WCA January 2017

Industry news

ABB to divest cable business to NKT Cables

on future projects to access market opportunities in areas like sub-sea interconnections and direct current (DC) transmission links,” said Claudio Facchin, president of ABB’s Power Grids division. ABB – Switzerland Website : www.abb.com

currently under construction. With experience of over a century, the business serves a range of applications and has commissioned hundreds of alternating current and direct current links around the world. “As part of the strategic partnership, ABB and NKT Cables will work together

NKT Cables is acquiring ABB’s global high-voltage cable system business with a total enterprise value of €836m (US$934 million). High-voltage cables are key components in sustainable energy networks, used for transmitting large amounts of electricity over long distances. The business is part of ABB’s Power Grids division, which is currently undergoing a strategic review. NKT Cables designs, manufactures and supplies power cables for low-, medium- and high-voltage solutions mainly in the alternating current (AC) area. It has production facilities in Europe and China as well as sales offices around the world, and employs around 3,200 people. In 2015, revenue was €1.2bn. “We are combining two strong cable portfolios rooted in a shared Nordic heritage that will be more competitive on a larger scale under NKT Cables’ ownership, while maintaining access to supply through a long-term strategic partnership,” said ABB CEO Ulrich Spiesshofer. ABB’s high-voltage cable technology and manufacturing as well as service footprint is highly complementary with NKT Cables’ activities, making the combined business suited to serve the rising global demand for long-distance power transmission cable systems. The combined operational scale and reach of the two businesses is expected to lead to even better service for global customers. “ABB’s high-voltage cable business will add considerable strength to our portfolio and bring us a world-class manufacturing operation. We will leverage the technology, domain competence and highly skilled workforce to grow this business,” said Michael Hedegaard Lyng, president and CEO of NKT Cables. ABB’s cable system business offers turnkey solutions including design, engineering, supply, installation, commissioning and service. It had adjusted stand-alone revenues of US$524 million in 2015, employs around 900 people, and has state-of-the-art manufacturing and R&D capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden. The transfer of assets also includes a new, cutting-edge cable-laying vessel,

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Wire & Cable ASIA – January/February 2017