Swedish company wins $109M deal for next phase of NKT cable factory expansion

Sweden’s construction company Skanska has signed a SEK 1.2 billion (approximately $109 million) contract with Denmark-headquartered power cable manufacturer and installation firm NKT for the next stage of the cable factory expansion in Karlskrona, Sweden. 

According to Skanska, the agreement, booked in Q4 2024, is part of NKT’s broader investment to bolster renewable electricity distribution and technological innovation in the region.

The contract encompasses phase two of the construction and installation works, focusing on the tower building and associated side structures. This follows an earlier SEK 700 million contract for the first phase of construction works, signed in July 2024, with an expected completion in 2025.

“The existing collaboration agreement between the parties, covering parts of the expansion of NKT’s cable factory in Karlskrona, is now being supplemented with an additional contract,” said the company.

“The new contract covers part 2 of construction and installation works for the tower building and associated side buildings. NKT’s investment will help develop the distribution of renewable electricity and enhance technological advancements in Blekinge and Sweden.”

Construction under the newly signed contract will begin immediately, with completion scheduled for May 2026, Skanska noted.

In late November, NKT unveiled that it was nearing completion of its expansion project in Alingsås, Sweden, with access to the test hall and new buildings set for next month.

To remind, on the back of a record order backlog and strong market outlook, NKT announced investments in a new cable-laying vessel (CLV), as well as in a new high-voltage factory on the existing site in Karlskrona, Sweden, in May 2023, with both assets expected operational from 2027.

It was reported on November 5 that the new cable extrusion tower in Karlskrona had reached its full height of 200 meters, becoming the second tallest tower in the Nordics.

Shortly after, the Danish power cable manufacturer announced that Vard had cut the first steel for the NKT Eleonora CLV.

The collaboration between Skanska and NKT started in July 2023 with the signing of a framework agreement. This led to contracts for time-sensitive works valued at approximately SEK 300 million in December 2023.