A view of loading undersea cables produced by LS Cable & Systems.

LS Cable & System (LS C&S) has secured growth foothold by landing the largest-ever order from the European electric cable market.

LS C&S has signed two contracts with TenneT, the Dutch electricity transmission system operator, for the supply of submarine cables worth 100.7 million euros in a consortium with marine construction company Jan De Nul Group.

LS C&S has laid the foundation for market expansion by winning two large contracts in Europe, the home of cables.

LS C&S said that the bidding was conducted according to a comprehensive evaluation method that evaluated technical capabilities, quality of business operations in combination with pricing.

The evaluation of the bid shows that the winning consortium has the most economically advantageous proposal.

The Netherlands is in the process of constructing offshore wind farms with a total capacity of more than 11 gigawatts by 2030, with the final aim to achieve 100 percent renewable energy supply by 2050.

As part of these contracts with TenneT, LS C&S is supplying 210km of submarine cables to two offshore wind farm areas with a total capacity of 1.4GW in the Dutch coastal waters by 2023.

Two contracts worth 100.7 million euros have been signed for the supply of submarine cables since LS C&S’ introduction to the UK market in 2012.

The company also supplied submarine power cables for renewable projects in Denmark (2013), the Netherlands (2013) and Belgium (2016).

The company expects that the European submarine cable market will be worth billions of euros over the next 5 years. LS C&S is planning to build on this major project and to do everything in its power to win more contracts for submarine cable projects in Western Europe including The Netherlands.

Submarine cables are considered to be the gem of cables since they are made with advanced technologies to ensure extreme environmental conditions.

A view of LS C&S’s undersea cable plant. (Photos: LS C&S)

The global undersea cable market has a tendency of growth since submarine cables are used to supply electricity produced from offshore wind power farms in compliance with global eco-friendly trends and preserve the environment ecosystem of islands.

Korean cable industry sources said the size of the global undersea cable market is predicted to grow from 5 trillion won in 2016 to 7.17 trillion won this year with an annual average rate of 5.9 percent.

LS C&S President Myung Roe-hyun said the European undersea cable market is the world’s largest one on the back of the development of off-shore wind power farms, being implemented in earnest with policies of expanding new and renewable energies.

LS C&S plans to inaugurate a European regional headquarters this year to accelerate efforts to explore the European markets, he added.

In January, LS C&S unveiled “2020 Global Vision,” a call for the company to become a global cable solution leader.
The company devotes itself to pursuing balanced growth across the world, departing from the conventional business structure in which revenues in Asian and the Middle East contribute to 90 percent of its total sales.

LS C&S aims to rise to an electricity & telecom cable solution provider, a departure from the simple cable maker. To this end, LS C&S plans to expand investments with a focus on Europe, Americas, Africa and Central and South America by 2030.

The cable maker plans to increase the number of overseas centers such as production and marketing operations from 23 to 40.

In April, LS C&S dedicated a second underseas cable plant in Donghae City, Gangwon-do, raising its production capacity 2.5-fold.

With the dedication of the plant, LS C&S ranked 4th in the world in terms of production about 10 years after it ventured into the submarine cable market.