KGHM has entered into long-term agreement with NKT. The Company will sell copper wire rod with a total value up to PLN 14.2 billion

KGHM Polska Miedź S.A. has signed another long-term sales agreement with NKT. Polska Miedź will supply entities belonging to NKT with copper wire rod in the years 2023-2027. The value of the transaction is in a range of PLN 9.6 billion to 14.2 billion, depending on additional options regarding the amount and lifetime of the agreement.

„The continuation of cooperation in such a demanding market environment is a mark of effectiveness and attests to the quality of our products. We are efficient and trustworthy. We ensure the security of supplies of metals which are critical for the global energy transformation.  We are satisfied with our cooperation with NKT, our wire rod is going to one of the leaders of the European wire and cable marketplace, which provides key solutions for the European energy transformation,” said Tomasz Zdzikot, President & CEO of KGHM.

“We are pleased to strengthen our long-term collaboration with KGHM by entering into this frame agreement for the supply of copper rod for the coming years. And even more so, that we are able to source copper close to where it is needed, which supports our efforts to reduce the environmental impact of our operations,” says President & CEO of NKT, Claes Westerlind.

Responsible production  

KGHM consistently strengthens its status as a preferred supplier. Company’s products and services meet the highest market standards, while its stability in delivering raw materials, rapid reaction time to customer needs and its „just in time” logistics distinguish the Company on the European wire rod market.

The metallurgical plants of KGHM produce metals responsibly and in accordance with the highest standards. KGHM’s Głogów and Legnica Copper Smelters/Refineries and Cedynia Wire Rod Plant are Copper Mark certified, which is a testimony to responsible operating practices with regards to the environment, employees, local communities and governance.

The Company ensures the safe supply of metals which are critical for the global energy transformation through its access to primary copper deposits. At the same time the goals of the Circular Economy are being developed whilst the possibilities of utilizing recycled materials are growing. In response to the global challenge associated with sustainable development, the Company adopted an ambitious Climate Policy, in which it declared the intention of achieving climate neutrality by the year 2050. KGHM has published the results of its analysis of the environmental and carbon footprint of its products: cathodes, wire rod and Cu-OFE rod. The carbon footprint of its copper wire rod at the level of 2.3 tonnes of CO₂ equivalent per tonne of copper is significantly lower than the global average of such indicators.

Highest quality

8 mm copper wire rod is one of KGHM’s main products. It is manufactured through the Contirod® continuous process of melting, casting and drawing, and is mainly produced from cathodes manufactured by KGHM Polska Miedź S.A. The Cedynia Wire Rod Plant produces wire rod in five classes of quality, depending on the needs of the customer. The product is primarily used in the wire and cable, electromechanical and electrotechnical industries. The wire rod market, due to its specific nature, is highly competitive and demanding.

In 2022 KGHM Polska Miedź S.A. produced 284.8 thousand tonnes of wire rod and OFE rod, nearly 11% of European production. This result makes the Company one of Europe’s leading producers of these copper semi-products.

About NKT

NKT connects a greener world with high-quality power cable technology and takes centre stage as the world moves towards green energy. NKT designs, manufactures and installs low-, medium- and high-voltage power cable solutions enabling sustainable energy transmission. Since 1891, NKT has innovated the power cable technology building the infrastructure for the first light bulbs to the megawatts created by renewable energy today. NKT is headquartered in Denmark and employs 4,500 people. NKT is listed on Nasdaq Copenhagen and realised a revenue of EUR 2.1 billion in 2022.

NKT - We connect a greener world. www.NKT.com.