NKT Cables said it expects its business of delivering underwater cables to offshore windfarms to grow rapidly.
The company’s chief executive said it expected market volumes to grow on average by some 28% from next year to 2020.
NKT Cables, which is part of NKT Holding, currently has more than 20% of the market for offshore cables.
NKT could increase its production capacity for offshore cables by 45% through a relatively small investment of about $37million.
Chief executive Michael Hedegaard Lyng said:”The step to adding more than the 45 percent is not just yet around the corner for us.
“If that means we would have to go down to 18 percent market share from 20 percent, then that is fine.”
The bet on offshore cables is part of a new strategy which should bring NKT Cables’ return on capital employed (RoCE) up to over 15 percent in 2020 from an expected 7 percent this year.
NKT Cables ranks 16th in the global market for power cables, where Italy’s Prysmian and France’s Nexans are market leaders.
However, it leads in the offshore market, as well as for railway cables.
In a bid to lift margins in recent years, it has moved away from the highly competitive market for low and medium voltage cables and into high margin niche markets.