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NKT to team up with Taiwanese cable manufacturer

By: Tom Russell 24/02/2023 NKT

Cables General Windfarms

Danish cable manufacturer NKT and Taiwanese cable company Walsin Lihwa (Walsin) announced plans to sign a joint venture agreement concerning a subsea power cable factory in Taiwan. The factory is to produce high and medium-voltage AC offshore power cables mainly for the offshore wind market.

The partnership will involve Walsin investing 2.7 billion NTD to establish Walsin Energy Cable System Co. Ltd (Walsin Cable) and the execution of a joint venture agreement, a technology licence agreement and a technology consultancy agreement for the construction and operations of Walsin’s Kaohsiung Submarine Cable plant between Walsin and NKT. Following the execution of the Agreements, Walsin and NKT will hold 90% and 10% respectively of Walsin Cable. The Kaohsiung Submarine Cable plant, which will primarily manufacture high voltage export cables and medium voltage AC cables to serve the offshore wind power market, is expected to undergo trial runs end of 2025, and full production by 2027.

The construction of the factory will not include CAPEX investments from NKT. When the factory is in operation, expectedly in 2027, NKT will generate revenue based on a royalty scheme and dividend from the joint venture. Final constitution of the joint venture is subject to customary regulatory procedures.

“We expect high growth in the Asian market in the coming decades. Taiwan is targeting to install additional 15GW of offshore wind by 2035. The joint venture is an attractive opportunity for NKT from a financial perspective and an opportunity for us to participate in a new, growing market, which is otherwise challenging to serve. It is an important first step for NKT to establish presence in the Asian high- and medium-voltage market and a platform for future growth in the region,” said NKT President and CEO, Alexander Kara.

“Taiwan is blessed with an abundance of wind resources, presenting vast commercial opportunities in offshore wind power and submarine cable. Walsin is honored to enter into a win-win partnership with NKT, a world class cable solutions provider with leading technology, to further our clean energy strategy and contribute towards Taiwan’s green energy future," said Yu-Lon Chiao, Chairman of Walsin Lihwa.

Taiwan is currently aiming to install 5.6 GW of offshore wind by by 2025 with plans to add a further 1.5 GW per year between 2026 and 2035. By 2050 it hopes to reach 40-55 GW.

For information on subsea cable and offshore wind farm projects worldwide, click here.

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NKT to team up with Taiwanese cable manufacturer

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