3 days Ago By Jung Yeon-jin
On November 19, Taihan Cable & Solution announced the signing of a mutual investment agreement with KG Steel at Hoban Park in Seocho-gu, Seoul. Under the agreement, Taihan Cable will purchase land from KG Steel for the construction of a second submarine cable factory. In return, KG Steel will acquire convertible bonds (CB) from Taihan Cable with the proceeds.
This arrangement enables KG Steel to participate as a financial investor, confident in Taihan Cable's potential for future growth. The agreement ceremony was attended by key figures such as Vice Chairman Song Jong-min and President Park Sung-hee of Taihan Cable, along with management from the parent companies, including Kim Dae-heon, Planning President of Hoban Group, and Kwak Jeong-hyun, Strategy President of KG Group. The event emphasized both groups' commitment to strengthening business cooperation and establishing a forward-looking collaboration model.
The acquired site is approximately 215,000 square meters and is located in the Godeok District, Asan National Industrial Complex in Dangjin, South Chungcheong Province, adjacent to the existing first submarine cable factory. This area forms Korea's largest cable production cluster, close to Taihan Cable's major production facilities—the Dangjin Cable and Solution Factories. Taihan Cable plans to produce submarine cables, underground cables, and power and communication-related products in this integrated location, maximizing synergy effects.
Through the purchase of convertible bonds, KG Steel will receive 110 billion won for the land, reflecting its high valuation of Taihan Cable's potential growth in the submarine cable sector and the belief that their collaboration will generate future value. Building on this agreement, Taihan Cable will expedite the construction of its second submarine cable factory. The construction will include state-of-the-art facilities such as a VCV tower for producing 620kV class HVDC (high-voltage direct current) submarine cables and external network submarine cables.
This expansion will enhance Taihan Cable's ability to meet rising global demand for submarine cables and strengthen its competitiveness in various sectors, including the offshore wind market. Furthermore, both companies intend to bolster their collaboration in the North American market, leveraging their years of experience and expertise to explore opportunities for increased exports to the U.S.
and joint business ventures..
