A Subsidiary Producing Electric Vehicle Parts
LS Cable and System is promoting an initial public offering for LS EV Korea, an electric vehicle (EV) parts subsidiary. The company announced on Dec. 17 that it will apply for a preliminary screening for listing of LS EV Korea on the KOSDAQ market.
LS Cable and System established LS EV Korea in November 2017 by spinning off its EV parts business division, which it fostered as a new growth engine. LS EV Korea plans to attain one trillion won in sales by 2030 by expanding investment with funds raised through the IPO.
LS EV Korea makes core parts that supply electric power or operate and control sensors, and supplies its products to global automakers including BYD, Volkswagen and Volvo, and LG Chem.
LS EV Korea posted 220 billion won in sales last year thanks to the growth of the EV market. Its order backlog now stands at 400 billion won, an indication that it is on a solid growth path.
LS EV Korea is expected to benefit from the rapid growth of the Chinese EV market as it is registered as a primary partner of major Chinese automakers. It is also expected to generate synergies with LS Cable & System's Polish subsidiary (LS EV Poland). LS EV Poland's output is expected to more than triple when additional investments are made to expand its EV parts facilities in the second half of next year. LS EV Korea plans to achieve one trillion won in sales by 2030 by strengthening marketing in China and Europe.
LS Cable & System and a private equity fund own 53 percent and 47 percent of LS EV Korea, respectively.
Meanwhile, LS Cable & System is aggressive in expanding its overseas production bases. In May, it established its first European production base in Poland. Last month, it set up a power cable joint venture in Egypt to increase its competitiveness in the African and Middle East markets. In Indonesia, the company is promoting the construction of a joint venture production plant near Jakarta with Artha Graha Group of Indonesia.
Last year, LS Cable & System Asia, which is in charge of the Southeast Asian market, completed a power cable factory in Yangon, Myanmar. The company already operates a cable plant in Vietnam, where it is the No. 1 player. The company is planning to make a foray into other Southeast Asian countries.
LS Cable & System will have 11 production bases in eight countries around the world including China, the United States, Vietnam, India, Myanmar, and Poland, once its plants are completed in Indonesia and Egypt.