It was time. Offshore wind farms in the North Sea are opening in turn and calls for tenders are linked before they are put into operation. Among the players elbowing, the French multinational Nexans, specializing in the production and installation of electrical cables for all types of connection. After a first contract snatched up by her Italian competitor Prysmian in Dutch waters, estimated at 1.8 billion euros, now she has found a buyer in German waters, for 1.7 billion euros.
In full phase of refocusing on its historical activities, Nexans has just exploded its record for a contract. So far, they have not exceeded 500 million euros. By being selected to pull more than 2,160 kilometers of submarine cables by 2030, the multinational will be able to recoup its recent investments in new manufacturing processes for its cables. Last week, it lifted the veil on its new low-carbon cable plan, made up of more recycled materials.
The offshore wind farms that will be connected to Germany’s electricity infrastructure plan to take on a capacity of 6 gigawatts. Nexans can rely on its new 525 kV cables, which will be produced in Norway under the 1.7 billion euro contract. Even if the project is not to connect the Netherlands, Nexans negotiated with the public network operator TenneT on this contract. Its other major project is between France and Ireland, for a total of 1,180 kilometers of submarine cables.
Oceans to wire, wind farms to connect
Until now, wiring the countries mainly went through terrestrial installations. But the sector in which Nexans has established itself is picking up again and evolving enormously. Between new offshore installations, the emergence of green electricity and the need for countries to interconnect, the oceans have welcomed electric cables alongside cables for the Internet. The 70 factories owned by Nexans, its 28,000 employees and its 6.7 billion euros in turnover put it in a good position to meet global demand, respect local production to lower the carbon impact, and being able to meet deadlines.
On the stock market, Nexans is at its highest in 2023, despite a decline over the past month. At 77.65 euros, its current price allows it to claim a market capitalization of 3.4 billion euros. Its Italian competitor remains much larger, at 9.86 billion euros, thanks in particular to its activity in cables for telecommunications and a turnover now reaching 10 billion euros. To continue to stand up to it and invest massively, Nexans made its first bond issue a month ago, for a total nominal amount of 400 million euros.
