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Consolidated Financial Report |
DIRECTORS’ REPORT
2014 Annual Report
Prysmian Group
38
using the Cable Enterprise DP2 cable-laying ship, specifically
equipped to make the most of her particular experience in
offshore wind farm installations and to better serve the
growing markets in Northern Europe by providing solutions
for highly complex installations.
To serve the numerous submarine projects in which it is
involved, Prysmian announced new investments in 2014
worth more than Euro 40 million to expand production
capacity at its plants in Pikkala (Finland) and Arco Felice
(Italy). These plants are already the Group's two centres
of excellence for the manufacture of high voltage and
submarine cables. As a result of these new investments,
these two production units will have the capability to man-
ufacture and test high cross-section three-core cables with
voltages up to 400 kV AC.
In the
underground power transmission
business, the Group
won two important contracts in Australia and the Middle
East. In fact, in May, Prysmian was awarded a new contract
worth approximately Euro 30 million by Ausgrid, a public
utility company in the state of New South Wales (Australia),
which manages power distribution and transmission grids.
This contract, for high voltage underground cables for the
"North Shore cable upgrade" project, comes on the back of the
separate smaller "Engadine" contract, worth approximately
Euro 5 million, awarded in September 2013. These projects
form part of Ausgrid's network upgrade programme, under
which it plans to replace cables and equipment installed about
40 years ago. There are two areas involved in these projects:
the Willoughby-Lindfield-Castle Cove area on Sydney's north
shore and the Engadine area, just south of Sydney. In June, the
Group announced a new contract, worth approximately Euro
80million, with KAHRAMAA, the Qatar General Electricity and
Water Corporation, for projects to expand the transmission
network. The contract involves the construction of 220 kV
extra high voltage underground cable systems over a distance
of 173 km and related network components, as part of stage 2
of
Phase XI
of the project to expand the power transmission
system in Qatar. The project will be managed by the Group's
offices in Qatar, using cables manufactured at the plants in
Gron (France) and Livorno (Italy).
In the
SURF
business, 2014 saw the award of a contract
worth approximately USD 24 million from Petrobras, Brazil's
national oil company. The contract involved the supply of
special Downhole Technology (DHT) cable systems for the
offshore oil & gas industry, manufactured at the plants in
Bridgewater, NJ (USA) and Cariacica (Brazil) using Brazil-
ian-sourced materials like steel.
With regard to the
Energy Products
operating segment,
Prysmian was awarded several contracts during the year
in connection with rail infrastructure projects. The most
important was the framework agreement with SBB CFF
FFS -
Swiss Federal Railways
- worth approximately Euro 26
million. The contract involves the supply of approximately
2,800 km of signalling cables to upgrade the entire Swiss
rail network's infrastructure. In 2014, the Group also won
contracts for other rail infrastructure projects in Italy, France
and Denmark.