1/4/2022 – Prysmian Group has been awarded a framework contract worth around €1.71 billion by Terna Rete Italia SpA (Terna), for the Tyrrhenian Link project, which includes the design, supply, submarine and land installation, and commissioning of a total of over 1,500 km of submarine cables to support the power exchange among Sardinia, Sicily and Campania, thus reinforcing the Mediterranean energy hub.
A press release said that the order from Terna, a unit of an Italian electricity grid operator (TSO), calls for the turn-key installation of one to three 500 kV HVDC links. Each 500-km link will use single-core cables with mass impregnated insulation. They will also have double wire armoring, an innovation recently developed by Prysmian Group.
Delivery and commissioning are expected in 2025-2028. Installation will be done by Prysmian’s new vessel, the Leonardo da Vinci, which will deploy the cable to a water depth of 2,000 meters, the deepest ever reached for a power cable. The ship, described as the world’s largest cable-laying vessel, entered into operations in August 2021.
The contract also includes an electrode system and an optical fiber cable for system monitoring, as well as land civil works and land-fall HDD (Horizontal Directional Drilling). The submarine and land cables will be manufactured at Prysmian’s plant in Arco Felice (Naples).
“We are proud to have once again been chosen by Terna as a partner for this milestone infrastructure project, aimed at providing a more robust and sustainable national power grid,” stated Valerio Battista, Prysmian Group CEO. “We have proven to be able to offer the widest industry expertise, as well as technology and assets, to execute such an extensive and challenging project.”
The new 1,000 MW submarine link will help Italy reach its energy transition goals, enabling three regions to increase their solar and wind power exchange capacity generated locally. This will therefore support the development of renewable energy through better use of energy flows and a more efficient market.
“This contract adds to the other €2.3 billion projects already secured by Prysmian in 2021, thus further strengthening the Group’s ambition to become the strategic partner for developing power grids in support of the energy transition,” said Hakan Ozmen, EVP project business, Prysmian Group.
Industry News
1/4/2022 – Egypt’s Elsewedy Electric recently held an inauguration ceremony in Tanzania for an industrial complex and electric cable factory that was attended by senior government officials from both Egypt and Tanzania.
Per multiple media reports, Tanzania President Samia Suluhu Hassan laid the foundation stone for what will be a factory that spans more than 120,000 sq m. The factory will employ 500 people to produce 15,000 metric tons of power cables, 1,500 transformers and 100,000 electricity meters per year. When completed, the factory will be the first such site in Sub-Saharan Africa.
The Elsewedy plant is part of a 2.2-million-sq-m industrial park that the company is developing to accommodate labor-intensive industries. Elsewedy unveiled plans to invest $200 million in the first phase of its expansion plans in the country, leading to the construction of 100 manufacturing industries in the Kigamboni industrial space. The goal for the park—developed by Elsewedy Electric’s subsidiary, Elsewedy Industrial Development—is to support Tanzania’s industrialization strategy 2025.
Elsewedy Electric President and CEO Ahmed Elsewedy said at the ceremony that his company embarked on a mission to expand in Africa 20 years ago, and that Tanzania is a priority due to its favorable investment climate and the government’s support. The company plans to use the new complex as a manufacturing and export hub at the heart of east and south Africa due to Tanzania’s strategic location/borders with eight countries, six of which are land-locked.
1/4/2022 – Austria’s Montana Aerospace AG has acquired Brazil’s Comercio Ltda. (São Marco), a manufacturer of magnet wire and copper rod as well as electro-insulating varnishes, resins and lubricants.
A press release said that adding the capacities of São Marco will bolster Montana Aerospace’s product offerings for round wires and conductors. Over the last decade, Montana Aerospace, which has 28 operations in four continents, has developed from a raw material extrusion supplier to a highly vertically integrated player.
“The combined experience, as well as their commitment and knowledge, will strengthen our position as a partner in quality and development, at the service of the energy market, and will strengthen our presence in the electric vehicle market,” said Heinz Riedler, CEO of Montana Aerospace’s Energy Division.
Commented Viakable CEO Sergio Valdés, “After 23 years of joint success, they will now experience a new stage with Montana Aerospace. I am convinced that they will continue to provide high value to their clients in the future and that they will position themselves as a benchmark in the evolution of the Brazilian market.”
1/4/2022 – Hindalco Industries Ltd., the metals flagship firm of Aditya Birla Group, has agreed to acquire Ryker Base Pvt. Ltd. (RBPL), a subsidiary of Polycab India Ltd.
A report in the Business Standard said that the purchase was to be based on an enterprise value of ₹323 crore (about US$46.8 million). Hindalco operates one of the world’s largest single-location custom copper smelters at Dahej in Gujarat, with a copper rod capacity of 345,000 metric-tons per year (mtpy). The deal will strengthen Hindalco’s copper rod manufacturing capacity, allowing it to cater to growing demand from the electrical and electronics sectors.
Per the RBPL website, the company’s plant in Waghodia, Gujarat, has a gas-controlled shaft furnace, a modular Hazelett twin-belt caster, a caster station and a rolling mill with 12 individually driven roll stands, followed by a cooling section, a coiler and coil handling facility for automatic compacting, strapping and packing of the finished wire rod coils with a casting capacity of 35 t/h and annual installed production of 225,000 mtpy.
“Hindalco’s copper is a vital input to India’s accelerating journey on electrification, urbanization, renewables and e-mobility,” said Hindalco Industries Managing Director Satish Pai. “Keeping the needs of the nation and industry in mind, Hindalco has taken the step to expand its capacity.” He added that the plant is well aligned with its environmental, social and governance strategy.
The acquisition, the story said, forwards Hindalco’s downstream strategy. The company has previously announced two projects: an aluminum extrusion in Silvassa, and a flat-rolled products facility in Hirakud. “The Ryker deal will further enrich our portfolio of downstream products,” said Pai.
1/3/22 – Nexans has won a more than €80 million contract from Equinor, a Norwegian state-owned multinational energy company, to manufacture and install a power cable system that will deliver electricity directly from the Norwegian power grid to its Oseberg Field Centre.
A press release said that the cable system consists of a single three-core 132 kV AC cable with the capacity to transport and supply 180 MW to the main platform at Oseberg. The power cables will include two fiber optic cables, each fitted with 48 SM fiber optic elements. They will be connected to a central DTS system that allows operators to detect early warning signs of any technical issues in the cables. The cables will be manufactured at Nexans’ plant in Halden, Norway.
Nexans is Equinor’s long-term partner in renewable energy projects. Nexans cabling system will allow Oseberg to operate using renewable energy harnessed from hydropower and achieve about 50% reduction in greenhouse gas emissions in those areas of the field.
Oseberg is located in the North Sea, around 140 km northwest of Bergen. The cable deployment will be done by the Nexans’ Aurora, which is designed to lay the cables in one compact installation. That method will save time and lower costs while also reducing the environmental impact of the operation due to smaller transport distances.
“Electrifying business operations in the energy sector plays an important part in reducing CO2 emissions and supporting the global transition to net zeros,” said Ragnhild Katteland, executive vice president for Nexans subsea and land systems business group.
Of note, last July Nexans was awarded an Equinor a contract to supply power export cable for what will be the world’s first floating solar plant that can operate in rough offshore waters.
1/3/2022 – Sweden’s Elcowire reports at its website that the company has entered into an agreement to acquire KME’s rod and wire assets and business located in Hettstedt, Germany, with 180 employees.
“For Elcowire this means doubling the capacity to 300,000 metric tons for copper rod and adding a large share of the market with a wide range of capabilities for wire and strands solutions,” the company stated. It noted that the deal will strengthen Elcowire and give access to a larger customer base and product portfolio, as well as expand the geographical coverage.
“The acquisition has a perfect strategic fit and will add capacity and capability for a wider product range as well as being able to serve a larger market with our solutions, which substantially will contribute to lower the CO2 footprint,” Elcowire Group CEO Paul Gustavsson said.
Together with the acquisition and the current operations in Sweden and Germany, Elcowire will be a much stronger player in the rod and wire business and be able to build further on its value-added offering in Elcowire’s other business units (high voltage, rail and specials).The closing of the transaction is subject to regulatory approval.
Elcowire is one of the leading suppliers in Europe, developing products and services based on copper and aluminum wire rod for the electrical and infrastructure industry. Operations are located in Sweden and Germany. Elcowire consists of four business units: Rod, Rail, High Voltage and Specials. Elcowire, which employs 200 people, is one of seven businesses owned by the Liljedahl Group.
The KME Group was described as one of the world’s largest manufacturers of copper and copper alloy products and high-performance copper and copper alloy special products.
1/3/2022 – The GFG Alliance reports that it plans to re-open its LIBERTY Steel Georgetown (LSG) rod mill in Georgetown, South Carolina.
A press release initially said that the reopening was expected to happen in mid-January. LGS will integrate operations with LIBERTY’s plant in Peoria, Illinois, to meet a strong order book and clear a customer backlog. Billet will be manufactured in Peoria, taking advantage of the plant’s additional melt capacity, then delivered to Georgetown for conversion into 10,000 metric tons of finished rod a month. LGS has also implemented efficiencies such as utility cost savings, rental equipment returns and contractor reductions to improve profitability and develop a sustainable long-term plan for the plant.
The rod mill has had a storied history. Founded in 1969 by German industrialist Willy Korf, it at one time had as many as 1,500 employees. It had multiple owners, including the government of Kuwait in 1984 and the International Steel Group in 2004. It was bought in 2005 by Lakshmi Mittal. The mill closed in 2009, and following the Mittal merger with Arcelor, it was reopened by Arcelor Mittal in 2011, only to be closed in May 2015. The Liberty House Group, part of the GFG Alliance, purchased ArcelorMittal’s Georgetown steelworks in 2017.
The news was part of a larger update by the GFG Alliance, which included restructuring and refinancing progress for all its operations. LIBERTY Steel Group’s Restructuring and Transformation Committee (RTC) was formed in May 2021. Chief Restructuring Officer Jeffrey Stein said that the restart of the Georgetown plant reflects “further evidence of healthy market conditions and strong infrastructure spending across much of the globe.”
1/3/2022: The Prysmian Group announced that it has won two milestone offshore wind farm projects in the U.S. worth nearly $900 million, and that—pending final okays—it will build a U.S. power cable plant to manufacture some of the submarine power cable.
A press release said that Vineyard Wind, a 1,200 MW wind farm project, is a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners. The contract, worth about $300 million, is for cabling to connect the 804 MW Park City offshore wind farm to the electricity grid in the state of Connecticut. Prysmian will deploy HVAC 275 kV three-core cables with XLPE insulation and single wire armoring. The cables will be produced by Prysmian’s plants in Arco Felice, Italy, and Pikkala, Finland, and installed by the Leonardo da Vinci and Ulisse vessels. Delivery and commissioning are scheduled for 2026.
The 1,200 MW Commonwealth Wind (CW) cable project is worth around $580 million. Prysmian will design, supply, install, and commission as many as three export submarine power cable links to connect CW to the electricity grid in Massachusetts. Prysmian will supply HVAC 275 kV three-core cables with XLPE insulation and single-wire armoring.
Prysmian intends to build a manufacturing facility for submarine transmission cables at Brayton Point, the site of a former coal-fired power plant in Somerset. The CW project agreement is subject to conditions, such as permits and arrangements with the property owner as well as Prysmian."
The CW submarine cables are planned to be produced in the new plant in Massachusetts, as well as at Prysmian plants in Arco Felice and Pikkala. Delivery and commissioning of the export cables are scheduled for 2027. Both cable supply awards are subject to the finalization of Prysmian Group plans to localize its footprint.
Per Common Wealth Magazine, Avangrid Renewables encouraged Prysmian to open a facility in Massachusetts by promising to use it as the supplier for both of the projects. Such a plant would provide some 200 jobs.
The news “confirms the validity of Prysmian’s growth ambition in the fast-developing offshore wind farm industry in the U.S.,” the release said. “Prysmian is also excited to announce significant progress towards its first submarine power cables manufacturing facility in the U.S.” said Prysmian Group Executive President Hakan Ozmen. “While we still have work to do ... it is clear that, with the support of the state of Massachusetts and others, we are in a great position to reach a final agreement that will prompt a major expansion of our company.”
The release said the new projects “are important additions to (Prysmian’s) growing submarine cable and HVDC system portfolio in North America.” The Group’s track record includes interconnections projects like the SOO Green HVDC link, Neptune, TransBay and Hudson River, as well as the Empire Wind interarray projects.
1/3/22 – Leoni will officially close its plant in Chicopee, Massachusetts—the German cable maker’s first wire plant in the U.S., by Feb. 4, resulting in the loss of some 80 jobs.
A press release said that the company tried to but could not find a buyer for the plant, which opened in October 1991. “Unfortunately, despite intensive conversations with several potential investors, it was not possible to find a long-term continuation perspective for LWI, both strategically and financially.” The result is that the plant, which produces cables, ropes and braids for the aerospace, data communications and other industries, will be closed.
A company spokesman said that the operation was not part of the company’s previously announced plans. “As is well known, Leoni AG wants to strategically focus on consolidating its leading position as a supplier of wiring systems for the automotive industry. Against this backdrop, the company has already sold several non-automotive units in 2021.” Last November, WJI reported that Leoni AG had sold the majority of its Wire & Cable Solutions division to strategic investor BizLink Holding Inc. At the time, Leoni AG CEO Aldo Kamper said that the move had to be made. “With this step, we are once again proving that we are consistently continuing to implement our announced and already advanced focus on the Wiring System Division.”
12/6/21 – NKT plans to extend its presence in Poland with a local execution hub that will prepare it for the market opportunities driven by the country’s green transformation in Poland.
A press release said that NKT is now expanding its local presence with an execution center to prepare for a growing demand for both on- and offshore power cables. The center will be located in Gdynia, Poland, close to the Baltic Sea where several offshore wind farms are expected to be located.
The execution center is not a production site but a hub from where a company can execute local projects, both onshore and offshore. “The idea is to first hire cable jointers for installation projects where they are connecting the produced cable lengths. At a later stage, the plan is to hire more project-oriented people to drive offshore wind projects, so the center development is linked to future projects we win in Poland,” a company spokesman said.
NKT expects to hire the first power cable jointers by the end of 2021 and will hire additional people to the execution center as the potential market opportunities emerge with the first offshore wind projects materializing in the coming years. With two existing manufacturing sites in Poland specializing in building wires, low-voltage power cables and PVC compounds, NKT is also well-positioned to meet the growing demand for power cables driven by the expected reinforcement of the Polish power grid.
“We already have a strong footprint in Poland, and it is natural for us to take steps to strengthen our position in the country with the new execution hub,” said NKT CEO Alexander Kara. He noted that NKT is preparing to support Poland’s national ambition to install up to 11 GW of offshore wind capacity in the Baltic Sea by 2040.
12/6/21 – LS Cable & System (LS C&S) announced that it has entered into an MOU for cooperation in the domestic offshore wind power business with Northland Power, a Canadian new and renewable energy developer.
A press release said that in the MOU, the two companies agree to their roles for offshore wind power generation business, agreeing to cooperate in related EPC (design, procurement and construction). Canadian-based Northland Power builds and operates new and renewable energy infrastructure such as wind power and photovoltaics. Founded in 1987, it is seeking to advance into Asian countries such as Taiwan and Japan. LS C&S was a priority supplier of submarine cables for Northland Power’s 1GW Hai Long Wind Farm Project in Taiwan.
As Northland Power is expanding its business in Korea, e.g., the 1.3 GW Dado Ocean Wind Power Project in Jeollanam-do, LS C&S expects to see its sales grow. “With this MOU, we will comply with the government’s new and renewable energy policy and contribute to job creation,” LS C&S President & CEO Roe-Hyun Myung said.
LS C&S also announced that the company signed an agreement on an “industry-finance cooperation program for the promotion of the submarine cable industry” with Korea Development Bank (KDB). LS C&S will receive funds from KDB totaling KRW 1 trillion over the next five years. The money will be used for its environmentally friendly business, such as submarine cables.
“LS Cable & System is investing huge amounts of money in the submarine cable industry in line with the government’s carbon neutral policy,” said the company.
12/6/21 – The Prysmian Group partnered up to win a U.S. submarine cable contract from Dominion Energy Virginia that represents both a major step forward for the U.S. offshore wind farm sector, and the first time that such a project has been awarded as a complete package known as a “Balance of Plant” (BoP) contract.
A press release said that to fill the cable order for Coastal Virginia Offshore Wind (CVOW)—a 2.6-gigawatt wind farm that will deploy 176 wind turbines that are taller than 800 feet—Prysmian teamed up with the DEME Group, a leader in the offshore wind industry. The DEME Group will provide everything beyond the approximately 880 km of cable that is part of the BoP contract. That includes the transportation and installation of the foundations and the substations and the EPCI (Engineering, Procurement, Construction, Installation) services for the inter-array and export cables for the future largest commercial offshore windfarm in the United States.
The total value of the contract is approximately €1.6 billion, of which around €630 million is related to Prysmian for the cable supply and the installation works under its responsibility. Prysmian Group will provide three 3-core 220 kV HVAC export cables measuring approximately 62 km each, with XLPE insulation and single-wire armoring, for a total of approximately 560 km. The company will also supply 320 km of 3-core 66kV offshore inter-array cables with XLPE insulation.
The export cables will be produced in Arco Felice, Italy, and Pikkala, Finland, while the inter-array cables will be manufactured in Nordenham, Germany. The project is expected to be completed by 2026.
“Following the award of the Vineyard submarine offshore project and the SOO Green HVDC link, the Dominion Energy project represents a further confirmation of our major role in helping our customers meet their goals,” said Prysmian Group CEO Valerio Battista. He noted that the U.S. is important to Prysmian’s growth strategy, and the Biden administration’s commitment to development of infrastructure “is something really positive.”
“Dominion Energy decided to award the contract to the Prysmian-DEME consortium in light of their unique combination of financial strength, experiences, expertise, fleet and cable supply capabilities,” said Hakan Ozmen, EVP Projects, Prysmian Group.
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