Habia Cable AB

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Business areas:
TELECOM. Cables for mobile telecom applications.
OTHER INDUSTRY. Cables and cable harnesses for defense, nuclear power and other industry.

Habia Cable is a leading manufacturer of custom-designed cables. Many of the company’s cables are used in high-tech applications in harsh environments – such as nuclear power plants, military applications and advanced industrial components. Habia is a global market leader in mobile telecom cables. Its products are used for signal transfers in base-station antennas and are sold in 25 markets.

Habia Cable develops, designs and manufactures customized cables and cable harnesses. Its operations are divided into two business areas: Telecom and Other Industry, which includes nuclear power, defense and other manufacturing industries. While many products in the industrial and defense segments are customized, telecom cables – which is Habia’s single largest product area – are relatively standardized.

Strict performance requirements

Many of the company’s products are made from durable, high-performance materials. Most of its cables and cable harnesses are used in high-tech applications in harsh environments with rigorous performance requirements.

In nuclear power plants, military applications or advanced industrial components, Habia’s products must, for example, be able to withstand high or low temperatures, radioactivity, pressure, vibrations or extensive bending. Habia has a high level of technological and application know-how in all areas from design to production.

Competitive advantages:

  • High service level.
  • Short delivery times.
  • Flexible production.
  • Local presence in Europe and Asia.

Flexiblle production

Habia has production facilities in Sweden, China, Germany and Poland. Since custom-designed cables are often manufactured in smaller volumes, the company’s production operations must be highly flexible. The largest facility is located in Söderfors, Sweden, and accounts for 42 percent of the company’s manufacturing volumes. Using low-cost production in China, Habia is able to supply this market with locally manufactured products. Access to low-cost production has ensured the company’s competitiveness in the telecom sector, where Habia is currently one of the few Western cable manufacturers.

Performance in 2013

  • Invoicing amounted to MSEK 624 (632). Operating profit totaled MSEK 53.2 (61.9) and the company’s operating margin was 9 percent (10).
  • Demand in the defense and industrial segments weakened during the year. The defense budgets in many countries are being cut back, mainly due to declining government finances. At the same time, the industrial economy remained weak, particularly in the Nordic region and the UK.
  • The trend in telecom was strong. One important reason for this was the expansion of the 4G network, which is boosting demand for telecom cables in Europe, Asia and the US. The total market increased, and Habia was able to capture market shares.
  • The company’s focus on the nuclear power market continues. Habia’s modern concepts for safety-rated cables are attracting growing interest. While several ongoing deals were delayed in 2013, Habia also received new orders toward the end of the year.
  • With respect to cable harnesses, Habia has enhanced its expertise and capacity in underwater technology, which contributed to increased order bookings and invoicing.
  • Invoicing amounted to MSEK 231 in Telecom and MSEK 393 in Other Industry.