Japan’s Sumitomo Corporation announced that it has received “the golden License” to build the largest factory worldwide for the production of electric vehicles’ (EVs) wiring harness in Egypt with around $100 million in investment, according to a statement by General Authority for Investment and Free Zones (GAFI).
The project, announced last September, calls for the site to extend over an area of 150,000 square meters under the free zone system. It includes a raw material storage warehouse to be used as a distribution hub for North and Middle Africa. Production is set to be exported to global manufacturers of cars in Europe and the Middle East. During a recent meeting, GAFI
CEO Hossam Haiba and officials from Sumitomo discussed the company’s expansion plan in Egypt for coming period as well as the aspects of support provided by the Egyptian government to back the Japanese company’s investments.
Industry News
NKT announced plans to build a new factory, including a third extrusion tower in Karlskrona, Sweden, and a new market-leading power cable vessel.
A press release said that the investments are driven by an increasing demand for high-voltage power cables, strong order intake and a record order backlog of more than €7 billion at the end of Q1 2023. Since March 2023, NKT has confirmed high-voltage contract awards and booking commitments of more than €5 billion. “To deliver on this significant order intake, prepare for the continued strong market outlook and execute the record high order backlog, NKT will invest around €1 billion in its high-voltage power cable business.”
The investments will include a new CLV with record power cable-laying capacity and a significant extension of the Swedish production site in Karlskrona. “Here, NKT will build a new factory including a third 200 m extrusion tower adding end-to-end production capacity next to the existing facility. This will turn the site into the world’s largest high-voltage offshore cable production site.”
Driven by the previous investment program, more than 300 new employees have joined the Karlskrona factory since 2020. Now, NKT expects to welcome more than 500 new employees at the Swedish site towards 2027 following the investments.
Citing the need for more high-voltage cable production and installation capability, NKT President and CEO Claes Westerlind said that the company will continue to grow “in line with our strategic ambitions and to continue developing our turnkey power cable offerings to our customers.”
NKT will invest about €1 billion from 2023 to 2026. The new assets cited above will be operational from 2027. The investment program continues the lead of prior actions. In 2020, NKT initiated an investment program in its high-voltage factories driven by a major backlog of business won for German corridor projects and a positive market outlook. A key part of the program was to add a second extrusion tower to the Swedish factory in Karlskrona which has been completed. Additional investments were announced in 2022 following the continued positive market development.
LS Cable & System (LS C&S) has completed what it described as Asia’s largest high-voltage direct current (HVDC) underwater cable production plant in Donghae, Gangwon Province, South Korea.
A press release said that the Donghae plant, named Submarine Building 4, is a 172-m-tall vertical continuous vulcanization (VCV) tower with a total floor area spanning 34,816 sq m. Approximately $141 million was spent since construction that started in July 2021.
Since building South Korea’s first submarine cable plant in 2008, LS C&S has made significant investments in its submarine business. The company also recently purchased stakes in KT Submarine, a submarine cable maker, becoming the largest shareholder (43.8%).
“The completion of this HVDC plant will serve as an accelerator for growth in the era of energy transition and the rise of the power industry,” said LS C&S CEO Koo Bon-gyu. “We will contribute to the advancement of the electric power industry through the construction of efficient energy networks and the enhancement of national competitiveness.”
Last December, LS C&S won a contract to supply HVDC cables to the Vanguard Wind Power Complex in the U.K., Korea’s largest cable deal signed to date in Europe.
More than 100 key persons—including LS Group Chairman Koo Ja-eun, LS Corp, CEO Myung Roe-hyun and LS C&S CEO Koo Bon-kyu —attended the completion ceremony.
Nexans announced that it has completed its acquisition of Reka Cables, a Finnish manufacturer of high-, medium- and low-voltage cables from Reka Industrial.
A press release said that the acquisition marks an additional milestone of Nexans’ ambition to become a pure electrification player committed to contribute to carbon neutrality by 2030, focusing on the overall value chain.
Reka Cables, headquartered in Hyvinkää, Finland, has been providing high-quality cables to customers in the energy, infrastructure, and building sectors for over 60 years. The company operates three manufacturing plants in Finland which will be complementing Nexans’ existing operations in Sweden and Norway. In 2022, Reka Cables reported current sales of €172 million and an EBITDA of €11 million.
Lars Josefsson, general manager BU Nordics, Nexans, lauded the acquisition. “Together we can do even more to solve the greatest challenge of our time, the climate transition, and accelerate electrification both here in the Nordic region and the rest of the world.”
Josefsson said that one of the sustainability goals of Nexans is that 95% of everything sold in the Nordic region be produced in the Nordic region by 2025. “By the integration of Reka, we reach 90% local production, and are well on our way to reaching the goal ahead of time.”
The Wire Association International (WAI), Inc. reports that INTERWIRE 2023 made a successful return to its biennial schedule at the Georgia World Congress Center, Atlanta, Georgia, USA, May 9-11. The exposition and conference engaged 3,184 wire and cable industry professionals representing 43 states and 42 countries at its first in-person showing since 2019.
Attendance included representatives from 285 wire and cable manufacturing operations.
Keynote presenters Srinivas Siripurapu, Chief Innovation and R&D Officer, Prysmian; and Rich Stinson, President and CEO of Southwire Co., drew much interest on May 9 and May 10, respectively, with their insights on an electrified future. At the Awards Ceremony Mr. Stinson received the inaugural WAI Champion Award, which honors an industry executive for his/her strong support of The Wire Association and its mission.
EXHIBITS
335 exhibiting companies participated at INTERWIRE to showcase the latest products and developed technologies available to wire and cable manufacturers; 80 product categories were represented. WAI introduced more than 30 new exhibiting companies to the INTERWIRE this year.
HIGHLIGHTS
Other features included two presentations by former astronaut Mary Ellen Weber sharing her experiences of space flight; as well as segments on Industry 4.0, the Workforce, Extrusion/Polymers, Industry Outlook; technical sessions; a Mordica lecture; and production solutions demonstrations. New for fun and networking this year were the Welcome Reception at Mercedes-Benz Stadium; the in-hall Beer Garden, sponsored by Rainbow Rubber; and the Cornhole Zone, sponsored by James Monroe Wire & Cable Corp.
WAI’s popular Fundamentals of Wire Manufacturing course—offered as a pre-show option on May 8—had record-breaking attendance, engaging 209 participants.
Commenting on the activities 2023 WAI President Kurt Breischaft said, “Being back in Atlanta for Interwire this week has been awesome! Record attendance at our Fundamentals of Wire Manufacturing course underscores the continued need for the Wire Association International’s focus on education. Having technical experts willing to share with others is the heart of WAI.”
Interwire sponsors and support*:
Elite level: Encore Wire Corp.; James Monroe Wire & Cable Corp.; Lloyd & Bouvier Inc.; Prysmian Group; Rainbow Rubber and Plastics Inc.; SDI LaFarga COPPERWORKS; and Southwire Co. LLC.
Platinum level: Carris Reels Inc.; Davis-Standard LLC; Gem Gravure Co. Inc.; and Wire & Plastic Machinery Corp.
Gold level: SAMP Group and Sonoco Reels & Spools
Silver level: Enkotec Co. Inc.; Insteel Wire Products; The MGS Group; Niehoff Endex North America;
RichardsApex Inc.; SIKORA International Corp.; and Troester Machinery Ltd.
Bronze level: Baum’s Castorine; Fort Wayne Wire Die; and Precision Reel/Payoffs
* The Wire and Cable Industry Suppliers Association (WCISA) is an industry partner with WAI.
EVENT BACKGROUND:
Introduced in 1981, INTERWIRE is the largest and longest-running wire and cable marketplace in the Americas. Hosted biennially, Interwire is an international trade event that includes exhibiting companies, speakers, and visitors from around the world.
WAI, founded in 1930, is a not-for-profit association with more than 2,200 individual members in 50 countries. The association serves the educational needs of the wire and cable manufacturing industry through a variety of products and services. WAI manages the Interwire Trade Exhibition and the WAI Operations Summit & Wire Expo and publishes the Wire Journal International and the Wire Journal International Reference Guide.
Media Contacts: Janice E. Swindells, Director Marketing & Corporate Communications, This email address is being protected from spambots. You need JavaScript enabled to view it., Tel.: 001-203-453-2777, x. 117; Steven J. Fetteroll, Executive Director, This email address is being protected from spambots. You need JavaScript enabled to view it., Tel.: 001-203-453-1777.
South Korea’s LS Cable & System (LS C&S) will supply submarine cables worth approximately $85 million to the Taiwan Power Company (TPC) for a wind farm to be built off the west coast of Taiwan.
A press release said that the order is from Foxwell Energy, an energy enterprise based in Taiwan and the builder of the upcoming construction project. Taiwan will complete a 5.5 GW wind farm as the first offshore wind farm construction project by 2025, and develop an additional 15 GW wind farm by 2023. To produce 1 GW of electric power, a nation needs to build about 20 nuclear power plants.
By winning this contract, LS C&S won the right to supply ultra-high-voltage submarine cables for all eight sub-projects in the first offshore wind farm construction project in Taiwan. The total contract amount so far has reached about 900 billion won (US$697 million).
Per an article in BusinessKorea, an LS C&S official said that the size of additional submarine cable orders to be placed, starting this year, is expected to reach about 2 trillion won ($1.5 billion). “Based on our overwhelming submarine cable manufacturing capabilities and experience, we are seeking to expand our business through cooperation and market development with KT Submarine.”
LS C&S recently acquired a stake in KT Submarine, a company specializing in installing submarine cables, to strengthen its capabilities. LS C&S has also further strengthened its cooperation with other global offshore wind business operators such as Ørsted and CIP based in Denmark, Jan De Nul based in Belgium, and WPD based in Germany through their respective projects as it continues to accelerate its expansion in the European and North American markets.
Elektrisola announced that it has acquired Rea’s North American magnet wire assets, including its five manufacturing plants in Indiana, Connecticut, Virginia and Mexico as well as its leased corporate offices in Fort Wayne, Indiana.
A press release said that Elektrisola plans to continue operating the business under the well-known brand of Rea Magnet Wire, and will continue to employ the current employees. “Rea is a great addition to complement our magnet wire activities in North America and to continue the successful growth of the Elektrisola Group,” said Elektrisola Managing Owner Detlef Schildbach.
“When you assess our complementary strengths, Rea and Elektrisola are a perfect match,” said Jim Shea, a former major shareholder of Rea Magnet Wire. “Customers will directly benefit from our combined operational excellence and technological expertise in systems and products.”
Elektrisola notes that the company is the world’s largest manufacturer of enameled copper wire finer than 0.15 mm. Founded in 1948 in Germany, Elektrisola currently has 14 plants in seven countries with approximately 4,000 employees.
Rea Magnet Wire Company, the largest privately held magnet wire company in the world serving the motor, generator and transformer industries, was founded in 1933 in Fort Wayne, Indiana. It supplies a diverse selection of alloys and tempers. Its five plants in North America have approximately 800 employees.
Stamford-based private equity firm Olympus Partners has agreed to acquire the International Wire Group (IWG) from its parent company, Atlas Holdings, in a deal reported to be valued at more than $900 million.
“When we acquired IWG, we partnered with (IWG CEO and President) Greg Smith to transform and grow the business. In the four years since, we have seen IWG cement its industry-leading position and create a unique platform for continued growth,” Atlas Partner Neil Mahajan said in a written statement. “We are looking forward to continuing to support the company in this new chapter with Olympus Partners.”
“The company has been built up over time and needs more capital to grow as it gets to the next stage,” Olympus Partners CEO and Chairman Rob Morris said of his firm’s agreement to acquire International Wire Group Holdings. “That’s the role we’re here to play.”
IWG, headquartered in Camden, New York, is the largest U.S. non-vertically integrated copper and copper-alloy wire products manufacturer in the United States. Its product line includes single-end wire and copper wire on bobbins, stranded conductors, metal and textile braided products, and flat wire as well as over braiding services for copper wires. Worldwide, IWG has 19 manufacturing facilities and a distribution facility in its business units. Those include its Bare Wire Division, which includes Continental Cordage and High Performance Conductors; Owl Wire; and International Wire Europe, which has five factories operated by Italtrecce (Italy), Tresse Métallique J.Forissier (France), and International Wire Polska (Poland).
Atlas, which acquired IWG in April 2019, will continue as an investor in the company, following the expected closing of the deal in the second quarter of this year. Atlas and its affiliates own and operate 26 companies. Olympus CEO and Chairman Rob Morris has said that he sees much potential for IWG as its product lines serve growing markets such as electric vehicles, electric charging stations, airplanes and data centers. “The company has been built up over time and needs more capital to grow as it gets to the next stage. That’s the role we’re here to play.”
IWG President and CEO Gregory Smith said that he greatly appreciated the growth that was made possible by Atlas, and the next stage. “I’m looking forward to continuing to serve our long-standing customers and continuing our growth with our new partners at Olympus.”
NKT has been awarded a supply contract for the delivery of the high-voltage DC on- and offshore export cable system to the Hornsea 3 project which is being developed by Ørsted.
A press release said that the order calls for the design, manufacturing, jointing and termination of the export power cable system for Hornsea 3. It will include two circuits with a route length of approximately 170 km of 320 kV DC offshore cable and 50 km of 320 kV DC onshore cable as well as four circuits for a 1.5 km route of 400 kV AC onshore cable. The DC system will connect the wind turbines with the substation while the AC cables will connect the substation to the national grid. The final order has an estimated value of €500 million.
NKT notes that, last year, the company completed its role as supplier for Hornsea 2. Subject to Ørsted taking a final investment decision, Hornsea 3 will be located in the North Sea, approximately 160 km off the Yorkshire coast. When Hornsea 3 comes online, the combined capacity of Hornsea 1, 2 and 3 will be in excess of 5 GW, making it one of the world’s largest offshore wind zones and capable of covering the power consumption of approximately five million U.K. homes.
NKT will produce the power cables at its high-voltage factory in Karlskrona, Sweden. The project is scheduled to be completed in 2027.
Leoni AG has reached an agreement with lenders, bondholders and a strategic investor on a financial-restructuring plan that will result in the business having a firmer financial base through a series of steps being taken.
Per multiple media accounts, Leoni said that it will receive a liquidity injection of €150 million and be relieved of €708 million in debts as part of the financial restructuring. The company will no longer be publicly traded. A company to be established by Austrian investor Stefan Pierer will become Leoni’s sole shareholder The official release said that the deal does not affect Leoni’s subsidiaries, suppliers, customers and employees. The financial restructuring concept will, as a result, substantially reduce Leoni’s debt, provide it with fresh liquidity and secure its financing for the coming years..
Pierer, a billionaire, is CEO of Pierer Mobility, a leading motorcycle manufacturer based in Austria. He founded the Cross holding group (now Pierer Industrie) in 1987, and is still its majority shareholder as well as a member of the supervisory board of SHW AG, an auto parts company.
Rinnerberger has many years of management experience in the automotive industry, combined with extensive re-structuring expertise. For example, he helped to shape the growth of the Magna Group over a period of years—consistently in board functions (CFO, CRO, CEO)—and successfully restructured the automotive suppliers Polytec AG and Peguform (now SMP). Rinnerberger has been a member of the Executive Board of Pierer Industrie AG since 2010. The native Austrian has been a member of the Supervisory Board of Leoni AG since May 2021 and was elected its chairman in May 2022.
Leoni’s Supervisory Board Chairman Klaus Rinnerberger will become its new chief executive following merger control clearance, the company said. He succeeds Aldo Kamper, whose contract ended on March 31. “I am looking forward to doing my part in further driving the advanced restructuring - with the collective goal of a sustainably stabilized Leoni firmly in sight,” he said.
The company said that while it has now secured the necessary support for the restructuring, implementation remains subject to clearance of merger controls and other customary approvals.
ABB announced that it plans to invest $40 million to build a new manufacturing facility on the company’s existing campus in Albuquerque, New Mexico.
Per a report in the Albuquerque Journal, the new site is being built on a 40-acre site near the existing ABB plant that has some 450 employees. The new plant will add 55 more jobs when it is up and running in 2024.
Ralph Donati, executive vice president and general manager for ABB’s Installation Products Division in the U.S. and Latin America, said that the project was ambitious. “We’re not just expanding, but upgrading our manufacturing capacity in Albuquerque,” Donati told the Albuquerque Journal. “The new plant will be a greenfield facility with the latest technology in processing, machine manufacturing and robotics to make it a factory for the future.”
The new plant will double ABB’s local production capacity of cable products used by electric utilities, which is the primary ABB product made in Albuquerque, Donati said.
Nexans has been chosen by Swissgrid to supply and bury 30 km of Very-High-Voltage (VHV) underground cables to replace overhead power lines along the southern side of the Geneva-Cointrin airport in Switzerland.
A press release said that Swissgrid, the national company in charge of Switzerland’s electricity transmission grid, chose Nexans for the project that will see the 220 kV underground cables replace the existing overhead power lines between the electrical stations of Foretaille and Renfil. The €25 million turnkey contract also calls for it to install two 144-strand fiber optic links and embed a temperature monitoring feature in the cable system.
The Swissgrid project is part of the “Axe Stratégique Réseau” development programs in the canton of Geneva and the Federal Roads Office’s “Redevelopment of the Grand-Saconnex motorway junction.” The overhead power line burial project was described as being exceptional due to its complex nature, both technically and organizationally. Nexans will be in charge of certain engineering services, including taking down and replacing the existing gas-insulated extra high voltage link (GIL).
“We welcome the opportunity to continue our work with Swissgrid on this ambitious and prestigious project, relying on the many and varied skills of the Nexans teams, from engineering to civil works, but also including the production and installation of very high voltage networks,” said Nexans Switzerland CEO Marco Spinelli.
The release said that Nexans has been active in such complex very-high-voltage cable projects in Switzerland before, including the connection of the Nant de Drance (2018), the Linth-Limmern (2016) pumped storage power plants to the national grid, and the underground cable connection of La Bâtiaz – Le Verney (2022).
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