Amokabel, a Scandinavian privately owned cable group, has completed the acquisition of Sydney-based Euro-Tech Cables in a bid to establish the local production of a new-generation covered conductor that provides network resilience and bushfire protection on overhead electrical lines.
The deal, which was closed in December 2022, establishes a manufacturing footprint in Australia for Amokabel and supports the company’s long-term plan to produce covered conductors.
Amokabel produces a cost-effective covered conductor designed to enable distribution network operators (DNOs) to increase their network resilience and vastly reduce the risk of bushfires starting when electrical lines come into contact with dry vegetation— the primary cause of bushfires in 2009.
Amokabel launched its Australian subsidiary in 2021, allowing it to provide Australian DNOs with covered conductors and accessories from Sweden.
The company said it wanted to demonstrate its long-term commitment to the market by commencing local production as demand for the conductors grow.
“As manufacturers, Amokabel and Euro-Tech are a good natural fit as we share a philosophy of having flexible production lines and a fast response so that our customers can have exactly the cable they want when they want it,” said Stephen Ruthland, managing director for Amokabel Australia. “Our immediate plan is to invest in the facility in Sydney and grow Euro-Tech’s existing market but looking further into the future, we’d like to develop the business further by producing covered conductor.”
In a press release, the Swedish company said it will continue to serve Euro-Tech’s customers with control and instrumentation cables for mining, electronics, signalling, and other industries.
“We see an unprecedented benefit of our products in Australia and we’re hoping that our experience with Euro-Tech will mirror the success we’re having in India, where we started local production of covered conductor in 2017,” said Peter Eriksson, chief executive officer of Amokabel’s power division.
“Demand there has now rapidly scaled up and we’re investing in significantly increased production capacity,” Eriksson added.
The new local production line will feature purpose-built machines that produce cables for specialist applications.
