Ramping up production and honouring commitments

THE IMPACT OF 5G

There is much discussion today about the impact of 5G on fibre network infrastructure. Even though the 5G protocol is still being discussed, Verizon - always very forward-looking - are already taking action and investing in support of future developments.

Andrea Pirondini

CHIEF OPERATING OFFICER, PRYSMIAN

For Verizon, securing availability of fibre cables is a critical success factor for meeting future demand and facilitating new services and technologies. Asking Prysmian to provide huge volumes of cable in the coming years is huge commitment. We feel it is our duty to invest in production to guarantee this supply.

Operational investments

Prysmian has a solid reputation in fibre and this gives clients a certain security. We can guarantee availability of raw material and fibre, even though there’s a shortage in the market today, allowing us to honour our commitments to each customer. During a recent analyst Q&A session we explained that Prsymian had expanded its commitment to the telecom business over the past three years. We have redefined our geographical footprint in Europe as well as North America. Small, non-competitive factories have been closed and we have invested in modern factories that produce fibre and optical cable components.

We’ve targeted the bulk of investments towards three key facilities: Slatina, Romania and Presov, Slovakia. Besides extensively revamping here, we’ve opened a brand-new state of the art factory in Durango, Mexico. Capacity at our US factories has also been ramped up, particularly in Lexington and Claremont. Over the last 3 years we have progressively increased our investment in the Telecom business in Europe and North America, and we foresee the opportunity to invest additional 300 Ml Euro between 2017 and 2020.

Guarantees for the future

Prysmian wants to offer innovative technological solutions for the dynamic evolution of broadband and telecoms networks, in which new technology platforms and services are constantly appearing. As 5G adoption grows and fibre demand expands accordingly across different territories, we will still be able to deliver. Organic, steady growth is very manageable, but this kind of growth is a different matter altogether. However, I have been looking into ways of sourcing materials and further expanding production capacity. Regardless of demand, we know we’ll be able to keep offering key customers the quality and service they’re used to.