Sumitomo Electric has announced the acquisition of majority shareholding in Südkabel, a renowned German high-voltage cable manufacturer, and the expansion of its production capacity in Mannheim, Germany, to locally manufacture the highest end 525kV HVDC cables to support the German government’s net zero initiatives.
German TSO, Amprion, has awarded two major HVDC cable projects, Korridor B V49 and part of the Rhein-Main-Link project, with a total project value of more than €3 billion, to Sumitomo Electric as anchor projects to pave the way for a climate neutral energy system in the country.
Sumitomo Electric announced in May 2024 the construction of a high-voltage submarine cable factory in the UK. The new cable production facilities in the UK and Germany will make a significant contribution to the decarbonisation of Europe.
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 Südkabel.
Amprion and Sumitomo Electric are currently proceeding with the A-Nord HVDC project connecting a 300km 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 300km between Wilhelmshaven and Hamm, and part of the Rhein Main Link project is approximately 650km 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 525kV HVDC cable for these new projects, which is one of the most technologically advanced transmission cables in the industry, will be manufactured in Südkabel’s factory in Mannheim. Sumitomo Electric has a long and solid track record of delivering HVDC cable projects on a global basis, including the 400kV NEMO Link between the UK and Belgium, with its state-of-the-art cabling technologies, which will be implemented locally in Germany to support the country’s energy transition and employment.
To fully localise the production and construction of HVDC cable systems in Germany, Sumitomo Electric will acquire 90% of the shares of Südkabel, a reputable manufacturer with a number of remarkable track records through its more than 120 years of operation in Mannheim, to increase Südkabel’s capital by €30 million. Sumitomo Electric will also invest €90 million to increase Südkabel’s cable production capacity.
“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,” said Masaki Shirayama, Managing Director of Sumitomo Electric. “With the acquisition of Südkabel, we can fully localise 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.”
