Denmark-headquartered NKT has signed a long-term contract with a European company for the supply of copper rod that will be used for cables destined for offshore wind projects.
To secure the supply of copper for its production of power cables, NKT signed an agreement with Polish copper supplier KGHM which will supply the Danish company with a minimum of 52,500 tons of copper wire rod annually in the period 2023-2027.
The agreement includes an option to expand quantities and extend the contractual period.
“We are pleased to strengthen our long-term collaboration with KGHM by entering into this frame agreement for the supply of copper rod for the coming years. And even more so, that we are able to source copper close to where it is needed, which supports our efforts to reduce the environmental impact of our operations,” said NKT President and CEO Claes Westerlind .
NKT believes that with this agreement it is well-positioned to meet the future demand for both high-, medium- and low-voltage power cables as the demand for copper is expected to grow substantially in the coming years as the world shifts to renewable energy.
In line with the purpose of connecting a greener world, NKT has also joined the Copper Mark to promote responsible copper mining and production.
“The continuation of cooperation in such a demanding market environment is a mark of effectiveness and attests to the quality of our products,” said Tomasz Zdzikot , President and CEO of KGHM. “We are satisfied with our cooperation with NKT, our wire rod is going to one of the leaders of the European wire and cable marketplace, which provides key solutions for the European energy transformation.”
In mid-August, NKT reported it had set a record for its high-voltage order backlog in the second quarter of 2023, standing at €7.6 billion, an increase from €7 billion that was reported at the end of Q1 2023.
The success came shortly after the Danish company announced its plans to boost its high-voltage power cable business with a €1 billion investment in a new factory in Sweden and a power cable vessel.