Sumitomo Electric acquires German cable manufacturer Südkabel
Sumitomo Electric announced the acquisition of majority shareholding in Südkabel, a renowned German high-voltage cable manufacturer, and the expansion of its production capacity in Mannheim, Germany, to locally manufacture the highest end 525 kV HVDC cables to support the German government’s net-zero initiatives.
German TSO Amprion has awarded two major HVDC cable projects, Korridor B V49 and part of the Rhein-Main-Link project, with a total project value of more than EUR 3 billion, to Sumitomo Electric as anchor projects to pave the way for a climate neutral energy system in the country.
Korridor B V49 and part of the Rhein-Main-Link project are large-scale projects, and the HVDC cable to be delivered will be manufactured at Südkabel. The signing ceremony for these HVDC projects took place in Berlin on June 5, 2024, along with the signing of a share purchase agreement to acquire 90% of Südkabel's shares from the Wilms Group.
Amprion and Sumitomo Electric are currently proceeding with the A-Nord HVDC project connecting a 300 km link between Emden and Osterath near Dusseldorf. The two additional projects will be implemented as part of a long-term strategic collaboration between the two companies.
Korridor B V49 will connect approximately 300 km between Wilhelmshaven and Hamm, and part of the Rhein Main Link project is approximately 650 km in length. Both projects will form part of Germany’s critical power transmission infrastructure, especially to bring renewable power generated in the North Sea to the country’s major consumer areas. They are expected to be completed by 2033.
The 525 kV HVDC cable for these new projects, which is the most technologically advanced transmission cable in the industry, will be manufactured in Südkabel’s factory in Mannheim. Sumitomo Electric has a long and solid track record of delivering HVDC cable projects on a global basis, including the 400 kV NEMO Link between the UK and Belgium, with its state-of-the-art cabling technologies, which will be implemented locally in Germany to support the country’s energy transition and employment.
In order to fully localize the production and construction of HVDC cable systems in Germany, Sumitomo Electric will acquire 90% of the shares of Südkabel, to increase Südkabel's capital by EUR 30 million. Sumitomo Electric will also invest EUR 90 million to increase Südkabel's cable production capacity.
The acquisition process is currently expected to be completed as of October 1st this year, subject to regulatory approvals.
