Nexans signals possible 2028 restart for Great Sea Interconnector production

Nicosia, Cyprus. French cable manufacturer Nexans has indicated that production for the Great Sea Interconnector (GSI) might not restart before 2028, leaving the project’s outlook uncertain. The assessment contrasts with recent assurances by Cyprus and Greece that work is progressing.

Alternative work to occupy manufacturing capacity

During Nexans’ third-quarter earnings call, chief executive Julien Hueber told investors that the company’s financial projections through 2028 would remain unchanged whether or not GSI proceeded.

An analyst had asked whether the interconnector might contribute to Nexans’ business again in 2028 or 2029, noting that manufacturing capacity was being assigned to a different Mediterranean project.

Hueber said that alternative project was expected to start production towards the end of 2026, keeping the plant occupied until the middle of 2028.

Preparations needed for a possible restart

Hueber described two options for the company while GSI discussions continued through diplomatic channels. Nexans could pursue other Mediterranean projects using mass-impregnated (MI) cable technology to supply work for the plant after mid-2028, or give GSI time to prepare for a potential restart.

He said several alternative MI projects were being discussed and were undergoing preparation. For GSI, a possible resumption in 2028 would require several months of preparatory work, including surveys of the seabed, preliminary engineering and financing.

Hueber also emphasised that Nexans had reduced its exposure to risks associated with the project’s MI cable technology, which is used for the interconnector.

Questions over surveys and payments

Nexans’ caution was also reflected in an analyst’s questions about reports that seabed surveys might restart before October ended and that a payment of €25 million could be forthcoming.

The analyst asked whether renewed survey activity would enable Nexans to receive payments again, and what that would mean for its profits and available manufacturing capacity.