NKT has signed a landmark supply agreement with Hydro to secure a long-term supply of low-carbon aluminium wire rod till 2033, with an estimated contract value of approximately EUR 1 billion.

Apr 29, 2025

NKT has signed a supply agreement with Hydro to secure a long-term supply of low-carbon aluminium wire rod till 2033, with an estimated contract value of approximately EUR 1 billion, depending on the quantity, duration options and future metal prices.

This agreement plays a crucial role in NKT’s ongoing decarbonisation efforts, enabling the company to deliver power cable solutions with a significantly lower carbon footprint to its customers.

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”This long-term supply agreement with Hydro not only guarantees a long-term, European supply of low-carbon aluminium, it also reinforces our position as a sustainability leader in the power cable industry. It supports our strategy to continuously improve the carbon intensity of our power cables thereby supporting both our own short and long-term targets and our customers’ decarbonisation ambitions. Given the current geopolitical landscape, securing reliable, local supply chains is increasingly important,” says Claes Westerlind, CEO and President of NKT.

Both NKT and Hydro recognise the importance of decarbonising the aluminium and power cable supply chains in order to ensure a sustainable future. With this agreement, NKT is well-positioned to meet the robust market demand for its medium- and high-voltage power cable solutions, while strengthening Europe’s ability to build out a clean and secure power grid through a locally sourced supply chain.

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The majority of the low-carbon aluminium will go to medium-voltage sites in Falun, Sweden, and Asnaes, Denmark. Several high-voltage cable system projects, including 525 kV XLPE HVDC power cables, produced in Karlskrona, Sweden, will also receive low-carbon aluminium from Hydro under the supply agreement.