|History and Development of the Company |
The Company (Asia Pacific Wire & Cable Corporation Limited), formed on September 19, 1996, is a Bermuda exempted limited liability company which, through its operating subsidiaries, is principally engaged in the manufacture and distribution of telecommunications (copper and fiber optic) and power cable and enameled wire products in the Asia Pacific region, primarily in Singapore, Thailand, Australia and China. The Company manufactures and distributes its own wire and cable products and also distributes copper rod and wire and cable products ("Distributed Products") manufactured by its principal shareholder, PEWC. The Company also offers project engineering services in the supply, delivery and installation ("SDI") of power cables. Pacific Electric Wire & Cable Company, a Taiwanese company ("PEWC"), currently owns beneficially over 65% of the issued and outstanding Common Shares of the Company. SOF Investment, L.P. (MSD Capital L.P. is the general partner of SOF Investment L.P.) holds 9.8% of the issued and outstanding Common Shares. Approximately 25% of the issued and outstanding Common Shares are publicly traded on the OTCBB in the United States under the trading symbol "AWRCF".
Based on information published by the Thai Ministry of Commerce on sales by dollar value, the Company believes that it is one of the five largest producers of telecommunications and low voltage power cable and enameled wire in Thailand. Based on information on sales by dollar value provided by the Cable Association in Singapore, the Company believes that it is the largest or second largest supplier of power cable in Singapore. In 2009, approximately 42.1% of the manufactured products sold by the Company were sold by its subsidiaries in Singapore and Thailand, with the remainder sold by its subsidiaries or joint ventures in China and Australia.
In addition to selling its own manufactured products, in Singapore, the Company also sells Distributed Products, which largely consist of medium and high voltage power cable. In 2009, sales of Distributed Products accounted for 7.7% of the Company’s revenues. The Company’s SDI project engineering services accounted for 9.4% of the Company’s revenue in 2009.
The Company sells its cable products primarily to government agencies, telecommunications network operators and large construction companies and subcontractors bidding for government contracts. Telecommunications cable products manufactured by the Company are largely used as access lines to connect buildings and residences to feeder and trunk cables. Power cable manufactured by the Company is used primarily in power transmissions for public lighting, outdoor installations and in and to commercial and residential buildings. Enameled wire is sold primarily to private sector manufacturers of electric motors for use in various consumer appliances. The Company maintains local sales personnel in each country where it has manufacturing operations, and export sales are conducted through independent suppliers as well as the Company's own sales personnel. The Company principally competes on the basis of product quality and performance, reliability of supply, timely delivery, customer service and price.