Becoming No.1 Cable Maker through Global Market Strategy

LS Cable & System began to actively enter overseas markets in the early 1990’s and currently operates approximately 100 presences in 24 countries. It has classified overseas markets into different zones, such as Asia, the Middle East, Russia, the US and Europe, and has been carrying out operations specialized for each zone.

Since the beginning of this year, LS Cable & System has consecutively obtained important projects. It has won projects worth 250 billion won in total in Middle Eastern countries, such as Kuwait and Saudi Arabia. It will work actively in the Middle East region, which has a number of new government projects for improving electrical grids.

In addition, LS Cable & System has obtained a 225kV extra-high voltage cable project from Electricite de France (EDF). EDF is the world’s second largest power company, and is also known as the world’s No.1 firm in power technology. Its requirement for the management of quality and projects is so strict that even European firms are reluctant to participate in EDF-announced tenders. According to LS Cable & System, the achievement of obtaining EDF’s project means that its technology has been officially recognized as the world’s leading technology.

In China, LS Cable & System is pursuing localization. With the establishment of LS Hongqi Cable & System (the Chinese subsidiary of LS Cable & System) in 2009, the company has completed a comprehensive business portfolio through its corporation with its existing two subsidiaries in Wuxi and Tianjin, as well as the American electrical coil producer SPSX that it took over in 2008. In addition, LS Cable and System has prepared the foundation to penetrate into a quickly growing Chinese automobile and electric car market by signing a contract to supply high-voltage harnesses (power supply wiring sets) worth 70 billion won to the BYD Daimler New Technology (BDNT), the joint venture between Daimler-Benz and BYD.

Meanwhile, LS Cable & System has advanced into the Indian market after building a plant in India in April 2012, the first in the history of the Korean cable industry. By investing US$35 million, LS Cable & System has completed a power cable plant in Bawal in the state of Haryana. The main products of this plant include 220kV power cables and optical composite ground wires (OPGW). With the completion of this plant, LS Cable & System has become a comprehensive cable manufacturer in India, one equipped with an annual production capacity of power cables worth US$200 million and communications cables worth US$100 million.

Meanwhile, LS Cable & System has proved itself a first mover in the global cable industry by consistently investing in the development of new products and introducing special cables used for cranes, fire-resistant cables, special cables used in the mining industry, pneumatic hybrid-fiber power cables, a magnetic resonance wireless transmission system demonstration model, and broadcasting equipment cables.

In addition, LS Cable & System is solidifying its position in the global market by increasing its market presence in Europe and the Americas through joint marketing with SPSX that has strong manpower and sales network. It will also establish a power line plant in Tarboro, North Carolina and will display its ability as a global cable maker in the U.S. electricity market in 2012.

In order to realize its global market strategy, LS Cable & System has created specialized solution marketing teams for five areas, i.e., power transmission and distribution, wind power, railroad, ships and automobiles.

Based on the achievement of 5.8 trillion won out of total sales of 8.8 trillion won gained abroad last year, the company’s overseas sales are expected to account for more than 70% of its 10 trillion won sales target this year. This result has been achieved seven years after LS Cable & System announced in 2005 that it will become a global player. The company is making strenuous efforts to become the world’s No.1 cable maker in 2015.

LS Cable & System’s trend of sales fluctuations (from 2009 to 2012, unit: trillion won)