NKT will sign a joint venture agreement with Taiwanese cable company, Walsin Lihwa, to provide technical support for the construction of a subsea power cable factory in Taiwan.
The factory will produce high- and medium-voltage AC offshore power cables mainly for the Taiwanese offshore wind market. Aside from establishing a joint venture, the agreement also includes a Service Agreement for the construction of the factory and a Technology License Agreement licensing NKT technology to the joint venture. NKT will own a share of the joint venture and will act as the technical partner. The construction of the factory will not include CAPEX investments from NKT. When the factory is in operation, expectedly in 2027, NKT will generate revenue based on a royalty scheme and dividend from the joint venture. Final constitution of the joint venture is subject to customary regulatory procedures.