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SIGNIFICANT EVENTS AFTER
THE REPORTING PERIOD
On 3 February 2015, the Prysmian Group signed a Memo-
randum of Understanding with Transelectrica, a Romanian
electricity transmission system operator, Unicredit Bank
and the law firm Tonucci & Partners to carry out studies and
analyses on the potential development of a submarine link
between Romania and Turkey. The memorandum's aim is to
support further development of the region's energy sector,
by offering Romanian power suppliers the opportunity to
export their surplus generation to other countries such as
Turkey. The Prysmian Group also announced the construc-
tion of new optical cable manufacturing facilities within
Slatina's new Industrial Park; the new facilities will be
capable of producing a full range of new generation optical
fibre cables to support the most advanced applications and
usages by public and private, national and international
operators, having obtained all the required quality certifica-
tions. Phase one of the project is due to reach completion
by 2017. By the end of the project, the new plant will also
have created 300 permanent jobs. The Group also plans to
start production in Slatina of high voltage submarine cables
for power transmission lines up to 150 kV; completion of the
project and commencement of production are scheduled for
July 2015. Lastly, with the goal of further developing highly
skilled local human resources, Prysmian has also announced
the launch of an international training programme in
support of its industrial development with the recruitment
of new and qualified local staff.
On 6 February 2015, Prysmian Cavi e Sistemi S.r.l. started
legal proceedings, requesting that the claims brought by
Pirelli & C. S.p.A. be rejected in full and that it should be
Pirelli & C. S.p.A. which holds harmless Prysmian Cavi e
Sistemi S.r.l., with reference to the alleged infringement
in the period 18 February 1999 - 28 July 2005, for all claims
made by the European Commission in implementation of its
decision and for any expenses related to such implementa-
tion.
On 11 February 2015, Prysmian was awarded a new contract
worth a total of approximately Euro 60 million by Iberdrola
Renovables Offshore Deutschland GmbH - a German
subsidiary of Iberdrola, the world-leading developer
and operator of wind farms - to supply and install wind
turbine inter-array cables for the Wikinger offshore wind
farm, located within the West of Adlergrund cluster in the
German Baltic Sea. Under the Wikinger contract, Prysmian
is responsible for the design, manufacture, installation,
burial, termination and testing of 81 km of 33 kV submarine
cables in different cross-sections to connect the 70 wind
turbines and an offshore substation that form the 350 MW
wind farm. Cables will be produced at Prysmian’s facility in
Drammen, Norway, one of the Group’s centres of excellence
for submarine cables. Installation work is scheduled to be
complete by the end of 2016.
On 16 February 2015, the Prysmian Group was awarded two
major new orders worth a total of more than Euro 50 million
for projects to expand the power transmission system in
Kuwait. More specifically, the contracts refer to the "MEW
06 Jaber Al Ahmed City" project, awarded directly by MEW
- the Kuwait Ministry of Electricity & Water - and the "Jamal
Abdel Al Nasser Street" project, awarded by ROBT (JV),
a joint venture of Rizzani de Eccher-OHL under a wider
contract with MPW – the Kuwait Ministry of Public Works
- on behalf of MEW as end-user.
The "MEW 06 Jaber Al Ahmed City" project is part of the
plan to expand Kuwait's power transmission with a view to
strengthening its main transmission networks and securing
power supplies for industrial and residential users through-
out the country. The "Jamal Abdel Al Nasser Street" project
is part of the plan to upgrade and transform one of the main
traffic arteries running through the middle of Kuwait City
into an expressway, a process that will involve diverting an
underground electricity line.
The contracts involve the design, engineering, supply, con-
struction, installation and commission of HV underground
cable systems, requiring a total of 210 km of 132 kV cable
and related network components for both projects that will
be executed by the Group’s offices in Kuwait. Installation
will start in 2015 with completion scheduled in 2016.