Italian cable maker to double U.S. fiber production capacity
Prysmian, the Italian cable maker, said Monday it signed a 10-year agreement with Molex, a Koch Industries subsidiary, to supply optical fiber used inside data centers. The deal has a total value of up to €5.5 billion and includes a €550 million upfront payment, according to a company announcement reported by The Wall Street Journal.
The agreement covers the supply of optical cables for data centers. Prysmian said the deal will increase its capacity for optical cables and fiber, doubling its fiber capacity in the U.S. compared with the current baseline.
Prysmian plans to allocate €1.25 billion through 2031 to implement a capacity increase and extend production of optical cables and fiber at U.S. and European plants. The capacity increase will create more than 1,000 jobs, with 600 in the U.S.
Prysmian said the deal with Molex is part of a string of new agreements it will make with infrastructure providers. These deals could bring an additional cumulative value of more than €10 billion ($11.44 billion) on an incremental basis through 2035, compared with the 2025 baseline, according to Prysmian.
Prysmian Chief Executive Massimo Battaini said late last year that the company’s copper rod mill in Texas would give it a competitive advantage amid tariffs. Battaini also said at the time that Prysmian aimed to list its shares in New York.
Molex, which is owned by the private U.S. company Koch Industries, said the deal marks a strategic expansion and bolsters capacity for the increasing demand for data centers.
The Wall Street Journal reported the agreement’s value at up to $6.29 billion.