SEOUL, KOREA - LS Hongqi Cable & System, a subsidiary of LS Cable & System, installed a 500kV level extra-high voltage cable production facility and held a completion ceremony on the 5th with around 300 guests including Gwang-seop Han, the Ambassador of Korean embassy in Wuhan, Christopher Koo, Chairman & CEO of LS Cable & System, President Jae-un Koo, LS Hongqi Cable & System Branch Manager Seong-uk Kim and employees of important customers as well as Chinese government officials, such as Hubei Province Vice governor Xu ke zhen, and Yichang City Mayor Li Le Cheng.
VCV (vertical continuous vulcanizing, see Glossary) Tower built by LS Hongqi Cable & System measures 130m in height with a total of 17 floors (16 ground floors and one underground floor) and has a capacity to produce 1,500km of extra-high voltage cables to a scale of $240 million a year (equivalent to approx. KRW 260 billion).
VCV line to manufacture 500kV cables is installed on 1st through 16th floors and CCV (catenary continuous vulcanizing) line for 220kV products are located on 1st through 5th floors, enabling active and prompt production to satisfy customers’ requirements. In addition, the fully automatic and computerized system allows for efficient production.
The extra-high voltage production facility holds a great significance for LS Cable & System. By securing a base in China following completion of cable production facilities in India and the U.S. in April and October this year respectively, LS Cable & System has secured production bases in the U.S., a matured market where power network replacement is taking place, India of infinite potentials in terms of power and communications network implementation in the future and China, the fastest growing market.
Rather than to simply improve price competitiveness, LS Cable & System established these production bases as part of its mid to long-term strategy to lead power cable markets in each country by introducing products strictly customized to the local market. Far more than just installing new production facilities, LS Cable & System, according to a company insider, has established a foundation to advance to become a global leading cable maker.
In addition, LS Cable & System has climbed to an advantageous position to join the ‘3-vertical, 3-horizontal and 1-circular’ extra-high voltage power network project to be implemented by 2015 in North China, East China and Central China by State Grid Corporation of China with an investment of USD 43 billion (equivalent to approx. KRW 47 trillion).
“With the production facility implementation, LS Cable & System’s preparations to lead the global cable market in the next 50 years have been wrapped up,” said LS Cable & System Chairman Christopher Koo. “LS Cable & System will become a global No.1 cable maker with our technological power, marketing and business expertise of our overseas subsidiaries and our products customized to local markets.”
