The Biden “package” is also a magnet for Greek multinationals

The generous incentives of the famous law of USA to reduce inflation (Inflation Reduction Act – IRA) do not leave extroverted Greek businesses unmoved. Following the path of large industrial enterprises, the Cenergy Holdings and the cement industry TITAN give their own “vote” of confidence in the US as an investment destination and the $369 billion Biden financial “package” to support the green transitionfrom which they will be strengthened in total with an amount of more than 100 million dollars.

In Baltimore

Cenergy announced yesterday that through its US subsidiary, Hellenic Cables Americas, plans to build a new state-of-the-art cable manufacturing facility in Baltimore, Maryland, at an estimated cost of $300 million, with a final investment decision pending. The competent Internal Revenue Service of the USA approved the request of the Greek company for the inclusion of the investment in the Qualifying Advanced Energy Project program by providing tax exemptions up to $58 million The new facility, which is subject to a final investment decision, will produce submarine and underground cables for offshore wind and power grid modernization applications.

It will address the growing energy transition market with high-tech products, manufactured using a modern, clean, low-noise and ultra-low-emission production process. As a first step towards the realization of the project and once the due diligence process that has been underway for the last few months is successfully completed, Hellenic Cables Americas intends to purchase a property in Wagners Point, Baltimore, an area of ​​approximately 154 acres . The transfer is expected to be completed within 8 weeks, subject to receipt of customary approvals for similar transactions.

With this new investment, Cenergy Holdings puts a “foot” in the large US market as a producer of submarine and underground cables, opening a new chapter in its development path, which it has successfully linked to sectors that promote the energy transition. Cenergy had announced a plan to build a subsea cable manufacturing facility in Maryland in 2021 with Danish giant Orsted, the world’s largest offshore wind farm developer.

The two Greek companies will be supported in total with grants of more than 100 million dollars.

This project was subsequently “frozen” under the responsibility of the Danes, and at least from yesterday’s announcement by Cenergy there is no clear correlation with the plan for a production unit, which in addition to underwater cables will also include terrestrial ones. The expansion in the underground cable sector is linked to the aging of the US electric grid and the need for an urgent upgrade to meet the increased generation of RES from the investment boom triggered by the IRA Act. Cable production within the US, moreover, also answers the problem of politics duties anti-dumping measures introduced by Trump that remain in place.

In Virginia

The cement industry TITAN has already developed production activity in the USA and yesterday announced that the Roanoke cement production plant in Virginia was selected by the US Department of Energy for subsidy of up to $61.7 million to develop innovative technology for a thermally activated clay production line. The development of this technology aligns with TITAN’s 2026 strategy for green growth, aiming to expand the range of low carbon cementitious products that it offers its customers, setting a new standard for the construction of bridges, hospitals, schools and other critical infrastructure projects. The project is part of the $6.3 billion industrial decarbonization program in the US, managed by the Energy Department’s Office of Clean Energy (OCED) and focused on reducing the carbon footprint.

According to the company’s announcement, after the successful completion of negotiations between the two parties, TITAN will support the project with additional investments.

Wave of investment

The incentives of the IRA act act as a magnet for European companies, which one after the other announce investments on the other side of the Atlantic. Just recently the Swiss solar company Meyer Burger, which has three plants in Germany, announced that it will build its new plant in Colorado instead of Germany. Accordingly, the Danish Vestas and German Siemens Gamesa are planning to build a new factory in New York, while the electric battery company Freyr abandoned the investment to build a battery production plant in Norway to expand in Georgia, USA.

The big “green” opportunity for the cable manufacturing industry

The goals that have been set at a global level for the reduction of carbon dioxide emissions (CO2) and the increased production of RES has boosted the demand for cables for the transmission of green energy and creates a new field of growth and competition for companies in the sector. Just last week the world’s largest cable manufacturing company, the Italian Prysmianreached an agreement for its acquisition Encore Wire, a Texas-based maker of copper and aluminum for residential, commercial and industrial cables, for €3.9 billion. The Italian giant through this acquisition adds to its potential annual sales of 2.6 billion dollars in low and medium voltage cables.

Cenergy Holdings, which operates internationally in the submarine cable industry through its subsidiary Hellenic Cables, has announced a plan to build a new submarine and underground cable production facility in Maryland, showing quick reflexes to the growing needs of the US cable market. The Greek company has linked its activity to the energy transition and the needs for innovative products and is simultaneously implementing a plan to expand the production capacity of the submarine cable factory in Corinth, with most of this additional capacity already committed. At the same time, the company, in order to respond to the increased demand for terrestrial cables, has proceeded with additional production lines and equipment at the Thebes factory, in order to create even higher added value, and in the design of a center of excellence for low voltage cables in the industrial area of ​​Eleonas Thebes.

The increased production of renewable energy sources has boosted the demand for cables for the transmission of green energy.

Indicative of the company’s development path in the sector is the high backlog of orders, which reached 2.5 billion euros at the end of 2023, recording the historically highest backlog of orders for the cable sector (from 1.35 billion euros at the end of 2022). Electrification and the need for energy security will be the megatrends for at least the next decade, driving the need for more cables of all types and expected to further fuel the sector’s backlog.

Strong demand for submarine cables worldwide has significantly extended delivery times. According to market sources, the cable procurement time for a submarine electrical interconnection project can range from one year to 3-4 years, while for an onshore interconnection, from a few months to over a year. Works of this size, however, in addition to the production capacity, also depend significantly on the other materials and services, such as DC converters, cable installation vessels, etc.

Cenergy Holdings, having found that electrification and the requirement for energy security will be the main trends for at least the next decade, has adjusted its strategy to produce more cables of all types to offer innovative and safe solutions.