Acquisition to increase network resilience

Amokabel, the Swedish specialist cable producer, has acquired Euro-Tech Cables Pty Ltd, a Sydney manufacturer of high-quality signal and communication cables. Completed in December 2022, the deal has established a manufacturing footprint in Australia for Amokabel, with the long-term goal of producing covered conductor.

Amokabel says its new-generation covered conductor enables 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. This was the primary cause of the Black Saturday fires in 2009.

Image: Supplied

According to the CSIRO, covered conductor reduces the risk of ignition by 98%. It can be easily retrofitted to existing poles and infrastructure with minimal changes. As a lightweight technology, covered conductor virtually eliminates ‘interpoling’, which is the practice of adding additional poles to support the weight of older styles of covered conductor. It also brings other benefits, such as increased public and wildlife safety.

Having established its Australian subsidiary in 2021, Amokabel has been supplying DNOs with covered conductor and accessories from Sweden via a warehouse in Australia. However, demand is growing and it wanted to demonstrate its long-term commitment to the market by developing local production.

“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 Rutland, 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.”

Amokabel will continue to serve Euro-Tech’s customers with control and instrumentation cables for mining, electronics, signalling and other industries. The Sydney production line features purpose-built machines that produce cables for specialist applications, eg, supplying nylon sheathing to cables for protection against termite attack.

“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, CEO of Amokabel’s power division, who is based in Sweden. “Demand there has now rapidly scaled up and we’re investing in significantly increased production capacity.”

Top image caption: Stephen Rutland, Managing Director of Amokabel Australia and Mark Foster, General Manager at Euro-Tech Cables’ manufacturing facility in Sydney. Image: Supplied