Largest supply contract since entering the Malaysian cable market

An aerial view of Iljin Electric's cable factory. [Iljin Electric]
An aerial view of Iljin Electric's cable factory. [Iljin Electric]

Iljin Electric announced Thursday it has signed a contract to supply 275-kilovolt ultra-high-voltage cables for a data center in Malaysia, in a deal worth about 62.1 billion won ($40.6 million) covering a total cable length of 54 kilometers.

The contract is the largest Iljin Electric has secured since entering the Malaysian cable market, and marks the company's fifth ultra-high-voltage cable supply to a data center in the country.

Malaysia has been actively pursuing data center investment as a national policy, and demand for ultra-high-voltage cables is expected to grow over the medium to long term as a result. Iljin Electric said it plans to build on this contract to continue pursuing further data center cable orders.

The company has been actively winning ultra-high-voltage cable contracts across Southeast Asia, including in Singapore. In early May, it signed a 108.6 billion won contract to supply ultra-high-voltage cables in Singapore.

"We are working to secure more overseas orders on the strength of our Southeast Asian project pipeline," an Iljin Electric official said. "Being the only domestic company capable of supplying both ultra-high-voltage power equipment — including transformers and circuit breakers — and ultra-high-voltage cables gives us a competitive edge at home and abroad, and we will continue to grow on that basis."

Meanwhile, Iljin Electric held an order backlog of approximately $1.761 billion (about 2.7 trillion won) as of late March, with the cable segment accounting for 30 percent of the total.


yeongdai@heraldcorp.com