Gaon Cable (000500.KS) is expanding its ultra-high-voltage cable product lineup and investing in production facilities, strengthening its push into the power transmission infrastructure market. The move is aimed at meeting demand for power grid investment driven by the expansion of artificial intelligence (AI) data centers, semiconductor clusters and offshore wind power.
Gaon Cable said Wednesday that it will expand its product lineup and pursue investment in related production facilities to strengthen the competitiveness of its ultra-high-voltage cable business.
Following its existing 154-kilovolt (kV), 1,000-square-millimeter (sqmm) ultra-high-voltage cable, the company plans to expand its product range to include 2,500-sqmm large-conductor cable that meets Korea Electric Power Corp. specifications. Large-conductor cable is an ultra-high-voltage cable for transmitting large volumes of power, and the company plans to begin supply in earnest starting next year.
The investment is intended to address rising demand for ultra-high-voltage transmission grids driven by the expansion of AI data centers, semiconductor production facilities and offshore wind power farms. As large-scale power-consuming facilities increase, the company expects the market for ultra-high-voltage cables needed for long-distance, high-capacity power transmission to grow accordingly.
The market environment is also turning favorable. Korea Electric Power Corp. recently revised its method of ordering ultra-high-voltage cables and connectors together, deciding to order them separately. As a result, the market—previously open only to some companies capable of supplying both cables and connectors—has opened up to allow cable-specialized firms to bid as well.
Gaon Cable has already steadily expanded its ultra-high-voltage cable business foundation. Since entering the market about 10 years ago, it has supplied 66-kV and 154-kV ultra-high-voltage cables for projects including the grid connection for South Jeolla Province's offshore wind power complex No. 1 and the power grid construction for a large data center in Gyeonggi Province.
As the government pursues the construction of AI data centers and semiconductor clusters, domestic power infrastructure investment is also expected to expand. The industry expects additional power demand to reach approximately 28 gigawatts (GW), and anticipates that demand for ultra-high-voltage transmission facilities and cables will increase accordingly.
"Based on the technological expertise we have accumulated in the distribution cable field, we will enhance our competitiveness in the ultra-high-voltage transmission market," Gaon Cable CEO Jung Hyun said. "We also plan to actively pursue entry into the North American ultra-high-voltage cable market based on our U.S. subsidiary LSCUS."
