Cable giant Nexans in a release said that it has outlined a strategy to turn itself from a generalist cable manufacturer to a pure electrification player.
Customer needs are changing from cables to systems and interconnected solutions, notes Nexans.
Offering a background to the rationale, Nexans said that since 2018, the company has undertaken an in-depth transformation, building a leaner, more customer-centric and profitable Group. In just two years, the successful deployment of what is termed as the “New Nexans Operating Model,” has enabled the Group to unlock value and set strong financial footing.
Major role
For the last 120 years, Nexans has played a major role in the world’s electrification. This market represents 65 per cent of the world cable market and is expected to grow by 4.3 per cent per year over the next 10 years driven by key growth trends: growing energy consumption, demand for sustainable energies, grid modernization and protection. The world is becoming more electric and carbon neutral. Likewise, customer needs are changing from cables to systems and interconnected solutions.
Convinced that remaining a generalist will be more of a weakness than strength, Nexans intends to become a pure electrification player.
Simplify to Amplify
The Group will simplify its business model by moving from eight macro sectors, representing 34 subsectors, to four sectors, representing 12 subsectors. Nexans will become a unique fully integrated player covering the entire electrification value chain: from the very start of production of energy, to transmission and distribution of energy, all the way to usage of energy.
The Group will amplify its impact through two axes:
- Pursue transformation program on all segments through 3 main actions: (1) deploy an updated activity portfolio management method, enabling a stronger focus on cash generation; (2) continue the implementation of cost and productivity improvement programs; and (3) implement SHIFT Performance program wherever still needed.
- Amplify and accelerate growth on electrification segments through: (1) both on transformative deals and bolt-on acquisitions; (2) SHIFT Prime program focused on customer and innovation, and (3) innovations and partnership programs thanks to its global R&D capabilities, partner ecosystem and digital solutions.
Electrifying the future
Nexans will position all its operations across the electrification value chain—from generation and transmission to distribution and usages. The Group will enhance its positioning in the offshore windfarms and interconnection markets notably through additional 200 million euros of investments, while maintaining a value proposition based on three pillars
- Risk & project portfolio management
- Asset management
- Cutting-edge technology
In distribution, Nexans will reinforce its turnkey solutions combining cables and accessories with installation, architecture design, smart systems and asset management. In Usages, the Group will focus its offer on end-user electrical safety, support to client competitiveness through seamless supply chain for easy to handle and install products, and smart products integrated in a digital ecosystem.
Carbon neutrality
Nexans will lead the electrification of the future in a sustainable way. As announced during its Climate Day on September 22, 2020, Nexans will reach carbon neutrality by 2030.
(Photograph showing Nexans EHV cables is for illustration only)
