2017 Yearly Overview | Prysmian Group

CUSTOMER CENTRICITY: OUR KEY TO SUCCESS PRYSMIAN GROUP 2017 YEARLY OVERVIEW In2017totalinvestmentsroseto€257million from €233 million in 2016, while additional financial ammunition was secured thanks to two key loans: €110 million from the European Investment Bank (EIB) to support the Group's R&D programmes in Europe over the period 2017-2020; and €100 million from Italy’s Cassa Depositi e Prestiti to fund expenditure on research, development and innovation, as well as on energy efficiency and environmental stewardship. Capital expenditure during the course of 2017 concerned projects that will increase and technologically upgrade production capacity and develop new products and markets. €124 million (52% of the total) was a result of the completion of the acquisition of assets formerly owned by Shen Huan Cable. This acquisition’s aim is to provide our customers with all possible high-voltage cable technologies by creating a centre of excellence in China, serving the entire Far East region. The High Voltage business also saw an increase in production capacity at the Gron plant in France for cables up to 2 km in length, in order to meet the ever- growing demand for long-distance direct current power lines. In Argentina, installation of a production line for cables with welded aluminium sheaths is reaching conclusion, while in the submarine cables arena a new vertical extrusion line was completed in Pikkala, Finland, in order to manufacture the COBRA submarine cable to be used between Denmark and the Netherlands. Capacity at the Durango automotive plant in Mexico has also increased in order to serve local automotive component suppliers better. In Europe, the Group initiated additional investments at the Douvrin and Battipaglia plants with the purpose of augmenting production of single-mode fibre, serving the continent's optical telecom cables market. INVESTMENT BOOST SECURED Financing agreements reached with the EIB and Italy’s Cassa Depositi e Prestiti, have resulted in additional funding for research and development of new innovative products and solutions, while capital spending has increased and technologically upgraded our production capacity.