NKT Cables and Taiwanese cable company Walsin Lihwa are establishing a joint venture to establish the first subsea cable factory in Taiwan, producing high- and medium-voltage AC offshore power cables.
In addition to a service agreement for the construction of the factory and the agreement includes a technology license agreement licensing NKT technology to the joint venture. NKT will own a share of the joint venture and will act as the technical partner. The factory is expected to begin production in 2027. NKT will not have to contribute to the capital expenditure of the factory construction and will receive revenue based on a royalty scheme and on a dividend basis.
image credit: NKT