Japanese Cable Industry

Transcription

1 The Outlook for the copper and copper alloy industry in Japan - The Electrical Sector Japanese Cable Industry 30 Oct. 2008, Kyoto Kazuhiko Ohashi Chairman The Japanese Electric Wire & Cable Makers Association (JCMA)

2 Agenda 1. Outline of Japanese cable industry 2. Introduction of JECTEC 3. CO2 emissions reduction by increased conductor size 1

3 Outline of Japanese Cable Industry (2007) Number of Companies ; About 400 (134) Number of Employees ; Production quantity ; 21,600 (Incl. fibre cable)* * Ministry of Economy, Trade & Industry (METI) 856,000 tonnes (copper) 24,000 tonnes (aluminium) 31,849,000 core-km (fibre) Turnover ; 1,666,000 million yen (metal) + 328,100 million yen (fibre) = $16,900 million (Source:JCMA) 2

4 (Thousand tonnes) 1,400 1,200 1, Progress of Domestic Shipments Production Quantity of Wire & Cable (Copper) in Japan Export Other Domestic Automobile Power Telecom m unication Electric M achine & A ppliance C onstruction & W holesaler (Souce :JCMA) 3

5 Production of insulated wire & cable in major countries (Thousand tonnes -C onductor w eight) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 (1996~2007) China U.S.A Japan Italy (Souce:IC F ) 4

6 Reasons for the decrease 1 Recession & economic slowdown after the burst of bubble in early 1990 s 2 Shift of plants from Japan to overseas countries ( = Globalisation ) 3 Increase of import of electric wire and cable 4 Technical innovation (miniaturisation & substitution) 2 & 3 are the most important & primary reasons for decrease 5

7 Trade of Cable of Japan Export & Import of Insulated Wire & Cable of Japan 650 (billion yen) 550 Im po rt Export (Source:MOF) 6

8 Main Trading Partners of Japan (2007) Export & Import of insulated Wire & Cable of Japan U.S.A 3.7% Europe 2.0% O thers 5.7% Thailand 5.5% Indonesia 7.3% Philippine 11.8% Vietnam 14.1% Import 608 billion yen China 50.0% Malaysia 4.3% Europe 6.1% O thers 32.0% Philippine 7.6% H ong K ong 9.5% China 26.2% U.S.A 14.2% Export 263 billion yen (Source : MOF) 7

9 Location of Overseas Japanese Cable Plants Number of plants July, 2007 Asia 227 (75% of total) Europe 32 North America 28 Others 13 Total 300 China 91 Thailand 27 Malaysia 22 Indonesia 21 Hong Kong 14 Vietnam 13 Taiwan 12 Philippines 12 Others 15 (227) (Source : JCMA) 8

10 Sales of Overseas of Japanese Nonferrous Materials Plants 20,000 (H undred m illion) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, % 50% 40% 30% 20% 10% 0% Domestic Out-in O ut-out E xpo rt ratio (righ t sc ale ) O u t- in ra tio (right scale) ( S o urce : M E T I ) 9

11 Japan Electric Cable Technology Center Inc. Location : HAMAMATSU, SHIZUOKA Establishment : February 8, 1991 Employees : 32 Annual Budget : approx. 400 million yen Site : approx. 13,000m 2 Membership : Regular members 71 Supporting members 40 10

12 Mission of JECTEC Supporting Environmental-friendly Globalization Electric Wires and Cable 1 Research and Development 2 Certification Services 3 Testing Services 4 Education and Information Services 11

13 Amount of Copper for Power Transport Cables (From Power Plants to Customer s Loads) Type of Cable Overall Length Amount of Copper (1)Power company Power transmission Power distribution ACSR (Aluminum) Extra high voltage CV High-voltage CV OC, OW 90 thousand km 1.3 million km 1.2 million tons (Aluminum in copper equivalence) (2)Building/factory Low-voltage CV-T 1.7 million km 3.5 million tons (3)House VVF 27 million km 1.5 million tons Three times JCMA focused its attention on low-voltage CV-T containing 3.5 million tons of copper, 3 times that of power transmission and distribution cables, and believed that such CV-T causes a great amount of electrical loss. An estimate has been conducted. 12

14 Loss Reduction by Increased Conductor Size of Low-Voltage CV-T <JCMA s Estimate> Power Plant Customers Loads Loss by transmission and distribution cables Amount of generation 68 billion kwh 971 billion kwh (7%) (100%) (Building/factory) Loss in customer s premises 70 billion kwh (7%) Increased size If increased conductor size is completed (20 years later), Loss in customer premises will be halved To 35 billion kwh (3.5%). Increased conductor size Conductor Insulant Sheath This leads to 1% reduction in the total CO 2 emissions in Japan. CV-T 100 mm2 CV-T 200 mm2 13

15 Expected Effect by Increased Conductor Size (1) Economically advantageous to customers An increase from 38mm 2 to 100mm 2, for example, results in a significant reduction in running costs (power charges resulting from 20 years electricity loss), despite an increased initial cost (cable costs). The sum of both leads to a minimum of life cycle cost at 100mm 2. Cost (Yen/m) CV-T 38mm 2 CV-T 100mm 2 (Balance ) (1) Initial cost 1,300 3,300 (2,000) Life cycle cost Initial cost Running cost (2) Running cost (for year) (285) (3) Running cost (for 20 years) 9,200 3,500 (4) Life cycle cost ((1)+(3)) 10,500 6, mm2 100 mm2 Conductor size (For information) Years of depreciation 2,000 divided by 285 = 7 years (2) Significant CO 2 emissions reduction 1% reduction for all customers across the country (3) Increase of copper demand 0.2 million tons annually 20 years = 4 million tons JCMA & JECTEC got the Japan Copper Development Center Prize in

16 The Outlook for the copper and copper alloy industry in Japan - The Electrical Sector Thank you 15