Nexans’ electrification supports the needs of China’s energy upgrade
In anticipation of China speeding up its replacement of fossil fuels and building a new power system focused on new energy, innovative electrification player Nexans is offering solutions to meet the demand.
Julien Hueber, vice-president of Nexans Group’s Distribution and Usages Europe-Asia Pacific business group, said he expects global electricity demand growth will exceed 40 percent by 2040, while the average annual increase of China’s electricity demand during the 14th Five-Year Plan (2021-25) period will exceed 4.8 percent.
“As China progresses toward the dual carbon goals, opportunities continue to emerge from the extensive transformation of the power sector. This encompasses reforms in market structure, a swift transition from coal to renewable energy, and increased investments in grid infrastructure,” Hueber said.
China will also continue to increase installation of nuclear power and hydropower facilities, and wind and solar power will continue to develop. To this end, Nexans has built energy highways, which can connect fixed and floating offshore wind farms spanning more than 100 kilometers.
Nexans also supports a next-generation power system with new digital services and network management tools, working with partners such as Microsoft and Cosmo Tech. The group has also introduced environmentally friendly designs to reduce its environmental footprint.
Hueber said Nexans is optimistic about the prospects of green energy such as solar energy and green buildings in China. Its Shandong plant, launched in 2023, is designed to become a world-class manufacturing hub that can make a substantial contribution to China’s green, low-carbon and high-quality development goals.
Nexans entered the Chinese market in the 1980s, and its cables and solutions can now be found in every aspect of domestic industry, infrastructure and people’s daily lives. With Jan 27 marking the 60th anniversary of the establishment of diplomatic relations between China and France, Hueber said the company still sees huge opportunities in China, especially regarding energy transition.
“We have witnessed the nation’s remarkable economic prosperity and the ever-strengthening friendship between China and France. In recent years, Nexans has increased investment in electrification to better support the global energy transition, a priority in sync with China’s energy industry upgrade,” he said.
Leveraging the group’s self-developed E3 management model that combines economy, environment and engagement dimensions in order to break down silos, generate greater performance and better contribute to the ecological transition and collective action, Nexans has effectively increased profitability without over expansion. The E3 management model has helped the company divert from low-performing operations or investing in new technologies to reduce the carbon footprint of a high-emissions operation. With E3, Nexans has quadrupled its market capitalization and doubled profitability in four years, without relying on volume growth or a social plan, while reducing its carbon footprint by 28 percent.
“We are highly appreciative of the Chinese government’s efforts to attract foreign investment. The range of supportive measures implemented, such as streamlining the approval processes for foreign enterprises, optimizing tax policies and protecting intellectual property rights, has created a conducive environment for the development of foreign-funded enterprises,” said Hueber.
“We view these initiatives not only as beneficial for the growth of foreign businesses like Nexans, but also as crucial in promoting the diversification and globalization of the Chinese economy. This mutually beneficial cooperation model provides valuable opportunities for companies like ours to integrate more effectively into the Chinese market and explore new avenues for growth.”