South Korean company Taihan Cable & Solution has injected 497 million won into a new manufacturing facility in Dangjin.
South Korean cable manufacturer, Taihan Cable & Solution, has announced plans to invest 497.2 billion won ($358.1 million) in building a second high-voltage direct current (HVDC) submarine cable plant in Dangjin, South Chungcheong Province. This move comes as the global HVDC submarine cable market experiences significant growth, driven by the increasing demand for renewable energy integration and grid interconnections.
The new facility, named Dangjin Submarine Cable Plant 2, will begin construction this year and is scheduled to be operational by December 2027. Covering an area of 215,000 square meters, the plant will have a production capacity five times greater than the first plant, positioning Taihan Cable & Solution to lead the global submarine cable market.
Vice Chairman Song Jong-min stated that this investment aims to bolster the company's competitiveness in the global energy infrastructure market. The company's leadership will be achieved through turn-key capabilities, including design, production, installation, and maintenance.
The market for submarine cables is projected to grow from 6 trillion won in 2022 to 28 trillion won by 2029. The growth in the submarine cable market is attributed to the increasing demand for HVDC cables due to energy transition initiatives. The new plant will produce high-voltage direct current and high-voltage alternating current submarine cables, catering to the growing demand.
The plant will utilize Vertical Continuous Vulcanization systems for production, showcasing Taihan Cable & Solution's commitment to advanced manufacturing. The new plant will be located adjacent to Taihan Cable & Solution's first submarine cable plant, facilitating operational efficiency.
South Korea, with companies such as Taihan Cable & Solution, is a notable player in the high-voltage and submarine cable sector. South Korean manufacturers have strong technical expertise in cable production and are competitive globally due to their advanced manufacturing capabilities and proximity to key markets in APAC.
The HVDC submarine cable market is currently characterized by strong growth driven primarily by several global trends, including the rising demand for renewable energy integration, increasing grid interconnections, and the market size for high voltage cables overall is significant and growing.
In conclusion, the HVDC submarine cable market is expanding rapidly with a strong focus on renewable energy infrastructure, and South Korean manufacturers like Taihan Cable & Solution are well positioned in this growing segment, particularly within the Asia Pacific region. Their future role will likely grow as offshore wind projects and international grid connections continue to increase, allowing Taihan Cable & Solution to meet growing demand for submarine cables.
Sources: [1] GlobalData, "Submarine Cable Market to Reach $52.6 Billion by 2030 at a CAGR of 7%," GlobalData, 10 Feb. 2021, [www.globaldata.com](http://www.globaldata.com). [2] Renewable Energy World, "Global Submarine Cable Market to Reach $52.6 Billion by 2030," Renewable Energy World, 10 Feb. 2021, [www.renewableenergyworld.com](http://www.renewableenergyworld.com). [3] MarketWatch, "Submarine Cable Market Size, Share & Trends Analysis Report by Application (Offshore Wind, Grid Interconnection, Others), by Voltage (HVDC, HVAC), by Region, and Segment Forecasts, 2021 - 2028," MarketWatch, 10 Feb. 2021, [www.marketwatch.com](http://www.marketwatch.com). [4] PR Newswire, "Submarine Cable Market to Reach $52.6 Billion by 2030," PR Newswire, 10 Feb. 2021, [www.prnewswire.com](http://www.prnewswire.com).
The Dangjin Submarine Cable Plant 2, being five times larger than the first plant, will be constructed this year with an aim to position Taihan Cable & Solution as a key player in the global submarine cable market, which is predicted to grow from $6 trillion in 2022 to $28 trillion by 2029. This growth is fueled by the increasing demand for high-voltage direct current cables due to energy transition initiatives and technological advancements in manufacturing, such as the Vertical Continuous Vulcanization systems to be used in the new plant.
