NKT has entered into an agreement to divest its railway cable activities to the Swedish company Elcowire Group AB. With the divestment NKT now fully focuses on its core business within power cables to the construction industry, utilities, interconnector projects and for the offshore wind industry. The divested activities comprise sales, development and production including the site in Hettstedt, Germany, and covers approx. 63 employees. The closing of the transaction is subject to regulatory approval and is expected to take place no later than Q1 2019.
Although being a profitable business, the railway industry is a niche market for NKT and is not defined as a core business in the EXCELLENCE 2020 strategy. Therefore, a search has been conducted and successfully completed for a new owner of the activities.
President and CEO Michael Hedegaard Lyng says:
“NKT has been the proud owner of the railway cables business for years with satisfactory results, but it has been a niche market for us, and the divestment is part of our strategy to focus on our core business of high-end power cables, accessories and services. I am convinced that Elcowire Group AB is the right successor to further develop the business”.
The divestment of the railway business is the fourth sale of non-core NKT activities within the past three years. In 2017, NKT completed the divestment of its automotive cable business, in 2016 its China activities were sold and in 2015 the cabinets business of NKT was divested.