Hexatronic signs strategic partnership with NKT; expands submarine cable production footprint in Hudiksvall, Sweden
Hexatronic signs strategic partnership with NKT; expands submarine cable production footprint in Hudiksvall, Sweden
Hexatronic Group AB (publ) has decided to invest in a new production line for submarine fiber-optic cables, supporting its strategy of accelerating growth in an attractive market segment. The investment is a core pillar of a long-term supply agreement with NKT, a leading power cable and power cable accessories supplier to the energy sector. As part of NKT’s supply chain resilience efforts, a significant portion of the capacity is intended to support NKT under the new long-term supply framework, through 2032.
The new production line will more than double Hexatronic’s capacity within submarine cable manufacturing and is expected to enhance productivity, quality, and efficiency. The investment supports growing customer demand driven by the expansion of offshore wind, and subsea communication infrastructure.
The production line will be installed at Hexatronic’s Hudiksvall facility, which is the Group’s largest production site and a center of excellence for advanced fiber cable and microduct manufacturing. Hexatronic already operates a submarine fiber‑optic cable production line in Hudiksvall, and the new investment will increase the capacity from approximately SEK 150-200 million to over SEK 500 million on an annual basis depending on the product mix.
“The demand for submarine cable solutions continues to grow, driven by the electrification and digitalization of society, offshore energy projects, and the increased need for robust communication infrastructure. This investment allows us to further strengthen our competitiveness in an important and growing segment that has seen very strong order intake recently, a trend we expect to continue. I am also very pleased to see a further deepening of our long-standing relationship with NKT,” says Rikard Fröberg, President and CEO of Hexatronic Group.
“Securing capacity from this new submarine cable production line supports our ability to execute future projects effectively. We have worked together with Hexatronic for many years and are pleased to further deepen this relationship,” says Will Hendrikx, COO and Deputy CEO at NKT.
The total investment amount is not disclosed but will be spread over 2026 to 2028 and is still within the previously communicated 2-4% total capex to sales ratio for Fiber Solutions. The new production line is expected to be commissioned during 2028.