Ericsson divests its power cable operation to NKT Cables. May 03, 2013– Detroit, USA (Techreleased) – NKT Cables is one of the largest power cable manufacturers in Europe. Ericsson believes that the power cable operation that currently resides within business unit Networks has potential to realize greater leverage and scale within NKT Cables where it will be core business.
The net sales for the power cable operation in 2012 was approximately SEK 1.5 billion.
The current best estimate is that the transaction will generate a net loss of approximately SEK -100 million and will, with current time plan, negatively impact business unit Networks’ operating income in the third quarter, 2013.
As a result of the agreement NKT Cables will take over a factory in Falun, Sweden.