U.S. Demand for Submarine Cables Likely to Increase
LS Cable & System announced on May 12 that it has landed a 66 billion won order for submarine cables from the United States.
The company’s cables will replace old submarine cables installed in Lake Michigan in the 1970s. The project is intended to stabilize power supply in the State of Michigan. It will be completed in 2021.
In the United States, replacement demand will increase steadily in the future as there are many old power grids installed a long time ago.
In addition, the development of offshore wind farms in the United States is also driving the growth of the submarine cable market. The United States is expected to increase the generation of offshore wind power to 86 Gigawatts (GW) per year by 2050, which is enough for over 80 million households.
LS Cable & System entered the U.S. ultra-high-voltage cable market in 2006. It has since been building trust in the market. It carried out its first offshore wind farm project in 2017.
Last year, LS Cable & System signed a contract to supply submarine cables worth 500 billion won in total to Taiwan. More recently, it won orders worth hundreds of billions of won from Europe and the Middle East.