NKT has signed a €6bn agreement with KGHM to secure copper supply for its power cable manufacturing through to 2036.
The company said the renewed long-term contract with the European mining and smelting group extends their existing agreement by nine years from 2028 to 2036, with the current contract running until the end of 2027.
NKT stated that the total estimated value of the extension is around €6bn for 2028-2036 based on current assumptions.
The deal secures a stable supply of European-produced copper as NKT expands production facilities to meet rising global demand for power cable solutions.
Claes Westerlind, president and CEO of NKT, said: “Our extended partnership with KGHM is an important step in securing the long-term supply of copper that underpins our ability to deliver reliable power cable solutions to our customers. KGHM is a long standing, trusted partner to NKT, consistently demonstrating strong operational performance and high-quality output. By strengthening this relationship, we reinforce the robustness of our supply chain, reduce our exposure to market volatility and ensure a stable foundation for NKT’s continued growth.”
KGHM operates across the copper value chain from mining and smelting to refining, recycling and rod manufacturing.
Remigiusz Paszkiewicz, acting president of the management board of KGHM Polska Miedź S.A., said: “Our long-term cooperation with NKT highlights KGHM’s position as a dependable supplier of high-quality copper products in a demanding market environment. It reflects the trust we have built together and our shared commitment to supporting the energy transition. We value this partnership, and we are proud that our wire rod will continue to contribute to the advanced and sustainable solutions developed by NKT.”
NKT said KGHM’s fabrication facilities and smelters are Copper Mark certified and aligned with its commitment to responsible sourcing and ethical standards.