Iljin Electric (103590.KS) has won the largest power equipment supply contract in its history in the United Kingdom. Building on the deal, the company plans to make a full-scale entry into the European market, following North America and Southeast Asia, to target growing global demand for cables and transformers used in artificial intelligence data centers.
Iljin Electric said on the 2nd that it had won an order for extra-high-voltage underground transmission line construction as part of a project to expand the U.K. offshore wind power grid. The order is worth about 104 million pounds, or roughly 187.1 billion won. The contract follows an 84.5 billion won order the company received in July for the same project. Combined, the two deals total 271.6 billion won, the largest single project in Iljin Electric's history.
With the two orders, Iljin Electric will handle the entire route of the underground transmission line project connecting offshore wind farms in the United Kingdom. The project is considered key infrastructure for the British government's push to expand renewable energy and decarbonize its power system.
Earlier this year, Iljin Electric also signed an agreement to join a long-term supply chain partnership with the British utility behind the project. The company said it plans to accelerate efforts to win additional orders in other European countries, having proven its technology in the U.K. power market, which has high barriers to entry.
Beyond Europe, Iljin Electric has been securing large supply contracts around the world. In May, it signed a 108.6 billion won cable supply deal in Singapore, followed by a 62.1 billion won contract in Malaysia in June. In transformers, it won a 120 billion won project in Canada. As of the end of June, Iljin Electric's order backlog stood at $1.93909 billion, or about 2.6467 trillion won, up 19% from the end of last year.
