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[Alpha Biz=(Chicago) Reporter Kim Jisun] LS Cable & System's order for a large-scale ultra-high-pressure cable 'Boreas Project' won in Europe was canceled.
On the 6th, LS announced on the 31st of last month that its contract with LS Cable was terminated after Swedish state-run power company Vattenfall suspended its project to develop Boras, a British North Sea offshore wind power generation project.
According to the announcement, the Boras project originally began this year and aimed to produce the first electricity in 2027, but the contract was arbitrarily terminated due to the unfeasibility of the Vattenfall.
Vattenfall is the largest European power company that operates 10 wind power plants in the UK and signed a contract with LS Cable in October last year to supply high-pressure direct current transmission (HVDC) cables related to the Boreas project.
At that time, the contract was the highest ever won by a domestic wire company in Europe, which is equivalent to 4% of LS Cable's annual sales.
As a result, LS Cable was scheduled to expand into the European market, but Vattenfall recently announced the suspension of the project, citing increased costs due to rising raw material prices and interest rate hikes.
An LS Cable official said, "The contract has been terminated due to the other party's reason," he said. "We have plenty of order backlogs and will not affect other businesses."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
