Signed Framework Agreement with National Grid for the Next Eight Years
Total Project Worth 110 Trillion KRW... 40 Trillion KRW Participation in Cable System Sector
Daehan Electric Wire & Cable has secured an opportunity to participate in a project worth 40 trillion KRW by signing a framework contract with a UK power transmission and distribution company. This demonstrates its technological competitiveness in the high-voltage direct current (HVDC) field in Europe, considered the birthplace of the power industry.
Daehan Electric Wire & Cable announced on the 14th that it signed a 'HVDC Cable System' framework contract with National Grid UK. National Grid pursued framework contracts in two areas?HVDC cable systems and transformers?to secure a stable supply chain in the HVDC market, where supply shortages are expected. A framework contract is a long-term agreement to provide services or goods under certain conditions for a set period, enabling stable collaboration based on trust between buyers and suppliers.
DaeHan Electric Wire has signed an HVDC framework agreement with the UK's National Grid. The person on the far right is Jongmin Song, Vice Chairman of DaeHan Electric Wire. Photo by DaeHan Electric Wire
The total project scale is 59 billion pounds (approximately 110 trillion KRW), with more than 15 subsea and underground HVDC projects expected over the next eight years. Daehan Electric Wire & Cable secured an opportunity to participate in projects worth 21.3 billion pounds (approximately 40 trillion KRW) by signing the contract in the cable system sector. Starting this year, Daehan Electric Wire & Cable will participate in bids for the 525kV and 320kV HVDC cable system projects promoted by National Grid.
HVDC cable systems are key to long-distance power transmission. Global demand is increasing due to the expansion of renewable energy and supergrids. Because securing production facilities requires enormous capital, only a few companies worldwide develop and produce these systems. Daehan Electric Wire & Cable was the first in Korea to develop 500kV current-type and 525kV voltage-type HVDC underground cable systems and obtain internationally recognized certifications. In September last year, it began full-scale business by winning its first order for a 320kV voltage-type HVDC cable in the United States.
Song Jong-min, Vice Chairman of Daehan Electric Wire & Cable, personally visited National Grid’s headquarters in London last month to meet with key stakeholders and discuss plans for future business promotion. Vice Chairman Song said, "This is a very meaningful contract recognizing the technological competitiveness of HVDC cable systems, a core future power technology, in the advanced European power market. We will enhance the quality reliability of HVDC cable systems and strengthen our technological capabilities to continuously expand business opportunities not only in Europe but also in the global market."
Meanwhile, Daehan Electric Wire & Cable is smoothly advancing the construction of its second subsea cable factory for HVDC subsea cable production. The factory site was confirmed in Dangjin-si, Chungnam Province, last November. The factory construction is underway with a goal to start operations in 2027, and it plans to begin producing HVDC subsea cables immediately upon operation.
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