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 Cables & Wires Despite the difficult domestic and overseas economic situation, the cable division in 2002 recorded sales of 910.6 billion won, a year-on-year decrease of 4.8%, consisting of 386.4 billion won for domestic market and 524.2 billion won for export. As for the electric power division, sales increased covering most products. Domestic market increased by 12%, while export decreased by 7%, with overall sales increased by 8% over those of the previous year. Sales in the future are expected to increase because sales of the higher value-added products such as the extra high-voltage cable witness steady growth. On the other hand, domestic and overseas price competition is being intensified in the case of the medium-low-voltage cable sector. Demand of the Korea Electric Power Corporation (KEPCO) for the high-voltage cable is on a trend of rise. The communication sector is now experiencing a dull economic situation. Sales in the optical communication sector are slow due to the IT industry slump during the past several years. However, the demand for optical cable is forecast to be increased on a gradual basis when the world economy and the IT industry are recovered because TAIHAN has highest-quality facilities, technical power and highly capable human resources. As for copper communication section, sales of the data cable are good. Demand for materials (copper rod) has increased due to increased domestic demand and the increased export by the domestic cable exporters. Domestic market and export increased by 13% and 8% respectively, making overall sales to be higher than those of the previous year by 9%. In the case of magnet wire, domestic demand and export have slightly declined because of slow domestic economy, with overall sales decreased by 9% compared with the previous year.
Such favorable performance in the stainless steel division was possible due to the brisk market situation during the first half of the year, and because the price hike of the hot coil, the raw material, was connected to the sales price. The quantity supplied was similar to that of the previous year. Sales of the wide width and narrow width products increased by 9% and 16% respectively. Sales at the domestic market increased by 17% compared with the previous year, or by 8% in terms of the quality supplied. Exports on the other hand decreased by 5% compared with the previous year due to the brisk domestic stainless steel market and the conversion of export quantity to the domestic market. Exports decreased by 9% in terms of quantity. Cold rolled stainless steel sheet was used for tablewares/hollowwares
and for construction materials in most cases. Recently, however,
applications have been expanded to higher value-added products such
as the sash and reflectors used on LCD following the development
of the ultra thin thickness products, significantly contributing
to the company profits.
Using the extra high-voltage cable as the key project of the cable division, TAIHAN concentrates on the highly profitable extra high-voltage turnkey projects. The extra high-voltage cable division completed 161kV O.F(Oil Filled) in Taiwan and 275kV XLPE in the Northern Ireland, in addition to the successful implementation of the large turn-key projects in Singapore, Malaysia, Brunei, Saudi Arabia and UAE, earning recognition in TAIHAN's working capability. The communication division expands its export targets to the North America, Central South America, China, and Africa to create new demand and to diversify markets. Since TAIHAN made an inaugural advance in 1999 to the mobile communication market of Mongolia jointly with SK Telecom, it has successfully completed the backbone network project pursued by the Mongolia Post and Telecom Administration (MPTA) and held an opening ceremony in December last year. TAIHAN has also participated in the CAN project, the communication network project of Ghana in the West Africa as part of strategies to strengthen overseas marketing power in the communication market. TAIHAN carries out marketing activities for copper communication sector focusing on the Middle East and the Southeast Asian areas. As for the optical communication division, Malesela TAIHAN Electric Cable (Pty) Ltd. (M-TEC), a local cable-manufacturing corporation in South Africa, succeeded in the international optical cable bidding which handles approximately 60% of the total quantity required by South Africa. Because the stainless cold rolled sheet division converted to export quantity to the domestic market due to brisk domestic market situation during the first half, and due to the Safe Guard taken by China, a major market for TAIHAN, sales were reduced by 5% compared with those of the previous year.
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