The deal is a first step for further developments in the utilities market.
The aim is to triple the turnover in the country in the next three years.

Prysmian sets off its first move in the expansion strategy in the Russian market by closing the acquisition of Rybinsk Electrocabel, one of the most dynamic Russian cable manufacturers.

“The deal is just the first step of a broader expansion project of our Group in the Russian market – explains Valerio Battista, Prysmian’s Managing Director -. Rybinsk’s assets represent an ideal platform from which we intend to develop further investments, with the objective of building local production capacity in high technology business areas such as High Voltage and Industrial cables. Our aim is to triple the turnover currently achieved in Russia in the next three years.”

Prysmian has acquired 100% of Rybinsk Electrocabel. The €11 million enterprise value account for approximately €2 million equity value and approximately €9 million Net Financial Position. In 2008 Rybinsk reported a turnover of approximately €36 million with a production unit located 350 km NE of Moscow, where 360 people are employed. Upon conclusion of Rybinsk Electrocabel’s assets acquisition, the second step of Prysmian’s plan in Russia includes the building of a new manufacturing unit dedicated to High Voltage cables. Currently, Prysmian serves the Russian High Voltage market by importing cables from other Group’s European factories.

The start up of the local production will represent for Prysmian an undoubted competitive advantage factor and will promote the strengthening of the Group’s presence in a market with a strong potential. Utilities and operators, involved in the upgrade and in the development of the power transmission grids, have planned investments with a value in excess of €10 billion.

After a downturn phase between 2008 and 2009 due to global crisis, the Russian cable market is expected to recover achieving a value of around €2 billion in the next three years, with a higher growth rate in the High Voltage market (source: Electrocable Association Russia). Among several projects in which Prysmian is already involved, the development of a High Voltage network in Saint Petersburg, while in 2007/2008 the Group collaborated with the upgrading of the Moscow transmission grid.

The investment in Russia follows other significant development projects undertaken by the Group in businesses with a high growth potential: the new High Voltage facility in North America, the production capacity increase in the High Voltage factory in China and other minor investments still in the cable market’s most strategic sectors.


Prysmian
A leading player in the industry of high-technology cables and systems for energy and telecommunication, the Prysmian Group is a truly global company with sales exceeding Euro 5 billion in 2008 and a strong position in higher value-added market segments. With its two businesses, Energy Cables & Systems (submarine and underground cables for power transmission and distribution, for industrial applications and for the distribution of electricity to residential and commercial buildings) and Telecom Cables & Systems (optical cables and fibres and copper cables for video, data and voice transmission), Prysmian boasts a global presence with subsidiaries in 38 countries, 53 plants in 21 countries, 7 Research & Development Centres in Europe, USA and South America, and over 12,000 employees. Specializing in the development of products and services designed to meet customers’ specific requirements, Prysmian's key strengths include: a focus on Research & Development, the capacity to innovate products and production processes, and the use of advanced proprietary technologies. Prysmian is listed on the Milan Stock Exchange in the Blue Chip index.

Investor Relations
Luca Caserta
Head of Investor Relations
Ph. 0039 02 6449.1
luca.caserta@prysmian.com