Daehan Cable Plans Factory Establishment for Submarine Cable Production..."Construction to Start Within the Year"

Site Selection in the First Half of the Year... Full-Scale Production Planned for Next Year

[Asia Economy Reporter Jeong Hyunjin] Daehan Electric Wire announced on the 25th that it is planning to establish a new factory to expand its submarine cable business. The company intends to begin construction of a large-scale coastal factory capable of producing submarine cables within this year and to start full-scale production next year, actively responding to the expansion of offshore wind power.

To this end, Daehan Electric Wire formed a dedicated task force team (TFT) last month, composed of internal experts from all fields including technology, production, sales, and construction, and began a comprehensive review of potential factory sites and investment scale. Considering accessibility to the planned large-scale offshore wind power complex and the Dangjin factory, the company plans to select the factory site within the first half of the year.

Daehan Electric Wire explained that it will first focus on building internal power grid facilities. The internal power grid consists of cables connecting wind turbines to turbines and turbines to offshore substations. Compared to the external power grid, which connects offshore substations to onshore substations, it has the advantage of lower facility investment costs and entry barriers. As offshore wind power complexes grow larger, the usage of internal power grids increases, so Daehan Electric Wire expects the business feasibility to continuously improve in line with the trend of offshore wind power expansion.

In fact, the global submarine cable market size is expected to grow nearly twofold from about $2.3 billion last year to approximately $4.5 billion by 2025, with internal power grids estimated to account for about 40% of this market.

Daehan Electric Wire stated that it has been focusing on strengthening its competitiveness in the renewable energy sector since last year. While securing the operator qualification of the Korea Wind Industry Association, it has also established investment agreements with local governments such as Jeollanam-do, where large-scale offshore wind power development projects are planned, building a network to respond to the market. The company also secured an opportunity to enhance technological competitiveness by taking on a national project for a 70kV new transmission power cable system related to floating solar power.

A Daehan Electric Wire official said, "Based on the technology and experience of successfully delivering submarine cables for the Southwest Sea offshore wind power project's R&D project (2017) and the first phase demonstration project (2018), we will aggressively pursue orders for large-scale offshore wind power development projects such as Southwest Sea and Sinan, scheduled to begin construction after 2022." He added, "Securing competitiveness in the offshore wind power sector, which is the main pillar of the Green New Deal and Renewable Energy 3020, is our top priority this year," emphasizing, "We will expand investments and concentrate the capabilities of internal and external specialized organizations to quickly respond to global standards related to renewable energy."

This content was produced with the assistance of AI translation services.