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, a reputable manufacturer with a number of remarkable track records through its more than 120 years of operation in Mannheim, 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 in September this year, subject to regulatory approvals.

Masaki Shirayama, Managing Director of Sumitomo Electric, said "We are delighted to have been selected by Amprion as a cable partner for two major HVDC projects in addition to the A-Nord project currently under execution. With the acquisition of Südkabel, we can fully localize our business in Germany to support Amprion and the country's energy transition. Along with our new submarine cable factory under construction in Scotland, we will further reinforce and expand our high-voltage power cable manufacturing capabilities in Europe."

Dr. Hendrik Neumann, CTO of Amprion, said "The contract and the Preferred Supplier Agreement with Sumitomo Electric are crucial to enabling us to implement the Korridor B49 and Rhein-Main-Link projects on schedule and to our ability to play our part in achieving the nation's climate goals. We are delighted to have found a partner in Sumitomo Electric that is building up extensive production capacities in Germany. This will generate value added in Germany and is also the most sustainable solution for implementing our projects thanks to the short transport routes."

Michael Kellner, State Secretary of Federal Ministry for Economic Affairs and Climate Action, said "Power highways are an essential component for advancing the energy transition and the transformation of our economy. I am glad that Sumitomo's investment will strengthen the production of high voltage direct current cables in Germany.
In view of the supportive policy environment put in place by the Federal Government, I do of course hope that this will be a long-term investment that will safeguard employment, economic growth and expertise in Mannheim."

Rudi Hoogvliet, Plenipotentiary of the State of Baden-Württemberg to the Federal Government and State Secretary, said "Renewing and expanding our energy infrastructure is a central task in the coming years. The partnership between Sumitomo Electric and Amprion shows that the energy transition is an international endeavor and is also a key to new, green economic growth in Baden-Württemberg and beyond."

About Amprion:
Amprion GmbH is one of four transmission system operators in Germany. Its 11,000-kilometre extra-high voltage grid transports electricity in an area from the North Sea to the Alps. Around a third of Germany's economic output is generated there. Around 2,700 employees in Dortmund and at more than 30 other sites help make sure the lights never go out.

About Südkabel:

Company name Südkabel GmbH
Location Mannheim, State of Baden-Württemberg
Founded 1898
Capital EUR 7 million
Revenue EUR 140 million (FY2023)
Business High-voltage cables and cable accessories, and their installation services
Employees Approx. 260

Related press releases:
・May 14, 2024:
Sumitomo Electric commences construction work for its new Subsea Cable factory in Scotland with Preferred Bidder notice received from SSEN Transmission for the Shetland 2 525kV HVDC cable project
https://sumitomoelectric.com/press/2024/05/prs018

・May, 11 2020:
Sumitomo Electric secures >€500M "Corridor A-Nord" High Voltage DC Underground Cable Project in Germany which sets new innovative benchmarks in the HVDC Industry

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Sumitomo Electric Industries Ltd. published this content on 06 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 June 2024 05:03:01 UTC.