ROME (Reuters) -Italy's Prysmian, the world's largest cablemaker, signed three contracts with Amprion worth 5 billion euros ($5.4 billion), the two groups said on Thursday, in the latest deals in a major expansion of Germany's power grid.
Prysmian said the three deals - for two offshore grid connection systems and an underground cable project - represented its biggest package deal ever in value and in kilometres.
They are part of Germany's plan to install 70 gigawatts (GW) of offshore wind energy by 2045 and will support the transmission of energy generated in the North Sea to consumers in the western and southern regions of the country, the joint statement said.
Amprion, one of Germany's four high-voltage power transmission network operators, is 25.1% owned by RWE (LON:0HA0), Germany's biggest electricity producer, while the remaining stake is owned by a consortium including Munich Re, Swiss Life and Talanx.
Like its peers, Amprion is planning major investments in Germany's grid expansion to make sure it can cope with the strong increase in renewable energy installations.
Amprion has earmarked around 22 billion euros in spending by 2027.
The deals with Prysmian include 3,400 kilometres of land cables and 1,000 km in submarine cables.
Shares in the company were up 5.3% at 43.19 euros apiece at 0935 GMT following the announcement.
"The three contracts with Amprion are an important milestone for Prysmian as they underline once again the trusting cooperation between the two companies," Hakan Ozmen, EVP Prysmian Transmission Division, said in the statement.
Hendrik Neumann, CTO of Amprion, said its deal with Prysmian was "essential" to achieving the group's offshore expansion targets and key for the three important energy transition projects.
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