Daehan Cable, 1 Trillion Won Facility Investment in Submarine Cable Business

Investment Linking Factory 1 and Factory 2
Overseas Production Bases Also Established

Daehan Electric Wire & Cable has announced a facility investment plan worth approximately 1 trillion KRW for its submarine cable business. Following the first submarine cable factory currently under construction, the company plans to invest in a second factory and establish overseas production bases in the United States, Saudi Arabia, and Europe.

On the 24th, Daehan Electric Wire & Cable disclosed an investment plan of 990 billion KRW for the construction of a submarine cable factory and overseas local factories. On the same day, the company held an investor briefing session at the Financial Investment Education Center in Yeongdeungpo-gu, Seoul, introducing its major businesses and mid- to long-term plans to institutional and general investors.

Corporate briefing session of Korea Electric Wire held on the 24th.
[Photo by Korea Electric Wire]

Daehan Electric Wire & Cable explained the investment background, stating, "The investment plan was established to respond to increasing demand and strengthen market competitiveness through the construction of a submarine cable factory."

The first submarine cable factory is being built in Dangjin, Chungnam, as it is necessary to construct a factory near the berth to produce long-length, heavy submarine cables and load them directly onto laying vessels. The company stated that it is currently reviewing suitable sites for the second factory.

The first factory will be divided into two phases, requiring an investment of approximately 220 billion KRW. Phase 1 is scheduled for completion in the first quarter of this year, and phase 2 in the first quarter of next year.

The second factory is planned to be constructed by the first half of 2027 with an investment of 720 billion KRW. Upon completion, it will secure production capacity more than five times the current level and manufacturing facilities for HVDC (High Voltage Direct Current) cables. Once both factories are completed, Daehan Electric Wire & Cable will have the capacity to produce 18,000 MT (metric tons) of submarine cables annually, which is five times the current volume.

In addition, Daehan Electric Wire & Cable is expanding its business scope into the renewable energy sector by securing overseas production bases.

The company is pursuing acquisitions of cable production bases and factories in the United States and Europe. In Saudi Arabia, it plans a joint venture (JV) investment with a local partner company, with an expected investment amount of around 50 billion KRW.

Furthermore, the company is reviewing acquisitions and construction of power cable production factories in North America and the Middle East, where orders and sales are continuously increasing or expected to increase, with an estimated investment of about 50 billion KRW.

Meanwhile, Daehan Electric Wire & Cable announced record-breaking performance results the day before. Last year, on a consolidated basis, operating profit surged 62.82% year-on-year to 78.4 billion KRW. During the same period, sales increased by 16.1% to 2.8456 trillion KRW, and net profit rose 206.9% to 67 billion KRW. Operating profit and net profit reached their highest levels in 15 years since 2008, and sales hit their highest in 12 years since 2011.

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