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Daehyun Cable's First Step as a Hoban Family Member, Expanding Optical Cable Business
Published2021.08.05 16:36Approximately 5 million f.km production capacity in Dangjin, Kuwait, and South Africa
First investment initiative following acquisition by Hoban Group in May
Optical cables are experiencing a surge in global demand due to increasing ultra-high-speed, high-capacity internet, expansion of 5G infrastructure, and acceleration of the Fourth Industrial Revolution based on IoT and AI.
On the 4th, Daehyun Cable announced that it will establish optical cable production facilities in Dangjin, Chungcheongnam-do and Kuwait, and begin full-scale business operations. The company plans to achieve growth in the telecommunications sector through synergies with its existing copper communication cable business, and to make a leap forward as a comprehensive telecommunications cable company.
Excluding the Chinese market, the global optical cable market is projected to grow from approximately $6.2 billion this year to approximately $8 billion in 2025, showing a compound annual growth rate of 6.4%. North America and Europe account for half of the total market. While Korea's optical cable adoption rate reaches 80%, North America and Western Europe show significantly lower adoption rates at 17% in the United States and 3.9% in the United Kingdom.
Having recently held an investment deliberation committee meeting, Daehyun Cable has decided to establish optical cable equipment within the telecommunications cable factory at its Dangjin plant in Chungcheongnam-do. Equipment orders will be completed this month to enable mass production of products by the first half of next year. 'Daehyun Kuwait' is also accelerating equipment installation. With factory site already secured within the Mina Abdulla Industrial Complex in Kuwait City, the company will proceed with factory groundbreaking and equipment orders within the third quarter, and launch prototype products in the first half of next year.
Daehyun Cable will carry out phased investments to enable production of approximately 5 million f.km (fiber kilometers) across the Dangjin plant, Daehyun Kuwait, and M-TEC in South Africa. The Dangjin plant will focus on the United States and Asian markets, Daehyun Kuwait on the Middle East and European markets, and M-TEC on the African market.
Hoban Group acquired Daehyun Cable in May. A Daehyun Cable official stated, "As a comprehensive telecommunications cable company capable of both copper and optical communication, which are the two pillars of telecommunications cables, we will actively pursue market opportunities in North America and Europe, which will be major demand destinations for optical cables."
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