Partial Conductor 8000t Expansion Operation for Ultra-High Voltage Cables
Hanwha Solutions is significantly expanding the production of 'E/HV (Extra-High Voltage / High Voltage)' grade semiconducting compounds, a core material for ultra-high voltage cables. This move aims to respond to the rapidly increasing demand for power equipment due to the expansion of AI data centers and other factors by producing ultra-high voltage cable materials in-house and diversifying its portfolio to strengthen competitiveness.
Hanwha Solutions' Chemical Division announced on the 12th that it has invested 23 billion KRW to increase the production capacity of E/HV-grade semiconducting compounds by 8,000 tons and has started commercial production at its 100% subsidiary Hanwha Compound's Yeosu plant. With this expansion, Hanwha Solutions' production capacity for E/HV-grade semiconducting compounds will increase to a maximum of 10,000 tons.
Semiconducting compounds are materials that prevent cable damage and block electrical forces to prevent discharge. Their use is essential to maintain the durability of power cables, which are used for an average of more than 25 years after installation. In particular, the quality of semiconducting compounds used in ultra-high voltage cables for long-distance transmission, such as those used in intercontinental power grids and offshore wind farms, is of utmost importance.
The newly expanded E/HV-grade semiconducting compound production facility uses EBA (Ethylene Butylacrylate Copolymer), produced through Hanwha Solutions' own research and development, as a raw material, which is expected to enhance both quality and production efficiency. Hanwha Solutions developed EBA, a basic raw material for semiconducting compounds, and successfully commercialized it for the first time in Korea in 2022. The company also obtained new technology certification from the Korea Agency for Technology and Standards for its manufacturing technology of semiconducting compounds for ultra-high voltage cables using EBA.
The EHV (Extra-High Voltage) grade ultra-high voltage semiconducting compound market is dominated by a few global companies such as Borealis from Austria and Dow from the United States. The market size is 57,000 tons annually, with an expected average annual growth rate of 10%, and it is a high value-added material that maintains high sales margins due to technological entry barriers.
Hanwha Solutions plans to expand its global business by packaging its main product, the insulation material XLPE (Cross Linked-Polyethylene) for ultra-high voltage cables, together with the newly produced E/HV-grade semiconducting compounds. Since large customers prioritize uniform quality and stable supply, the company aims to secure new customers by producing key cable materials directly and improving quality.
Nam Jung-woon, CEO of Hanwha Solutions, stated, "Through the operation of the new semiconducting compound production facility, we plan to continuously expand the high value-added product lineup that customers need," adding, "We will secure a business structure resilient to market fluctuations based on high value-added materials and leap forward as a global leader."
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