[Click eStock] "Samkang M&T, Full-Scale Orders for Offshore Wind Substructures Begin"

[Asia Economy Reporter Jang Hyowon] Hi Investment & Securities analyzed on the 21st that Samkang M&T is showing visible improvement in performance and growth potential due to the full-scale orders of offshore wind power substructures.

Samkang M&T is a company specializing in the production of thick-walled pipes, shipbuilding, and plant structures. In November 2000, it localized thick-walled pipes, which were previously entirely imported, and based on thick-walled pipe technology, it entered the plant business. In September last year, SK Ecoplant became the largest shareholder.

Researcher Lee Sangheon of Hi Investment & Securities explained, “Samkang M&T has manufacturing technology for fixed and floating offshore wind power substructures,” adding, “Since winning its first substructure order from Belgium’s Jan De Nul (JDN) in 2019, it has secured clients such as Denmark’s Ørsted, the global No.1 offshore wind developer, as well as Denmark’s BLADT and Singapore’s Keppel.”

Researcher Lee Sangheon said, “Currently, Taiwan is the company’s main export market. Taiwan has set a plan for 20.5GW offshore wind power capacity by 2035 in line with its renewable energy expansion policy,” and “In December last year, it signed a contract worth 600.4 billion KRW to supply substructures for the largest-ever Hai Long offshore wind complex with CDWE, a Taiwanese offshore wind construction company.”

Including Taiwan, the total offshore wind power orders last year amounted to 781.2 billion KRW, more than four times the 176.6 billion KRW of the previous year.

Additionally, in July, Samkang M&T was selected as part of a consortium with French marine plant engineering company Technip Energies and UK marine EPC company Subsea 7 for the basic engineering design (FEED) of the 504MW floating offshore wind power plant project, Ulsan Gwisin Whale 3. This is expected to make the growth potential related to floating offshore wind power more visible.

Furthermore, the researcher stated, “We are also promoting the construction of a 1.6 million square meter offshore wind power substructure production plant in Goseong, Gyeongnam, with an investment of about 500 billion KRW,” adding, “It is scheduled to be completed in 2026 with the goal of full-scale commercial production, which could serve as a foundation for increased offshore wind power orders in the future.”