NKT acquires SolidAl, adding medium- and high-voltage capacity to address growing grid demand
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Company announcement
21 June 2024
Announcement No. 15
NKT acquires SolidAl, adding medium- and high-voltage capacity to address growing grid demand
NKT has acquired SolidAl, a Portugal-based power cable company, from Njord Partners, adding medium- and high-voltage capacity to meet the growing demand from grid upgrades and renewable energy projects across Europe. As part of the acquisition, NKT will invest in additional capacity at the existing site.
As the electrification of society continues to gain momentum, power generation and consumption is increasing. Upgrading Europe’s aging power grid infrastructure and connecting a growing number of renewable power projects is driving demand for medium- and high-voltage power cables. According to the International Energy Agency (IEA), reaching national climate goals requires adding or refurbishing a total of more than 80 million kilometres of power grids by 2040, the equivalent of the entire existing global grid and the European Union estimates that Europe will need to invest EUR 584bn to upgrade its power grids this decade.
To satisfy this growing demand from power grid customers, NKT has acquired SolidAl. The acquisition is supporting NKT’s growth strategy and will:
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Increase medium- and high-voltage capacity up to 225kV
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Improve competitiveness of NKT’s product offering and geographical reach across new and existing markets
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Provide a competitive, competent and expandable platform for future growth to serve increased demand
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Support NKT’s medium-term ambitions, including RoCE above 20%
“SolidAl provides a strong strategic fit in terms of capacity and competence, strengthening NKT’s position in serving customers with end-to-end grid solutions, particularly the growing demand for medium- and high-voltage power cables up to 225 kV. We look forward to welcoming SolidAl’s highly skilled employees to NKT and continuing our growth journey together. With more than 50 years in the industry, SolidAl will complement the competitiveness of the product mix from NKT’s existing factories in Asnaes, Velke Mezirici and Cologne focusing on delivering the full range of power cables for the grid at a larger scale,” says Claes Westerlind, President and CEO of NKT.
“NKT’s acquisition of SolidAl is a testament to our team’s dedication and hard work. NKT is a widely recognized worldwide leader in the manufacturing of power cables and accessories, and I could not think of a better owner to support SolidAl in expanding its commercial reach and technical capabilities,” says Fran?ois Moufflet, CEO, SolidAl.