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News

Corporate

January 2017

14

www.read-eurowire.com

NKT Cables is acquiring ABB’s global

high-voltage cable system business

with a total enterprise value of €836m

(US$934 million). High-voltage cables are

key components in sustainable energy

networks, used for transmitting large

amounts of electricity over long distances.

The business is part of ABB’s Power Grids

division.

NKT Cables designs, manufactures and

supplies power cables for low-, medium-

and high-voltage solutions mainly in the

alternating current (AC) area. It has major

production facilities in Europe and China

as well as sales offices around the world,

and employs around 3,200 people. In

2015, revenue was €1.2bn.

“We are combining two strong cable

portfolios rooted in a shared Nordic

heritage that will be more competitive

on a larger scale under NKT Cables’

ownership, while maintaining access to

supply through a long-term strategic

partnership,” said ABB CEO Ulrich

Spiesshofer. “The combination of our

niche cable system business with the

strength of NKT Cables demonstrates

our commitment to active portfolio

management, a key element of our Next

Level strategy.”

ABB’s high-voltage cable technology

and manufacturing as well as service

footprint is highly complementary

with NKT Cables’ activities, making the

combined business suited to serve the

rising global demand for long-distance

power transmission cable systems. The

combined operational scale and reach

of the two businesses is expected to

lead to even better service for global

customers.

“ABB’s high-voltage cable business will

add considerable strength to our portfolio

and bring us a world-class manufacturing

operation.

We

will

leverage

the

technology, domain competence and

highly skilled workforce to grow this

business,” said Michael Hedegaard Lyng,

president and CEO of NKT Cables. “We

look forward to ramping up our long-term

partnership that will serve future projects

all around the world.”

ABB’s cable system business offers

turnkey solutions including design,

engineering,

supply,

installation,

commissioning and service. It had

adjusted

stand-alone

revenues

of

US$524 million in 2015, employs around

900 people, and has state-of-the-art

manufacturing and R&D capabilities

for

high-voltage

submarine

and

underground

cables

in

Karlskrona,

Sweden.

The transfer of assets also includes a

new, cutting-edge cable-laying vessel,

currently

under

construction.

With

experience of over a century, the business

serves a range of applications and has

commissioned hundreds of alternating

current and direct current links around

the world.

“As part of the strategic partnership,

ABB and NKT Cables will work together

on future projects to access market

opportunities in areas like sub-sea

interconnections and direct current (DC)

transmission links,” said Claudio Facchin,

president of ABB’s Power Grids division.

“This transaction will simplify and focus

the Power Grids portfolio.”

The transaction is anticipated to close in

Q1 2017, subject to regulatory clearances

and fulfilment of the closing conditions.

Goldman Sachs acted as exclusive

financial advisor to ABB and Freshfields

Bruckhaus Deringer was the legal advisor.

ABB – Switzerland

Website

:

www.abb.com

ABB to divest cable business to NKT Cables

UK lubricants manufacturer Metalube hosted a conference at

the Saujana Hotel in Kuala Lumpur, Malaysia, for its Asia team.

Delegates travelled from Turkey, UAE, India, Malaysia, Thailand,

Indonesia and China, covering almost the entire region.

Douglas Hunt, commercial director, said: “This type of event

is valuable in so many ways. It gives us a platform to train

our Metalube teams, share new product developments and

to highlight sales techniques. However, most importantly it

allows our employees, who are scattered across the region,

to meet up, form relationships and convey their personal

experiences.”

Metalube manufactures a range of non-ferrous drawing oils

and maintenance lubricants as well as a variety of corrosion

protection and forming oils. The experienced exporter has offices

in China, India, Brazil and UAE.

Metalube Ltd – UK

Website

:

www.metalube.co.uk

Malaysia conference for lubricant manufacturer

The Metalube team at the conference in Malaysia