en.Wedoany.com Reported - Swedish Hexatronic Group will invest in a new fiber optic cable production line at its largest manufacturing base, as part of a long-term supply agreement with Danish power cable manufacturer and installation company NKT, aiming to significantly enhance submarine cable manufacturing capacity.
Once the new production line at the Hudiksvall factory is operational, the company's annual submarine cable capacity will increase from the current approximately SEK 150 million to 200 million (about EUR 13.5 million to 18.1 million) to over SEK 500 million (about EUR 45.2 million), depending on the product mix. The Hudiksvall factory is the group's largest manufacturing base and the core facility for advanced fiber optic cable and microduct production. Hexatronic already operates a submarine fiber optic cable production line at this factory.
Rikard Fröberg, President and CEO of Hexatronic Group, stated that demand for submarine cable solutions continues to grow, driven primarily by societal electrification and digitalization, offshore energy projects, and rising demand for robust communication infrastructure. This investment helps strengthen the company's competitiveness in an important and rapidly growing market segment, which has recently seen strong order volumes, a trend expected to continue. Fröberg also acknowledged the further deepening of the long-term partnership with NKT.
According to the company, this investment aims to meet growing customer demand driven by the expansion of offshore wind power and submarine communication infrastructure, with a significant portion of the capacity to support NKT's production plans through a new long-term supply framework agreement valid until 2032. The new production line is expected to commence operations in 2028.
Will Hendrikx, COO and Deputy CEO of NKT, noted that securing capacity from this new submarine cable production line helps the company efficiently execute future projects. NKT and Hexatronic have collaborated for many years, and both parties are very pleased to further deepen their partnership.
