NKT announced plans to build a new factory, including a third extrusion tower in Karlskrona, Sweden, and a new market-leading power cable vessel.

A press release said that the investments are driven by an increasing demand for high-voltage power cables, strong order intake and a record order backlog of more than €7 billion at the end of Q1 2023. Since March 2023, NKT has confirmed high-voltage contract awards and booking commitments of more than €5 billion. “To deliver on this significant order intake, prepare for the continued strong market outlook and execute the record high order backlog, NKT will invest around €1 billion in its high-voltage power cable business.”

The investments will include a new CLV with record power cable-laying capacity and a significant extension of the Swedish production site in Karlskrona. “Here, NKT will build a new factory including a third 200 m extrusion tower adding end-to-end production capacity next to the existing facility. This will turn the site into the world’s largest high-voltage offshore cable production site.”

Driven by the previous investment program, more than 300 new employees have joined the Karlskrona factory since 2020. Now, NKT expects to welcome more than 500 new employees at the Swedish site towards 2027 following the investments.

Citing the need for more high-voltage cable production and installation capability, NKT President and CEO Claes Westerlind said that the company will continue to grow “in line with our strategic ambitions and to continue developing our turnkey power cable offerings to our customers.”

NKT will invest about €1 billion from 2023 to 2026. The new assets cited above will be operational from 2027. The investment program continues the lead of prior actions. In 2020, NKT initiated an investment program in its high-voltage factories driven by a major backlog of business won for German corridor projects and a positive market outlook. A key part of the program was to add a second extrusion tower to the Swedish factory in Karlskrona which has been completed. Additional investments were announced in 2022 following the continued positive market development.