Hanwha Solutions to Expand High-Value Wire and Cable Materials by 50,000 Tons with 86 Billion KRW Investment

[Asia Economy Reporter Kim Hyewon] Hanwha Solutions is expanding the production of cable materials necessary for power grid construction. This strategy aims to actively respond to the rapidly increasing demand for renewable energy generation driven by corporate ESG (Environmental, Social, and Governance) management in response to the global climate crisis.

Hanwha Solutions' Chemical Division announced on the 12th that it has invested 86 billion KRW to increase XLPE (Cross Linked-Polyethylene) production by 50,000 tons and has started commercial production at its Yeosu plant. With this expansion, Hanwha Solutions' XLPE production capacity has increased to a maximum of 110,000 tons.

XLPE is a high value-added product made by adding additives to polyethylene (PE) to enhance insulation and heat resistance. It is mainly used in power cables, where it surrounds the metal conductor carrying electricity to block heat and prevent power loss. The XLPE insulation plays a key role in improving the transmission efficiency and durability of cables, as it does not deform even when the internal temperature of the wire rises up to 250°C under high voltage power flow.

Hanwha Solutions produces high-purity XLPE for ultra-high voltage cables using proprietary process technology that minimizes impurities to maximize material performance. As the number of renewable energy power plants such as wind and solar that transmit electricity over long distances at hundreds of thousands of volts increases, the demand for high-purity XLPE is expected to grow.

As of last year, the global XLPE market size reached 1.5 trillion KRW. It has been continuously growing at an annual rate of over 4% due to the replacement of aging power grids in developed countries and large-scale power generation project demands in emerging developing countries. Hanwha Solutions plans to expand its overseas market share in China, Europe, and the Middle East and to secure new markets centered in Southeast Asia with this expansion.

Hanwha Solutions stated, "We will sequentially release high value-added materials related to ultra-high voltage power cables, whose demand is rapidly increasing, by leveraging our proprietary material development technology capabilities."