as well as special purpose cables. The company employs more than 700 staff in Australia and New Zealand, with three manufacturing plants – two in Australia and one in New Zealand.

As New Zealand’s leading power cable supplier, Nexans Olex also provides specialist technical services, cable design, supply solutions, and other value added services gained from our extensive experience in the cable industry.

From the New Plymouth facility, Nexans Olex New Zealand produces a wide range of electrical

power cables, ranging from building wires and control cables to power cables with rated voltages up to 35 kV. Complementing this range is a broad selection of industrial, fire rated and mining cables manufactured by the factories in Tottenham and Lilydale, Australia. All facilities are quality certified to ISO 9001.

Strategic managementThe company has three strategic aims that they align all activities to achieve:

1.) To improve the speed and quality of our customer responsiveness;

2.) To have a clear customer focus and to have deeper relationships with fewer strategic customers;

3.) Reduce the complexity in all of our business areas.

“It’s really important that we stick to those strategic aims,” said Ian Skipworth, general manager for Nexans Olex New Zealand. “They have served us well in the past 2-3 years and we’ve grown our business and improved our profitability.”

Recently, the company achieved

Nexans OlexLeading manufacturer of electrical cables in New Zealand

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ASCC New ZealandP O Box 8340 Symonds St., Auckland, New Zealand

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Supplier Profile

the best environmental practice standard for a PVC manufacturer in New Zealand, which means they can sell all of their products into Green Star rated projects.

“We’ve only had a couple projects in the past year where the product had to be Green Star rated, but I think it will be important for our future,” Skipworth said.

Rebuild of Christchurch In February 2011 an earthquake devastated the city of Christchurch in New Zealand’s South Island. The earthquake caused widespread damage across Christchurch, especially in the central city and eastern suburbs, with damage exacerbated by buildings and infrastructure already being weakened by an earthquake a year earlier.

The rebuild of the city is still in its early stages. They are still demolishing the last few buildings in the center of the city – most of the buildings in the central business district have now been demolished.

Currently, residents are rebuilding their houses or repairing their houses and quite a lot of subdivisions are being built, which will go on for the next two or three years. “There are many thousands of houses going up so we are busy

I think there will be growth in the New Zealand market across a number of sectors.

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- Ian Skipworth

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supplying residential type products to rebuild,” Skipworth said.

Nexans Olex has refurbished its warehouse in Christchurch, which was badly damaged in the earthquake. The company installed new equipment and stocked more products at the site and recently starting up a second facility to make sure not to run out of cables in the area as the demand is going to be very heavy and unpredictable.

“We want to be able to respond very quickly to any demand,” Skipworth said.

Plans for growthThe New Zealand market is expected to grow perhaps around 3 percent a year for the next 3-4 years. This year the company is spending close to $1 million on increased capacity in the factory for the manufacture of building wire, which is the product most often used in residential developments. In addition, over the past four years the company has spent about $13 million on new equipment.

“It’s a very competitive market,” Skipworth said. “I think there will be growth in the New Zealand market. We see a trend with customers as well – a lot of customers want to work with us on supply chain solutions in order to reduce their costs.”

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Major projectOne of the projects the company is developing at the moment is vendor managed inventory with strategic customers. That’s a process whereby the customer will hold the stock in their distribution center, but Nexans Olex will manage the customer’s stock levels. The customer sends a report each day to say they have shipped or sold this many products and Nexans come back with a recommendation

based on their historic stock profile and figure out how much they need to re-order. That way, the customer should never run out of stock.

“It also means that instead of holding lots of stock in all their branches around the country, customers can consolidate that and hold it in one distribution center which should mean better overall product availability for all their branches,” Skipworth said.

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Nexans OlexLeading manufacturer of electrical cables in New Zealand

STATISTICS

Visit us online:

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Company name: Nexans Olex

Industry: Energy, Manufacturing

Founded: 1967

Headquarters: New Zealand

Key people/tItles: Ian Skipworth, General Manager

produCts: full range of general purpose fixe, flexible and special purpose cables, specialist technical services and cable design

revenue: $100m NZD

employees: 170 (NZ)

WebsIte: http://www.nexans.co.nz/

- Ian Skipworth, General Manager for Nexans Olex New Zealand

Nexans Olex69 Paraite Road, Bell Block, New Plymouth 4383

Tel: +64 6755 9800www.nexans.co.nz