EuroWire January 2017

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News
Corporate
January 2017 14
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:
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 :
Malaysia conference for lubricant manufacturer
▲ ▲ The Metalube team at the conference in Malaysia