The terminations of shielded or screened conductors should be terminated so that the screen cannot fray. If the screen is to be connected then make it off in the same way as for coaxial cable with a soldered pigtail and a sleeve.
In general, contactors should be kept away from electronic devices. A highly disturbing device (variable speed drive, frequency converter, etc.) will have less radiation in the panel if it is “encapsulated” in a small, electromagnetically sealed, unpainted metal enclosure.
D-42 - Engine Wiring Diagram Specialist
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