American Superconductor Corporation, a leading developer and manufacturer of superconductor and power electronic based products for the electric power industry, today announced that it has acquired all of the assets of Nordic Superconductor Technologies A/S (NST), a subsidiary of Denmark's NKT Holding A/S.
NST has developed and marketed high temperature superconductor (HTS) wire to customers in Europe, Asia and North America. AMSC is acquiring substantially all of the assets of NST including patents, manufacturing equipment, stock materials, work-in-process, and know how.
NST's wire manufacturing in Denmark will be shut down and the purchased assets will be incorporated into AMSC's operations. NKT Holding will be responsible for the transition of NST's employees affected by the acquisition.
Juan Farre, current CEO of NST, will work as a consultant to AMSC to help in the transfer of technology know how and of customer relationships and market information.
Under terms of the agreement NKT will receive 546,000 shares of AMSC Common Stock valued at $2.1 million. NKT has agreed to hold those shares for at least two years.
"This acquisition of NST provides us with some very important assets and the opportunity to expand our customer base," said Greg Yurek, chief executive officer of American Superconductor. "NKT, through its NKT Cables business unit, has successfully demonstrated HTS cables in the grid in Denmark.
"American Superconductor has worldwide leadership in the development and manufacture of HTS wire," said Tom Knutzen, president and CEO of NKT Holding and Chairman of NST. "Our sale of the assets of NST to American Superconductor is the right strategic move for us at this time. Our focus on the HTS market will be through NKT Cables, which will build on its successful demonstration of an HTS cable system in the grid in Denmark and through its collaboration with Southwire in the U.S."
In the mid-1990's NKT and Southwire Company, a leading U.S. cable manufacturer, began working together on HTS power cable technology, a cooperation that continues today. In February 2000, a 30-meter HTS cable made with NST wire began carrying power to three Southwire manufacturing facilities in Carrollton, GA. That HTS cable system is still in operation. In May 2001, NKT Cables installed the world's first HTS power cable in the power grid in Denmark and it has been operating successfully.
Since February 2002, when AMSC announced it was restructuring its relationship with Pirelli Cables and Systems, AMSC has been working closely with many leading cable manufacturers to incorporate AMSC wire in HTS cable demonstration and commercial projects. "The new, open access to AMSC wire has created significant opportunities for AMSC and for cable manufacturers who want to incorporate our highest performance, best priced wire in their new cable products," said Yurek. "Access to our wire and the growing realization that low-impedance HTS cables can provide tremendous power network upgrades at competitive costs is creating new market opportunities for HTS technology."
AZoM Editors Comment: visit the Nordic Superconductor site for an excellent demonstration of superconductor cable production.
For more information on superconductors, click here.