Daehan Cable, Facility Investment in Dangjin and Kuwait Plants... Full-Scale Launch of Optical Cable Business

[Asia Economy Reporter Su-yeon Woo] Daehan Electric Wire, which has been incorporated into Hoban Group, has chosen the optical cable business as its first investment. The company plans to transform into a comprehensive telecommunications cable company by expanding its scope to include the optical cable business to create synergy with its existing copper communication cable business.

Daehan Electric Wire announced on the 4th that it will establish optical cable production facilities in Dangjin, Chungcheongnam-do, South Korea, and Kuwait overseas, and will begin full-scale operations. The company recently held an investment review committee meeting and made this decision, planning to complete equipment orders within this month to enable mass production of products by the first half of next year.

DaeHan Electric Wire Dangjin Plant / Photo by DaeHan Electric Wire

'Kuwait Daehan,' the only optical cable manufacturing corporation in Kuwait, is also accelerating the establishment of its facilities. To this end, the company has already secured a factory site within the Mina Abdullah Industrial Complex in Kuwait City and plans to start construction and place equipment orders within the third quarter, aiming to launch prototypes in the first half of next year.

Daehan Electric Wire plans to carry out phased investments to enable production of approximately 5 million f.km at the Dangjin plant, Kuwait Daehan, and South Africa's M-TEC. The Dangjin plant will focus on the U.S. and Asian markets, Kuwait Daehan will target the Middle East and European markets, and M-TEC will concentrate on the African market.

Demand for optical cables is rapidly increasing worldwide due to the growth of ultra-high-speed and large-capacity internet, expansion of 5G infrastructure, and acceleration of the Fourth Industrial Revolution based on IoT (Internet of Things) and AI. Excluding the high-entry-barrier Chinese market, the global optical cable market size is expected to grow at an average annual rate of 6.4%, from $6.2 billion this year to $8 billion by 2025. North American and European demand accounts for half of the total market. This is because the adoption rate of optical cables in these markets, such as the U.S. (17%) and the U.K. (3.9%), is significantly lower compared to the 80% adoption rate in South Korea.

A Daehan Electric Wire official said, "Having led the optical cable business until 2012, we will actively utilize the human and material infrastructure we have secured to show results quickly," adding, "As a comprehensive telecommunications cable company, we will actively target the North American and European markets, which will be major demand sources for optical cables."