NKT secures copper for future growth by signing long-term contract with major European copper producer

The expansion of renewable energy sources is critical for achieving global climate goals. With the increasing number of offshore and onshore windfarms as well as solar parks and the expansion of the electrical grids to support the growing digitalization and electrification of society, the demand for power cables is expected to rise. Copper is essential for the power cables required to transmit the sustainable energy to where it is needed in society.

To secure the supply of copper in the coming years for its production of power cables, NKT has signed a long-term agreement with Polish copper supplier KGHM S.A. KGHM will supply NKT with a minimum of 52,500 tons of copper wire rod annually in the years 2023-2027 with an option to expand quantities and extend the contractual period. The copper will cover a substantial part of NKT’s required supply and support the company’s growth strategy.

- We are pleased to strengthen our long-term collaboration with KGHM by entering into this frame agreement for the supply of copper rod for the coming years. And even more so, that we are able to source copper close to where it is needed, which supports our efforts to reduce the environmental impact of our operations, said NKT President & CEO, Claes Westerlind.

KGHM is an integrated copper producer with its own mineral resources, mines, smelters and copper rod production facilities in Europe. KGHM’s Głogów and Legnica Copper Smelters/Refineries and Cedynia Wire Rod Plant are Copper Mark certified, which is a testimony to responsible operating practices with regards to the environment, employees, local communities and governance. In line with its purpose to connect a greener world, NKT has also joined the Copper Mark to promote responsible copper mining and production.

- The continuation of cooperation in such a demanding market environment is a mark of effectiveness and attests to the quality of our products. We are efficient and trustworthy. We ensure the security of supplies of metals, which are critical for the global energy transformation. We are satisfied with our cooperation with NKT, our wire rod is going to one of the leaders of the European wire and cable marketplace, which provides key solutions for the European energy transformation, said Tomasz Zdzikot, President & CEO of KGHM.

The demand for copper is expected to grow substantially in the coming years as the world shifts to renewable energy. With this agreement, NKT is well-positioned to meet the future demand for both high-, medium- and low-voltage power cables as NKT continues to enable the transition to renewable energy.

Lene Christoffersen, Communications Partner, Tel.: +45 2337 2105