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The Scandi Connector, the second cable laying vessel (CLV) of Taihan Cable & Solution. / Courtesy of Taihan Cable & Solution

Taihan Cable & Solution has secured an additional dedicated cable laying vessel (CLV), completing a core value chain aimed at capturing the global offshore wind and high-voltage direct current (HVDC) transmission markets. Analysts say that by internalizing marine construction capabilities alongside its production capacity expansions, the company has significantly sharpened its turnkey competitiveness, enabling it to manage everything from engineering to installation in the global power grid infrastructure market.

According to industry sources on July 7, Taihan Cable & Solution recently reinforced its marine construction infrastructure by acquiring the Skandi Connector, a 10,000-ton class CLV. Following the construction of its second subsea cable plant in Dangjin earlier this year, this vessel acquisition was backed by robust financial support from the Export-Import Bank of Korea totaling 550 billion won. This backing has accelerated the firm's value chain expansion as it transitions from a pure manufacturer into an all-encompassing installation provider.

The greatest asset of the newly added Skandi Connector is its precision installation capability under adverse marine conditions. Equipped with a high-capacity dual carousel and a dynamic positioning system (DP2), the vessel is specially optimized for challenging HVDC line installations. Notably, in environments with extreme tidal shifts and shallow mudflats, such as South Korea's western coast, the vessel can safely lay cables by utilizing "beaching" techniques that ground the ship flat on the seabed.

Because subsea cables are massive in volume and weight, maritime construction capabilities like transportation and laying are just as crucial as manufacturing capacity. Taihan Cable & Solution already possesses a solid production foundation through its fully operational Dangjin Subsea Plant 1 and the under-construction Plant 2. By adding the Skandi Connector to its existing fleet alongside its first CLV, the PALOS, the company has established an independent fleet capable of handling transport and installation without relying on external vendors. It has successfully secured an integrated system to manufacture and lay cables end-to-end.

This proactive infrastructure investment is well-supported by robust earnings growth. Taihan Cable & Solution's consolidated revenue for the first quarter of this year reached 1.0834 trillion won, while operating profit surged to 60.4 billion won, marking year-on-year increases of 26.6% and 122.9%, respectively. This represents its highest quarterly performance since 2010.

The strong performance is expected to carry into the second half of the year. According to FnGuide, the company's estimated second-quarter revenue stands at 1.0720 trillion won (up 17% year-on-year), with operating profit projected at 42.6 billion won (up 49%). Net income is anticipated to turn profitable, reaching 24.3 billion won.

Regarding these projections, NH Investment & Securities provided an even brighter outlook, forecasting a second-quarter operating profit of around 45.8 billion won, driven by a product mix improvement focused on high-margin extra-high voltage cables. "As a high-quality order backlog converts into revenue, mid-to-long-term profitability will continue to rise," researcher Lee Min-jae noted. "Given their selective bidding strategy focused on profitability, margins will keep improving through the second half of the year."

This aggressive corporate transformation is anchored by a massive order book. As of the first quarter of this year, Taihan Cable & Solution's order backlog comfortably surpassed 3.8 trillion won, continuing a record-breaking streak.

Recently, the company scored a milestone in national power grid development by winning a turnkey contract worth 146.3 billion won for the 500kV HVDC East Coast-East Seoul Construction Project (EP Stage 2) pushed by Korea Electric Power Corporation (KEPCO). Additionally, it has been expanding its domestic and international sales footprint during the first half of the year, securing four ultra-high voltage power grid projects in Scotland worth approximately 100 billion won, alongside a 50 billion won grid installation project for a solar power plant in Haenam, South Jeolla Province. As part of its global partnership strategy, the firm also recently signed memorandums of understanding (MOUs) in Belgium with major marine infrastructure corporations like Jan De Nul and Boskalis to cooperate on future HVDC projects.

"The state-backed financial support from the Export-Import Bank of Korea is a testament to our continuous efforts to expand subsea cable production and installation infrastructure, as well as our project execution capabilities," an official from Taihan Cable & Solution stated. "By advancing both our subsea manufacturing and installation expertise, we will expand business opportunities in global power networks while contributing to the stabilization of the domestic subsea supply chain and power infrastructure development."

                                                                                                         Son Kang-hoon