Italy's Prysmian opens China office, sees fast growth

BEIJING, June 25 (Reuters) - Italian cable maker Prysmian SpA (PRY.MI: Quote, Profile, Research) said on Wednesday it was consolidating its five businesses in China under one holding company, which would help it boost sales 50 percent to around 230 million euros by 2010.

Europe's third-biggest maker of electrical components is spending about 100 million euros from 2002 to 2009 in China to reach that revenue growth goal, Chief Executive Valerio Battista told reporters.

The company had turnover of 150 million euros last year in China, one of Prysmian's fastest growing markets.

However, it was difficult making a profit, said the chief executive.

"The Chinese market ... means big volumes, low price and little margins," said Battista. "Those are the rules of the Chinese market, and we accept those rules."

Battista said the company had 100 million euros in cash and another 1.6 billion euros available through financing to fund acquisitions in fast growth markets India, China and Russia.

The comments come after Prysmian agreed to a $135 million deal to supply flexible pipes for offshore oil and gas extraction to Brazilian oil company Petrobras SA (PETR4.SA: Quote, Profile, Research) earlier this month, allowing it to expand in the oil and gas services industry.

U.S. investment bank Goldman Sachs (GS.N: Quote, Profile, Research) owns a majority of Prysmian's shares. South Korea's Taihan Electric Wire (001440.KS: Quote, Profile, Research) bought 9.9 percent last November. ($=6.86 yuan) (Reporting by Kirby Chien)