1/3/2022 – Sweden’s Elcowire reports at its website that the company has entered into an agreement to acquire KME’s rod and wire assets and business located in Hettstedt, Germany, with 180 employees.
“For Elcowire this means doubling the capacity to 300,000 metric tons for copper rod and adding a large share of the market with a wide range of capabilities for wire and strands solutions,” the company stated. It noted that the deal will strengthen Elcowire and give access to a larger customer base and product portfolio, as well as expand the geographical coverage.
“The acquisition has a perfect strategic fit and will add capacity and capability for a wider product range as well as being able to serve a larger market with our solutions, which substantially will contribute to lower the CO2 footprint,” Elcowire Group CEO Paul Gustavsson said.
Together with the acquisition and the current operations in Sweden and Germany, Elcowire will be a much stronger player in the rod and wire business and be able to build further on its value-added offering in Elcowire’s other business units (high voltage, rail and specials).The closing of the transaction is subject to regulatory approval.
Elcowire is one of the leading suppliers in Europe, developing products and services based on copper and aluminum wire rod for the electrical and infrastructure industry. Operations are located in Sweden and Germany. Elcowire consists of four business units: Rod, Rail, High Voltage and Specials. Elcowire, which employs 200 people, is one of seven businesses owned by the Liljedahl Group.
The KME Group was described as one of the world’s largest manufacturers of copper and copper alloy products and high-performance copper and copper alloy special products.
1/3/2022 – The GFG Alliance reports that it plans to re-open its LIBERTY Steel Georgetown (LSG) rod mill in Georgetown, South Carolina.
A press release initially said that the reopening was expected to happen in mid-January. LGS will integrate operations with LIBERTY’s plant in Peoria, Illinois, to meet a strong order book and clear a customer backlog. Billet will be manufactured in Peoria, taking advantage of the plant’s additional melt capacity, then delivered to Georgetown for conversion into 10,000 metric tons of finished rod a month. LGS has also implemented efficiencies such as utility cost savings, rental equipment returns and contractor reductions to improve profitability and develop a sustainable long-term plan for the plant.
The rod mill has had a storied history. Founded in 1969 by German industrialist Willy Korf, it at one time had as many as 1,500 employees. It had multiple owners, including the government of Kuwait in 1984 and the International Steel Group in 2004. It was bought in 2005 by Lakshmi Mittal. The mill closed in 2009, and following the Mittal merger with Arcelor, it was reopened by Arcelor Mittal in 2011, only to be closed in May 2015. The Liberty House Group, part of the GFG Alliance, purchased ArcelorMittal’s Georgetown steelworks in 2017.
The news was part of a larger update by the GFG Alliance, which included restructuring and refinancing progress for all its operations. LIBERTY Steel Group’s Restructuring and Transformation Committee (RTC) was formed in May 2021. Chief Restructuring Officer Jeffrey Stein said that the restart of the Georgetown plant reflects “further evidence of healthy market conditions and strong infrastructure spending across much of the globe.”
1/3/2022: The Prysmian Group announced that it has won two milestone offshore wind farm projects in the U.S. worth nearly $900 million, and that—pending final okays—it will build a U.S. power cable plant to manufacture some of the submarine power cable.
A press release said that Vineyard Wind, a 1,200 MW wind farm project, is a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners. The contract, worth about $300 million, is for cabling to connect the 804 MW Park City offshore wind farm to the electricity grid in the state of Connecticut. Prysmian will deploy HVAC 275 kV three-core cables with XLPE insulation and single wire armoring. The cables will be produced by Prysmian’s plants in Arco Felice, Italy, and Pikkala, Finland, and installed by the Leonardo da Vinci and Ulisse vessels. Delivery and commissioning are scheduled for 2026.
The 1,200 MW Commonwealth Wind (CW) cable project is worth around $580 million. Prysmian will design, supply, install, and commission as many as three export submarine power cable links to connect CW to the electricity grid in Massachusetts. Prysmian will supply HVAC 275 kV three-core cables with XLPE insulation and single-wire armoring.
Prysmian intends to build a manufacturing facility for submarine transmission cables at Brayton Point, the site of a former coal-fired power plant in Somerset. The CW project agreement is subject to conditions, such as permits and arrangements with the property owner as well as Prysmian."
The CW submarine cables are planned to be produced in the new plant in Massachusetts, as well as at Prysmian plants in Arco Felice and Pikkala. Delivery and commissioning of the export cables are scheduled for 2027. Both cable supply awards are subject to the finalization of Prysmian Group plans to localize its footprint.
Per Common Wealth Magazine, Avangrid Renewables encouraged Prysmian to open a facility in Massachusetts by promising to use it as the supplier for both of the projects. Such a plant would provide some 200 jobs.
The news “confirms the validity of Prysmian’s growth ambition in the fast-developing offshore wind farm industry in the U.S.,” the release said. “Prysmian is also excited to announce significant progress towards its first submarine power cables manufacturing facility in the U.S.” said Prysmian Group Executive President Hakan Ozmen. “While we still have work to do ... it is clear that, with the support of the state of Massachusetts and others, we are in a great position to reach a final agreement that will prompt a major expansion of our company.”
The release said the new projects “are important additions to (Prysmian’s) growing submarine cable and HVDC system portfolio in North America.” The Group’s track record includes interconnections projects like the SOO Green HVDC link, Neptune, TransBay and Hudson River, as well as the Empire Wind interarray projects.
1/3/22 – Leoni will officially close its plant in Chicopee, Massachusetts—the German cable maker’s first wire plant in the U.S., by Feb. 4, resulting in the loss of some 80 jobs.
A press release said that the company tried to but could not find a buyer for the plant, which opened in October 1991. “Unfortunately, despite intensive conversations with several potential investors, it was not possible to find a long-term continuation perspective for LWI, both strategically and financially.” The result is that the plant, which produces cables, ropes and braids for the aerospace, data communications and other industries, will be closed.
A company spokesman said that the operation was not part of the company’s previously announced plans. “As is well known, Leoni AG wants to strategically focus on consolidating its leading position as a supplier of wiring systems for the automotive industry. Against this backdrop, the company has already sold several non-automotive units in 2021.” Last November, WJI reported that Leoni AG had sold the majority of its Wire & Cable Solutions division to strategic investor BizLink Holding Inc. At the time, Leoni AG CEO Aldo Kamper said that the move had to be made. “With this step, we are once again proving that we are consistently continuing to implement our announced and already advanced focus on the Wiring System Division.”
12/6/21 – NKT plans to extend its presence in Poland with a local execution hub that will prepare it for the market opportunities driven by the country’s green transformation in Poland.
A press release said that NKT is now expanding its local presence with an execution center to prepare for a growing demand for both on- and offshore power cables. The center will be located in Gdynia, Poland, close to the Baltic Sea where several offshore wind farms are expected to be located.
The execution center is not a production site but a hub from where a company can execute local projects, both onshore and offshore. “The idea is to first hire cable jointers for installation projects where they are connecting the produced cable lengths. At a later stage, the plan is to hire more project-oriented people to drive offshore wind projects, so the center development is linked to future projects we win in Poland,” a company spokesman said.
NKT expects to hire the first power cable jointers by the end of 2021 and will hire additional people to the execution center as the potential market opportunities emerge with the first offshore wind projects materializing in the coming years. With two existing manufacturing sites in Poland specializing in building wires, low-voltage power cables and PVC compounds, NKT is also well-positioned to meet the growing demand for power cables driven by the expected reinforcement of the Polish power grid.
“We already have a strong footprint in Poland, and it is natural for us to take steps to strengthen our position in the country with the new execution hub,” said NKT CEO Alexander Kara. He noted that NKT is preparing to support Poland’s national ambition to install up to 11 GW of offshore wind capacity in the Baltic Sea by 2040.
12/6/21 – LS Cable & System (LS C&S) announced that it has entered into an MOU for cooperation in the domestic offshore wind power business with Northland Power, a Canadian new and renewable energy developer.
A press release said that in the MOU, the two companies agree to their roles for offshore wind power generation business, agreeing to cooperate in related EPC (design, procurement and construction). Canadian-based Northland Power builds and operates new and renewable energy infrastructure such as wind power and photovoltaics. Founded in 1987, it is seeking to advance into Asian countries such as Taiwan and Japan. LS C&S was a priority supplier of submarine cables for Northland Power’s 1GW Hai Long Wind Farm Project in Taiwan.
As Northland Power is expanding its business in Korea, e.g., the 1.3 GW Dado Ocean Wind Power Project in Jeollanam-do, LS C&S expects to see its sales grow. “With this MOU, we will comply with the government’s new and renewable energy policy and contribute to job creation,” LS C&S President & CEO Roe-Hyun Myung said.
LS C&S also announced that the company signed an agreement on an “industry-finance cooperation program for the promotion of the submarine cable industry” with Korea Development Bank (KDB). LS C&S will receive funds from KDB totaling KRW 1 trillion over the next five years. The money will be used for its environmentally friendly business, such as submarine cables.
“LS Cable & System is investing huge amounts of money in the submarine cable industry in line with the government’s carbon neutral policy,” said the company.
12/6/21 – The Prysmian Group partnered up to win a U.S. submarine cable contract from Dominion Energy Virginia that represents both a major step forward for the U.S. offshore wind farm sector, and the first time that such a project has been awarded as a complete package known as a “Balance of Plant” (BoP) contract.
A press release said that to fill the cable order for Coastal Virginia Offshore Wind (CVOW)—a 2.6-gigawatt wind farm that will deploy 176 wind turbines that are taller than 800 feet—Prysmian teamed up with the DEME Group, a leader in the offshore wind industry. The DEME Group will provide everything beyond the approximately 880 km of cable that is part of the BoP contract. That includes the transportation and installation of the foundations and the substations and the EPCI (Engineering, Procurement, Construction, Installation) services for the inter-array and export cables for the future largest commercial offshore windfarm in the United States.
The total value of the contract is approximately €1.6 billion, of which around €630 million is related to Prysmian for the cable supply and the installation works under its responsibility. Prysmian Group will provide three 3-core 220 kV HVAC export cables measuring approximately 62 km each, with XLPE insulation and single-wire armoring, for a total of approximately 560 km. The company will also supply 320 km of 3-core 66kV offshore inter-array cables with XLPE insulation.
The export cables will be produced in Arco Felice, Italy, and Pikkala, Finland, while the inter-array cables will be manufactured in Nordenham, Germany. The project is expected to be completed by 2026.
“Following the award of the Vineyard submarine offshore project and the SOO Green HVDC link, the Dominion Energy project represents a further confirmation of our major role in helping our customers meet their goals,” said Prysmian Group CEO Valerio Battista. He noted that the U.S. is important to Prysmian’s growth strategy, and the Biden administration’s commitment to development of infrastructure “is something really positive.”
“Dominion Energy decided to award the contract to the Prysmian-DEME consortium in light of their unique combination of financial strength, experiences, expertise, fleet and cable supply capabilities,” said Hakan Ozmen, EVP Projects, Prysmian Group.
12/6/21 – Cerrowire, a leading U.S. manufacturer of copper building wire, announced that it is investing more than $100 million to build a 270,000-sq-ft facility in Hartselle, Alabama, to manufacture a new product, metal-clad cable (M-C cable), which is also known as armored cable.
A press release said that the company—which this year celebrates its 100th anniversary—is building the plant at the Morgan Center Business Park in Hartselle. M-C cable, it noted, is a growing sector in the building wire market, used for most types of building construction, primarily in commercial, but also for some residential and industrial applications. The facility will incorporate advanced systems and equipment, allowing the company to further its commitment to high quality and cost control.
“We are looking forward to Hartselle being the strategic location that is a perfect fit for our major new venture and to the creation of over 130 jobs to support this growing community,” said Cerrowire President Stewart Smallwood. “The state of Alabama, Morgan County, the Tennessee Valley Authority and city of Hartselle are excellent partners in creating an environment for our business to flourish.”
Smallwood said that adding M-C cable to the company’s product portfolio allows it to leverage its core business—manufacturing building wire—and to provide a strong building wire solution that fulfills a growing need.”
The new plant will be Cerrowire’s second one in the city. The company’s existing copper cable plant in Hartselle, on Thompson Road, has more than 300 employees. That operation is expected to continue a growth path in 2022.
12/6/21 – Nexans has opened the first North American plant that has the capacity to manufacture high-voltage subsea cables up to 525 kV HVDC and 400 kV HVAC.
A press release said that the site in Charleston, South Carolina, will provide the full range of products for export cables for offshore wind and subsea interconnectors. The first subsea high-voltage export cable will be delivered to an offshore windfarm in the U.K. beginning in 2022.
The Charleston plant is part of the comprehensive supply chain that is being developed to support offshore wind in the U.S. market. Energy companies such as Eversource, Ørsted and Equinor are among those whose projects are expected to accelerate the energy transition in the U.S. Nexans has signed a framework agreement with Eversource and Ørsted to supply the first U.S.-made subsea high voltage export cables for the projects, and preferred supplier agreement with Equinor for the turnkey projects Empire Wind 1 and 2.
Nexans estimates that it will be able to deliver up to 1,000 km of cables for Ørsted’s and Eversource offshore wind farms in North America up until 2027. Also, as the preferred supplier for Equinor’s Empire Wind, early engagement for Mayflower, Nexans is well positioned to support the U.S. with further energy transition projects.
“It’s an exciting time for the wind industry in the U.S. as we unleash the potential that offshore renewable energy offers,” said Nexans CEO Christopher Guérin. “Our purpose is to ‘electrify the future’ and our expanded facility allows us to do that by combining decades of experience in developing and manufacturing high voltage cables with the newly launched and the most technically advanced cable-laying vessel (CLV) Aurora. We are thrilled to contribute to the wind power revolution in the U.S. and beyond.”
Guérin said that the initiative helps efforts to create a more sustainable world and further electrification efforts, while helping the U.S. meet its goals for carbon neutrality. “We believe that offshore wind will be key to create a clean energy economy; helping to add jobs, stimulate the economy, all while cutting greenhouse gas emissions.”
Built in 2014 to serve the U.S. high-voltage transmission market, the Charleston plant expansion supports the rapidly growing U.S. offshore wind market. By the end of 2021, Nexans will have created 210 new jobs to support the industry development in South Carolina.
12/6/21 – Madison, Connecticut, USA. – Robert “Bob” Xeller announced his retirement as a full-time employee as of the end of December, completing a career that traces back to his IBM days when he came to learn about the Association. He plans to continue on a limited basis that will end after the staging of Wire Expo 2022 next June in Dallas, Texas.
Xeller started with “Big Blue” after completing his degree in business administration at Wittenberg University in 1970. His career went in a different direction, but he moonlighted evenings with several prior IBM accounts supporting software changes of new installations. One client was the Association. Prior to this, all member/subscribers were handled through a service bureau and 80 column card maintenance. In 1987, then Executive Director Monk Munger asked him to help service the trade shows organized on the new computer systems.
Xeller became part of the Association’s trade events, helping organize the Interwire and Wire Expo trade shows. He became director of sales in 2001, and was a fixture at the event on the show floor.
Michael Webb, who as an account executive at Shepard Exposition Services worked with Xeller on Interwire events the past 20 years, said that it had been a privilege to do so. “I can honestly say he was one of my closest and most trusted friends. I will miss talking to him several times a week. Sometimes it was strictly work, but other times it was about family, household projects, vacations and whatever else what was going on. I wish him the best.”
Dane Armendariz, the WAI president in 2010, recalled that he first met Xeller attending his first Interwire long, long ago. “After sitting in on a committee meeting, I was wandering the streets of Atlanta and ran into Bob Xeller. He invited me to join him and the staff for dinner and a very long friendship began. He saved me that day from a dinner alone at McDonald’s.”
Armendariz said that he never saw Bob rattled. When a problem or issue came up, his reply was “We will take care of it,” and he would. “While we all know life and business move on, Bob’s knowledge, experience, and people skills will be hard if not impossible to replace. The good thing is he will always just be a phone call away. All the best, my friend.”
Xeller said that he treasures his years with the Association but looks forward to spending more time with family, which includes his wife of 50 years, Kathleen, their seven children and their spouses, and 15 grandchildren.
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