■ Increase the production capacity of Medium-Voltage (MV) Cables by 29%, maintaining the largest market share in Vietnam
■ Vietnamese cable market expects more than 10 percent of rapid growth
LS Cable & System Asia Ltd.(CEO Kwon Young-il) made an announcement on July 9, that they will make $3.4 million (4 billion KRW) of additional facility investment for medium voltage cable(hereinafter referred as “MV Cable”) in LS Cable & System Vietnam Co.,Ltd(hereinafter referred as “LSCV”) which is established manufacturing company in Ho Chi Minh City, Vietnam.
With this investment, the annual production capacity of LSCV will be increased by 29% from about $93 million to $120 million. This represents about 48% of entire Vietnamese MV Cable market volume estimated at $250 million per year.
The Company expects more than 10 percent of rapid growth of the power cable market in Vietnam due to underground cable projects in Ho Chi Minh (the center of southern Vietnam) and the urban development nearby.
“The demand for cable in Vietnam is soaring up. Meanwhile the supply could not keep up the demand and that is why we are investing for additional facilities even though it only has been an year we had installed new facility in April, 2018. Current electricity supply rate in Vietnam only reaches 38% and we see there will be continuous necessity to expand production capacity in the future.” said Kown Young-il, the CEO of LS Cable & System Asia Ltd.
LS Cable & System Asia Ltd the No. 1 holding company of Vietnam's two production subsidiaries (LS-VINA, LSCV), and has established a new production subsidiary LSGM in Yangon to pre-empt the Myanmar market in May 2017. LS-VINA, located in Haiphong produces HV, MV power cables and copper rod and LSCV in Ho Chi Minh produces communication cables such as UTP and optical cables, as well as MV power cables. LSGM, located in Yangon prudeces LV power cables and Overhead cables.
LS Cable & System Asia has achieved the highest quarterly sales and profits by attaining sales of 122.3 billion won and operating profit of 6 billion won in the first quarter of 2019.
