Taihan Electric Wire’s factory in Dangjin, South Chungcheong Province. (image: Taihan Electric Wire)
SEOUL, Jun. 21 (Korea Bizwire) — Sales of Taihan Electric Wire Co., a major cable maker in South Korea, will be put in limbo, industry insiders said Friday, as the Seoul government plans to designate the company’s technologies as national core technologies.
The Ministry of Trade, Industry and Energy announced Thursday that extra-high voltage cable technologies will be designated as “national core technologies,” which means the company’s asset sales to foreign companies need government approval.
Taihan and LS Cable & System Ltd. are the two major cable makers that can produce 500-kilovolt extra-high voltage cables.
“Extra-high voltage cable technologies are also owned by other foreign companies, so it’s not something exclusive and new,” an official from Taihan said.
“Such designation can damage the company’s plan to do businesses with foreign companies.”
Taihan is currently controlled by IMM Private Equity, which bought an around 70 percent stake in the cable maker for 300 billion won (US$257 million) in 2015.
Rumors have been circulating since earlier this year that the homegrown private equity firm may sell the cable maker to a Chinese company, although Taihan denied the speculation.
Taihan’s business performance has been steadily improving since the IMM takeover. Last year, it reported sales of 1.6 trillion won and operating profit of 49.4 billion won.
(Yonhap)
