Nexans, a major player in the cable manufacturing sector, has officially announced the creation of an independent entity, Lynxeo, to manage its industrial cable activities. This separation aims to enhance the visibility of this specific branch of the company, which represents 10% of its global revenue, or approximately 700 million euros out of a total of 6.5 billion euros in 2023.
This segment, now identified under the name Lynxeo, was previously known as Nexans Industry Solutions & Projects. It brings together approximately 2,000 employees located in industrial sites mainly in Europe, Asia, and the United States. The creation of Lynxeo enables the company to address diverse needs in advanced sectors, including rolling stock and rail infrastructure, industrial automation, as well as demanding industries like aerospace, shipbuilding, nuclear, renewable energy, and the medical sector.
A strategic positioning
Lynxeo represents a strategic lever in Nexans’ roadmap. According to Christopher Guérin, Nexans’ CEO, this separation is an “important step” allowing the group to better structure its activities and ensure a strong presence in the industrial market. Juan Ignacio Eyzaguirre, who already leads this activity, has been appointed CEO of Lynxeo.
Nexans’ strategic choices, illustrated by the creation of this distinct entity, come in a context of rumors about the sale of some of its industrial branches. Speculations indeed mention a possible sale of this activity, or even of the entire group, to an American fund. The company has announced that it will clarify the directions that could shape its future trajectory on November 13.
A response to industrial specialization needs
The industrial cable sector meets specific requirements in terms of resistance, durability, and performance, requiring advanced technical expertise. With Lynxeo, Nexans reaffirms its commitment to providing highly specialized solutions tailored to demanding industrial environments while maintaining the flexibility to respond to rapid technological changes in the market.
Nexans’ approach underscores the importance of increased specialization in the cable industry, enabling a more precise response to the needs of user sectors. This restructuring as Lynxeo should also allow the group to explore new growth and partnership opportunities in international markets.
