LS Cable's Ambitious Project... Why Build a 172m Tallest Undersea Cable Factory in Korea?

Efficient Product Extrusion and Cooling Process
Approximately 186 Billion KRW Investment, Construction at Donghae Plant... Production Capacity Expected to Increase Up to 3 Times

LS Cable & System Gangwon Donghae Plant New Submarine Cable Factory Rendering
[Photo by LS Cable & System]

[Asia Economy Reporter Kim Heung-soon] LS Cable & System's plan to complete the tallest submarine cable factory in South Korea is a strategic move to enhance productivity and technological capabilities, thereby strengthening its competitiveness in the global market.

According to industry sources on the 30th, LS Cable & System will invest 185.9 billion KRW to build a new submarine cable factory equipped with the latest facilities, including a 172-meter-high power cable production tower (VCV Tower), at its Donghae plant in Gangwon Province. The construction cost is 185.9 billion KRW. Once the VCV Tower, scheduled for completion in 2023, is established, it will be the tallest facility among domestic power cable production lines.

VCV stands for Vertical Continuous Vulcanization system. The decision to build the new factory vertically is based on the characteristics of submarine cables, which require technological expertise to produce lengths of around 100 km.

An LS Cable & System official explained, "From the extrusion process that forms the cable’s core by layering materials heated to high temperatures to the cooling process of the finished product, hanging the submarine cables vertically from a high place makes the work easier and helps improve quality." The company added that once this facility is completed, submarine cable production capacity is expected to increase by 1.5 to nearly 3 times.

The new factory is part of an investment to secure order backlogs in the global submarine cable market after 2024. Previously, LS Cable & System secured all supply rights for ultra-high voltage submarine power cables for the first offshore wind power project that the Taiwanese government is building in Changhua County by 2025, and has secured order backlogs from customers in Europe, the Middle East, and South America through 2023.

The submarine cable market is booming as offshore wind power, recognized as an eco-friendly energy source, has grown at an average annual rate of 28.7% over the past decade as of 2019, making submarine cables essential for connecting offshore wind farms to land. According to related industries, the global submarine cable market size was approximately 11 trillion KRW last year. LS Cable & System ranks fifth in the market, holding about a 20% market share.

Since establishing South Korea’s first submarine cable factory in 2008, the company has invested a total of 340 billion KRW in the Donghae plant. It plans to pour more than half of this amount into a single production line including the VCV Tower to leap into the leading ranks.

Myeong Noh-hyun, CEO of LS Cable & System, said, "As countries worldwide expand investments in renewable energy aiming for carbon neutrality, the submarine cable market is also growing. We will contribute not only to revitalizing the local economy and promoting employment through expanded domestic investment but also to the national economy."