Wirenet Image Band
wirenet.org mobile image band

Wire Journal News

NKT plans to invest up to €100 million in additional production capacity and capabilities at its medium-voltage factories in Denmark, Sweden and Czech Republic to meet growing demand from customers for medium-voltage power cables required for grid upgrades and renewable energy projects across Europe.

A press release said that the medium-voltage power cable market has grown steadily in recent years driven by the transition to renewable energy and the continued electrification of societies. Electrical grid operators are in the process of conducting major upgrade projects to keep apace. In response, NKT is investing in additional medium-voltage capacity and capabilities spread across three of its production sites in Asnaes, Denmark; Falun, Sweden; and Velke Meziříčí, Czech Republic. The investments in Falun and Velke Meziříčí have started while the investment in Asnaes is now initiated.

“NKT is well positioned ... to strengthen our position as a key partner to our customers in the green transition of societies,” said NKT EVP Head of Applications Carlos Fernandez. “As more renewable projects come online, a major upgrade of the European power grid is needed. Current medium-voltage production and installation capacity is not sufficient to meet the increasing demand in the market. The investments will support NKTs continued growth journey in line with our strategic ambitions and enable vital grid upgrades and renewables projects across Europe.”

In recent years, the Applications business line has optimized its factory footprint across geographies to increase efficiency and specialization. With this process successfully completed, focus has shifted towards expansion of the medium-voltage sites. The investments will add 20-110 kV production capacity and capabilities and further progress layout optimizations of the factories.

The investments across the three sites will strengthen NKTs market leading position. The new production capacity is anticipated to be progressively operational in 2025 and 2026 and the investments will lead to the additional recruitment of around 150 new colleagues. The investments are expected to support NKT’s medium-term financial ambitions including delivering RoCE above 20%.

South Korea’s Taihan Cable & Solution Co. reports that it has been awarded a project worth more than $80 million for replacement of an outdated power grid in the U.S.

Per a press release and multiple media reports, including The Korea Economic Daily, the project is designed to replace the aging power infrastructure with a new one in the southeastern state of Florida in anticipation of increasing power demand in the region. Taihan will be removing existing cables and supplying a 230 kV EHV power grid as a full turnkey service.

The press release said that winning the bid was helped by having a proven track record in executing projects in the U.S. Its proposal for the replacement of aging power grids was instrumental in moving the project forward. For the New York project secured last year, a unique installation method with a U.S. patent was introduced to showcase laying technology tailored to the urban environment.

By securing this deal, the company has brought its cumulative order value for the year to more than US$145 billion in the U.S. alone. “In just one quarter, Taihan has already achieved half of its record annual orders in the U.S. from fiscal year 2022 of nearly $290 million. While rising electricity consumption and the expansion of renewable energy sources are driving an increase in the demand for power networks across the U.S., over 50% of the existing transmission infrastructure has surpassed 40 years of service, exceeding its life cycle, giving rise to strong anticipation of additional orders to follow.

News of Prysmian’s April 15 agreement to acquire Encore Wire for approximately $3.9 billion—the largest-ever such wire and cable industry deal—quickly circulated on the opening day of wire Düsseldorf in Germany, where some attendees were utterly stunned by the unexpected report.

A press release said that the addition of Encore Wire’s huge vertically integrated, single-site campus in McKinney, Texas, that produces a broad range of copper and aluminum electrical wire and cables, is highly complementary to Prysmian’s strategy. It “will allow Prysmian to increase its exposure to secular growth drivers, enhance its exposure to North America, leverage Encore Wire’s operational efficiency and best in class service across Prysmian’s portfolio, broaden Prysmian’s product offering enabling the combined company to better address customers’ needs in North America and generate ~€140m in run-rate EBITDA synergies expected within four years from closing.”

Massimo Battaini, Prysmian designated Group CEO, described the deal as a landmark moment. “Through this acquisition, Prysmian will grow its North American presence, enhancing its portfolio and geographic mix, while significantly increasing the exposure to secular growth drivers. We look forward to welcoming the Encore Wire team to Prysmian and benefitting from the combined company’s enhanced product offerings and customer relationships.”

“We are pleased to have reached an agreement that reflects the remarkable value Encore Wire has created with our expansive single-campus model, low-cost production, centralized distribution and product innovation,” said Daniel L. Jones, Encore Wire’s chairman, president and CEO. “Encore Wire and Prysmian are two highly complementary organizations, and we anticipate a bright future for Encore Wire as part of Prysmian. ... As part of a larger, global operation, we expect this transaction will bring additional future opportunities for our employees, whose dedication and hard work made this transaction possible. We look forward to working with Prysmian to complete this value-enhancing combination and realize the significant benefits that we expect it will bring to all of our stakeholders.”

The transaction, which was unanimously approved by each company’s Board of Directors and recommended to its shareholders by Encore Wire’s Board of Directors, is expected to close in the second half of 2024. The sale is subject to the approval of Encore Wire’s shareholders, regulatory approvals and other customary conditions.

At wire Düsseldorf, some attendees questioned the fit between the two entities, each of which is very successful, yet having different business approaches. Of note, Prysmian—founded in 2005 through the acquisition of the energy and telecom cables and system activities of Pirelli—does have a track record of making periodic major acquisitions. That includes the 2011 purchase of Draka Holding for €840 million and the 2017 purchase of General Cable for approximately $3 billion.

Elite Harness plans to refurbish an existing facility in Wellington, Kansas, to produce wiring harnesses and custom cables for various sectors, including automotive, industrial, agricultural, aerospace, and other industries requiring electric connections.

A press release said that the company plans to invest $14 million in the initiative, which is expected to create 110 jobs. It plans to convert an existing plant into a 50,000-sq-ft manufacturing plant. Elite Harness will produce wiring harnesses and custom cables for various sectors, including automotive, industrial, agricultural, aerospace, and other industries requiring electric connections.

“We have a sister company (in) Tulsa, so we considered building there, but the State of Kansas and Sumner County really stepped up to the plate and made Wellington a wise choice for us,” Elite Harness President Nathan Smith said in a news release. It notes that the wiring harness and custom cable market is a $90 billion industry poised for significant growth over the next 10 years.

Last October, the Prysmian Group presented the launch of the Group’s new business strategy, Connect to Lead. Now, the world’s largest cable business is furthering that mission with a rebranding—a manifesto—that reflects its vision and goals for the next five years.

A press release said that the initiative “aims at capitalizing on the company’s market position to seize the opportunities offered by the new market trends that are currently shaping the cable industry.” It will allow Prysmian “to transform the Group from a cable player into a cabling solution provider and to lead the energy transition and the digital transformation.”

Per the company, its new brand “represents the energy and technology that moves us towards a more sustainable way of living, in every corner of the planet.” Prysmian’s strong new logo captures the name, mission and legacy of the company, ensuring its recognition and amplifying its distinctive identity. The new logo, in fact, represents all the essential aspects and elements of Prysmian’s identity: the pathways, the shift, the gradient and the circularity.

The logo, primarily developed digitally, reflects the brand’s determination to embrace new strategies and a new corporate purpose. The symbol shape reveals a hidden ‘p,’ in addition to recalling the circular economy concept, while the blue-to-green gradient color reflects the Group’s commitment to the development of renewable energy. The iconic logo, interpreted with a contemporary and dynamic design, connects the concepts of tradition and evolution. The entire visual system and the new payoff “The Planet’s Pathways” embody the role that Prysmian aims to play in shaping a better future and in paving paths for an increasingly sustainable and digital future for our planet.

“Through this rebranding, we are aligning Prysmian’s image to the changes the Group is undergoing and to the rapid evolution of our industrial sector, an evolution we intend to lead,” said Maria Cristina Bifulco, chief investor relations, sustainability and communication officer, Prysmian. “The global challenges and opportunities we are facing require us to put our organization’s strength and expertise at the service of our customers, partners and all our stakeholders to drive new forms of energy and information to every corner of the Earth.

“Together, we can navigate the way forward. And that’s exactly what Prysmian wants to convey with its new payoff, The Planet’s Pathways. This is what inspires our future moves and what guides us in reaching our purpose.”


Contact us

The Wire Association Int.

71 Bradley Road, Suite 9

Madison, CT 06443-2662

P: (203) 453-2777