LS CABLE & SYSTEM
LS Cable & System, a leading Korean wire and cable manufacturer, announced on July 15 that it won a 14.5 billion won (US$13 million) contract to provide 230kV-level extra-high-voltage underground cables and connectors to US-based Southern Maryland Electric Cooperative (SMECO). The cables and connectors will be utilized for the construction of a new power transmission network to cope with the increased power demand in Southern Maryland.
What is notable is that the project involves building extra-high-voltage cables under the Patuxent Riveras that are 1.5 kilometers long. Given that extra-high-voltage underground cables are usually connected in 500m units due to productivity and management problems, this project requires not only the capacity to produce 1.5km worth of 230kV level cables without joints, but also excellent skills and expertise in all areas of the cable business from transportation and installation to the construction of electrical grids. The Korea-based company was reported to be highly rated for its exceptional technical skills and expertise to the extent that last year it was the first Korean industry to win a project for 225kV cables from Electricité de France (FDF) while maintaining its top position in the Middle East extra-high-voltage cable market for several years.
Since the existing electrical grid in the US was built in the 1960s and 1970s, demands to replace an outdated electrical grid and handle increased electricity consumption are on the rise. Moreover, underground cables are now preferred by land owners on account of their low impact on the environment and safety compared to aerial cables, which require electric poles.
In the US, there are approximately 3,500 companies engaged in electricity generation, transmission, and distribution at the moment. As of late 2011, US power generation capacity is 1,072 gigawatts, which makes the nation the world's number 1 in power generation and consumption. The country now focuses on constructing new power grids so that 20% of US electricity demand can be met with renewable energy sources by 2030.
Overseas Energy Sales Division Head Lee Heon-sang said, "This deal is significant in that LS Cable & System won the contract in competition with major cable industries in Europe and Japan based on its excellence in extra-high-voltage cable products and its world-class expertise in successful implementation of projects," adding, "LS Cable & System is planning to conduct an active marketing campaign targeting electricity providers and engineering, procurement, & construction (EPC) companies in each state of the US.”