Strong steel cables

Ireland has experienced high growth over a long period. The energy sector and the electric power network have been expanded substantially but the tough Atlantic climate makes heavy demands on the installations. SwedWire has technology that meets the requirements for secure supplies of galvanized guy wire.
In recent decades, the main focus of the Irish economy has shifted from agriculture to industry and financial services.  Growth was very high since 1995 and did not abate until the start of the financial crisis in 2008.

Such a societal development requires large quantities of energy and the expansion of electric power has been unmistakable. The state-owned company ESB has been the main driver of this development.

ESB - The builder of the social structure

ESB – Electricity Supply Board – is the leader within power production and electricity distribution in the Irish market and has a strategic presence in the UK and in other European markets. ESB’s stated goal is to develop a fundamentally sustainable company by investing in the national grid, renewable energy, modern power production and asset-creating activities in an international perspective.  

The ESB was established in 1927 and is 95 per cent owned by the Irish state. The remaining 5 per cent is owned by a staff fund. ESB is governing assets totalling to EUR 12.5 billion in order to supply the market with secure and reliable supplies of electricity even during difficult winter conditions.

The ESB's hydroelectric power station at Ardnacrusha from 1927.

ESB International handles the operation of the ESB’s power stations which have a total capacity amounting to 5,800 MW. The production consists of hydro electric power as well as firing by coal, oil, gas and peat. The division is also responsible for international business and investments in renewable energy sources.

Electric Ireland supplies around 1.4 million customers with electricity. The main functions include settlement, information and invoicing as well as maintaining good customer contacts based on skilled advice.  

ESB Networks Ltd owns and manages the high-tension system in Ireland and also handles the operation of the medium- and low-tension systems. All technical work in this division is performed at electricity customers and power producers which are connected to the grid including reading electricity meters.

ESB takes it social role very seriously and works purposefully to reduce the proportion of power production from fossil fuels. The investments in wind power aims to a 1 500 MWs capacity by 2020. The company has also undertaken to set up the infrastructure for electric cars by building recharging points distributed all over Ireland. In addition to this, EUR 200 million has been earmarked for investments in new companies within the technical field of renewable energy.

The Irish economy came to a standstill during 2009 like in the rest of Europe and demand for electricity has fallen.  At the same time, deregulation of the electricity distribution market has been carried out and competition has rapidly intensified. This is making greater demands on the ESB and its management.  

The Republic of Ireland and its energy sector face many great challenges but the ESB’s management is firmly resolved to meet these challenges with a professional attitude and hard work.

Swedwire - The Wire Specialist

In autumn 2008, Lagercrantz’s subsidiary SwedWire offered galvanized steel cables to the ESB for staying of power-line pylons. The deal covered annual deliveries of 600 km (approximately 275 tonnes) of guy wire over a 5-year period. The total value of the order amounted to SEK 25 million.

Ireland is an island in the North Atlantic where the high atmospheric humidity and the salt-laden wind put a hard strain on the electrical installations. An extra thick zinc coating is required in order for the steel to withstand the forces of nature. The actual cable size 7 x 3.25 mm suits SwedWire’s production facility perfectly and the extra thick zinc coating is one of the company’s specialities.

With a contract period of five years there were frequent and long discussions on how to reach an acceptable price for both parties. It is true that the ESB accepted an annual price adjustment of 1.5 per cent but otherwise the customer was granted a price calculation clause which takes account of steel and zinc prices.  Based on the clause, SwedWire’s selling price is adjusted upwards and downwards every six months. The solution was that the official index shall apply, where steel is priced in euro and zinc priced in dollars. The quotations are obtained from the commodity exchange in London. SwedWire could make the offer on the basis of this agreement.

Over a three-day period at the end of March 2009, SwedWire was visited by two quality controllers and the responsible purchasing manager from the ESB.  The ESB went about it very thoroughly and after the controllers gave the go-ahead, SwedWire received the first order during April and the first steel cables were delivered at the start of June.  Since then the deliveries have rolled on at the agreed quantities and SwedWire is obviously pleased to have the ESB as a customer.

World-leading player

For SwedWire, the ESB is only one of a number of customers.  Sales are taking place to all parts of the world and a major order for 37-thread guy wire was signed with a new customer in Brazil in the final quarter of 2010. At the same time a new customer was secured in Turkey. The production which consists of wiredrawing, galvanizing and stranding is taking place in three shifts. SwedWire has a reputation which stands for: Guaranteed deliveries of galvanized wire and cables.