A cable-laying ship sets sail at Donghae port, Gangwon Province, on April 24. (LS Cable)
LS Cable & System is expanding investment and tapping into new markets for undersea cables amid a rapidly growing demand for offshore wind power generation, which requires high-quality subsea cables, as countries began executing policies for carbon neutrality.
Early this year, LS Cable inked a deal worth 350 billion won ($266 million) to supply undersea cables for wind power in North America.
Demand for subsea cables is expected to grow further as US President Joe Biden announced earlier this month that the US would invest $2.3 billion in climate change solutions such as building infrastructure that can withstand extreme weather and natural disasters.
In April, LS Cable secured an undersea cable-laying ship called “GL2030,” becoming one of only five companies in the world that can both manufacture and install undersea cables.
As part of its plans to invest 260 billion won by 2025 in expanding production facilities, LS Cable is building a 172-meter-high power cable production tower at its plant site in Donghae, Gangwon Province.
Once the fourth tower is completed in April next year, LS Cable’s subsea cable production capacity will be increased by more than 50 percent.
Overseas, LS Cable & System Asia is serving as an outpost to tap into Southeast Asian markets.
LS Cable & System Asia is the top cable maker in Vietnam, with a market share of more than 20 percent. The Vietnamese government is seeking to aggressively expand the supply of renewable energy such as wind.
Last year, LS Cable signed a total of $10 million worth of contracts in Vietnam, including one to supply subsea cables for a wind power project in southern Vietnam’ Tan Phu Dong.
“We will explore new markets through our overseas outposts as the subsea cable business is expected to continue growing as the world expands its use of renewable energy,” an official at LS Cable said.
By Kim So-hyun (email@example.com