PR
Taihan establishes a joint venture to catch the fiber optic cable market in Kuwait
Taihan, a South Korean leading provider of cable and wire, takes the steps to preoccupy in the Kuwait fiber optic cable market.
On the 5th, Taihan announced that the company would establish a joint venture in Kuwait for the production of fiber optic cables. It will be the first fiber optic cable production subsidiary in Kuwait, and local companies including Rank General Trading and Contracting Company will participate in the joint investment.
Taihan has been discussing the joint venture establishment process with the Kuwait government agency, KDIPA (Kuwait Direct Investment Promotion Authority). In the morning on the 5th, Taihan entered into a full-fledged business by signing a contract with a partner company to establish a joint venture. The joint venture plans to build facilities in Mina Abdullah Industrial Area located in the southeast of Kuwait City within the first half of next year; and achieve sales in the second half of the year.
As fiber optic cables transmit large amounts of data quickly and securely, demand continues to increase over the world in line with the fourth industrial revolution and 5G infrastructure expansion based on IoT and AI.
An officer from Taihan said, “As 'New Kuwait 2035' is in full swing, the fiber optic cable business will continue to grow rapidly supported by favorable issues such as 5G infrastructure and Smart City construction. The establishment of this corporation is a valuable achievement of the ‘Korea-Kuwait Business Partnership’ between KOTRA and KDIPA in May in commemoration of the 40th anniversary of bilateral diplomatic relations.”
Once the joint venture is established in Kuwait, Taihan will have six production bases over the world, including Dangjin cable plant, Dangjin cable accessory plant in South Korea, the HV cable plant in Vietnam, the MV/LV cable plant in South Africa, and the HV cable accessory plant in Saudi Arabia. In particular, Taihan has been able to expand its influence in the market by establishing a second production subsidiary in the Middle East with high growth potential.
Meanwhile, since its first entry into Kuwait in the early 2000s, Taihan has successfully contributed to the construction of the national power grid by successfully completing about 30 extra-high voltage cable projects. In June this year, the company proved its competitiveness by obtaining the construction order of Al Mutlaa City underground power grid for Kuwait at KRW 91 billion.
