NKT shares rose 1.6% to DKK 371 (EUR 49.77) on Tuesday after the Danish cable manufacturer signed a contract with Polish copper producer KGHM for the supply of copper from 2023 to 2027.

NKT has signed the agreement to secure the supply of copper in the coming years for the production of high-power cables, NKT writes in an announcement on Tuesday morning.

According to the agreement, KGHM will deliver a minimum of 52,500 tonnes of copper per year to NKT until 2027 with an option to increase the volume and extend the contract.

The agreement will cover a significant part of NKT’s copper needs and support the company’s growth strategy.

”We are pleased to strengthen our long-term collaboration with KGHM by entering into this frame agreement for the supply of copper rod for the coming years. And even more so, that we are able to source copper close to where it is needed, which supports our efforts to reduce the environmental impact of our operations,” says NKT President & CEO Claes Westerlind.

(Translated using DeepL with additional editing by Simon Øst Vejbæk)