100% Acquisition
Taihan Electric Wire has acquired a complete ownership of Taihan Sacom Cable (TSC) in Vietnam, its joint venture established in 2005, to step up its efforts to expand market share overseas.
The company announced on July 22 that it has taken the remaining 30 percent stake in TSC from its partner to become its sole shareholder. TSC has been renamed as Taihan Cable Vina (TCV), with Taihan Electric Wire CEO Choi Jin-yong taking the chairmanship of the Vietnamese affiliate.
Taihan Electric Wire held an opening ceremony for TCV in Vietnam on July 21.
"We have decided to pick Vietnam as a strategic location to expand the global market share due to its geographical advantages as well as the growth potential of its economy and electricity market,” said CEO Choi, adding, “We will make aggressive investment in new facilities and technologies to make the plant in Vietnam our second production base following our plant in Dangjin in South Korea.”
He also said, "We will increase our annual sales revenue, which stood at US$36 million (4.1 billion won) in 2015, to US$190 million (about 22 billion won) by 2020.”
Taihan Electric Wire is planning to build a plant in Vietnam for high-margin products, such as ultra-high voltage cables and aluminum conductor composite core cables, to strengthen the competitiveness of TCV. In addition, various synergy effects are expected from the combination of Taihan Electric Wire and TCV, such as improvement in the quality and safety of products resulting from the use of raw materials supplied from the plant in Dangjin.