Gaon Cable is set to make its first-ever export of distribution cables for power plants to a major U.S. tech company.
The company announced on Tuesday that it will supply distribution cables worth approximately 50 billion KRW (about 34.5 million USD) for a global tech giant’s power plant construction project.
This initiative is part of the American tech firm’s own power plant project, aimed at securing a stable power supply for its artificial intelligence (AI) data centers.
Gaon Cable expects this direct contract with a global tech company to open doors for increased participation in future power infrastructure projects.
With the recent surge in generative AI, global tech giants are going beyond data centers to build their own power plants, prioritizing reliable power sources. As stable power supply becomes crucial for AI competitiveness, investments in power sources are rapidly increasing.
Through its U.S. subsidiary LSCUS, Gaon Cable has been strengthening its partnerships with global tech firms, securing long-term supply contracts for bus ducts worth over 5 trillion KRW (about 3.5 billion USD) for AI data centers. Now, the company has expanded its business scope to include the supply of cables for power plants.
Gaon Cable’s exports to the U.S. are seeing rapid growth. With the ramping up of cable supply for AI data centers and power plants this year, export volume is projected to reach about 300 billion KRW (about 206.8 million USD), tripling last year’s figures.
Jung Hyun, Chief Executive Officer (CEO) of Gaon Cable, stated that the proliferation of AI data centers is driving rapid growth in both transmission and distribution markets. It aims to leverage the leading position in the domestic distribution cable market to strengthen the global market strategy by supplying both cables and power equipment.
Meanwhile, Gaon Cable has posted record performance in the first half of this year, buoyed by the growth of the U.S. power infrastructure market and increased exports of high-value products. The company’s preliminary consolidated revenue for the first half reached approximately 1.633 trillion KRW (about 1.13 billion USD), with an operating profit of around 64 billion KRW (about 44.1 million USD), marking increases of 27.3% and 41.8%, respectively, compared to the same period last year. Both revenue and operating profit have hit record highs for a half-year period.