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

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.

About NKT
NKT connects a greener world with high-quality power cable technology and takes centre stage as the world moves towards green energy. NKT designs, manufactures and installs low-, medium- and high-voltage power cable solutions enabling sustainable energy transmission. Since 1891, NKT has innovated the power cable technology building the infrastructure for the first light bulbs to the megawatts created by renewable energy today. NKT is headquartered in Denmark and employs 6,000 people. NKT is listed on Nasdaq Copenhagen and realised a revenue of EUR 2.6 billion in 2023.
NKT - We connect a greener world. www.NKT.com.

Contact
Louise Westh Naldal, Head of Group Communications
+45 2982 0022 / louise.westh.naldal@nkt.com