The Green Business of LS Industrial Systems (LSIS) is receiving attention as the company reaps the rewards of its devotion to green business. The company aims to nurture green business as a solid growth engine by achieving 2.1 trillion won in sales by 2015.
On June 23, LS Industrial Systems (LSIS) agreed to establish a long-term partnership with General Motors, the largest car manufacturer in the United States. Through this, LSIS will supply the core parts of hybrid cars to GM as a direct vendor, the only company to supply electric car parts to GM apart from LG Chemical which supplies secondary cells.
“The conclusion of a long-term partnership with GM is evidence that our technologies are recognized around the world, as this is one of only a few cases of a company working with a start-up vendor,” Koo Ja-kyun, LSIS Vice President said. Using the partnership as a stepping stone, the company intends to double its efforts in order to win more than 1 trillion won worth of orders in the eco-friendly car sector by 2013.
The company is also standing out in the smart grid sector, where information technologies are applied to the electricity industry. The company was chosen for its smart home, electric vehicle charging station and new and renewable energy sectors in the smart grid demonstration complex in Jeju Island last year. More recently, LSIS was selected as the most favored distributor in a bid for in-home displays (IHD), one of the essential parts of the smart grid project. Thus, the company will install IHDs in 7,000 homes, the biggest share out of project involving 20,000 households.
Attempts to tap into overseas markets are also bearing fruit, particularly in Malaysia, which is considered the bridgehead of the Southeast Asian market. The company signed a memorandum of understanding for smart grid and green business cooperation with SentientWave, a systems integrator in Malaysia in December last year. It also signed a MOU for electric vehicle charging infrastructure with German company, Infineon Technologies, a global leader in power semiconductors in February this year.
In the area of green business, LSIS has been already recognized for its technologies. For example, its solar power conditioning unit was certified as the first green technology by the Korean government. Furthermore, the company possesses 15 out of the total 19 certificates issued by the government for green technologies.
Meanwhile, LSIS announced on July 8 that it had enhanced its R&D capability in China by opening a research and development center in Beijing, in addition to the existing one in Shanghai. The company held an opening ceremony for the center at its Beijing office which was attended by many employees, including the Vice President. The Beijing R&D center will be involved in high-voltage gas-insulated switchgear (GIS) and high-voltage direct current (HVDC) transmission systems, making it the only foreign-invested entity with R&D capabilities for electric equipment and systems in China
“In China, electricity demand is rising significantly every year, as is the demand for GIS equipment. Therefore, because HVDC has an advantage in regards to long distance transmission, demand is increasing in large countries in Europe as well as in China. This is why we established a research center devoted to high-voltage related technologies,” a company source said.
“We completed the R&D portfolio for the Chinese market by establishing the Beijing center which is focused on electric systems in addition to the Shanghai center which concentrates on electric equipment. This is an expression of our will to thoroughly customize the production process by reflecting customer needs not only in sales and distribution but in R&D as well,” they added.
Last year, LSIS established its Chinese Headquarters, incorporating sales, production and research functions which had previously been conducted in different divisions in an effort to increase its presence in the nation.
Meanwhile, the company expanded its production capacity by establishing LS Hukai branch last April in addition to existing ones in Dalian and Wuxi. LSIS plans to increase its sales in China to US$ 1,172 million (1.44 trillion won) by 2015 based on its production line-up and its recently-completed R&D portfolio.