A regional unit of South Korean cable maker LS Cable and System has invested about 10 billion won ($9.5 million) in its subsidiary in Vietnam to expand copper rod production, the company said Thursday.
The investment by LS C&S Asia will expand the production capacity of its copper rod plant in Vietnam to 100,000 tons a year. LS VINA, a local production unit in the Southeast Asian country, currently manufactures 27,000 tons of copper rod a year. Copper rods are used for electrical or electronic-related devices. A growing interest in electrified vehicles has increased demand for copper wires.
According to LS C&S Asia, demand for copper wires is also high in Vietnam, as the country has expanded investment in infrastructure building amid a growing construction market. The size of the market for copper rods in Vietnam was 200,000 tons last year, with the figure expected to grow to 300,000 tons.
“We will first target the Vietnamese market and then expand product sales to overseas,” said Shin Yong-hyun, head of LS C&S Asia.
The unit covering LS’ business in Southeast Asia was the top cable supplier in Vietnam with 400 billion won of sales and 19.8 billion won in operating profit.
By Cho Chung-un (firstname.lastname@example.org)