LS Cable & System Extends Investment in US Power Cable Business
LS Cable & System announced that it will take over a power cable plant in North Carolina from its U.S-based subsidiary Superior Essex Inc. (SPSX).
The company plans to spend US$24.6 million (27.5 billion won) in total to establish LS Cable & System U.S.A in Taboro, North Carolina.
SPSX is the world’s No.1 winding wire maker and North America’s No. 1 communication cable maker. The company has 17 factories in seven countries such as the U.S., Germany and Italy and is headquartered in Atlanta, Georgia. It posted US$1.74 billion (1.95 trillion won) in sales last year.
After entering the power cable market in 2012, SPSX completed its power cable plant near existing communication cable plant in Taboro. It produces medium voltage (MV) and low voltage (LV) cables which are generally used in apartments, houses and factories, reporting sales of US$52 million (58.14 billion won) last year. The figure accounts for about 1 percent of the MV and LV cable market in the U.S.
LS Cable & System aims to quadruple its U.S. manufacturing sales to approximately US$200 million (223.6 billion won) by 2021. For this, the company plans to maximize the use of its sales connection with U.S power authorities and expand beyond its east presence towards the west.
LS Cable & System CEO Myung Roe-hyun said, “As LS Cable & System has secured its power cable manufacturing base in the U.S., the company can now brace for the U.S.’ protectionist policies and expect benefits from infrastructure investment expansion at the same time.”
LS Cable & System exported ultra-high voltage cables to the U.S. in 2006 for the first time in the domestic industry. The company currently supplies products to the electricity offices of Colorado and New Jersey and it is the largest producer of premium power cables of more than 345kV in the U.S.