LS Cable & System said on June 18 that it has won an order worth 112.5 billion won for Kuwait's large new city power grid project. LS Cable will sign a contract with Kuwait Housing and Welfare Agency and establish the first power grid in Al-Mutlaa.
Kuwait is developing nine large new cities, including Al-Mutlaa, to address problems caused by the rapid growth of the population and near-free housing supply to its people.
Al Mutlaa will be created about 1.5 times the size of Bundang in an area about 40 kilometers northwest of Kuwait City, the capital, while LS Cable will be in charge of supplying materials, including 400kV ultra-high-voltage cables, and all construction work.
Kuwait is pushing for various infrastructure development plans worth more than 30 trillion won by 2035. In addition, the average power demand per person is the world's best and is growing at an annual rate of 5 percent, which is considered to have a great potential for growth in the power market.
"The results are even more meaningful as the Middle East has slowed investment in large infrastructure due to low oil prices and strengthened preferential policies for domestic companies," said CEO Myung Roe-hyun of LS Cable & System. "In particular, we are expected to receive additional orders as Kuwait is expected to invest trillions of won in power grid due to development of new cities and expansion of infrastructure."
LS Cable has successfully carried out large ultra-high voltage cable businesses in Kuwait, Saudi Arabia, Qatar, and Bahrain since the early 2000s, and has maintained its No. 1 market share in the Middle East's ultra-high voltage cable.