LS Cable & System Ltd., South Korea’s top wire and cable producer, won a $168 million submarine cable supply deal from Taiwan, reinforcing its position in the overseas market.
LS Cable said on Oct. 6 that it has been selected by CSBC-DEME Wind Engineering Co. (CDWE), an offshore wind farm constructor in Taiwan, as a preferred bidder for a 200 billion won ($167.8 million) contract to supply underwater cables.
The South Korean company plans to ship the cables for the Hai Long offshore wind farm project, one of the largest offshore wind farm in the Taiwan Strait, by 2025. The Hai Long farm located in waters 50 kilometers off the west coast of Taiwan is known to be capable of generating about 1 gigawatt (GW) of electricity a year, similar to capacity of a nuclear power plant.
Taiwan is seeking to develop offshore wind farms to produce total 15 GW by 2035 in a move to expand renewable energy.
TO WIN MOREIncluding the latest deal, LS Cable has won all of high-voltage submarine cable supply deals valued at 800 billion won ($671 million) from Taiwan so far.
“LS Cable has already cemented its position as a submarine cable producer in Taiwan,” said an industry source.
The company aims to secure more orders since Taiwan is expected to seek more cables in deals worth more than 1 trillion won. It also plans to make inroads into other markets such as North America and Southeast Asia where the wind farm industry is rapidly growing.
In a move to meet those goals,
LS Cable in July announced a plan to invest about 190 billion won to expand its high-voltage underwater cable production facilities in South Korea.“Based on close cooperation with global offshore wind farm operators in Europe, North America and Taiwan, we will leading renewable energy business at home and abroad,” said president & CEO Myung Roe-Hyun.
Write to Sin-Young Park at
nyusos@hankyung.comJongwoo Cheon edited this article.
