KGHM extended the contract with the Danes
“The extension of cooperation guarantees stable reception of copper produced by KGHM in Europe and strengthens the Company’s position as a strategic supplier of raw materials for the energy sector. The renewed agreement ensures long-term availability of copper until 2036, which confirms the partner’s confidence in the quality of KGHM products and the reliability of supplies,” the company’s press release emphasized.
As added, NKT is one of the key European producers of power cables. It was explained that the contract extends the existing agreement for an additional nine years (2028-2036). The current agreement is valid until the end of 2027. “Total the estimated value of the extended contract is from EUR 5.4 to EUR 7 billion for the years 2028-2036 based on current assumptions,” it was reported.
“Our long-term cooperation with NKT underlines its position KGHM as a reliable supplier of high-quality copper products in a demanding market environment” – emphasized Remigiusz Paszkiewicz, acting president of KGHM, quoted in the company’s announcement.
The demand for copper from fatty acids is growing
It has been noted that NKT’s demand for copper is increasing with the expansion of the company’s production facilities. Claes Westerlind, president and CEO of the Danish company, emphasized that the extended partnership with KGHM is an important step in securing long-term copper supplies, which underpin NKT’s ability to supply power cables to customers.
KGHM is a long-term trusted partner
“KGHM is a long-term, trusted partner of NKT, consistently demonstrating good operational results and high production quality. By strengthening these relationships, we strengthen the resilience of our supply chain, reduce our exposure to changing market conditions and provide a stable basis for NKT’s further development,” added Westerlind, quoted in the release.
KGHM Polska Miedź SA is a copper producer with its own mineral resources, mines, ore enrichment plants and metallurgical plants, producing copper both in the form of cathodes and copper wire rod.
NKT designs, manufactures and installs low, medium and high voltage cable solutions for energy transmission. NKT has its headquarters in Denmark and employs 6,000. people. The company is listed on Nasdaq Copenhagen; in 2024 it achieved revenues of EUR 3.3 billion.
