LS Cable & System has inked a five-year contract with Danish energy firm Orsted to supply high-voltage export cables for offshore wind farms.
A press release said that the exact size of the deal is unknown, but media reports estimated that it could be worth hundreds of millions of dollars. LS Cable & System has participated in multiple offshore wind projects with Orsted. It previously supplied cables to the world’s largest offshore wind farm, Hornsea One and Two, in England, and it will supply subsea cables for the Greater Changhua 1 & 2a offshore wind farms in Taiwan.
Orsted is set to build a 1.6-GW offshore wind farm project in the waters off Incheon, South Korea, which Orsted Asia-Pacific President Matthias Bausenwein said would offer massive opportunities for local suppliers. The offshore wind farm will be installed with 100-140 wind turbines and be able to generate electricity for 1.3 million households annually. The project supports Korea’s Green New Deal initiative, which aims to put up 12 GW of offshore wind power capacity by 2030.
“The trend of investing in renewable energy will continue, even during the current Covid-19 situation,” said Myung Roe-hyun, president and CEO of LS Cable & System. “We are delighted to continue this cooperation with the leading company in offshore wind energy.”
LS Cable & System (LS C&S) has won a government contract that was valued at approximately $82 million to supply both low-voltage and high-voltage power cable to Singapore.
A press release said that LS C&S will supply 400 km of cable though to 2021.The orders were from the Singaporean government, which has been replacing aged cables since 2017. LS C&S noted that has a strong foothold in Singapore, obtaining the biggest market share there. Raising transparency in operation and management of its business there, and active technological support for the past several years, led to winning the deal, it said.
“To overcome the global economic slowdown and the limited domestic demand, we have established a strong foothold overseas as a global company,” LS C&S President and CEO Myung Roe-hyun said. “This deal is a valuable achievement based on past efforts at a difficult time due to the Covid-19 crisis.”
In other news, LS C&S reported that it has begun to ship submarine cable for Taiwan’s offshore wind farms. Last year, it won an order to supply the high-voltage cable for the first offshore wind farm project being built in Taiwan. Some 70 km of cables will need to be installed for the site, which is located off the coast of Yunlin Xian in the west of Taiwan.
LS Cable & System President & CEO Myung Roe-Hyun announced that the company has opened a new cable plant in Poland, its first production base in Europe.
A press release said that the plant is the first such one for a South Korean company in Europe, “the home of cable.” The plant produces parts for electric vehicle batteries and optical cables for communication. More than 100 people, including Cha-Yup Koo, chairman of LS Cable & System; Roe-Hyun; Lee Dong-Wook, CEO of LS C & S Poland; Dariusz Kucharski, mayor of Dzierzoniow; and Mira Sun, Korean ambassador to Poland, attended the ribbon-cutting ceremony.
“LS C & S is pushing ahead with its localization and regional base strategy,” Roe-Hyun said. “The Polish plant will serve as the key base for advancing into Europe, and transform the company into a total cable company by adding the power cable business.”
The release said that Poland has very roads and power grids, and the Polish government is known to fully support investment of foreign capital with various tax incentives. Also, the company said that the nation’s geographic location is favorable to export to other European countries and its excellent workforce availability are important reasons for selecting Poland.
LS C & S established a subsidiary that produces parts for electric vehicle batteries (LSEVP) in Poland in November 2017. LSEVP can produce parts for 300,000 electric vehicles annually, and is planning to increase supplies to European automakers starting with LG Chem in nearby Wroclaw at the end of this year.
LS C & S established its optical cable production subsidiary (LSCP) next to its LSEVP plant in February 2018 as the European optical cable market has grown rapidly. It is the third optical cable plant of LS C & S, following the plants it built in Gumi, Korea and Ho Chi Minh, Vietnam.
LSCP began production last April and has proven that it can produce three million fiber km a year—about 7% of the European market—and has since been supplying its products to key European carriers in Italy, France, etc. With the completion of the Polish plant, LS C & S now has a total of 19 business sites at home and abroad, including nine overseas in Vietnam, China and the U.S.
Radix Wire has been acquired by High Road Capital, a U.S. private equity fund that has completed 44 such investments in companies based in the U.S. and Canada.
A press release said that the company, which manufactures high-temperature and fire-resistant wire and cable, will now be called Radix Wire & Cable (RWC). Founded in 1944, the company’s brands include Sil-A-Blend®, DuraBlend®, DuraFlex® and the first 550°C UL-listed wire.
South Korea’s LS Cable & System (LSCS) reports that it will join a project in Oman being financed by the Asian Infrastructure Investment Bank (AIIB).
A press release said that the project, to build a broadband communications network in Oman, is led by its government and state-run mobile operator Oman BroadBand. This marks the first time that the broadband project is being carried out at a national level.
The release said that by 2021, the first stage of the project, worth approximately $178 million, will be completed in key cities, including Muscat, the capital and largest city of Oman. By 2030, the network will be expanded to other cities in the second stage of the project.
Per an AIIB report, the project will roll out a fiber optic network to more than 400,000 homes/premises by the end of 2021. The first phase calls for some 4,100 km of fiber optic cables and some 9,500 km of drop cables. When completed, 80% of Muscat will be fiber-ready for connection with the gigabit-capable optical networks. “The project will improve Oman’s infrastructure in the information and communication technology sector, thereby increasing the attractiveness of Oman as a destination for manufacturing business and strategic logistics services,” it said.
LSCS will lead the design of the communications network, the engineering and supplying fiber optic cables, the release said. It noted that LCSC has carried out large projects near Qatar in the Middle East, with support from related organizations, including bodies such as KOTRA, a South Korean trade organization, and the Korea Information & Communication Contractors Association.
LS Cable & System (LS Cable) has signed a contract with the Bahrain Electricity and Water Authority for an extra-high voltage (EHV) cable project that it valued at
A press release said that the project requires 400 kV EHV cable for a new electrical grid in Bahrain that is part of the government’s efforts to industrialize and urbanize the nation. LS Cable will also be in charge of engineering works involving electricity and civil engineering.
LS Cable notes in the release that it has the largest market share in the Middle East—mainly in Bahrain, Qatar and Kuwait—in terms of extra-high voltage submarine and underground cables. The Middle East is an important market as it accounts for around 20% of the global demand for extra-high voltage cables, it said, adding that infrastructure investment has largely been delayed in recent years due to low oil prices.
“As Bahrain has recently discovered a submarine oil field worth 80 billion barrels and the government is making efforts for industrial development at a national level, we expect to gain more contracts based on this project,” said LS Cable CEO Roe-Hyun Myung.
LS Cable & System reports that the South Korean company has received certification for its high voltage direct current (HVDC) cable
A press release said that LS Cable & System completed a long-term reliability test of its 500 kV DC cable, monitored by the Korea Electrotechnology Research Institute for six months from last October. The institute ultimately recognized the quality of the HVDC cable technology, LS Cable & Systems can now export the product without any other tests, it said.
Including LS Cable & System, there are only five companies that have their own HVDC cable technology. The company began developing the technology in 2005 and won a contract for the country’s first project to construct an HVDC electric power transmission system overland between North Dangjin and Godeok.
Compared with the traditional alternating current (AC) system, HVDC is regarded as more economical in transmitting large amounts of power point-to-point over long distances. HVDC transmission also has lower overall investment costs and lower power losses than AC transmission.
According to the Ministry of Trade, Industry and Energy, the accumulative market size of the HVDC business will be 70 trillion won by 2020. The release said that with the technology and knowhow the company has accumulated, LS Cable & System witnessed its revenue climb 13% year-over-year to 3.5 trillion won ($3.25 billion) last year. The operating profit also jumped 33% to 111.3 billion won in the cited period.
LS Cable & System is expected to play a bigger role in the near future as the South Korean government recently began to pursue a new northern policy to build a new economic belt with North Korea, the release said. It noted that while South Korea and North Korea have different voltage and current frequency, the company said the HVDC technology can transmit and receive power between them.
LS Cable & System is advancing its presence in the Indonesian cable market by setting up a joint corporation with the AG Group, which has a wide multi-sector presence in the country.
A press release said that LS signed an agreement with AG Group to jointly invest $40 million in the construction of cable plants near Jakarta with the aim of completion by 2019. The plants are expected to produce overhead cables for infrastructure and low and medium voltage cables used for construction and plants, generating around $100 million by 2025, LS said.
LS Cable & System CEO Myung said the discussion with AG Group received “a boost” after President Moon Jae-in announced the New Southern Policy during a business forum with Indonesia last November.
The AG Group was described as one of Indonesia’s top 10 companies, active in banking, hotels, construction and resorts.