LS Cable & System (LS C&S) has won a $45 million underground cable contract from Singapore PowerGrid. Through this turn-key contract, which covers everything from cable supply to construction, LS C&S will install the cables in Jurong, the largest petrochemical complex in Southeast Asia.
In Singapore, industrialization and urbanization have led to a continuous demand for power cables. In particular, Singapore had been a difficult market for Korean companies to enter due to the fierce price competition between Chinese and Indian companies; quality competition among advanced companies to win contracts for value-added products; and a power network establishment deploying only extra high voltage cables which are laid underground rather than hanging from transmission towers.
LS C&S has secured both quality and price competitiveness since 2010 by utilizing its subsidiary in Vietnam so the company has been able to position itself as a key supplier in the Singaporean power cable market with a market share of over 35 percent.
Unlike general consumer goods, cross-selling is difficult for power cables. This is because the facilities used for manufacturing products, and the country in which the products are manufactured, serve as important factors in the bidding process, as product durability, safety and reliability are considered important. This is the main reason why Chinese and Indian cable makers are experiencing difficulties entering advanced markets.
“Singapore PowerGrid, which is conservative and demands high quality, selected our product — manufactured in Vietnam — because they have confidence in our quality, which has been demonstrated through numerous projects implemented in the past,” said Heon-Sang Lee, Director of the Global Sales & Marketing Division of LS C&S. “Since its founding in 1996, the Vietnamese subsidiary has achieved technological stabilization through continuous facility investments and technology transfers.”
Located in Haiphong in northern Vietnam, LS-VINA is the first-ranking cable company in that country to record a market share of 30 percent based on a stable demand from electricity in Vietnam. Recently, through cooperation with the head office in Korea, the company has been expanding exports to Southeast Asia, Europe and America.
Power cables are divided into underground, overhead and submarine types. Underground cables are over-66kV (66,000V) extra high voltage cables installed underground in urban centers and have been developed to handle up to 500kV. Compared to overhead cables, underground cables transmit a greater amount of electricity and do not require the expense of transmission towers. However, this type of cable is expensive, and thus is mainly used in urban centers.
LS Cable & System Supplies Components for Eco-Friendly Vehicles to Dongfeng Motor, China
LS Cable & System (LS C&S) has been selected as a tier- supplier of HV harnesses for eco-friendly vehicles of Dongfeng Motor, China’s No. 2 automotive company. Products of LS Cable & System will be produced by its subsidiary located in Wuxi City, Jiangsu Province and incorporated into the E30, one of Dongfeng’s EV models.
LS Cable & System expects that they will be able to supply the components to over 100,000 vehicles by 2020 as the Chinese government presses ahead with its policy to promote eco-friendly vehicles. A harness is a pre-assembled bundle of cables and connectors that supplies the power by connecting electronic control units and communication modules, activating and controlling various sensors. Most electric vehicles use 600V harnesses in comparison with 12V harnesses found in conventional fuel-powered vehicles.
“Our flexibility to actively accommodate Dongfeng’s requirements in custom product development and commitment to quality improvement turned out to be effective in winning the contract,” said Jae-In Yoon, LS Cable & System's Senior Executive Vice President. “We now expect to share in the subsequent vehicle development roadmap to further expand business opportunities and thus make a greater dent in the automotive market of China.”
Dongfeng Motor is a state-run company incorporated in Wuhan City, Hubei Province, in 1969. It is currently valued at $22.9 billion and staffed with 140,000 employees. Dongfeng Motor is bolstering its eco-friendly business initiatives by incorporating an eco-friendly automotive subsidiary to expand its product lineup and by launching an EV taxi service in Wuhan City.
_LS 03.jpg)
