Sumitomo Electric to produce HVDC cables for Amprion in Germany

German transmission system operator (TSO) Amprion has awarded two high-voltage direct current (HVDC) cable projects, worth over EUR 3 billion (USD 3.3bn), to Japan’s Sumitomo Electric, according to an announcement on Thursday.

The Japanese company will produce the cables in Germany and for this end is acquiring a 90% stake in German high-voltage cable manufacturer Suedkabel. The deal will increase Suedkabel's capital by EUR 30 million and Sumitomo Electric will also invest EUR 90 million to expand Suedkabel's cable production capacity.

The two projects are Korridor B V49 and a part of the Rhein-Main-Link project. The former will span about 300 km between Wilhelmshaven and Hamm, while the latter is some 650 km in length. Both projects, expected to be completed by 2033, will be part of Germany’s critical power transmission infrastructure, facilitating the transfer of renewable power from the North Sea to major consumer areas, Sumitomo Electric explained.

“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 currently under execution. With the acquisition of Suedkabel, we can fully localise our business in Germany to support Amprion and the country’s energy transition,” commented Masaki Shirayama, managing director of Sumitomo Electric.

In May, Sumitomo Electric announced the construction of a high-voltage submarine cable factory in the UK.

(EUR 1 = USD 1.087)

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