Taihan Cable & Solution has decided to undertake a rights issue by approximately KRW 520 billion to build the Submarine Cable Plant 2. The strategy involves constructing additional plants for submarine cables to target the offshore wind power market, where demand is growing due to the expansion of renewable energy. Additionally, the company aims to enhance global competitiveness by establishing production bases in regions where investment in electricity infrastructure is accelerating, such as the United States and Europe.
The rights issue will take the form of underwriting forfeited shares following the rights offering. Taihan plans to allocate approximately 0.5 new shares for each share held to existing shareholders (as of January 18) and initiate a subscription offer for existing shareholders from February 27 to 28. An oversubscription privilege is granted within the range of 20% of the allocated shares. Hoban E&C, the majority shareholder (40.1%), is set to participate in the rights issue.
Investment of KRW 470 billion in Submarine Cable Plant 2, “Securing the Growth Engine of HVDC Submarine Cable”
Taihan is set to invest approximately KRW 470 billion in constructing the second submarine cable plant, referred to as “Submarine Plant 2,” utilising financial resources secured through the rights offering. Following the ongoing construction of Submarine Plant 1 at the Go-dae Pier at Dangjin Port, Chungcheongnam-do, Taihan plans to expedite the construction of Plant 2 to meet the expanding global demand for submarine cables proactively.
The Submarine Plant 2 will be a specialised facility capable of producing 525kV-class HVDC (High-Voltage Direct Current) submarine cables and 345kV-class export cables. The plant is expected to be completed in 2026 and operational in the first half of 2027. Featuring cutting-edge equipment, including a VCV (Vertical Continuous Vulcanizing) tower—a pivotal component for extra-high voltage cable production—the second plant will boast approximately five times the production capacity of the first submarine plant.
“Securing Production Bases” in Regions with Expanding Infrastructure Investment, Such as the U.S. and Europe
Taihan will also invest in securing production bases in regions with active infrastructure investment. Approximately 50 billion won, raised through the rights offering, will be strategically allocated to regions including the U.S., Europe, and the Middle East.
Specifically, in the U.S., the company aims to enhance order competitiveness, aligning with its Buy American policy by establishing local production facilities in areas where Taihan’s orders and sales are increasing annually. In Europe, the expansion of infrastructure investment, driven by the transition to renewable energy and the construction of new power grids, will be capitalised upon as the company extends its influence by establishing local production bases.
“As we find ourselves amidst a global super cycle, witnessing a surge in demand for renewable energy generation and power grids, we intend to capitalise on this opportunity and sustain our growth,” stated an official from Taihan. “Through proactive and aggressive investments, our aim is to emerge as a global leader, showcasing unparalleled competitiveness across all power grid sectors, encompassing both underground and submarine cables.”
Image source: Courtesy of Taihan
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