Gaon Cable is expanding its North American power infrastructure business by entering the U.S. nuclear power cable market.
The company announced on Monday that its U.S. subsidiary, LSCUS, plans to set up production facilities for nuclear power cables at its Tarboro plant in North Carolina.
This strategic move aims to secure a local supply chain in anticipation of growth in the U.S. nuclear power and small modular reactor (SMR) markets. Following its transmission network business through overhead lines, Gaon Cable plans to strengthen its position in the U.S. power infrastructure market by broadening its locally produced product range to include nuclear power cables.
The U.S. has seen limited new nuclear power plant construction for years, resulting in an underdeveloped local supply chain for components, including nuclear power cables. Recent increases in power demand due to the expansion of artificial intelligence data centers (AIDCs) and a renewed focus on energy security have brought nuclear power construction back into the spotlight, highlighting the importance of securing related supply chains.
Nuclear power plants require extensive electrical cabling, with some designs using over 50,000 cable circuits, creating substantial demand for power, control, and instrumentation cables. Nuclear power cables are a prime example of low-volume, high-variety products, with diverse specifications and performance requirements based on their application and location.
LSCUS intends to leverage Gaon Cable’s expertise in specialized cable technology to pursue relevant certifications and collaborate with South Korean nuclear power companies to penetrate the local supply chain.
A Gaon Cable spokesperson stated that as the U.S. nuclear market expands and South Korean companies increase their involvement in U.S. projects, it anticipates new opportunities for local equipment suppliers. It will aggressively target the U.S. nuclear market, drawing on the extensive experience in producing various power and control cables and LSCUS’s local production capabilities.
In related news, Gaon Cable reported consolidated revenues of 869.4 billion KRW (about 652.46 million USD) and an operating profit of 36.1 billion KRW (about 27 million USD) for the second quarter of this year, representing year-over-year increases of 35.1% and 55.5%, respectively.