GS Entec to invest $217 mil. in offshore wind turbine substructure business

GS Entec's factory in Ulsan / Courtesy of GS Entec

GS Entec announced Tuesday that it will invest 300 billion won ($217 million) over the next two years to upgrade its plants that manufacture offshore wind turbine substructures.

The refinery and petrochemical plant equipment maker expects the planned investment to enable the production of various sizes and shapes of monopiles (a cylindrical tube of constant diameter and wall thickness) for offshore wind turbines, enhancing its competitiveness in the global market.

The GS Group affiliate emphasized that monopile foundations are more popular among global offshore wind farm operators than other types of substructures, such as tripods, jackets and floating platforms, as it takes shorter periods of time and lower costs to produce them.

Last year, GS Entec signed a contract with Sif of the Netherlands for the exclusive use of technologies held by the world’s leading 커뮤니티 manufacturer of monopiles for offshore wind turbines. The Korean firm began producing monopiles at its Ulsan factory in March.

GS Entec will also supply 64 monopiles worth 200 billion won for the construction of an offshore wind farm in Yeonggwang County, South Jeolla Province, which is scheduled to be finished by September next year.

In addition, the Japanese government’s plan to increase offshore wind power production is considered favorable for GS Entec’s global expansion.

GS Group expects GS Entec to create a synergy effect with the group’s energy affiliates in the offshore wind power industry, playing a role as a catalyst for the conglomerate’s management in relation to environmental, social and corporate governance (ESG) principles.

“We should seek new opportunities aggressively from the climate change and decarbonization trend, which have changed the business environments,” GS Group Chairman Huh Tae-soo said.

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