Top News > NKT – Investments in additional capacity in the medium-voltage power cable business completed at two out of three sites

NKT – Investments in additional capacity in the medium-voltage power cable business completed at two out of three sites

January 28, 2025
NKT

To support growing demand for medium-voltage power cables in Europe, NKT’s sites in Velke Meziříčí, Czech Republic and Falun, Sweden, have finalized their respective investment plans, on schedule and on budget. 

 

The new production lines are now operational, enhancing both capacity and capabilities to increase output.

 

The investment in Velke Meziříčí and Falun are two of the three medium-voltage investments announced on 4 April 2024, to satisfy the growing demand and maintain a strong position in the market. As previously announced, the investments across the three sites are expected to amount to approximately EUR 100 million, will add 20-110 kV production capacity and capabilities and further progress layout optimizations of the factories. When fully operational, the investments are anticipated to support NKT’s medium-term financial ambitions, including delivering RoCE above 20%.

– We are excited to conclude the expansion of production capacity at our sites in Velke Meziříčí and Falun. The projects have run according to schedule and budget, and did not disrupt existing production during the process. With a strong orderbook, the sites are well positioned to support Europe’s need to upgrade its aging electricity grid and connect more renewable power projects. We look forward to supplying more medium-voltage power cables to key European markets in the years to come, says Carlos Fernandez, EVP, Head of Applications in NKT.

 

Other medium-voltage business investments continue as planned

The third of the medium-voltage investments announced in April last year was at NKT’s site in Asnaes, Denmark. This investment is currently progressing as planned, and the expansion is expected to be operational by 2026.

As announced with the acquisition of SolidAl on 21 June 2024, NKT’s site in Esposende will also expand its capacity and capabilities with an investment of approximately EUR 50 million. The new production capacity is anticipated to be operational in 2027.

Expanding capacity to support Europe’s grid upgrades

The medium-voltage power cable market has grown steadily in recent years driven by the continued electrification of societies and the transition to renewable energy. Electrical grid operators are in the process of conducting major upgrade projects to keep apace.

According to the European Commission, by 2030, the EU will need to invest more than EUR 500 billion in energy infrastructure, including grid upgrades, to meet renewable energy targets and ensure energy security.

About Applications and NKT in Falun and Velke Meziříčí

  • Applications is a business line in NKT with focus on low- and medium-voltage cables.
  • Application’s primary production sites are located in Denmark, the Czech Republic, Poland, Sweden, the United Kingdom and Portugal. Each production site is focused on one or more market segments.
  • Applications employs approximately 1,500 people across Europe and realized revenue (in standard metal prices) of EUR 638 million in 2023.
  • NKT currently has approximately 250 employees in Falun and 230 in Velke Meziříčí.
  • Falun produces telecom, 1 kV, medium- and high-voltage power cables up to 170kV.
  • Velke Meziříčí produces medium- and high-voltage power cables up to 220kV.
  • NKT has had cable production in Asnaes since 1965.

 

 

SourceNKT

EMR Analysis

More information on NKT: See the full profile on EMR Executive Services

More information on Claes Westerlind (President and Chief Executive Officer, NKT): See the full profile on EMR Executive Services

More information on Line Andrea Fandrup (Executive Vice President, Chief Financial Officer, NKT): See the full profile on EMR Executive Services

More information on Carlos Fernandez (Members of the Global Leadership Team, Executive Vice President, Head of Applications Business, NKT): See the full profile on EMR Executive Services

 

More information on SolidAl by NKT: https://www.solidal.pt/ + Solidal is a leading manufacturer of power cables, conductors and integrated solutions for energy transmission and distribution from 1 kV up to 400 kV.

Our clients are international utilities, wholesalers and contractors who rely on us for a wide product range and integrated technical solutions

The company has over 50 years of experience delivering power cables (including High Voltage, Medium Voltage, Low Voltage, ACSR and Aluminium Conductors) for projects across over 40 countries.

  • Founded in 1970
  • Revenue: ~ 150 m€
  • Markets: 40
  • Employees: 430

Quintas & Quintas group was founded in 1925. Solidal was founded in 1970 and integrated Quintas & Quintas group in 1987.

In January 2019, Njord Partners LLP (with its affiliated entities and managed funds “Njord”) acquired a majority (87,5%) shareholding in Solidal – Condutores Eléctricos, S.A. The Quintas family maintains a participation of 12,5%.

More information on François Moufflet (Group Chief Executive Officer, SolidAl, NKT): See the full profile on EMR Executive Services

 

 

More information on The European Union: https://european-union.europa.eu/index_en + The European Union’s institutional set-up is unique and its decision-making system is constantly evolving. The 7 European institutions, 7 EU bodies and over 30 decentralised agencies are spread across the EU. They work together to address the common interests of the EU and European people. 

In terms of administration, there are a further 20 EU agencies and organisations which carry out specific legal functions and 4 interinstitutional services which support the institutions.

All of these establishments have specific roles – from developing EU laws and policy-making to implementing policies and working on specialist areas, such as health, medicine, transport and the environment.

There are 4 main decision-making institutions which lead the EU’s administration. These institutions collectively provide the EU with policy direction and play different roles in the law-making process: 

  • the European Parliament (Brussels/Strasbourg/Luxembourg)
  • the European Council (Brussels)
  • the Council of the European Union (Brussels/Luxembourg)
  • the European Commission (Brussels/Luxembourg/Representations across the EU)

Their work is complemented by other institutions and bodies, which include:

  • the Court of Justice of the European Union (Luxembourg)
  • the European Central Bank (Frankfurt)
  • the European Court of Auditors (Luxembourg)

The EU institutions and bodies cooperate extensively with the network of EU agencies and organisations across the European Union. The primary function of these bodies and agencies is to translate policies into realities on the ground.

Around 60,000 EU civil servants and other staff serve the 450 million Europeans (and countless others around the world).

Currently, 27 countries are part of the EU: https://european-union.europa.eu/principles-countries-history/country-profiles_en 

More information on The European Commission: https://ec.europa.eu/info/index_en + The Commission helps to shape the EU’s overall strategy, proposes new EU laws and policies, monitors their implementation and manages the EU budget. It also plays a significant role in supporting international development and delivering aid.

The Commission is steered by a group of 27 Commissioners, known as ‘the college’. Together they take decisions on the Commission’s political and strategic direction.

A new college of Commissioners is appointed every 5 years.

The Commission is organised into policy departments, known as Directorates-General (DGs), which are responsible for different policy areas. DGs develop, implement and manage EU policy, law, and funding programmes. In addition, service departments deal with particular administrative issues. Executive agencies manage programmes set up by the Commission.

Principal roles in law: The Commission proposes and implements laws which are in keeping with the objectives of the EU treaties. It encourages input from business and citizens in the law-making process and ensures laws are correctly implemented, evaluated and updated when needed.

More information on Ursula von der Leyen (President, The European Commission): https://ec.europa.eu/commission/commissioners/2019-2024/president_en + https://www.linkedin.com/in/ursula-von-der-leyen/ 

 

 

 

 

 

 

 

 

EMR Additional Notes:

  • Extra Low-Voltage (ELV):
    • Voltage of 50V or less (AC RMS), or 120V or less (ripple-free DC).
  • Low-Voltage (LV):
    • The International Electrotechnical Commission (IEC) defines supply system low voltage as voltage in the range 50–1000 V AC or 120–1500 V DC.
  • Medium-Voltage (MV):
    • Medium-voltage circuit breakers rated between 1 and 35/72 kV.
  • High-Voltage (HV):
    • The International Electrotechnical Commission define high voltage as above 1000 V for alternating current, and at least 1500 V for direct current.
  • Super High-Voltage or Extra High-Voltage (EHV): 
    • Is >300kV.
  • Ultra High-Voltage (UHV): 
    • Is >1.000kV.

 

 

  • Power Cable: 
    • A high-voltage cable (HV cable), sometimes called a high-tension cable (HT cable), is a cable used for electric power transmission at high voltage. A cable includes a conductor and insulation. Cables are considered to be fully insulated.
    • The main difference between hv and lv cables is that high-voltage cables have more semiconductor layers and shielding layers than low-voltage cables. Therefore, high-voltage cables than low-voltage cable insulation layers are much thicker, and the structure is more complex, the process requirements are also high.

 

 

  • Kilovolt-Amperes (kV):
    • Kilovolt or “kV” means a unit of potential difference equal to 1,000 volts. Kilovolt or “kV” means the potential difference between two points on a conductor carrying a current of one ampere when the power dissipated between the two points is one kilovolt-ampere. Kilovolt means one thousand volts (kV).
  • Kilovolt (kVA):
    • kVA stands for Kilo-volt-amperes – a term used for the rating of an electrical circuit. kVA is the product of the circuits maximum current and voltage rating. It is also known as Apparent Power.
    • kW is the unit of real power and kVA is a unit of apparent power (or real power plus re-active power). The power factor, unless it is defined and known, is therefore an approximate value (typically 0.8), and the kVA value will always be higher than the value for kW.
    • A kVA is 1,000 volt-amps. It’s what you get when you multiply the voltage (the force that moves electrons around a circuit) by the amps (electrical current).
  • Megavolt-Amperes (MVA):
    • MVA or megavolt-amperes is the unit used to measure the apparent power in a circuit. It’s a product of the voltage and current in a circuit.
    • 1 kVA is equivalent to 1,000 volts while the 1 MVA is equivalent to 1,000,000 volt-amperes.

 

 

  • ROCE:
    • The term return on capital employed (ROCE) refers to a financial ratio that can be used to assess a company’s profitability and capital efficiency. In other words, this ratio can help to understand how well a company is generating profits from its capital as it is put to use.
    • Financial ratio that is used to measure the profitability of a company and the efficiency with which it uses its capital. Put simply, it measures how good a business is at generating profits from capital.
    • ROCE = EBIT / Capital Employed (Total Equity + Total Debt).

 

 

  • Grid, Microgrids, DERs and DERM’s:
    • The power grid is a network for delivering electricity to consumers. The power grid includes generator stations, transmission lines and towers, and individual consumer distribution lines.
    • The grid constantly balances the supply and demand for the energy that powers everything from industry to household appliances.
    • Electric grids perform three major functions: power generation, transmission, and distribution.
    • A microgrid is a small-scale power grid that can operate independently or collaboratively with other small power grids. The practice of using microgrids is known as distributed, dispersed, decentralized, district or embedded energy production.
    • Smart Grid is any electrical grid + IT at all levels . Micro Grid is a group of interconnected loads and DERs (Distributed energy resources) within a clearly defined electrical and geographical boundaries witch acts as a single controllable entity with respect to the main grid.
    • Distributed energy resources (DERs) are small-scale electricity supply (typically in the range of 3 kW to 50 MW) or demand resources that are interconnected to the electric grid. They are power generation resources and are usually located close to load centers, and can be used individually or in aggregate to provide value to the grid.
    • Common examples of DERs include rooftop solar PV units, natural gas turbines, microturbines, wind turbines, biomass generators, fuel cells, tri-generation units, battery storage, electric vehicles (EV) and EV chargers, and demand response applications.
    • Distributed energy resources management systems (DERMS) are platforms which helps mostly distribution system operators (DSO) manage their grids that are mainly based on distributed energy resources (DER).
    • DERMS are used by utilities and other energy companies to aggregate a large energy load for participation in the demand response market. DERMS can be defined in many ways, depending on the use case and underlying energy asset.