[The Industrial Heart Beats Again] "Riding the Eco-Friendly Wave... Submarine Cables Unravel Smoothly"

K Manufacturing Industry Visits Site<7> LS Cable & System
Visiting the Production Line at Donghae Plant
3-Shift 24-Hour Operation Rate Exceeds 90%

Employees of LS Cable & System's Donghae plant are observing the loading process of submarine cables at Donghae Port.
[Photo by LS Cable & System]

[Donghae=Asia Economy Reporter Kim Heung-soon] LS Cable & System has a production line adjacent to Donghae Port in Gangwon Province. The site spans 220,000㎡ (approximately 65,000 pyeong) and houses three factories producing submarine cables and industrial specialty cables. During a recent visit to the Donghae plant, submarine cables with a diameter of 30 cm were coiled on turntables capable of holding up to 10,000 tons, showcasing their impressive size. There are about 30 turntables here that can store submarine cables weighing between 500 and 10,000 tons, and the space is almost fully occupied with inventory. Most of these products are destined for overseas markets.

Kim Won-bae, Director of the Submarine Production Division at LS Cable & System’s Energy Business Headquarters, said, "The factory operates 24 hours a day in three shifts, with an operating rate exceeding 90%. We have secured order backlogs through 2023, so within the limits of the 52-hour workweek regulation, all employees must fully commit to meet delivery deadlines." Lee Wook, Deputy General Manager of the Submarine Production Team, added, "Every year around early August, we used to halt factory operations for about a week to conduct facility maintenance and preventive repairs during a concentrated vacation period. However, this year, due to a backlog of work, about half of the factory must remain operational."

Submarine cables produced at LS Cable & System's Donghae plant are positioned on a turntable along the gangway.
[Photo by LS Cable & System]

"95% Overseas Orders"…Proof of Technological Excellence

Submarine cables are bulky and difficult to store, requiring production, transportation, and installation to be completed within a set construction period. It is a business where inventory cannot be kept indefinitely in the factory. The products currently stored on the turntables are scheduled to be shipped to Changhua County, Taiwan, around mid-next month. From last month through August, LS Cable & System plans to supply submarine cables to be installed over a total distance of 150 km.

LS Cable & System secured all supply rights for ultra-high voltage submarine power cables for the first phase of the offshore wind power project that the Taiwanese government is building in Changhua County by 2025. This achievement dates back to 2019, before the COVID-19 pandemic.

Submarine power cables must withstand ocean currents and water pressure in deep seas, so copper conductors are insulated and sheathed with a steel core, then covered externally with rubber and plastic. This is why the cable diameter reaches 30 cm. The ability to produce cables in lengths of around 100 km in one go is also crucial.

LS Cable & System designed the Donghae plant with a 'gangway' system that allows submarine cables to move automatically. This device enables cables to travel along designated rails from the turntable where they are unwound and wound until the finished product is completed. The gangway also connects the plant to Donghae Port, facilitating the loading of cables onto ships. Once loaded, the cables are installed at depths reaching 1.6 km in the deep sea at their destination.

The cable-laying machine, mounted on the ship, digs into the seabed and immediately buries the cable in mudflats, while in rocky areas, the cable is first laid down and then covered with gravel. Director Kim said, "Sometimes we export only the finished products, and other times we contract turnkey projects that include installation." Currently, overseas orders account for 95% of total sales.

An employee is inspecting the submarine cable production line at the LS Cable & System Donghae plant.
[Photo by LS Cable & System]

Over 300 Billion KRW in Orders Last Year from the US, Bahrain, Netherlands, etc.
Expansion of Offshore Wind Power... "Focus Shifting from Underground to Submarine Cables"

Since securing its first submarine cable project worth 328.1 billion KRW between Jindo and Jeju in 2009, LS Cable & System has steadily achieved results in overseas markets through continuous investment and technological development. Last year, the company signed a five-year priority supply contract for ultra-high voltage submarine cables with Denmark’s Ørsted and succeeded in securing large orders exceeding 300 billion KRW from overseas markets including Bahrain, the Netherlands, and the United States.

According to industry sources, the global submarine cable market was approximately 11 trillion KRW as of last year. In a market dominated by Italy’s Prysmian, France’s Nexans, Sweden’s ABB, and Japan’s JPS, LS Cable & System has rapidly enhanced its competitiveness and grown into a top-five global company. Its current global market share is estimated to be around 20%.

This was an unimaginable achievement when LS Cable & System decided to enter the submarine cable business in 2007 and built its factory. An LS Cable & System official said, "In the early days of the business, it was difficult to participate in bids or secure technology due to resistance from market-dominant companies. We completed the Donghae plant with just a map from a foreign company." Through such trial and error, the fourth-largest submarine cable factory in the world and the first in Korea was established.

As the world embraces eco-friendliness and intensifies efforts to produce energy using offshore wind power, the future of the submarine cable industry, which connects offshore wind farms to land, looks even brighter. As of 2019, the global installed and operational offshore wind power capacity was 29.1 GW, growing at an average annual rate of 28.7% over the past decade. For example, the United States announced plans to produce 86 GW of offshore wind power by 2050, enough to supply over 80 million households.

The submarine cable business requires large initial investments and proven technology and know-how, making it difficult for latecomers to enter. It is a field where leading companies like LS Cable & System can maintain a competitive edge. LS Cable & System anticipates steady growth in submarine cable orders and is considering expanding production facilities. Deputy General Manager Lee emphasized, "Until now, underground cables have accounted for the largest share of LS Cable & System’s sales, but the 'golden cross' with submarine cables is not far off."

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