NKT, a global front-runner in the power cable industry, has successfully renewed its long-standing copper supply agreement with KGHM, a leading European mining and smelting company. This renewed contract guarantees a steady supply of European-produced copper for NKT’s power cable manufacturing for the next decade, ensuring availability until 2036.
The demand for copper from NKT continues to surge in tandem with the company’s expansion of production facilities. This is in response to the escalating global demand for power cable solutions. Consequently, securing access to reliable sources of copper supply is crucial for maintaining NKT’s competitive edge and fortifying the resilience of its value chain.
NKT’s strategic approach to the copper market, guided by a long-term perspective, has led to the strengthening of its supply security for the coming decade through the renewed agreement with KGHM. This contract serves as a catalyst for NKT’s strategic ambitions of delivering reliably, sustainably, and at scale. It also mitigates the company’s exposure to market fluctuations and geopolitical uncertainty.
Claes Westerlind, President & CEO of NKT, commented on the extended partnership with KGHM. He stated, “This is a significant step towards securing the long-term supply of copper, which is fundamental to our ability to deliver reliable power cable solutions to our customers. KGHM has been a trusted partner to NKT for many years, consistently demonstrating strong operational performance and high-quality output. By strengthening this relationship, we enhance the robustness of our supply chain, reduce our exposure to market volatility, and ensure a stable foundation for NKT’s continued growth.”
KGHM operates across the entire copper value chain, from mining, smelting, refining, and recycling to rod manufacturing. By capitalizing on KGHM’s vertically integrated production capabilities and strong European footprint, NKT ensures stable and reliable access to European sourced copper for a significant portion of its future requirements. This is particularly important in light of the EU’s strategy to enhance resilience by supporting domestic production of critical raw materials and the increasing focus on local content in supply chains.
Remigiusz Paszkiewicz, acting President of the Management Board of KGHM Polska Miedź S.A., spoke about the long-term cooperation with NKT. He said, “Our partnership with NKT underscores KGHM’s position as a reliable supplier of high-quality copper products in a demanding market environment. It reflects the trust we have built together and our shared commitment to supporting the energy transition. We value this partnership, and we are proud that our wire rod will continue to contribute to the advanced and sustainable solutions developed by NKT.”
KGHM’s fabrication facilities and smelters are Copper Mark certified and align with NKT’s commitment to responsible sourcing, robust due diligence, and ethical standards for people, communities, and the environment. KGHM aims to further reduce the carbon intensity of its copper products, thereby strengthening the sustainability profile of the products supplied.
