For NKT, the large order backlog and the accelerated transition to renewable energy provides opportunities for future growth
NKT is expanding its high-voltage production sites to execute on a record high order backlog and to prepare for growing market demand for power cable systems driven by the transition to renewable energy.
In 2020, NKT was awarded large high-voltage power cable projects for EUR 2.3bn supporting the transition to renewable energy including a substantial part of the German Corridor Projects designed to transmit green power from across the country. For NKT, the large order backlog and the accelerated transition to renewable energy provides opportunities for future growth and the company is investing more than EUR 150m in its high-voltage power cable manufacturing and logistics.
– The growing focus on renewable energy is already a key driver in the power cable market and it is a natural step for us to continue to develop our high-voltage power cable capacity, capabilities and technology. We are preparing both for future growth and for the execution of our large order backlog of offshore wind and interconnectors projects, says Alexander Kara, CEO in NKT.
For NKT, the investment program includes a new high-voltage power cable test centre in Cologne, Germany, and the construction of a new extrusion tower for the production site in Karlskrona, Sweden as well as ongoing investments for new machinery and a specially designed barge for transporting offshore power cables on the river Rhine.
– In combination with the test facility in Cologne, the extrusion tower in Karlskrona will stand as a lighthouse of our position in the green transformation. It will also mark our leading position within XLPE and HVDC technology being essential for the expansion of offshore wind and to prepare the global power grids for the future demand of green energy, says CEO Alexander Kara.
NKT operates two high-voltage production sites in Cologne and Karlskrona which are both strategically well-positioned to support the increased offshore wind activity in Europa. They are also both powered with 100% green electricity ensuring a low carbon footprint of the power cable systems as well as for the project logistics.
Source: Company Press Release