Italian cabling giant Prysmian Group is set to invest around €120 million in its plant in Pikkala, Finland, in order to further increase the production capacity of 525 kV HVDC submarine cable systems.
New vertical continuous vulcanization (VCV) lines at the Finnish plant are expected to more than double its existing production capacity of 525 kV extruded submarine cables and 400 kV AC cables by 2026.
This latest investment comes in addition to the €100 million provided in 2022.
According to Prysmian, the breakthrough 525 kV submarine cable technology is specifically designed to support the energy transition as it enables a “massive increase” in transmission capacity to 2 GW, more than double the value achieved with the 320 kV DC systems currently in use.
“This investment confirms the strategic importance of the Pikkala plant, which is already considered the Group’s energy transition flagship factory. Thanks to its switch to green energy sources, this plant is to date the first cable plant in the world to have achieved the net-zero goal,” said Ferdinando Quartuccio , CEO at Prysmian Group Finland.
The Italian company noted that its global strategy was to rely on three power transmission cable hubs, including one in Northern Europe , thanks to the increasing investments in the Pikkala plant, one in the Mediterranean area , where around €100 million is being invested in the existing plant in Arco Felice, Italy, and lastly the new submarine cable plant in Massachusetts, U.S. , serving the North American market.
“The investment is part of the around €500 million capex per year that the Group is implementing to support the energy transition, electrification and digitalisation processes, which require the upgrade of power grids and telecom networks,” said Massimo Battaini , Chief Operating Officer at Prysmian.
“It is worth also to highlight that this massive investment plan is made possible thanks to the Group financial solidity and its proven cash generation capability.”