Amokabel acquires Euro-Tech Cables with long-term plan for Australian production of covered conductor
Deal with Sydney company has the goal of establishing local production of new-generation covered conductor that provides network resilience and bushfire protection on overhead electrical lines
Amokabel, the Swedish specialist cable producer, has acquired Euro-Tech Cables Pty, a Sydney manufacturer of high-quality signal and communication cables. The deal completed in December 2022 has established a manufacturing footprint in Australia for Amokabel, with the long-term goal of producing covered conductor.
Amokabel’s new-generation covered conductor is the most cost-effective technology that 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.
According to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), covered conductor reduces the risk of ignition by 98 percent. It can be easily retrofitted to existing poles and infrastructure with minimal changes. As a lightweight technology, covered conductor ensures that virtually eliminates ‘interpoling’, which is the practice of adding additional poles to support the weight of older styles of covered conductors. It also brings many 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,” says 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. For example, it is the only supplier in Australia that can apply 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,” says 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.”