Iljin Electric disclosed on Jan. 16 that it secured a contract with Malaysia’s state-owned electricity utility, Tenaga Nasional Berhad (TNB), on Jan. 9. The US$36 million contract involves the supply of materials and connection construction for a 52.4 km, 275 kV high-voltage underground cable project.
The project focuses on upgrading an existing substation located south of Kuala Lumpur, Malaysia's capital.
Iljin Electric has been actively expanding its high-voltage cable market in Southeast Asia. Since entering the Singapore market in 2007, the company has executed numerous projects over a decade, leading to a significant order of 153.5 billion won (US$114.1 million) from Singapore in 2022. Towards the end of 2022, iljin Electric also secured an order worth 82.1 billion won from the new market of Bangladesh, continually filling its order backlog.
Meanwhile, iljin Electric is undergoing a paid-in capital increase to fund the expansion of its factories and equipment, driven by a surge in orders for high-voltage transformers in North America and large orders for high-voltage cables in Asia and the Middle East.
The capital increase amounts to 100 billion won. Of this, 68.2 billion won will be invested in expanding the high-voltage transformer factory, aiming to increase the production capacity from 260 billion won in 2023 to 433 billion won by 2026. Additionally, 35 billion won will be invested in expanding high-voltage cable facilities, with the goal of increasing the production capacity from 380 billion won in 2023 to 620 billion won by 2026.
This strategic investment reflects iljin Electric’s commitment to enhancing its manufacturing capabilities in response to the growing global demand for high-voltage transformers and cables. The expansion aims to solidify ILJIN Electric’s position as a leading player in the high-voltage energy infrastructure market, both in Asia and globally. With these developments, iljin Electric is poised to meet the increasing demands of the energy sector and contribute to the modernization of electrical infrastructure in various regions.