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NKT to invest up to €100 million in medium-voltage power cable business

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%.

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Last modified on May 3, 2024

South Korea’s Taihan Cable wins a U.S. power grid project valued over $80 million

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.

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Last modified on May 3, 2024

News of Prysmian deal to acquire Encore Wire resonated at halls of wire Düsseldorf

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.

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Last modified on May 3, 2024

New company plans to make wire harnesses and custom cable in Kansas

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.

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Canadian body to invest alleged wire rod dumping by China, Egypt and Vietnam

The Canada Border Services Agency (CBSA) announced that it is launching an investigation to determine whether certain wire rod from China, Egypt, and Vietnam are being sold at unfair prices in Canada.

A press release said that the investigation stems from a complaint filed with the CBSA by Ivaco Rolling Mills 2004 LP (Ivaco). It alleges that it has suffered from an increased volume of dumped imports from China, Egypt and Vietnam that has resulted in lost market share, lost sales, price undercutting, price depression, price suppression and a negative impact on employment, capacity utilization and financial performance.

The CBSA and the Canadian International Trade Tribunal (CITT) both play a role in the investigation. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by May 7, 2024. The CBSA will also investigate whether the imports are being sold in Canada at unfair prices and will make a preliminary decision by June 6, 2024. The Canadian market for wire rod has been estimated to be approximately $194 million annually.

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Tri Star Metals acquires Centric Alloys

Tri Star Metals announced that it has completed the acquisition of Centric Alloys Corp. (Centric), a specialty metals bar and wire company.

A press release said that Centric is a North American distributor and mill sourcing partner for nickel-based alloys, nickel bearing alloys, cobalt alloys and specialty stainless steels (remelted grades) in drawn wire, wire rod, and bar product forms. At its website, Centric notes that it is the largest U.S. stocking distributor and supplier of wire basket spools in North America.

“The addition of these industry experts greatly improves our ability to understand the unique demands of the defense sector and we are thrilled to welcome Centric’s current account base to the Tri Star family,” said Jim Roach, executive vice president of Tri Star Metals.

Tri Star, which is a member of the Hagener Feinstahl group of companies, has a 350,000-sq-ft manufacturing and distribution campus in Freeport, Illinois, and a West Coast Distribution facility in Phoenix, Arizona. Since 2010, it has invested more than $40 million in its mill/distribution facilities.

After nearly 20 years of growth at Centric, I am pleased to become part of the Tri Star team,” said Centric Alloys founder and President Mike Walsh.

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Aztech Lubricants acquired by Kodiak, new owners plan product expansion

Aztech Lubricants, founded in 2005 by Jonathan Anderson and Michael Colvin, has been acquired by Kodiak, a global chemical company.

A press release said that Anderson and Michael Colvin will continue with the new owners as director of technology and as director of business development, respectively. Based in Wayne, Oklahoma, Aztech Lubricants has a 40,000-sq-ft manufacturing facility that includes an in-house laboratory for QC and R&D. Its products are used by the wire industry for drawing, galvanizing and forming for markets such as agricultural, tires, automotive, construction, etc.

Kodiak has manufacturing/distribution capabilities on six continents, with more than 80 chemists and 17 laboratories The new owner sees growth ahead for Aztech. “We will be expanding the manufacturing capabilities of the (Aztech) plant in Oklahoma to include more oil- and water-based technologies to better support our valued customers,” said Kodiak President Laura Dickey. “Part of our strategy for the future is also to offer a broad portfolio of products including corrosion inhibitors, cleaners, resins, fire resistant hydraulic fluids, industrial lubricants, and powdered chemicals.”

“This is a very exciting time for us,” said Anderson. He noted that Aztech Lubricants started out in 2005 with just him and Mike. “We would get an order, then go back to the plant and make it. It took a great effort to build Aztech from scratch. Now, the company will be able to achieve even greater results. Mike has an eye out for retirement in the years to come, and I may work less at some point but I plan to be around for a long time. My customers have become my good friends.”

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Last modified on April 4, 2024

Accent Wire Tie acquires Coastal Wire

Accent Wire Tie recently acquired Coastal Wire Company, a U.S. company founded in 1978 that specializes in fully annealed baling wire at its plant in Georgetown, South Carolina.

A press release said that Coastal Wire is the only U.S. entity that currently manufactures all baling wire products, including black-annealed coil wire, black-annealed box wire, high-tensile galvanized wire, galvanized bale tie wire, black-annealed bale ties, galvanized bale ties and the company’s proprietary product KleenGreen bale ties. The acquisition took place last December.

Based in Tomball, Texas, Accent Wire Tie notes at its website that it has the largest U.S. baling wire manufacturing and distribution network in the industry. The company has seven mills, and 21 distribution centers. Through its Wire-Tie division, Accent’s core offerings include baling wire distribution, bale tie manufacturing, wire-tier equipment manufacturing, and wire-tier parts and repair services to waste management providers, material recovery facilities, packaging companies and commercial customers throughout the U.S., Canada and the U.K.

Of note, Accent Wire Tire—along with two sister companies, itself was acquired last August by funds managed by Apollo, a deal that had been predicted by Joanna Reiss, partner and co-head of impact at Apollo. “We believe Accent is a critical supplier to the recycling industry poised for continued growth and impact, and we see several opportunities to help grow and develop the company.”

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Minnesota Wire to partner with medical device company to make custom solutions

Minnesota Wire (MN Wire) announced that it is teaming up with Chamfr, which specializes in medical device components.

A press release said MN Wire, whose product lines include medical wire, is partnering with Chamfr “to revolutionize the medical device landscape by offering state-of-the-art solutions to meet the industry’s growing demands.” MN Wire noted that it has more than a half century of medical experience. “When it comes to sub-markets like defibrillation, patient monitoring, imaging, and wearable electronics among others, Minnesota Wire goes through extensive testing and prototyping on a variety of processes, including extrusion, molding, terminating, shielding, and many others.

Chamfr provides medical products for R&D projects. From nitinol parts to tubing, Chamfr gives engineers quick access to thousands of medical parts, equipment, and tools from 50+ suppliers for their medical device design and development projects. “This collaboration aims to enhance and streamline the development of medicine systems including carbon fiber, high-performance alloy conductors, and textiles, among others, giving a fresh perspective to engineers and developers in the healthcare sector.”

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Prysmian awarded a U.S. federal grant to develop power cable-splitting equipment

Prysmian has been selected to receive $4.5 million in funding from the U.S. Department of Energy Advanced Research Projects Agency-Energy (ARPA-E) for a project that will see the company develop specialized equipment.

A press release said that the funding is part of the Grid Overhaul with Proactive, High-speed Undergrounding for Reliability, Resilience, and Security (GOPHURRS) program, which aims to strengthen and modernize America’s aging power grid through the development of cost-effective, high-speed, and safe undergrounding technologies. “We know that by undergrounding our grid, we can create a more resilient and reliable U.S. power grid,” said Dr. Evelyn N. Wang, ARPA-E director.

Prysmian intends to develop a hands-free power cable splicing machine operating in underground vaults. The goal is to reduce the share of splicing-caused medium-voltage network failures from 60-80% to less than 5% and dramatically improve workforce safety by reducing the time the underground cable splicing crews spend in such vaults.

“This machine is envisioned to splice cable automatically using advanced technologies, which help humans to operate the machine remotely from a safer environment,” the release said. “If successful, performing cable splicing using this machine will increase the reliability of the network and reduce energy losses due to splice failures.”

“Our ground-breaking splicing machine represents a major step ahead in the cable undergrounding process, reinforcing our unwavering commitment to grid hardening, modernization, safety and reliability,” said Andrea Pirondini, CEO of Prysmian North America. “In addressing the aging U.S. power grid, Prysmian is prepared to offer solutions that propel us into the 21st century and beyond.”

Prysmian will collaborate with Con Edison and Exelon, two of the largest U.S. investor-owned utilities. “Prysmian remains steadfast in our commitment to investing in innovations that advance our industry. Equally, we value collaborative partnerships that contribute to building a resilient, sustainable grid ready to tackle tomorrow’s challenges,” said Srinivas Siripurapu, Ph.D., chief innovation officer for Prysmian and principal investigator for the project.

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