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[Alpha Biz=(Chicago) Reporter Kim Jisun] Despite the global economic recession, major wire companies such as LS·Taihan Cable & Solution, which supply submarine cables needed to operate offshore wind power facilities, have performed well as countries around the world implement strategies to foster renewable energy.
Following LS Cable & System, Taihan Cable & Solution has succeeded in developing the world's best ultra-high-pressure direct current transmission (HVDC) wire and is expanding its market share triggered by renewable energy based on its technology.
LS Cable & System continues to expand its investment in new businesses based on its stable order backlog and operating profit, and its business diversification efforts have led to solid performance, with Taihan Electric Wire achieving its best performance in the first half of the year in 20 years.
LS Cable & System is growing in size in response to soaring market demands in line with trillions of won worth of renewable energy-related projects around the world due to carbon-neutral policies.
LS Cable & System's order balance stood at 3.4045 trillion won as of the end of the first quarter, based on continued sales growth and stable operating profit despite the global economic downturn. The figure is up 5.3 percent from the end of last year.
In particular, efforts to enhance the production capacity of submarine cables and diversify businesses in North America and Europe led to performance.
LS Cable & System's large-scale orders for undersea cables in North America, Europe and Asia last year amounted to about 1.2 trillion won.
Recently, it signed a contract with Hanwha Construction to supply underwater cables worth 100 billion won and will cooperate in Korea's largest offshore wind power project scheduled to be completed in 2026.
In response, LS Cable & System decided to expand its submarine cable facility infrastructure by investing an additional 155.5 billion won in Donghae-si, Gangwon-do.
The strategy is to preemptively secure production capacity of KRW 155.5 billion in order to smoothly respond to the surging demand for underwater cables as large-scale offshore wind power projects are in full swing in the global energy market.
LS Cable & System is preparing a follow-up investment following the investment of 150 billion won. Investment in Southeast Asia is likely to dominate the global market.
Recently, the company has strengthened its construction capabilities by acquiring stakes in KT Submarine (KTS), a submarine construction company.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
