Company has secured two awards from Amprion and will also take a majority stake in local manufacturer Sudkabel
German TSO Amprion has awarded two major cable projects to Sumitomo Electric.
The two HVDC cable projects are Korridor B V49 and part of the Rhein-Main-Link project, with a total project value of more than €3bn.
Korridor B V49 and part of the Rhein-Main-Link project are large-scale projects, and the HVDC cable to be delivered will be manufactured at Sudkabel, in which Sumitomo Electric will acquire a majority shareholding.
Amprion and Sumitomo Electric are currently proceeding with the A-Nord HVDC project connecting a 300 km link between Emden and Osterath near Dusseldorf.
The two additional projects will be implemented as part of a long-term strategic collaboration between the two companies.
Korridor B V49 will connect approximately 300 km between Wilhelmshaven and Hamm, and part of the Rhein Main Link project is approximately 650 km in length.
Both projects will form part of Germany’s critical power transmission infrastructure, especially to bring renewable power generated in the North Sea to the country’s major consumer areas.
They are expected to be completed by 2033.
The 525 kV HVDC cable for these new projects will be manufactured in Südkabel’s factory in Mannheim.
In order to fully localise the production and construction of HVDC cable systems in Germany, Sumitomo Electric will acquire 90% of the shares of Sudkabel to increase its capital by €30m.
Sumitomo Electric will also invest €90m to increase Südkabel's cable production capacity.
The acquisition process is expected to be completed as of 1 October this year, subject to regulatory approvals.
Masaki Shirayama, Managing Director of Sumitomo Electric, said: “We are delighted to have been selected by Amprion as a cable partner for two major HVDC projects in addition to the A-Nord project under execution.
“With the acquisition of Sudkabel, we can fully localize our business in Germany to support Amprion and the country’s energy transition.
“Along with our new submarine cable factory under construction in Scotland, we will further reinforce and expand our high-voltage power cable manufacturing capabilities in Europe.”
Hendrik Neumann, CTO of Amprion, said: “The contract and the Preferred Supplier Agreement with Sumitomo Electric are crucial to enabling us to implement the Korridor B49 and Rhein-Main-Link projects on schedule and to our ability to play our part in achieving the nation’s climate goals.
“We are delighted to have found a partner in Sumitomo Electric that is building up extensive production capacities in Germany.
“This will generate value added in Germany and is also the most sustainable solution for implementing our projects thanks to the short transport routes.”
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