Nexans secures substantial contract for Gotland electricity connection project

• Nexans has been awarded a substantial contract by Svenska kraftnät to deliver 320 km of high-voltage subsea and onshore cables for the Gotland Connection project in Sweden.
• The project will address growing electricity demand on Gotland, ensuring reliable energy supply for the island.
• Scheduled for completion by mid-2030, the project will play a key role in supporting Sweden’s renewable energy transition goals.

Nexans, a global electrification leader, has been awarded a substantial contract by Svenska kraftnät, the Swedish transmission system operator, for the Gotland Connection. This project further reinforces Nexans’ commitment to electrifying the future and driving the energy transition forward.

The Gotland Connection will strengthen the electricity supply between Gotland and mainland Sweden. The installation of 320 km of 220 kV HVAC, subsea and onshore cables, will help meet the growing demand for electricity caused by industrial growth and renewable energy projects on the island.

Today, Gotland’s electrical grid is connected to the mainland via the regional network. The conditions on Gotland have changed significantly in recent years, increasing the need for a robust, secure, and more reliable energy supply. The transition to a carbon-neutral industry on Gotland is expected to drive a sharp increase in electricity demand by the early 2030s.

Under this contract, Nexans will supply and install high-quality cable systems, which will be manufactured at several of the company’s plants. These cables are designed for reliable performance and future use in renewable energy applications.

The project is scheduled for completion by mid-2030 and reinforces Nexans’ position as a trusted leader in energy infrastructure solutions.

• Nexans has been awarded an important contract with ScottishPower Renewables to deliver high-voltage subsea export cables for the East Anglia TWO offshore wind farm in the southern North Sea.
• The project will generate up to 960MW of renewable energy – enough to power the equivalent of almost 1 million UK homes.
• The expected completion of the project is by the end of 2028, supporting the UK’s renewable energy goals.

Nexans, a leader in the design and manufacturing of cable systems and services, has been awarded an important contract by ScottishPower Renewables (part of the Iberdrola Group) for the East Anglia TWO offshore wind farm project. This project represents a critical milestone in Nexans’ commitment to electrifying the future and supporting the European energy transition.

The East Anglia TWO offshore wind farm, located approximately 33 kilometers from the Suffolk coast in the southern North Sea, will have an installed capacity of up to 960MW, making it an important contributor to the UK’s renewable energy landscape. The wind farm will play a significant role in the UK’s renewable energy landscape, generating enough electricity to power the equivalent of almost one million homes.

Under this contract, Nexans will supply and install approximately 100 kilometers of 275kV high voltage subsea export cables and 55 kilometers of onshore cables, connecting the wind farm to the UK electricity grid. These cables will be manufactured at Nexans’ advanced production facilities in Halden, Norway, and Charleroi, Belgium, ensuring the highest quality and reliability for this crucial renewable energy infrastructure.

The cable installation is scheduled to take place in 2027 and 2028, with the project set for completion by the end of 2028. Building on the success of the East Anglia ONE project, this collaboration further solidifies Nexans’ position as a trusted partner in the offshore wind sector, capable of delivering complex projects that contribute to a sustainable energy future.

• Nexans is partnering with global market place BIMobject and becomes the first cable manufacturer to integrate its products into the building information modeling.
• As part of this initiative, Nexans cables and cable systems will be included at the very early stage of construction projects, from the design phase, thus facilitating and optimizing their integration.
• The construction sector is expanding rapidly, with 230 billion square meters of new buildings expected by 2060, which clearly emphasizes the importance of BIM.

Nexans, a leading designer and manufacturer of cable systems and services, has announced a strategic partnership with BIMobject, one of the foremost global platforms for the construction industry. This collaboration is a milestone in the digitization of the cable sector, positioning Nexans as the first cable manufacturer with products integrated in BIM.

Innovation at the core of Nexans strategy

As a pioneer in the implementation of BIM for the cable industry, Nexans is restating its commitment to innovation and the digital transformation of the construction sector. This initiative is a perfect fit with Nexans’ ambitions to become a pure player in electrification, delivering smart and sustainable cabling solutions for the buildings of the future.

A strategic partnership with BIMobject

Through this collaboration with BIMobject, a leading market place in BIM objects for the construction industry, Nexans will be able to provide architects, engineers and professionals of the construction sector with a selected range of products in the form of detailed 3D models. Looking beyond modeling aspects, these objects include essential information such as technical specifications, installation instructions, energy use and product-related environmental data.

Advantages for construction professionals

As a result of this partnership, Nexans cables and cable systems will now be included at the early stage of construction projects, that is the design phase. This early integration will allow for the optimization of  electrical installations and therefore contributing to increased safety and reliability throughout the building’s lifecycle.

A booming market

With 230 billion square meters of new buildings expected by 2060 , the construction industry is facing unprecedented challenges. By integrating its products into the BIMobject platform, Nexans will be able to respond to growing demand, while promoting sustainable, high-performance cabling solutions.

A vision for the future

As the first cable manufacturer to adopt BIM, Nexans is paving the way for a new era of smart design in construction, underlining the Group’s commitment to supplying innovative cabling solutions and supporting construction professionals in their work.

Nexans will continue to expand the range of products available on BIMobject’s platform, reinforcing its position as a pioneer in the digitization of the cable industry, and helping to shape the future of sustainable construction.

Nexans is hosting its Capital Markets Day 2024 in London, UK, today. During this day dedicated to the financial community, Christopher Guérin, CEO and members of the Executive Committee will unveil the Group’s new strategic and financial ambitions for the next four years (2025-2028).

The Capital Markets Day will start at 9:00 am Paris time / 8:00 am London time. The live webcast and subsequent recording will be accessible on Nexans website: 2024 Capital Markets Day – Nexans. A replay of the event and all supporting materials will be made available on our website after the event.

Nexans is now opening its third chapter to amplify profitable growth in Electrification, accelerating the sustainable revolution, and scaling new heights. The new strategic roadmap will focus on amplifying its position in Electrification through new tech solutions, and new market segments, amplified by artificial intelligence.

The Group will rely on:

• Its positioning: Global operations in three expanding markets growing at twice the rate of GDP.
• Its assets: Early investments in state-of-the-art manufacturing capacities and an integrated supply chain, from resource access to robust manufacturing capabilities.
• Its solutions: End-to-end solutions bundling advanced cables with innovations in cable technology, monitoring devices, and software.

2025 – 2028 Financial Ambitions: Elevating Financial Performance

On its existing Electrification portfolio, Nexans will continue to drive selective and profitable expansion, expecting an organic growth of +3-5% CAGR. An incremental adjusted EBITDA of +€350 million is targeted between 2024 and 2028 in Electrification businesses.

Nexans is also unveiling its 2028 financial targets at the Group level:

• Adjusted EBITDA at €1,150 million (+/- €75 million) while completing its portfolio rotation towards Electrification.
• Return on Capital Employed above 20% thanks to profitability expansion, strict working capital management, and disciplined investment.
• Capital Expenditures around €1.2 billion between 2025 and 2028 to fuel growth, with a reallocation towards PWR-Grid and PWR-Connect segments (formerly Distribution and Usage) during the period, boosted by growth capex.
• Cumulative free cash flow before M&A and equity operations is expected to land around €1.4 billion between 2025 and 2028, with a solid conversion rate ratio above 45% in 2028.

Capital Allocation Priorities

• Continued disciplined acquisition strategy supported by Nexans’ robust M&A blueprint to reinforce portfolio in Electrification markets and expand into new value pools.
• Disciplined leverage with a net debt/adjusted EBITDA ratio ≤ 1.0x and a commitment to maintaining a strong credit rating.
• Shareholder return with a progressive dividend policy and dividend payout ratio ≥ 30%, while buying-back shares to avoid dilution.

Non-Financial Targets Aligned with Long-Term Strategy

• Reduce greenhouse gas emissions by 2028 by -42% on scopes 1 and 2 and -29% on scope 3 versus the 2019 base year.
• Accelerate the circularity of its business and increase recycled copper content in its products from 5% in 2023 to 25% in 2028.

• Nexans is pleased to announce the arrival of Séverine Grosjean as Executive Vice President Human Resources and Sustainability.
• With 28 years’ experience, Séverine brings an extensive knowledge of Human Resources in international Groups that are part of Nexans ecosystem and partnerships.
• This leadership appointment comes at the time of Nexans’ new equity story and the acceleration of its strategy as a pure-player in electrification, placing people and environment at the heart of its business.

Nexans is pleased to announce the arrival of Séverine Grosjean as Executive Vice President Human Resources and Sustainability.

Séverine comes from major industrial companies and led Tarkett as Human Resources & Communication Director for the last 5 years.

Séverine started her career in 1996 at Philips Consumer Electronics and held various HR management positions focused on Talent and Organization development, Communication and Employee Relations in industrial companies such as Alstom from 2000 to 2015, Schneider Electric from 2015 to 2017 and Tarkett from 2017 to 2024.

Her significant international background on talent management, combined with a solid knowledge of industrial environments comparable to Nexans’, is a strong asset to handle its coming equity story.

Graduate of Science Po Paris and IAE Paris, Séverine Grosjean also holds a Master’s degree from the University of Kent (Canterbury, UK).

• The separation will provide increased clarity in the market, strengthening Lynxeo’s role as a fully integrated player, serving a diversified range of critical infrastructure industries including railways, rolling stock, automation, shipbuilding, wind, aerospace and healthcare
• Today’s announcement is yet another step in the continued successful execution by Nexans of its Electrify the Future strategy

Nexans continues to deliver on its Electrify the Future strategy and announces today the business separation of its specialty industrial cable operations formerly Nexans Industry Solutions & Projects now named Lynxeo, part of the Nexans group.

With 2,000 employees in 9 countries and annual standard sales of over 700 million euros, Lynxeo is a powerhouse in specialty industrial cables. The move will allow Lynxeo to further enhance its role in critical industrial segments. With a heritage of than 100 years serving industrial champions, Lynxeo boasts a global manufacturing presence in Europe Asia, and the United States of America.

Lynxeo: a privileged partner for customers facing energy and industrial challenges

Today’s business separation provides increased clarity in the market outlook and it is a recognition of the commitment of Lynxeo’s employees, as well as their ability to innovate and provide high value-added services. Lynxeo as a strategic partner to its clients will continue to support them with critical application products for the great challenges in fields ranging from rolling stock and railway infrastructure to automation, aerospace, shipbuilding, renewable and non-carbon energies, as well as the healthcare sector.

• Nexans is to invest over €90 million in the development of an innovative plant at its Lens site by 2026.
• Nexans’ strategic supplier for this investment is Continuus Properzi, a specialist in continuous casting, rolling and smelting technologies for copper and aluminum.
• With a production capacity increased by over 50%, the future Lens plant will be able to recycle up to 80,000 metric tons of copper per year.
• Nexans is reaffirming its capacity to plan for any shortages of copper, a metal essential to global sustainable electrification, while also consolidating its industrial base in France.

Nexans, a global leader in electrification, has announced a major industrial partnership agreement with Continuus Properzi, a specialist in continuous casting technologies, to build an innovative copper production and recycling plant at the Nexans site in Lens, northern France, for 2026.

Global demand for copper is continuing to increase and recycling is emerging as a key solution to possible shortages of this metal, which is essential to electrification. Nexans is taking steps to address this major challenge with a project on a unique scale.

This strategic decision is based on the operational expertise of the Nexans site, founded in 1971 in the industrial center of Lens, and the technological expertise of Continuus Properzi, a supplier of complete installations for the production of ETP (Electrolytic Tough Pitch) and FRHC (Fire Refined High Conductivity) wire rod. The objective is to continuously produce wire rod from recycled copper, through a state-of-the-art refining method using up to 100% of recycled metal, while optimizing water and energy consumption.

The Lens plant is the only copper rod foundry in France. With this investment of over €90 million, it will increase its wire rod production capacity by over 50%, and boost its copper scrap recycling capacity to manage up to 80,000 metric tons per year. Nexans is already actively involved in cable recycling through Recycâbles, a joint venture set up with Suez in 2008. With this new initiative, the Group has become a key player in the circular economy of the European copper industry. Implemented for the first time in France, this process will help to create a circular model by collecting waste from different sectors of industry across France and reusing it virtuously for new finished products.

As the leading global player in this sector with its own copper foundries, Nexans is vertically integrated. The Group is entirely self-sufficient in terms of the copper supplies required for its entire cable production value chain. This key strategic advantage will be consolidated by the new plant, which will allow the Group to recycle more cables from construction sites or “urban mines”.

Nexans’ ambition is to adapt the life cycle of its products, reducing their carbon content, while also decreasing the carbon footprint of the cable industry as a whole. This investment is also part of the Group’s efforts to raise the proportion of recycled copper in its cables to 30% by 2030.

The new site further consolidates Nexans’ presence in Lens, increasing the number of jobs while creating a new working environment for staff. This project is part of France 2030, the investment plan for France. It is also in line with the company’s E3 performance model, bringing together Economic performance, the Environment and employee Engagement.

• Nexans is stepping up its recycling strategy to support the energy transition and address the growing copper shortage.
• This necessary transformation is creating an opportunity for Nexans to set itself apart in the sector by leveraging its unique capabilities and agility.
• The company is launching its turnkey CableLoop service: collecting installation cable off-cuts and transporting them to the recycling centre, and then transforming the waste into recycled raw materials.
• A pioneer in electrification, the Group aims to use a minimum of 30% recycled copper in the manufacturing of its cables by 2030.

At a time when demand for electricity is set to increase by 35% by 2050, and the world is heading for a risk of shortages of raw materials – including copper, Nexans is strengthening its key role as a player in the circular economy to speed up the energy and climate transition.

By actively investing in the recycling of non-ferrous metals, Nexans is promoting the creation of a sustainable cycle geared towards decarbonized energy: extended life cycles, reuse and recycling will contribute to a circular economy, reducing the use of virgin resources and lowering the carbon footprint created by the electrification of our activities.

Nexans already recycles over 40,000 metric tons of its own production waste every year. In Europe, this cable sorting and recovery process is partly carried out through the RecyCâbles joint venture created with Suez in Noyelles-Godault (northwestern France). As well as guaranteeing product traceability, local processing avoids the need to export large quantities of waste from France.

With 60 years’ experience in recycling cable waste, Nexans is stepping up its circular economy strategy and is launching CableLoop, a unique recycling and recovery service for cable offcuts.

Nexans buys used cables – end of construction site electrical wires or obsolete industrial cables, and transforms them into valuable, infinitely reusable resources for its partners, customers, suppliers and the cable industry.

Two versions of the service are available:

• CABLELOOP Enterprises: the service for companies via on-site collection
• CABLELOOP Professionals: a new service offered by specialized distributors, for professional customers and electricians who can return their used cables to their branch.

With these new recycling loops, Nexans aims to collect more than 800 metric tons of used cables by 2025 and to expand this circular model by developing waste collection and recovery from the industrial ecosystem and from its electrical equipment installation and distribution partners in France and Europe (Germany, Belgium, Spain and Italy. Other European countries on request). Nexans will offer tailor-made logistics solutions and simplified, autonomous waste management on a 24-hour web platform together with traceability of the entire chain of operations.

Nexans is also a founding member of Valobat, an eco-organization made up of nearly 50 leading Building Products and Materials (BPM) manufacturing companies, committed to the management of construction sector waste and now in the circular economy. Nexans also works with suppliers committed to producing, among other things, low-carbon PE/PVC and aluminum made from recycled raw materials or using decarbonized energy.

The 4th edition of Climate Day, held yesterday at the historic Chellah site in Rabat, concluded successfully. This large-scale event marked a crucial milestone in the global fight against climate change. Over 450 participants from both public and private sectors, along with key figures from national and international organizations, were joined by an African delegation representing the energy sector to discuss pressing environmental challenges and promote initiatives for a sustainable future.

The event, inaugurated by Mr. Christopher Guerin, CEO of Nexans, featured speeches from Ms. Leila Benali, Minister of Energy Transition and Sustainable Development, Mr. Ryad Mezzour, Minister of Industry and Trade, as well as Mr. Ibrahim Matola, Minister of Energy of Malawi. Three panel discussions allowed speakers to debate the challenges of sustainable electrification, Morocco’s opportunities in energy transition, and the critical role of innovation in developing a sustainable ecosystem.

During Climate Day, Nexans Morocco and the Fondation Nexans contributed to the electrification of the “Shems’y” village, a refuge for orphans of the earthquake that struck the El Haouz region on September 8, 2023. Led by the Moroccan Association for the Assistance of Children in Precarious Situations (AMESIP), the project aims to accommodate 150 orphans, ranging from infants to 18 years old. The village is equipped with educational and cultural infrastructures, along with social and psychological support services, creating for these children an environment that fosters rehabilitation and recovery in the aftermath of the tragedy.

In the presence of Minister Dr. Leila Benali, Minister Mr. Ryad Mezzour, and Ms. Touraya Jaidi Bouabid, President of AMESIP, Nexans symbolically launched the village’s electrification. The Fondation Nexans funded the installation of photovoltaic panels, while Nexans Morocco provided the necessary cables and electrical equipment, ensuring a sustainable energy supply for this model village.

Climate Day also featured an awards ceremony honoring the six winners of the Nexans Climate Challenge, a competition aimed at recognizing the most innovative projects in environmental sustainability. The winners, selected for the impact of their forward-thinking ideas in reducing carbon emissions and promoting energy efficiency, each received a prize to support the implementation of their initiatives.

This 4th edition of Climate Day truly fulfilled its promise: facilitating high-level debates while continuing to inspire the development of concrete projects in support of the energy transition.

Nexans reaffirms its commitment to sustainable development by announcing the next edition of the Climate Day in Toronto, Canada.

• The next-generation rod breakdown line is the first in operation in Nexans factory of Lens in France.
• The new state-of-the-art line allows an optimized production speed resulting in reduced energy consumption and CO2 emissions.
• Capitalizing on 50 years of long-lasting collaboration and partnership, Nexans renews its trust in Niehoff for the supply of ground-breaking machines.

Niehoff, one of the world’s leading supplier of wire processing equipment, partners with Nexans, a leader in the design and manufacturing of cable systems and services, to develop and install the first next-generation of rod breakdown line in operation in the Group’s factory of Lens in the North of France.

After 50 years of long-lasting collaboration and partnership, Nexans renews its trust in Niehoff for the supply of ground-breaking machines.

The state-of-the-art line allows an optimized production speed that enables to achieve significant savings of 35 kW/h/t produced (example based on a 2.6 mm diameter copper cable manufactured at a 32 m/s production speed), resulting in reduced energy consumption and CO2 emissions. The machine’s new generation motors and the new annealing technology (component of Drawing line for softening the wire after drawing, heating it by Joule effect) will allow Nexans to reduce the energy consumption of this production process by 25%, equivalent to 840 tons of CO2 emissions per year. With this energy saving, more than 100 households could be supplied for one year (at an electricity price of 0.20 €/kWh: average industrial electricity price in France in 2023 according to the French Commission de Régulation de l’Energie (CRE)) or equivalent of 220 flights from Brussels to New York and back could be avoided in term of CO2 emission.

Economic, Environmental and Engagement benefits

This breaking-through industrial partnership perfectly fits Nexans E3 performance approach:

• Economic performance: one new machine replaces two existing ones, and the next-generation line can work continuously at higher production speeds, thus improving the production output, plus the costs savings from reduced energy consumption
• Environment benefits: reduced energy consumption and related CO2 emissions
• Engagement of employees: by providing the teams a safer and more comfortable work environment.

This model is fully aligned with Niehoff’s strategy and commitment to building machines that are characterized by reliability and process stability, high productivity and energy efficiency, for greater sustainability.

In September 2024, Niehoff has received the “E3 partnership award” from Nexans, rewarding this breaking-through industrial cooperation that perfectly illustrates the alignment of both compagnies on a common E3 performance approach.