According to the latest announcement, Far East Smarter Energy Co.Ltd(600869) held the 25th meeting of the ninth board of directors on February 18, deliberated and adopted the proposal on investing in the construction of high-end marine submarine cable equipment industrial base. Next, the company plans to invest in the construction of high-end marine submarine cable equipment industrial base in Rudong Yangkou Port Economic Development Zone, Nantong City, Jiangsu Province, with a total investment of about 3 billion yuan. The company said that this investment is not only a positive response to the national marine strategy, but also the implementation of the policy of the action plan for carbon peak before 2030, seize opportunities, give full play to advantages, further strengthen the intelligent cable network industry, and help the national marine economic development and the offshore wind power development of coastal provinces.
According to the announcement, the overall construction period of the project is about 24 months, which is implemented in two phases; The investment of phase I is about 2 billion yuan, which will be put into production in about 18 months, with an annual output of 2000 kilometers of various photoelectric composite submarine cables and land cables; The second phase will invest about 1 billion yuan to build 6000 kilometers of various submarine optical cables, 27000 sets of various cable accessories and engineering services.
Under the dual carbon pattern, the world, including China, will accelerate the transformation to clean energy / new energy. In particular, offshore wind power has the characteristics of rich resources, strong local consumption capacity of coastal resources, high hours of power generation capacity, no land occupation and suitable for large-scale development. Superimposed offshore wind power has strong cost reduction potential in the future, That is, at present, China’s offshore wind turbine enterprises are committed to developing large megawatt units, which will have a huge cost reduction effect. The gradual accumulation of market and technology will promote a new round of high growth of offshore wind power. It is expected that the new installed capacity of offshore wind power will reach 18gw by 2025, and the average annual compound growth rate will reach 24.5% during the 14th Five Year Plan period.
The rapid development of offshore wind power promotes the rapid development of submarine cable industry. It is expected that China’s submarine cable market will increase from 6 billion yuan in 2020 to 25.4 billion yuan in 2025, with an average annual compound growth rate of 33%, forming a huge industrial space. Moreover, the barrier of submarine cable industry is high, and there is a high investment threshold for geographical location, technical reserve and capital investment. In this regard, Far East Smarter Energy Co.Ltd(600869) has been preparing since 2013, and has many submarine cable technical capabilities, such as ± 200kV flexible DC, ± 320kv flexible DC, 35kV / 66kV photoelectric composite submarine cable and soft joint. In the future, Far East Smarter Energy Co.Ltd(600869) will give full play to its advantages in brand, customer and technology, develop rapidly in the field of marine submarine cable, further enhance its core competitiveness and profitability, and develop continuously in the industry.
