|NKT bullish on offshore wind cable market|
|Submarine Cable NewsFeed - Submarine Power Cables|
|Wednesday, 14 October 2015 17:07|
Submarine power cable manufacturers are bullish on the market’s potential in the offshore wind sector. Earlier this year, executives from Prysmian and Nexans gave their views on the submarine power cable market. Now has NKT made its own forecast.
As reported by Reuters, NKT CEO Michael Hedegaard Lyng and Oliver Schlodder, executive vice president for Strategy & Specialties, presented the company's strategy to investors late last month. They stated that they expect market volumes to grow on average by some 28 percent per year from 2016 to 2020. This appears to be in line with the earlier Prysmian and Nexans projections.
Lyng also reported that NKT could expand its manufacturing capacity by 45% with a $37 million investment. Unlike Prysmian and Nexans, which have increased their manufacturing capacity, Lyng said that the increased investment “is not just yet around the corner for us.”
NKT currently holds about 20% of the offshore wind cabling market, which accounts for 18% of its sales.
Back in April, Nexans forecast a 10% annual growth for the overall submarine power cable market. This is probably in line with NKT’s forecast as the offshore wind market is growing faster than other market segments. Also in April, Prysmian forecast a 14%-20% overall market growth in 2015 over the previous year.