NKT, a Denmark-based power cables supplier, is planning to invest €1bn ($1.07bn) in its high-voltage power cable business to support the €7bn worth of contracts it had secured up to March 2023.

The investments will be made between 2023 and 2025 and will be used to significantly extend its Karlskrona production site in Sweden and for a new cable-laying vessel.

NKT plans to build a new factory at Karlskrona, including a third 200m extrusion tower to add to end-to-end production capacity next to an existing facility.

Expected to be operational in 2027, the extension will turn the site into one of the largest high-voltage offshore cable production sites in the world.

The investment will improve its ability to meet growing demand for high-voltage direct current (HVDC) power cable solutions.

NKT president and CEO Claes Westerlind said: “The order awards and commitments from our customers in recent months highlight our leading position within turnkey solutions, XLPE [cross-linked polyethylene] and high-voltage DC technology.

“Power cables are key enablers of the transition to renewable energy and current high-voltage production and installation capacity are not sufficient to meet the increasing demand in the market. We are excited to continue growing NKT in line with our strategic ambitions and to continue developing our turnkey power cable offerings to our customers.”

NKT’s previous investment programme has created more than 300 new jobs at the Karlskrona factory since 2020. With the latest investment, the company expects to create more than 500 new jobs in 2027.

In April 2023, NKT won a €500m order to deliver HVDC and offshore export cable systems for the Hornsea 3 wind farm project in the UK, which is expected to generate 3GW of clean energy.

The company has now been tasked with the designing, manufacturing, jointing and termination of the export power cable system.