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The Korea Herald
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THE INVESTOR
July 21, 2024

Industrials

GS Entec commits W300b to offshore wind power business

  • PUBLISHED :July 09, 2024 - 16:26
  • UPDATED :July 09, 2024 - 16:26
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Offshore wind power structures (GS Entec)

GS Group's energy equipment manufacturing arm GS Entec announced Tuesday it plans to invest 300 billion won ($217 million) to transform its offshore wind power structures.

The investment includes 214 billion won for the introduction of automated facilities to produce offshore wind power substructures and 86 billion won for the construction of additional buildings over the next two years.

Established in 1988, GS Entec originally focused on chemical and oil refining plants. Since 2020, aligning with GS Group's eco-friendly future business strategy, the company has been transitioning to become a global operator of offshore wind power substructures. As part of this transformation, it secured 90 billion won from private equity firm Dominus Investment and Simone Investment Managers.

In 2022, GS Entec signed an exclusive technology license agreement with Sif Netherlands BV, the Dutch offshore wind power manufacturer with the largest global market share, to produce monopiles mainly targeting the Asian offshore wind foundations market.

Monopiles, made by welding large steel plates into cylindrical shapes, support offshore wind generators on the seabed. They offer shorter manufacturing periods and lower costs compared to traditional structures such as floating platforms or tripods.

As a result, GS Entec’s Ulsan plant has been converted from a fire machine production site to a monopile production facility through technical collaboration with Sif, producing its first product in March.

The completion of automated monopile production facilities is expected to enable the plant to produce monopiles of various specifications more quickly and accurately, according to GS Entec.

Recently, GS Entec secured a contract to supply 64 monopiles, valued at some 200 billion won, for a wind power project in Yeonggwang, South Jeolla Province, being led by Myeongwoon Industrial Development.

After fulfilling the contract by September next year, GS Entec plans to pursue additional orders to support the expansion of the domestic offshore wind power market. The company also aims to actively target the Japanese market, which plans to expand offshore wind power production to 30 to 45 gigawatts by 2040.

"GS Entec's investment and business transformation are driven by GS Group's strategy of 'future growth through digital eco-friendliness,'" a GS Group official said. "We will enhance cooperation with other affiliates like GS E&R and GS EPS as we enter new offshore wind power ventures."

Sif Netherlands BV’s monopiles (GS Entec)


By Kim Hae-yeon (hykim@heraldcorp.com)

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