Order of approximately 5,000 tons of special steel fastener products used in Taiwan offshore wind power generators
High value-added products compared to general special steel ... Expected cash cow in the non-automotive special steel sector
[Asia Economy Reporter Yoonju Hwang] SeAH Besteel Co., Ltd. is stepping up to target the global special steel market for offshore wind power in line with the trend of transitioning to eco-friendly energy.
SeAH Besteel announced that it has secured an order for approximately 5,000 tons of special steel materials for fastener (bolt, nut) products used in offshore wind turbines from Taiwan's largest offshore wind specialized fastener company and others. SeAH Besteel plans to begin mass production of special steel materials for fastening parts of offshore wind turbines starting from the first quarter of this year, and the produced products will be supplied to the offshore wind farm in the Changfeng area of Taiwan.
This recent order by SeAH Besteel is significant not only in scale but also because it has secured a successful reference in the blossoming offshore wind special steel market amid the accelerated global transition to eco-friendly energy. Special steel materials used in offshore wind turbines have high entry barriers and are high value-added products with higher profitability compared to general-purpose products. Although the proportion of special steel materials for offshore wind turbines in the total weight of the turbine is not large, the recent trend of larger turbine specifications and the rapid increase in global offshore wind demand indicate a very bright market outlook.
Special steel products for offshore wind are used as core materials for fastening parts such as the turbine’s gearbox, bolts, and nuts. In particular, the gearbox is a key component of offshore wind turbines that converts the propeller’s rotational speed into a speed capable of generating electricity and transmits it to the motor, while supporting the turbine’s load. It requires special steel materials with high cleanliness and durability. In fact, even Chinese steelmakers, who wield enormous influence in the global market backed by government support, have yet to achieve localization of special steel materials for gearboxes.
Since 2011, SeAH Besteel has been supplying special steel materials for wind turbine gearboxes to Siemens, and in 2018, it collaborated with a Finnish wind power gearbox company and has been supplying related parts to GE since last year, steadily building references for offshore wind special steel materials.
According to the Global Wind Energy Council (GWEC), the current offshore wind market size is about 6.1 GW globally, but it is expected to continue growing and reach approximately 65 GW of newly installed offshore wind power by 2025. Accordingly, SeAH Besteel plans to strategically target regions with increasing offshore wind power demand such as China, Taiwan, and India by leveraging its geographical advantages, and expand offshore wind special steel to 10% of its total special steel exports by 2025.
A SeAH Besteel official stated, "Based on the successful references of delivering offshore wind special steel products to global customers and our global sales know-how, we will actively pursue the offshore wind special steel market going forward," adding, "Since offshore wind special steel products are high value-added products, we expect them to serve as a cash cow in the non-automotive special steel sector in the future."
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