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Hanwha Solutions is nurturing core cable materials as a new growth engine. Rather than competing directly against established cable manufacturers that produce finished wire and cable products, the company is supplying insulating and semi-conductive materials to these manufacturers. Because extra-high-voltage cable materials carry high verification thresholds—taking at least one to two years from development to actual commercial application—replacing a supplier once integrated into a client's supply chain is far from easy.

Hanwha Solutions is targeting these market characteristics through a packaging strategy that bundles multiple core materials, such as XLPE insulating materials and semi-conductive compounds. In China, it has also succeeded in verifying materials for 500kV extra-high-voltage alternating current (HVAC) transmission cables. In effect, the lengthy certification process restricts the entry of new competitors while serving as a barrier protecting the customer base of established players that have already accumulated certification and supply track records.

According to industry sources on the 18th, Hanwha Solutions unveiled its cable materials business strategy at the "2026 Solution Academy" on the 15th. The Wire & Cable (W&C) Division, launched last year, is overseeing the cable materials business to address the surge in power grid investments spurred by the proliferation of AI data centers and renewable energy. Under conditions where double-digit growth is projected for the extra-high-voltage, submarine, and high-voltage direct current (HVDC) cable markets, the strategy seeks growth opportunities in materials essential for high-voltage, long-distance power transmission rather than finished cable products.

Cross-linked polyethylene (XLPE) insulating materials produced by Hanwha Solutions enable cables to withstand high voltages, while semi-conductive materials serve to mitigate electrical stress from concentrating in a single area within the cable. As voltages rise into extra-high ranges, even minute foreign substances and defects exert a greater impact on performance, making long-term, verified track records just as critical as product quality.

The process leading to commercialization is also extensive. After developing the material, it must undergo cable application testing and third-party verification, followed by approvals and reference checks from end users such as electric utility companies. The company explained that completing all these procedures until the materials are applied to actual cables can take at least one to two years. In essence, the process of securing client approval following technological development serves as the critical gateway for business expansion.

In this process, the company touts packaging as its competitive advantage over single-item offerings. Providing XLPE insulation, inner and outer semi-conductive materials, and jacketing compounds all at once makes tracing root causes relatively easier should accidents or quality defects arise. The scope of liability and technical support channels are also simplified compared to mixing and matching products from multiple suppliers.

China is a market where this strategy has translated into actual sales. Hanwha Solutions collaborated with Qingdao Hanhe Cable and TBEA, respectively, to complete the verification of XLPE insulation and semi-conductive material packages for 500kV HVAC cables. This stepped up the application scope from the existing 400kV class. The company projected that its global super-extra-high-voltage (SEHV) XLPE sales volume this year will reach nearly double the previous year's level, with sales of extra-high-voltage materials in China expanding approximately threefold.

Currently, the company sells products to approximately 265 global clients. It stations technical personnel across China, Europe, and South Korea while operating logistics hubs in Finland, the Netherlands, Sweden, and South Korea. Last year, it established a local subsidiary in Milan, Italy, to begin supporting certifications and technical responses for European clients. On this foundation, it plans to raise the share of high-value-added and strategic products by at least fourfold by 2031 compared to 2025.

Park Ji-hwan, a professional in Hanwha Solutions' Wire & Cable (W&C) Division, viewed Chinese cable manufacturers' entry into the extra-high-voltage and submarine cable markets as an opportunity to expand sales outlets rather than as competition. He remarked, "Among Chinese enterprises, the number of manufacturers equipped with extra-high-voltage cable production capabilities is growing significantly," adding, "Since we are pursuing certifications, memorandums of understanding (MOUs), and joint development, their success also represents an opportunity from our perspective."

                                                                                                          Son Kang-hoon