Boom period for cable machine manufacturers: these shares fuel your warehouse's potential growth
Venture into the Future: The Thriving Cable Manufacturing Industry Amidst the Green Revolution
Rolling up their sleeves, cable manufacturers are diving headfirst into the future! The explosive growth of renewable energies and intelligent networks promises continued success for this industry, but the stocks right now are a steal.
Take, for example, the grandiose wind farm off the coast of Norddeich, Germany. Built by the Danish Orsted corporation, this wind farm, obtained from Siemens Energy, sports a whopping 83 wind turbines with 200-meter rotor blades. However, one crucial piece is missing - the connection to the power grid on land – making the turbines merely a spinning spectacle for now.
Slated for completion at the end of 2025, the 130-kilometer direct current connection, provided by Italian cable manufacturer Prysmian, will rectify this issue. Furthermore, Prysmian is implementing a new technology for the Dutch grid operator Tennet, which promises impressive cost savings. Despite these promising prospects, substantial investments are required before transmission grid operators can reap profits. A study by Mannheim University reveals that annual investments of around 19.8 billion euros will be needed for the German transmission grid up until 2037, and approximately 5.4 billion euros per year thereafter until 2045. Certainly, these numbers are nothing to sneeze at, and they only pertain to Germany. In the United States, President Donald Trump's opposition to new wind farm construction has prompted billions of dollars to be invested in connecting already planned installations.
Now, amidst this golden age for cable manufacturers like Prysmian, investors might be questioning the stocks' current low valuations. After a period of rapid growth, these valuations have dived nearly one-third in the last six months. But fret not, dear investor – as the gloomy outlook couldn't be further from the truth. Cable manufacturers are, in fact, structured for continued growth in the coming years. And we have the inside scoop on which companies, besides Prysmian, are well-positioned in this burgeoning industry.
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But wait, there's more! Beyond the power players like Prysmian, other notable companies worth watching include:
- Nexans: This incredible company has demonstrated impressive growth in the electrification segment, with a keen focus on renewable energy projects. Nexans has clinched vital contracts, such as a framework agreement with RTE for HVDC cables to link offshore wind farms to the French transmission network[1]. Additionally, Nexans scored a contract for high-voltage subsea cables in Malta's second interconnector[1].
- LS Greenlink: This dynamic subsidiary of LS Cable & System is pumping resources into the US by constructing a large subsea cable manufacturing facility in Chesapeake. The project's momentum stems from the escalating demand for wind energy and federal tax incentives[3][4].
The proliferation of the cable industry is further fueled by advancements in eco-friendly cable technology, such as smart manufacturing and real-time analytics, which enhance efficiency and reduce waste[2]. Additionally, the medium voltage cables market is predicted to surge, driven by the necessity for reliable and efficient power distribution across a range of industries, including renewable energy sectors[5].
With the swelling demand for cables in renewable energy and intelligent network applications, expect these companies to reap the rewards. Stay ahead of the curve with BÖRSE ONLINE!
[1] Nexans Secures Framework Agreement for HVDC Cables in France: https://www.nexans.com/content/dam/nexans/global/documents/pdf/news/2021/pr-nexans_france_hvdc_250kV_2021_28.pdf[2] Innovative Solutions for the Green Energy Market: https://www.nexans.com/solutions/green-energy-solutions[3] LS Cable & System Announces $237M Subsea Cable Manufacturing Plant in the US: https://www.prnewswire.com/news-releases/ls-cable--system-announces-237m-subsea-cable-manufacturing-plant-in-the-us-301444937.html[4] LS Cable & System Opens New Manufacturing Plant in the United States: https://www.businesswire.com/news/home/20210628005778/en/LS-Cable--System-Opens-New-Manufacturing-Plant-in-the-United-States[5] Global Medium Voltage Cables Market Report 2021: https://www.researchandmarkets.com/reports/5156704/global-medium-voltage-cables-market-report-2021
Cable manufacturers are investing in new technology to meet the demands of the growing renewable energy sector, with companies like Nexans focusing on eco-friendly solutions such as smart manufacturing and real-time analytics. The medium voltage cables market is predicted to surge, driven by the necessity for efficient power distribution across various industries, including renewable energy sectors.
