Industrial holding company NKT will be signing a joint venture for the construction of Taiwan’s first subsea power cable factory with Walsin Lihwa, a leading industrial conglomerate in Taiwan. The factory will be focused on production of high and medium-voltage AC offshore power cables for the Taiwanese offshore wind market, which is expecting rapid growth in the next decade in order to drive the green transition of the country.

March 1, 2023

NKT will be signing a joint venture for the construction of Taiwan’s first subsea power cable factory with Walsin Lihwa, a leading industrial conglomerate in Taiwan. NKT will act as the technical partner in the construction of the factory, which is expected to be in operation by 2027. The factory will produce high and medium-voltage AC offshore power cables mainly for the Taiwanese offshore wind market.

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The agreement between the two companies includes a Service Agreement for construction of the factory as well as a Technology License Agreement licensing NKT technology to the joint venture. NKT will own a share of the joint venture and only provide technical support to the project. No CAPEX investments will be provided from NKT for construction. When the factory is in operation, expectedly in 2027, NKT will generate revenue based on a royalty scheme and dividend from the joint venture.

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NKT President and CEO, Alexander Kara expressed the importance of this project as the “first step for NKT to establish presence in the Asian high- and medium-voltage market and a platform for future growth in the region”. Talking about the joint venture, he said “Taiwan is targeting to install additional 15GW of offshore wind by 2035. The joint venture is an attractive opportunity for NKT from a financial perspective and an opportunity for us to participate in a new, growing market, which is otherwise challenging to serve.” Yu-Lon Chiao, Chairman of Walsin Lihwa also shared that he is looking forward to the project. “Walsin is honored to enter into a win-win partnership with NKT, a world class cable solutions provider with leading technology, to further our clean energy strategy and contribute towards Taiwan’s green energy future”, he said.