Taehan Cable & Solution Breaks Ground on Second Submarine Cable Plant... LS Cable & System's 'Monopoly' Challenged

Construction Cost of 500 Billion Won, Completion Set for 2027
Five Times Larger Than Adjacent First Plant
Production of 400kV Submarine HVAC and More
Emerging as a Competitor to LS Cable & System's Monopoly
11 Trillion Won Energy Expressway Sh

Taehan Cable & Solution will establish a new submarine cable factory capable of producing high-voltage direct current (HVDC) and high-voltage offshore wind external network cables. Currently, LS Cable & System holds an almost monopolistic position in the domestic offshore wind external network market, but Taehan Cable & Solution is now entering as a full-fledged competitor. As a result, competition between the two cable companies is expected to intensify over the West Coast Energy Expressway, one of the key national projects of the Lee Jaemyung administration.

According to the cable industry on September 24, Taehan Cable & Solution will hold a groundbreaking ceremony for its second submarine cable factory on September 25 at the Gode Industrial Zone in the Asan National Industrial Complex in Dangjin, South Chungcheong Province. The second submarine cable factory will be built with an investment of approximately 500 billion won and is scheduled for completion in 2027. The facility will be constructed on a site of about 215,000 square meters, making it roughly five times larger than the adjacent first plant (47,000 square meters).

This new facility will produce 400-kilovolt (kV) class high-voltage alternating current (HVAC) and up to 640kV class HVDC submarine cables. Taehan Cable & Solution's second submarine cable factory will be equipped with a Vertical Continuous Vulcanization (VCV) tower and advanced facilities, enabling the timely production and supply of a wide range of submarine cables.

Once the new plant begins producing HVAC cables, the domestic offshore wind cable market will enter a phase of full-scale competition. Offshore wind cables are divided into internal and external networks. The internal network connects wind turbines to offshore substations and typically uses medium- to low-voltage (33~66kV) submarine cables. The external network connects offshore substations to onshore grid connection points and uses either HVAC or HVDC cables.

Until now, Taehan Cable & Solution has only supplied submarine cables for the internal networks of projects such as the Yeonggwang Nakwol Offshore Wind and Anma Offshore Wind projects. However, after the comprehensive completion of its first submarine cable factory in June, the company secured the capability to produce not only internal network cables (33~154kV) but also external network cables (154~400kV). With the completion of the second submarine cable factory, the company will further strengthen its production capacity for offshore wind external networks.

A representative from Taehan Cable & Solution stated, "The second plant will serve as a strategic base focused on producing high-voltage offshore wind external network cables, targeting both the West Coast Energy Expressway project and overseas markets."

As a result, the rapidly growing offshore wind market will see a direct showdown between LS Cable & System, the market leader, and Taehan Cable & Solution. A senior official in the offshore wind industry commented, "With Taehan Cable & Solution now able to commercially produce external network cables, there are more options available."

Fierce competition is also expected over the West Coast Energy Expressway project, which the new administration aims to complete by 2030. This project involves building an HVDC transmission network under the sea to deliver renewable energy produced in the Honam region to the Seoul metropolitan area. The total length of the project is 620 kilometers. Industry sources estimate the total project cost will reach 11 trillion won. The government is also envisioning a "Korean Peninsula Energy Expressway" connecting the west, south, and east coasts by the 2040s.

Taehan Cable & Solution plans to use its second submarine cable factory to accelerate its entry into the European market.

In March, the company signed an HVDC cable system framework agreement with National Grid, the British power transmission and distribution company. This agreement allows Taehan Cable & Solution to participate in bids for National Grid's HVDC cable system projects of 525kV and 320kV, starting from 2025 for up to eight years.

The cable industry expects the global submarine HVDC cable market to reach 40 trillion won by 2040.

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