Pushing Forward Overseas
The LS Group plans to expand overseas businesses and explore new business opportunities based on its technological competitiveness and strong human resources. Chairman Goo Jayeol strongly ordered, “Existing domestic businesses have limits for long-term growth. We need to actively penetrate overseas markets and find new business opportunities.”
As a part of this plan, Chairman Goo participated in the economic delegations of President Park Geun-hye to India, Europe, and Central Asia early this year. He met major global business people around the world, and explored cooperative opportunities. He also visited Germany, Brazil, Chile, and the U.S. by himself to pioneer those overseas markets.
First, he visited a German office of Superior Essex, the largest electric wire company in North America that LS acquired in 2008 along with the LS Mtron tractor manufacturing facility in Brazil. He looked around the business fields and encouraged employees there. He also met business partners in global mining and smelting, and established strong cooperative relationships with them during his visit to CESCO Week in Chile.
In addition, he held “LS Partnership Day” in Silicon Valley, and introduced the technologies and capabilities of LS to local investment companies, entrepreneurs, and researchers.
On that day, Chairman Goo said, “The Next Big Challenge of the LS Group is to create and lead a new paradigm in the energy efficiency businesses. I expect to learn about the advanced R&D capabilities and innovation cases of Silicon Valley, and strengthen the future business partnerships through LS Partnership Day.”
Furthermore, as one of the economic delegations of President Park, he induced a strategic business cooperation agreement between the Uzbek Agency of Automobile and River Transport and LS Group for tractor supplies, electricity and communication infrastructure, automobile components, and industrial materials. He achieved very practical advancements for the company during his visit.
In order to accelerate overseas expansions, LS Group is investing US$800 to 900 billion in key facilities and R&D, and diversifying the hiring and training programs of its human resources.
Major affiliate companies of LS Group are also expanding their business ranges in Europe, Africa, Central and South America, and Central Asia, based on their technologies approved in existing markets of the Middle East and Southeast Asia.
LS Cable & System is rapidly targeting emerging markets, including Africa and South America, as well as European markets with its technology and high valued products such as submarine cables, extra high voltage cables, and HVDC. Following France, Denmark, and the Netherlands in 2013, LS C&S has recently won project orders from Italy. The technology of LS C&S is accepted in Europe, the world’s main electricity and power market.
LSIS recorded US$5 billion revenue in Africa for the past three years, after actively targeting the power infrastructure market including smart grids. Moreover, its exports exceeded 40 percent of total revenue by diversifying its exporting countries from Southeast Asia to Europe, America, CIS, Russia, and Japan. On Trade Day last year, LSIS was awarded with a US$5 billion export tower.
LS-Nikko Copper has recently signed an agreement for the construction and operation of a precious metal collection facility, and established a joint company with Codelco, the biggest copper producer in the world, in Santiago, Chile. This will be the foundation to enhance its global competitiveness in smelting and mining businesses worldwide.
LS Mtron concluded a contract to supply 34,000 tractors with Case and New Holland Industrial (CNHI), the number two global agricultural machinery company, last January. LS Mtron also signed a deal to supply 25,000 tractors with ASI of Uzbekistan. A bridgehead for LS Mtron to expand to North America, Europe, and Central Asia has now been established.