Sumitomo Electric Industries, Ltd. (Sumitomo) has been awarded a contract from the Prysmian Group to supply 150 km of HVDC submarine cable for the NeuConnect Interconnector, a 1.4 GW power interconnection project between the U.K. and Germany.
A press release said that Sumitomo will supply a section of HVDC mass-impregnated cable to Prysmian PowerLink Services, Ltd., which secured the main contract with NeuConnect. The overall project—that will directly link the German and U.K. electricity grids for the first time— calls for some 725 km of land and subsea cables. They will enable up to 1.4 GW of electricity to move in either direction, enough to power up to 1.5 million homes over the life of the project.
The submarine cable, which forms part of the offshore cable route between the two countries, will be manufactured at Sumitomo’s Osaka Works in Japan. The order represents Sumitomo’s sixth European HVDC power link project after MON. ITA (Montenegro-Italy), NEMO (UK-Belgium), A-Nord HVDC project (Germany), Kontek (Germany-Denmark) and Greenlink (Ireland-GB).
“We are honored to be the supplier for this project, which will form part of critical infrastructures to achieve net-zero emissions,” said Sumitomo Managing Executive Officer Yasuyuki Shibata.
The NeuConnect Interconnector is a private project by international investors, including Meridiam, Allianz Capital Partners and Kansai Electric Power.
Industry News
South Korea’s LS Cable & System (LS C&S) has won an order valued at $167 million to supply high-voltage, direct current (HVDC) cables for the Norfolk Boreas Offshore Wind Farm in the U.K.
A press release said the LS C&S order is from Sweden’s Vattenfall AB, which is one of Europe’s largest producers and retailers of electricity and heat. The order calls for 320 kV cables that will lie under the sea. The underground cables will use cross-linked polyethylene (XLPE) as an insulating material, which it described as a first.
Per multiple media reports, the Norfolk Boreas offshore cable corridor, using about 96 km, will include export cables to deliver the electricity supplied to the offshore substations to landfall that will be in the Happisburgh village in Norfolk county. The onshore part of the offshore wind farm development will include the installation of underground cables between an onshore substation related to the project and an existing substation of the national grid. The onshore cable corridor is expected to be 63 km.
Located 47 km off the Norfolk coast, Norfolk Boreas is the first of two stages of Vattenfall’s Norfolk Offshore Wind Zone. Per DEME Offshore, which is part of the project consortium with LS C&S, they have also been named a preferred supplier for the second part: the Norfolk Vanguard. Each wind farm will have a capacity of 1.8 GW.
“Only a handful of firms have succeeded in developing XLPE cables defined by easy installation, connection, maintenance and repair,” an LS Cable & System official said. “The cables are increasingly emerging as a mainstream product in the renewable industries of Europe and North America.”
Autac, a manufacturer of coiled cords founded by Robert N. Burkle in 1947, celebrated the company’s 75th anniversary with an event at Bill Miller’s Castle in Branford, Connecticut.
The event was hosted by company President Marie Burkle. “It is with a great sense of pride that we have come this far,” she told the audience of some 85 people, which included employees and their families/guests, suppliers, industry colleagues and state Senator Christine Cohen. “No business can make 75 years without relationships,” she said. For a business, that means employees, vendors and local community leaders. “All have helped us in different ways,” and that support enabled the company to survive and thrive.”
Burkle called up a number of employees to single them out for their contributions. Speaking later, she said, “It is a source of great pride for me, the last Burkle, to keep my father’s legacy going and certainly a reason to celebrate. The day was also an opportunity to give our staff the recognition they so deeply deserve.”
At the same time, Burkle shared different thoughts in her speech. She singled out some industry vendors, saying they could also be a company’s biggest liability. She cited the “80-20” rule, referring to the axiom that 80 percent of business often comes from 20 percent of customers.
In hard times, such as the last few Covid years, that has resulted in a much harder business atmosphere, Burkle said. “Our minimums increase, our prices go up, the lead times go out and payment terms become so unreasonable that it bankrupts many small businesses. How can one eat their young and hope to survive for more generations? I’ve never understood that.”
That assessment does not apply to all vendors, and Burkle thanked Mexichem for being a reliable business partner, presenting the company a plaque for their consistently good work.
Burkle said it was important for her to hold the event at Bill Miller’s Castle as the founder, the late Bill Miller, and her late father, were together in Rotary and the Chamber of Commerce back in the 60’s and 70’s. “Also, Bill Miller was a huge help and supporter of me when I served as president of the North Branford Chamber. He and that fabulous building have a special place in my heart!”
Autac, a manufacturer of coiled cords founded by Robert N. Burkle in 1947, celebrated the company’s 75th anniversary with an event at Bill Miller’s Castle in Branford, Connecticut.
The event was hosted by company President Marie Burkle. “It is with a great sense of pride that we have come this far,” she told the audience of some 85 people, which included employees and their families/guests, suppliers, industry colleagues and state Senator Christine Cohen. “No business can make 75 years without relationships,” she said. For a business, that means employees, vendors and local community leaders. “All have helped us in different ways,” and that support enabled the company to survive and thrive.”
Burkle called up a number of employees to single them out for their contributions. Speaking later, she said, “It is a source of great pride for me, the last Burkle, to keep my father’s legacy going and certainly a reason to celebrate. The day was also an opportunity to give our staff the recognition they so deeply deserve.”
At the same time, Burkle shared different thoughts in her speech. She singled out some industry vendors, saying they could also be a company’s biggest liability. She cited the “80-20” rule, referring to the axiom that 80 percent of business often comes from 20 percent of customers.
In hard times, such as the last few Covid years, that has resulted in a much harder business atmosphere, Burkle said. “Our minimums increase, our prices go up, the lead times go out and payment terms become so unreasonable that it bankrupts many small businesses. How can one eat their young and hope to survive for more generations? I’ve never understood that.”
That assessment does not apply to all vendors, and Burkle thanked Mexichem for being a reliable business partner, presenting the company a plaque for their consistently good work.
Burkle said it was important for her to hold the event at Bill Miller’s Castle as the founder, the late Bill Miller, and her late father, were together in Rotary and the Chamber of Commerce back in the 60’s and 70’s. “Also, Bill Miller was a huge help and supporter of me when I served as president of the North Branford Chamber. He and that fabulous building have a special place in my heart!”
The Ducab Group announced that it has been awarded the full EPC (engineering, procurement & contracting) contract to supply and install 400 kV cables and accessories to link Al Dhafra—which when operational will be the world’s largest solar plant in Abu Dhabi—with the Emirate’s main TRANSCO transmission grid (Abu Dhabi Transmission and Despatch Company) through its specialised division, Ducab HV.
A press release said that the announcement was made by Ducab Group CEO Mohammad Almutawa at the Water, Energy, Technology and Environment Exhibition (WETEX). “We are proud that Ducab is assisting the nation in achieving its ‘Energy Strategy 2050’.” The collaborative project partnership includes testing and commissioning, and with the order, Ducab now supplies cables for the three largest solar projects in the UAE.
Ducab has supplied its custom-made SolarBICC cables to Abu Dhabi’s Shams 1 project and Mohammed bin Rashid Al Maktoum Solar Park in Dubai, two of the largest solar projects in the world. “As a champion of the “Made in the UAE” initiative, Ducab not only supplies solutions to leading power projects in the UAE but also supports products and counterparts in auxiliary industries to deepen the country’s industrial capabilities,” the release said. Ducab works with partners across the UAE industrial value chain, such as EGA, KIZAD, and Borouge, while acquiring many of its requirements from UAE-based organizations.
The Al Dhafra project supports the country’s Energy Strategy 2050’s goals that seek to increase the contribution of clean energy in the total energy mix from 25% to 50% by 2050. The facility will deploy technologically advanced bifacial solar panels that deliver electricity at the highest efficiency levels by using both the front and back of panels. The facility will have a capacity of two gigawatts and supply power to Emirates Water and Electricity Company (EWEC).
When fully operational, the release said, Al Dhafra will be the world’s largest single-site solar power plant, mitigating 2.4 million tonnes of CO2 annually and using 3.5 million solar panels to generate enough electricity for approximately 160,000 homes across the UAE.
Hitachi Metals Limited (HML) has agreed to an acquisition offer—from a consortium led by Bain Capital, a private equity firm—that includes Hitachi Cable America (HCA).
A statement from HCA said that the Bain-led consortium “recognizes HML’s R&D leadership, deep relationships with industry-leading customers, and technological superiority in each of its business units. Bain plans to support the company by enhancing our competitiveness in high-growth sectors.” No plant closures are expected, and HCA “will remain a U.S. company.”
The deal was described as a positive step for HCA, which has continued to invest in manufacturing capabilities, machinery, advanced quality control techniques, R&D (see p. 38), technical expertise and capacity expansions. “We stand by our commitment to manufacturing premium products, and the strong financial profile backing of Bain Consortium will empower us to accelerate investment efforts.”
HCA includes three divisions: the Performance Cable Systems & Materials Division, with 240 employees; the Automotive Products Division, with 100 employees; and the High Performance Medical Solutions Division, which has 180 employees. The Performance Cable division’s 300,000-sq-ft plant in Manchester, New Hampshire, designs and produces advanced copper and fiber optic based communication cable.
The agreement will see a branding away from the HCA name on Jan. 4, 2023, into Proterial Cable America, a portmanteau of the words “professional” and “material.”
Sweden’s Hexatronic Group AB (Hexatronic) has signed a binding asset purchase agreement to acquire all business activities of Rochester Cable from TE Connectivity (TE).
Per an announcement issued by Hexatronic, it will pay $55 million to acquire Rochester Cable, a U.S. designer and manufacturer of cables based in Culpeper, Virginia. The company has 130 employees and a production site of some 40,000 sq m. The deal, expected to close by the end of next March, will include all the land and buildings for the operations.
The agreement broadens Hexatronic’s offering within fiber optic submarine communication cables to include dynamic working cables that can transmit electrical signals and power in addition to transmitting optical signals. Rochester Cable’s electro-optical cables for operation in harsh environments are highly engineered to meet specific requirements in demanding industries such as oil and gas, sensing, defense, oceanographic and subsea applications. Product sales are mainly in the U.S. but also in the EMEA and APAC regions.
Over the last decade, TE significantly invested in increasing capacity, and the production facility provides many possibilities for further growth. The acquisition will include the land and buildings of the production sites and office buildings. Completion of the transaction is subject to regulatory approvals and is expected to close no later than March 31, 2023.
“We are happy to have reached an agreement with TE Connectivity ... (as) Rochester Cable is uniquely positioned with its know-how and application expertise, which has been developed as a market leader for decades,” said Hexatronic Group CEO Henrik Larsson Lyon.
Hexatronic has been a supplier of fiber optic submarine communication cables since the 1990s. Combining the know-how, geographical footprint, and product portfolio of Rochester Cable in the U.S. and Hexatronic submarine business in Sweden provides exciting opportunities for the future,” said Hexatronic Group CEO Henrik Larsson Lyon.
Bridon-Bekaert Ropes Group (BBRG) announced plans to close their manufacturing plant in Gelsenkirchen, Germany, to improve the business portfolio of the European rope activities.
A press release said that Bekaert has decided to consolidate the BBRG’s European ropes manufacturing platform in the U.K. and phase out the production activities in Gelsenkirchen by the end of 2023. The business portfolio of the European rope activities will further be improved by exiting lower-margin market segments and focusing on the segments with growth perspectives and higher value creation potential.
The competitive position of the Gelsenkirchen plant has been under pressure and the current business level no longer provides the ability to generate a financially sustainable performance. The decision to close the loss-making plant will affect 77 employees.
All European steel rope manufacturing activities will be centralized in the Doncaster and Newcastle production sites to ensure long-term competitiveness by better leveraging efficiencies and by improving the business portfolio. “The management regrets the personal consequences of the restructuring decisions and will diligently evaluate the options to mitigate the social impact for the affected employees,” the release said.
Bridon-Bekaert The Ropes Group (BBRG), was formed in 2016 by the addition of Bridon Group to Bekaert’s steel ropes and advanced cords businesses. The entity has a global footprint that includes 16 manufacturing locations (including Gelsenkirchen), providing strong positions in the U.S. and Europe, Latin America, Canada and Australia.
LS Cable & System announced on Oct. 20 that it has won a cable contract valued at approximately $166 million to supply the Boreas wind farm in the North Sea of the U.K., the largest ever order from Europe received by a South Korean cable company.
Per the announcement, the Boreas offshore wind farm is being developed by Sweden’s state-owned power company Vattenfall, near Norfolk in the United Kingdom. When completed in 2026, it will produce about 1.3 GW of electric power, equivalent to one nuclear power plant.
LS Cable & System will supply 320 kV ultra-high voltage direct current (HVDC) submarine and underground cables for the wind farm. It will mark the company’s first supply of HVDC cables that use cross-linked polyethylene (XLPE) as an insulating material.
XLPE cables are becoming the mainstream in renewable energy projects in Europe and North America due to their convenient installation and connection and easy maintenance. However, so far, only a few companies have succeeded in developing them. The latest order is expected to help LS Cable & System accelerate its penetration of the XLPE cable market. The company plans to expedite its market expansion in Europe as well as North America and Asia where demand for XLPE cables is growing rapidly.
Corning Incorporated announced that it is expanding its manufacturing capacity by building a new cable manufacturing facility in Gilbert, Arizona.
A press release said that the expansion will help Corning meet the needs of a long-term customer, the largest U.S. fiber internet provider, as it expands its fiber service. Corning will locate the new plant in greater Phoenix region, adding approximately 250 jobs and extending Corning’s strategic investments in optical fiber, cable, and connectivity solutions to meet record demand.
The new facility is Corning’s latest in a series of investments in fiber and cable manufacturing totaling more than $500 million since 2020, the release said. These investments, supported by customer commitments, nearly double Corning’s ability to serve the U.S. cable market and connect more people and communities. As public and private investments in broadband, 5G, and the cloud are accelerating a large, multi-year wave of growth for fiber-based networks, Corning “is uniquely positioned to support these network builds.”
The Arizona facility, expected to open in 2024, will be the industry’s western-most U.S. manufacturing site for optical cable. It will enable Corning to serve growing demand in the western U.S. and Canada. Separately, AT&T announced that it is deploying fiber internet service to the Mesa, Arizona, area, with service expected to be available to Mesa residents in 2023.
To build and deploy these networks, the industry will need another 850,000 workers through 2025. Corning and AT&T created the Fiber Optic Training Program, focused on equipping thousands of technicians with the skills critical to designing, installing, and maintaining a growing fiber network. The initial class is currently underway in North Carolina, and the program aims to train 50,000 American workers over the next five years.
The Prysmian Group announced that it has reached a key technology milestone in power transmission: the successful development and testing of the first 525 kV extruded submarine full cable system for High Voltage Direct Current (HVDC) applications.
The breakthrough will enable a massive increase of the maximum transmission capacity of bi-pole systems up to more than 2.5 GW, which is more than double the value achieved with 320 kV DC systems currently in service. The one-year prequalification testing was carried out per international standards including CIGRE TB-496 and witnessed by a third-party certification body.
“This new milestone confirms our commitment and prominent role in the development of power grids infrastructure, key for the energy transition,” said Prysmian Group CEO Valerio Battista.
HVDC cable links are key components of sustainable energy systems, to transmit large bulks of electricity over long distances, often across or between countries. This achievement will put Prysmian Group in a unique position to support forthcoming tenders for submarine interconnectors.
“On the heels of the successful industrialization of 525 kV HVDC underground cables for the 3 German HVDC links projects, we are ready to extend this innovative technology for submarine cable systems to enable our customers in the continuous effort towards the energy transition by further reducing the costs of offshore wind and minimizing the environmental impact,” said Hakan Ozmen, EVP Projects Business Unit.
The company leveraged its in-depth knowledge of materials and the capability to improve manufacturing processes to optimize a reliable industrial process with strict technological parameters and providing an entire system of cable and accessories. That includes flexible factory joints, rigid repair joints and sea-land joints with the best dielectric properties.
Russia’s EVRAZ PLC is seeking to divest the holdings of EVRAZ North America (ENA), which include Rocky Mountain Steel Mill, a plant in Pueblo, Colorado that produces wire rod.
The scope of the story is far larger as a key investor in the parent company is Roman Abramovich, a Russian billionaire who was on the list of oligarchs linked to Russian President Vladimir Putin. EVRAZ Plc, which purchased Pueblo’s steel mills in 2007, was hit with sanctions by the U.K. in May in response to Russia’s invasion of Ukraine.
ENA, based in Chicago, Illinois, employs more than 1,400 people in the U.S. and 1,800 in Canada, with production sites that include Pueblo, one in Portland, Oregon, and four in Canada, per the company’s website.
A report in The Pueblo Chieftain said that a letter sent by EVRAZ to ENA employees said that the “current geopolitical landscape has created a heightened level of uncertainty” over the last five months that has led to “unique challenges” in its day-to-day business operations. “However, we are in a position to change course,” the letter said. “In response to today’s reality, and to best position our organization for long-term success, EVRAZ plc, the parent of ENA, has made the difficult decision to begin a sales process of the North American business.”
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