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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“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.