General Cable Announces Baltic Sea Offshore Wind High Voltage Project Award
General Cable Corporation (NYSE: BGC) (the Company), a global leader in the wire and cable industry, through its wholly-owned subsidiary Norddeutsche Seekabelwerke GmbH (NSW), has been awarded a major order by 50Hertz Offshore GmbH, a subsidiary of the German-based transmission network operator 50Hertz Transmission GmbH, to provide a complete turn-key solution including the supply and installation of 120 kilometers of submarine transmission cables and 3 single cores measuring 12 kilometers each of underground terrestrial transmission cables as well as associated accessories for the offshore wind farm Baltic 2.
The award has an overall order value of Euro 195 million, or $270 million at current exchange rates, with installation beginning in 2012.
The Baltic 2 Wind Farm is located in the Baltic Sea off the coast of Rostock, Germany near the island of Rügen. Baltic 2 will feature 80 wind turbines, each rated at 3.6 megawatts, for a total output of 288 megawatts. The offshore wind farm is expected to generate 1,200 gigawatt hours of electricity per year for approximately 340,000 households and is estimated to save approximately 900,000 tons of CO2.
General Cable’s complete turn-key solution includes the design, manufacture, supply and installation of two 60 kilometer sections of 150 kV high-voltage export submarine cables as well as 3 single cores measuring 12 kilometers each of terrestrial underground transmission cable. NOSTAG 10, a motorized barge in which the Company has an ownership interest, specializes in laying submarine power cables and will be used to install the cables at Baltic 2. Over 90 meters long and 27 meters wide, NOSTAG 10 features the right balance between load capacity, shallow water capabilities and high precision positioning making it a perfectly designed craft for this project.
The project will be managed by General Cable’s submarine power cable business based in Nordenham, Germany at the Company’s wholly-owned subsidiary NSW and supported by the Company’s European and Mediterranean organization. The Company acquired NSW in 2007 and since then has expanded its submarine capabilities to include the manufacture of medium-voltage and high-voltage submarine energy cables. Today, the Company’s submarine business provides comprehensive solutions for submarine applications which include telecommunication cables, oil and gas cables, medium-voltage and high-voltage power cables, related accessories, project engineering, project management and installation.
“We are pleased to have earned the trust of 50Hertz Offshore GmbH with this important grid connection. This major high-voltage submarine cable project is a milestone for the Company as we continue to gain momentum through our successful execution on medium-voltage infield array projects as well as our long history and technical leadership on projects for the underground terrestrial high-voltage market. The terrestrial and submarine transmission cable markets in Europe, which are being driven by large investments in grid interconnections and alternative energy such as offshore wind power, represent an attractive long term opportunity for General Cable,” said Emmanuel Sabonnadiere, Chairman and CEO of General Cable Europe & Mediterranean.
“Over three years ago the Company initiated its strategic plan with regard to establishing its submarine energy cable business. This strategy included the investment to expand our facility capabilities while at the same time leveraging our resident manufacturing, engineering and project management expertise in our underground high-voltage and submarine telecommunication businesses. The integration of these functional capabilities has enabled the Company to execute on this type of highly complex project,” said Gregory B. Kenny, Chief Executive Officer of General Cable Corporation.
“Our contribution to climate protection is to connect offshore wind farms to the transmission network. We are happy that we have found a good partner for cable production and installation for our second wind farm. Generating power in the Baltic Sea is becoming increasingly more important. We plan to continue to expand our transmission network to bring offshore wind power to industrial areas in the South and Southwest of Germany where it is required,” said Wolfgang Bogenrieder, Managing Director of 50Hertz Offshore GmbH.
General Cable Corporation (NYSE:BGC), a Fortune 500 Company, is a global leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, and communications markets. For more information about General Cable visit our website at www.generalcable.com.
Norddeutsche Seekabelwerke GmbH (NSW), a wholly-owned subsidiary of General Cable since 2007,has been one of the world’s leading companies in the field of submarine telecommunication cables for over 111 years. Founded in 1899, NSW installed its first significant submarine telecommunication cable of approximately 7,993 kilometers in 1904. NSW and its more than 500 employees advise and support customers all over the world.
50Hertz Transmission GmbH, a company employing approximately 600 people, ensures operation, maintenance, planning and demand-based development of the transmission grid in Germany. It is responsible for compliant management of the entire electric system in the territories of the German Federal States of Berlin, Brandenburg, Hamburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia. The transmission grid is the technical backbone of reliable power supply to more than 18 million people. As a European transmission system operator, 50Hertz Transmission is a member to the European Association ENTSO-E. More information on www.50hertz-transmission.net.
Certain statements in this press release, including without limitation, statements regarding future financial results and performance, plans and objectives, capital expenditures and the Company’s or management’s beliefs, expectations or opinions, are forward-looking statements. Actual results may differ materially from those statements as a result of factors, risks and uncertainties over which the Company has no control. Such factors, risks, and uncertainties are more fully discussed in the Company’s Report on Form 10-K, filed with the Securities and Exchange Commission on March 1, 2010, as well as periodic reports filed with the Commission.
Source: generalcable,October 14, 2010;