With a new agreement, the Danish cable group NKT has managed to secure its copper supply well into the future. NKT writes this in a press release.
The company estimates that the value of a new copper contract, which runs from 2028 to 2036, has a total value of six billion euros. This corresponds to almost 45 billion kroner.
NKT uses copper in the production of cables. The company produces, among other things, energy cables for wind farms, the construction industry and transmission networks.
According to the company, the agreement is crucial for it to be able to cover its growing need for copper and thus meet high demand for cables.
The European mining and smelting company KGHM will continue to supply copper.
Claes Westerlind, CEO of NKT, calls KGHM "a long-standing and trusted partner".
- Our expanded partnership with KGHM is an important step towards securing the long-term copper supply that supports our ability to deliver reliable power cable solutions to our customers.
- By strengthening this collaboration, we are reinforcing the robustness of our supply chain, reducing our exposure to market fluctuations and ensuring a stable foundation for NKT's continued growth, he says in the announcement.
The agreed amount of copper corresponds to the production of installation cables that can reach around the Earth 1000 times, NKT writes further.
This means that there is enough copper for the production of around 40 million kilometers of cables.
/ritzau/
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