LS Cable & System landed a 20 billion won order to supply optical fiber cables for a project to build Italy’s largest ultra-broadband telecommunications network, the company said on Aug. 9.
The deal is the highest-ever value of an overseas optical fiber cable export contract by a Korean company.
The Italian ultra-broadband telecommunications network project calls for OpEn Fiber to build telecom infrastructure for homes in about 40 cities in Italy.
The Korean company participated in a pilot project in 2014. LS Cable & System won the first phase last year and the latest, second phase project in succession.
Europe is emerging as one of the newest business opportunities for LS Cable & System. In April, LS Cable & System set up a sales company in France. The company is studying a plan to build a cable plant in Europe, a company official said.
Company wins four contracts with a combined value of 700 billion won in two months
LS Cable & System, a major affiliate of LS Group, accomplished a milestone when it won four contracts worth a combined 700 billion won in Southeast Asia and the Middle East over the past two months.
LS C&S’s impressive performance is attributable to the recovery of the global economy and the resurgence of emerging economies. The company’s strategies to focus on rising markets in the Middle East and Southeast Asia have paid off.
LS Cable & System signed a 219 billion won contract to supply super-high voltage cables to the Qatar General Electricity and Water Corporation (Kahramaa) on Aug. 1.
The project is the largest-ever super-high voltage subterranean cable line the Qatar government is implementing. It is the highest-ever value of a contract a Korean company has won from the Middle East.
The project is part of the Qatar government’s mega-project to expand its power grid involving the installment of 77 transformation stations and the laying of super-high voltage cables totaling 450 km in length. Qatar’s power consumption is on the rise as the country’s residential areas have been expanding and investments into infrastructure for the hosting of the FIFA World Cup have been made.
LS Cable & System President Myung Roe-hyun said, “LS Cable & System has been recognized for its technology power as it has not only secured most of the cables required in the project, bur also won an order to supply the premium 400kV cables.” The deal calls for LS Cable & System to supply more than 70 percent of the cables required in the project, which cover all segments, including 132V, 22kV, and 400KV segments.
The deal does not represent the first time LS Cable & System has landed a project in Qatar. In 2012, LS Cable & System signed a 500 billion won contract to supply submarine cables to Qatar’s state-run oil company. At that time, the deal was the richest-ever involving Korean companies abroad. In June, LS Cable & System also won a 50 billion won contract for extra-high voltage cables for Bahrain’s state-run power company.
LS Cable & System landed two contracts from Singapore in June and July. In June, LS Cable & System won a contract to export super-voltage subterranean cables worth 370 billion won to Singapore PowerGrid (SPPG). The deal is the largest-ever super-voltage cable export. LS Cable & System emerged as the victor by outbidding cablemakers from Japan, China and other countries. By 2020, Singapore plans to lay subterranean 230kV cables totaling 360 km in length, longer than 360 km, the direct distance between Seoul and Busan.
In July, LS Cable & System also won a 62 billion contract to supply super-high undersea voltage cables for SPPG. This is the first time a Korean cable maker will export extra-high-voltage (E.H.V.) submarine cables to Southeast Asia.
LS Cable & System will connect a 1.5km offshore section between Woodlands New Town in the northern part of Singapore with Johor Baharu, a resort town in the southern part of Malaysia using submarine cables. Singapore and Malaysia are now working together to interconnect their power grids so that they will be better able to handle power loads and prevent failures. This project was initiated to solve the problem of power failure in some sections of the existing submarine cables installed in 1985 as the cables have worn out over the past 30 years.
“In Southeast Asia, there is a continuous demand for submarine cables to connect insular areas. In particular, demand is increasing in line with industrial development in the region,” said Roe-Hyun Myung, President and CEO of LS Cable & System. He emphasized: “Having succeeded in winning the contract by defeating global cablemakers, LS Cable & System secured an advantageous position in the Southeast Asian market following North America, Europe and the Middle East.”