Tapping into European Market
LS Cable & System said that it has signed a power cable supply contract worth US$20 million (23 billion won) with Energinet, a Danish national transmission system operator for electricity and natural gas, at the LS C&S headquarters in Anyang, Gyeonggi Province, on April 25.
Under the agreement, LS-VINA, LS C&S’ Vietnamese branch, will supply cables to Energinet for three years from 2017 to 2019, with cable joint devices supplied by its plants in Gumi, North Gyeongsang Province. In particular, this is the first time that LS-VINA has tapped into the European extra-high voltage cable market. LS C&S said the latest contract will pave the way for the Vietnamese branch's active expansion into the market.
In addition, LS C&S signed a US$3.5 million (40 billion won) contract with Danish energy company, DONG Energy, in early April to supply power transmission cables. These cables will be used in Hornsea Project One, which is DONG Energy’s project to build the world’s largest offshore wind farm off the Yorkshire coast in the United Kingdom by 2020.
“By 2030, Northern European countries and other major European countries, including the U.K. and Germany, plan to generate 60 percent of power by renewable energy, like wind power,” said Yoon Jae-in, president of business unit at LS C&S. “So, we’re expecting to see an increased demand of power transmission cables as more electrical grids need to be installed.”
In 2008, LS C&S established a sales subsidiary in the U.K. to start its business in Europe. Since then, the company has been raising its profile through various projects all over Europe, such as the Netherlands, France, Italy and Ireland. LS C&S is accelerating the expansion into the market of high value added products, including extra-high voltage cables and submarine cables.