Prysmian and Aurubis expand copper supply agreement

Prysmian and Aurubis expand copper supply agreement

Prysmian and Aurubis have expanded their long-term copper supply agreement. The companies are strengthening European wire rod supply as electrical infrastructure demand increases.


IN Brief:

  • Prysmian and Aurubis describe the new wire rod supply agreement as the largest contract yet signed between them.
  • Aurubis says its European copper wire rod contains approximately 36% recycled material and is produced across four regional plants.
  • The agreement strengthens upstream material supply for cable manufacturing as grids, electrification, and digital infrastructure expand.

Prysmian and Aurubis have signed a new long-term agreement for copper wire rod, extending a relationship of more than 30 years as cable manufacturers and metal producers respond to rising demand from grids, electrification, and digital infrastructure.

The companies describe the 2026 agreement as the largest contract signed between them. Financial terms, contracted tonnage, and the precise duration have not been disclosed, but the arrangement is intended to secure a substantial long-term supply of wire rod for Prysmian’s cable manufacturing activities while giving Aurubis a major industrial customer across its European production network.

Copper wire rod is an intermediate product used to manufacture the conductors that carry current through power and communications cables. Its availability sits well upstream of the visible grid projects now being built across Europe. Transmission circuits, distribution reinforcement, renewable connections, data centres, and wider electrification all translate into demand for cable, which in turn requires reliable access to processed copper in the required grades and volumes.

Aurubis says its European wire rod contains about 36% recycled material and is produced with a carbon footprint below the global industry average. The company operates four copper rod plants in Europe, giving Prysmian several regional production sources. All four mills have been awarded The Copper Mark, an assurance framework covering responsible production, sourcing, and recycling.

The new contract follows an earlier long-term supply agreement announced in 2024. That arrangement was designed to provide Prysmian’s European plants with increasing volumes of copper wire rod over time. The latest deal does not disclose whether it replaces, extends, or changes those specific volume commitments, but both companies present it as a larger step in the same established supply relationship.

Grid expansion programmes depend on more than planning approvals and capital allowances. They require conductors, transformers, switchgear, converter equipment, and specialist manufacturing capacity, with bottlenecks several tiers upstream capable of delaying projects long before construction reaches site. Recent long-term copper conductor agreements for transformer manufacturing reflect the same move towards securing critical inputs earlier in the delivery cycle.

Copper remains difficult to substitute across many high-performance electrical applications because of its conductivity, thermal behaviour, and established manufacturing base. Aluminium is widely used where lower density and different economics are advantageous, including overhead conductors and some cable designs, but the materials are not interchangeable in every product or installation.

For Prysmian, access to wire rod is tied directly to its ability to fulfil contracts for power grid, electrification, and digital projects. Cable plants require continuous metal supply alongside insulation compounds, armouring, accessories, and production capacity. A disruption at the wire rod stage can therefore move through the manufacturing schedule before it becomes visible on a construction programme.

Aurubis gains a different form of certainty. Long-term industrial demand can support utilisation of its European rod plants and continued investment in recycling and lower-carbon production routes. Higher recycled content can reduce reliance on some primary metal inputs, although recycled feedstock is itself a competitive resource and cannot be assumed to expand automatically with demand.

The agreement also illustrates how the electrical supply chain is being secured further upstream. Network operators may define circuit ratings, voltage levels, and commissioning dates, but manufacturers several tiers removed from the project determine whether the required cable and equipment can be produced when needed.

That relationship becomes more important as several demand sources compete for the same manufacturing base. Grid expansion, renewable connections, interconnectors, industrial electrification, and data centre construction can all require large volumes of cable, while the underlying copper processing capacity changes far more slowly than individual project pipelines.

Long-term contracts do not remove exposure to metal prices or project delays, and the lack of disclosed volume means the scale of the Prysmian-Aurubis agreement cannot be compared directly with total European copper demand. It does, however, give both companies greater visibility over a critical input and a major customer relationship during a period of rising infrastructure requirements.

Prysmian has spent years expanding cable manufacturing capacity for high-voltage and submarine projects, while Aurubis has built its European position across primary and recycled copper production. Their new agreement links those two investment cycles at the material stage, before copper becomes the conductor installed in a transmission circuit, substation connection, or data centre supply.

Europe’s grid build-out is often discussed in terms of kilometres of new lines and gigawatts of new capacity. The delivery chain begins earlier, with metal refining, wire rod production, and conductor manufacturing. Prysmian and Aurubis are extending their supply relationship at that upstream point, where a shortage can affect projects long before the cable is due to reach site.