Luis Adame
Commercial Director
General Cable Latin America
/
Insight

Transferring Wire Knowledge to Mexico

Wed, 02/21/2018 - 16:03

As Mexico rewires its energy sector, the country’s authorities are setting the stage to revamp its electric infrastructure, with more than 400 electric transmission and distribution projects outlined by PRODESEN. One company poised to take advantage of the groundbreaking Energy Reform: General Cable, one of the world’s main producers of cable with more than 170 years of history in the Americas, going back to the days when it supplied the cable for the first telegraph wires in the US.

“The Energy Reform brought about great opportunities for many companies in terms of new multinational foreign companies coming to invest in Mexico, bringing with them new technologies with different specifications,” says Luis Adame, Commercial Director of General Cable.

Outside companies that developed their business in now mature electricity markets are looking to implement this know-how to the benefit of propelling Mexico’s electric system to the heights of international standards. General Cable has an award-winning plant in Tlaxcala, where it produces among other products high-voltage cables, as well as a distribution center in the State of Mexico. “Our company has the advantage of knowing and being able to provide the high-added value products these new players need to prosper in the Mexican energy market,” says Adame. “One of the main players of the global energy sector setting its sights on Mexico, with whom we are involved, is Iberdrola. We are looking forward to getting the most out of this opportunity.”

According to Adame, the Spanish energy company has an estimated package of US$3 billion in investments planned in cogeneration plants and renewables like solar parks and wind farms. International players are used to working under certain quality standards and will not expect less from the Mexican market. This added competition is putting pressure on CFE as it finalizes its consolidation as a productive enterprise of the state. Now that this process is coming to a close, CFE has to prioritize strategies that provide added efficiencies to its operation and develop profitable business lines. “CFE is currently developing some high and extra-high voltage direct current projects, primarily in the south of Mexico,” says Adame. “We will provide our technology, developed and operating in Europe, for these projects from our Tlaxcala plant.”

CFE’s new status adds an additional layer of complexity in its relationship with the private sector, given that it can simultaneously be its client, competitor or partner. According to Adame, the Energy Reform has not changed the company’s relationship with CFE. “We keep working with it on the projects it signed with us,” says Adame. “Recently, we went further in our relationship with the development of our exclusively patented E3X product. At the moment, it is the only aerial conductor with heat-dissipating technology that optimizes the energy grid, adding greater capacity and controlling energy loss.”

Ambitious and attractive projects are emerging as a result of CFE’s transmission and distribution bids, as well as the projects outlined by PRODESEN, and both local and international investors are taking note. “You need to identify the projects for which you can provide the right product and generate added value, such as reduced costs, greater safety or disruptive technologies,” Adame says. “We try to approach end users directly to introduce the difference our products and services can make for their business.”

The company’s management considers one of its principal strategic advantages to be its close knowledge of international standards while producing in Mexico. According to Adame, General Cable’s major differentiator is implementing knowhow from different regions of the world in Mexico, while many of its international competitors only import products into the country. “We are supplying and developing for Mexico the same technology that we use in Europe,” says Adame.