WCA January 2017

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Wire & Cable ASIA – January/February 2017
Industrynews
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, which is
currently undergoing a strategic review.
NKT Cables designs, manufactures and
supplies power cables for low-, medium-
and high-voltage solutions mainly in the
alternating current (AC) area. It has
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.
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.
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.
ABB – Switzerland
Website:
ABB to divest cable business to NKT Cables