BRONDBY, Denmark — NKT will provide technical support to Walsin Lihwa for construction of Taiwan’s first subsea power cable factory.
The facility will manufacture high- and medium-voltage AC offshore power cables mainly for the Taiwanese offshore wind sector, which is set for steep growth over the next decade.
The two parties will enter a service agreement for construction of the factory and a Technology License Agreement licensing NKT technology to the joint venture, in which NKT will act as the technical partner.
Although the company will not provide capex investments for the development, it will generate revenue based on a royalty scheme and dividend once the operation enters service, expected in 2027.
NKT president and CEO Alexander Kara said, “We expect high growth in the Asian market in the coming decades. Taiwan is targeting to install an additional 15 GW of offshore wind by 2035. The joint venture is…an opportunity for us to participate in a new, growing market, which is otherwise challenging to serve. It is an important first step for NKT to establish presence in the Asian high- and medium-voltage market and a platform for future growth in the region."
Walsin Lihwa is an industrial conglomerate publicly listed in Taiwan.