NKT, the global leader in submarine cables, will sign an agreement to assist Taiwan Province of China in establishing its first-ever submarine cable company.-Qingdao Yilai Cable Co., Ltd.,

Inventor of Long Life Cable, State Grid Supplier Equity Code: 802796

NKT, the global leader in submarine cables, will sign an agreement to assist Taiwan Province of China in establishing its first-ever submarine cable company.

Release date:

2023-02-28

Marine cable giant NKT will sign a joint venture agreement with Taiwan-based cable company Walsin Lihwa to provide technical support for building Taiwan's first offshore cable factory. The factory will primarily produce high- and medium-voltage AC offshore power cables tailored for Taiwan’s growing offshore wind energy market, which is expected to expand rapidly over the next decade, driving the country’s green transformation.

Marine cable giant NKT will sign a joint venture agreement with Taiwan-based cable company Walsin Lihwa to provide technical support for building Taiwan's first offshore cable factory.

The factory will primarily produce high- and medium-voltage AC offshore power cables for Taiwan's offshore wind market. This is expected to grow rapidly over the next decade, driving the country's green transition.

In addition to establishing a joint venture, the agreement also includes a service agreement for building the factory and a technology licensing agreement granting the joint venture access to NKT’s proprietary technologies. NKT will hold a stake in the joint venture and serve as its technology partner. Furthermore, the agreement outlines that the construction of the factory will not involve any CAPEX investment from NKT. Once the facility becomes operational—expected by 2027—NKT is set to generate revenue through a royalty-based model and receive dividends from the joint venture. Please note that the final structure of the joint venture will depend on standard regulatory procedures.