Taihan Electric Wire Co., South Korea’s leading provider of industrial cables, finally inked a 94 billion won ($82.7 million) contract with Singapore-based SP PowerAssets Ltd. to supply extra-high voltage cables. What would be the largest deal for Taihan Electric Wire in the last five years accounts for 6.9 percent of its total sales of 1.37 trillion won last year.

According to Taihan Electric Wire, it on Wednesday clinched a deal with SP PowerAssets, a subsidiary of Singapore Power Ltd., to set up a 400 kilovolt cross-linked polyethylene (XLPE) electric grid in Singapore. The final agreement comes 10 months after the Korean firm received a letter of award (LOA) from the Singaporean company on the project.

An unnamed official from Taihan Electric Wire tipped the company aims to complete the installation of the cables by the end of next year.

Under the deal, Taihan Electric Wire will not only supply 400 kilovolt extra-high voltage underground cables and related connectors to SP PowerAssets but also provide electric grid planning as well as routing, connecting, and testing services on a full turnkey basis.

The cables will be installed inside an electric power conduit pipe, which is an underground structure like an underground tunnel that is used to install transmission equipment such as high-voltage cable. As the Singaporean government plans to replace its power grid across the country using electric power conduit pipes, Taihan Electric Wire would win additional cable installation deals in the city country in the future if it successfully completes the latest project, sources anticipated.

Winning the deal, Taitan Electric Wire has joined its Korean peers in the race to bag major power grid projects in Singapore. In July, LS Cable & System Ltd. won a 62 billion won contract from Singapore’s electric power authority to install extra-high voltage submarine cables. A month earlier, the company also signed a 370 billion won deal to install high-voltage cables in the city state.

By Moon Ji-woong

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