Skanska lands major contract for NKT cable factory expansion in Sweden

In Sweden, Skanska has entered into a new contract with NKT HV Cables AB for ongoing construction at NKT's cable factory located in Karlskrona. This latest contract, valued at approximately SEK 1.2 billion, marks part two of the construction and installation works aimed at expanding the facility. The agreement will be accounted for in Sweden's order bookings for the fourth quarter of 2024. Previously, in July 2023, the companies initiated an existing collaboration agreement which included several aspects of the factory's expansion. The initial phase of this extensive project saw contracts worth around SEK 300 million signed for time-sensitive work in December 2023, followed by a contract for the first part of construction works, amounting to SEK 700 million, which was signed in July 2024. Completion of this first phase is projected for 2025. The new works will focus on the tower building along with several associated structures and are set to begin immediately, with an expected completion date of May 2026. This significant investment from NKT is part of a broader strategy to develop renewable electricity distribution in Blekinge and across Sweden. This move aligns with current energy policies that favor renewable energy solutions and technological advancements, which are vital in addressing climate change and promoting sustainable practices. By enhancing its production capabilities, NKT aims not only to increase its output but also to ensure that it meets the growing demand for high-quality cables utilized in renewable energy projects. The collaboration between Skanska and NKT showcases the important role of construction firms in facilitating infrastructure development critical to energy transition efforts. As the factory expands, it is expected that there will be an increase in local employment opportunities and economic activity in Karlskrona and the surrounding regions. This project exemplifies the commitment of both companies to contribute positively to Sweden's energy future and demonstrates the viability of partnerships in achieving large-scale industrial construction goals.