Korea’s GS Entec to invest $217 mn in wind power business
Hyeon-woo Oh
Jul 09, 2024 (Gmt+09:00)
Offshore wind turbines (File photo, courtesy of GS Entec) South Korea’s GS Entec Corp. is set to invest 300 billion won ($216.8 million) in facilities to manufacture wind power equipment as it shifts its business focus toward the eco-friendly industry.
The energy equipment manufacturing unit of South Korea’s energy-to-retail conglomerate GS Group on Tuesday unveiled a plan to spend 214 billion won on automatic equipment to produce wind power foundations and 86 billion won on buildings for the business.
“GS Entec’s investment and business shift is in line with GS Group’s new strategy of future growth through digital eco-friendly sectors,” said a GS Group official. “The unit plans to accelerate cooperation with other affiliates such as GS E&R and GS EPS through the new wind power business.”
GS E&R Corp and GS EPS Co. are the group’s power plant operators.
GS Entec, which has been concentrating on manufacturing equipment for refineries and petrochemical plants, is seeking to become a wind power equipment maker. The company raised 90 billion won from Seoul-based private equity firms Dominus Investment Co. and Simone Investment Managers Co. for the shift.
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GS Entec signed a strategic partnership with Sif Netherlands BV, the world’s top producer of monopiles for wind power facilities, to manufacture the steel tube foundation, which serves as a supporting pillar in the water.
A monopile is widely used for offshore wind turbines as they are cheaper and built faster than other foundation equipment.
GS Entec converted one of its plants to a monopile production facility from a petrochemical equipment manufacturing factory through the partnership with Sif. The plant produced its first monopile in March.
The South Korean company, which won a 200 billion won deal to supply 64 monopiles for a 365 GW offshore wind farm under construction in Korea, also plans to make inroads into Japan.
Japan aims to deploy 30-45 gigawatts of offshore wind power capacity by 2040, including floating wind, as part of its target to reach net-zero emissions by 2050.