BICC plans cable joint venture
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Sameena Ahmad
BICC is attempting to rescue its troubled German cable operations by forming a 50:50 joint venture with NKF, the Dutch cable group. The merger of both companies' energy and metallic telephone cables businesses in Germany will involve 600 job losses, half the combined workforce, and will cost BICC pounds 15m.
Analysts said the move would improve efficiency and reduce costs in the highly competitive German cables market. BICC and NKF have been suffering from falling prices and overcapacity in Germany. Relief that BICC was taking action boosted the group's share price by 8p to 177.5p. However, some analysts were disappointed the company had not struck a deal with a bigger, more pan-European player. One said: "This should help ease the pain in Germany, but it does not go far enough."
BICC reported a near halving of cables profits in Europe when it published its interim results last week. Then, the group announced another 350 job losses at its Italian operations.BICC has cut its German workforce to 700 from more than 2,000 over the past two years.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments