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Halden, June 25 th 2013 Nexans Investor Day
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Halden, June 25th 2013
Nexans Investor Day
Nexans Investor Day
Introduction to High Voltage Submarine
Managing a growing complexity
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Dirk Steinbrink Executive VP High Voltage and Underwater Cables
Where does complexity come from ?
Customers are looking for increasingly higher transmission capacity
Customers are building longer and deeper interconnections
Project scope of work has expanded in order to offer comprehensive interconnection
solutions
Nexans Investor Day 3
Skagerrak 1 Skagerrak 2 Skagerrak 3 Skagerrak 4
Completion date (*) 1976 1976 1993 2014
Distance 130 km 130 km 130 km 140 km
Voltage 250 kV DC 250 kV DC 350 kV DC 525 kV DC
Power 250 MW 250 MW 500 MW 700 MW
(*) Expected completion date for Skagerrak 4
Customers are looking for increasingly higher transmission capacity
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The Italy-Montenegro interconnector
415 km of 500 kV HVDC cable (1 pole)
Down to 1200m
Growing demand for HVDC
Longer and deeper interconnections
Nexans Investor Day 5
HVDC: industry leading track record with above 3,000 km of cable experience
Fenno Skan 2 (2011) 500kV DC, 200km
Estlink 2 (2013) 450kV DC IRC, 150km
Fenno Skan 1 (1989) 400kV DC, 200km
Korea Cheju (1993) 180kV DC, 102km
Cook Strait (1991) 350kV DC, 3x40km
Skagerrak 1&2 (1976) 250kV DC, 2x127km
Skagerrak 3 (1993) 350kV DC, 127km
Skagerrak 4 (2014) 525kV DC, 150km
Norned (2008) 450kV DC, 2x158km
Hainan Guangdong (2009)
525kV AC/DC, 3x30km
Kontek (2010) 400kV DC, 50km
Valhall (2010) 150kV DC IRC, 300km
Sardinia Italy (2010) 500kV DC IRC, 330km
Scotland Ireland (2001) 250kV DC, 2x65km
Gulf of Aqaba (1997) 400kV AC/DC, 4x13km
Cross Channel (1985) 270kV DC, 4x47km
Vancouver Pole 1 (1969) 300kV DC, 3x33km
Spain Mallorca (2011) 250kV DC, 242km
Spain Morocco (2005) 400kV AC/DC, 2x27km
In progress
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Nexans Investor Day
Purpose is to build a 200 MW interconnector between Malta and Sicily to ensure environmental friendly and reliable power supply in Malta Approx 200 M€ turnkey contract awarded to Nexans in 2010 Comprehensive scope of work including: submarine cable supply, laying and protection land cables supply and installation supply and commissioning of a power substation (Malta)
Completion expected in 2014
Scope of work includes a growing portion of “non cable” activities
The Malta-Sicily interconnector
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Nexans Investor Day
Cable trenching by Nexans Capjet
101 km of 3x245 kV submarine cable
manufactured in Halden
Cable laying by C/S Nexans
Skagerrak in two campaigns
Construction and supply of substation in Malta (subcontracted)
Land cable installation
Protection by rock-dumping in areas where trenching
protection does not give the necessary protection
The Malta-Sicily interconnector
Near shore protection by horizontal directional drilling and cast iron
shells
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Nexans is ideally positioned to handle this growing complexity
Industry leading track record in HVDC MI and HVAC
Longstanding experience in complex cable laying and protection marine operations
Strong reputation in turnkey projects
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Nexans Investor Day
Nexans Investor Day
Submarine High Voltage
An organization built for success
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Kjetil Hovland Vice President Submarine High Voltage Business Line
Vincent Dessale Chief Operating Officer Submarine High Voltage Business Line
Combination of short-term containment measures and more structural long-term actions
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Nexans Investor Day
Lessons learnt from 2012
Feeding in more machines and manpower to match market demand is not sufficient Coping with growing complexity and increasing timeline uncertainty requires highly structured organization, robust processes and right mindset
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Nexans Investor Day
The organization is being reinforced all along the project value chain
Tendering
Engineering
Manufacturing
Installation
Commissioning
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Nexans Investor Day
Tendering and engineering: preparing the ground for a smooth project execution
Selective bidding strategy Scaled up risk analysis at tendering stage Develop and implement risk mitigation actions before production starts Reinforce interfaces between engineering and production before, during and after production
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Nexans Investor Day
Manufacturing: implementing an organization focused on excellence (1/2)
Simplification of plant organization: rationalization and focus to secure the basics Process engineering: improve process control to maximize the utilization of the assets Supply chain: reinforce planning management to better anticipate planning adjustments and gain slack
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Nexans Investor Day
Quality: split of quality and HSE functions to ensure stronger focus on manufacturing quality management Cost control: reinforced costing tools to ensure proactive tracking of costs
Manufacturing: implementing an organization focused on excellence (2/2)
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Nexans Investor Day
Conclusion: an organization built for success
We have leveraged on the Group to attract the required talents to build a stronger Submarine organization Manufacturing has stabilized Project execution is gradually improving, supporting our objectives
Submarine High Voltage: Our ambitions
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Frédéric Michelland Senior Executive VP High Voltage and Underwater Cables, North & South America
Nexans Investor Day
A buoyant market…
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Nexans Investor Day
Strong market drivers…
Grid interconnection: above average growth in Europe driven by need for better balancing supply and offer in the European power market and attractive return for TSOs Offshore Wind: growing offshore wind capacity in Europe together with longer distances to shore O&G: growing demand worldwide for HV connections of offshore platforms
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Nexans Investor Day
NOR.LINK 1,400 MW, +/- 500 kV Two HVDC cables, turnkey Delivery expected in 2018
Cable Landing in Vollesfjord, NO 514 km submarine cable route Cable Landing at Büsum, Schl.-Holstein , DE 55 km underground cable route in DE
HVDC: NOR.LINK project
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Nexans Investor Day
Offshore wind: Northwind project
Northwind Windfarm 216 MW
72 turbines, 3MW each (Vestas)
Belwind 2 Windfarm 165 MW
53 turbines, 3MW each (Vestas)
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Supply of 245kV 3 core XLPE subsea cables: -Cable 1: Belwind 2 to Northwind: 14km -Cable 2: Northwind to shore 42km With 2 FO elements 48 fibers in each cable
Scope of works includes design, type-test, supply, and jointing termination works, cable witnessing and testing
Completion scheduled in 2013
Largest cable ever manufactured in the world
Nexans Investor Day
Sales CAGR
+7/8% (*)
Double digit
OM %
Our ambition for submarine activities
Sales ~600 M€
Low single digit
OM %
Legacy contracts completion
Stronger organization Execution
issue H1’12
Stronger risk management
Cost optimization
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Plant output stabilization phase Secured improvement phase
(*) including Hybrid Underwater Cables
Bill Walsh Halden Plant Manager
Nexans Investor Day
Halden plant, processes & products
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Nexans Investor Day
The Halden plant was built in 1974 to produce the first Skagerrak cable between Norway and Denmark
Halden plant, 1974
Early days
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Nexans Investor Day
Nexans’ competence center for subsea cables, a turnkey supplier for customized solutions Engineering/design Type testing Manufacturing Land operations Marine operations
Subsea power cables (paper
insulated and XLPE), umbilicals and cables for Direct Electrical Heating
High voltage laboratory Factory area: 100,000m², running 365 d/y
The Halden plant today
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1. Engineering/Design 2. Type Testing
Turn-key supplier
5. Marine installation 4. Land installation 6. Protection
3. Production
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Vancouver cable
High Voltage submarine Interconnections, mainly used between countries and continents
High Voltage Paper Technology
Drawing Conductor stranding Impregnation Paper lapping
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HVAC Interconnections mainly used between windmill farms and connection point onshore
XLPE extrusion Armouring Vertical lay-up
XLPE cables
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Used for control and operation of subsea installations
Vertical lay-up Steel tube welding Storage
Umbilicals and power umbilicals
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High Voltage Test Laboratory for R&D, type testing, routine testing and final testing, several different labs
Mechanical testing High Voltage Test Laboratory
Control room
Complete Test Facilities
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Turntables are used as a part of the production line, intermediate storages and final storages - a key element in the Halden plant
Producing cables up to 7,000 tons demands solid cable ways demanding a complex rigging activity or solid fixed cableways
Complex Manufacturing
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General HSE requirements
Please be aware of the nearest emergency exit In case of fire alarm, follow your Nexans contact to
the nearest meeting point Hard hats, protective shoes and safety glasses
are mandatory in the factory Visitor must wear red reflective shirts Visitors with pace maker not allowed inside the plant
due to the magnetic fields No picture allowed Do not stray from the assigned area
Nexans Investor Day
Submarine installation
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Anders Røren Marine Installation Manager
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Installing cables around the globe
Different climates
Different conditions
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Turn-key projects: more than manufacturing • Seabed mapping
• Feasibility study
• Route design
Additional services
• Cable Repair
• Cable & Umbilical transport
• Factory support
• Engineering
• Risk management
• Planning
• Load-out
• Transport
• Laying
• Shore landing
Cable protection (against fishing activities, currents, etc.)
• Jetting
• Trenching
• Rock Dumping
• Near Shore
• Onshore civil works
• Onshore cable pulling
• Cable end terminations
• Jointing
Load-out at factory
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Installing the cable
Transport to site
Shore landing operations (pull-in)
Platform pull-in
Cable laying
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Nexans Capjet 1MW
Cable burial into seabed by use of water jetting principle
Can be used on cables, umbilicals, rigid and flexible pipelines
Burial depth more than 2,5m into seabed in favourable soil conditions
Water depth more than 1000m
Can also be used for dredging (e.g. uncovering buried cable)
Nexans owns and operates 3 complete CAPJET systems with dedicated Launch & Recovery Systems (LARS)
