LS ELECTRIC Chairman Koo Ja-kyun, appearing from LS Tower in Yongsan, Seoul, holds a certificate of a deal to acquire a 19 percent stake in ChangZhou Kinglong, China’s No. 3 power conversion system (PCS) maker after he signed it with his counters Narada chairman and Kinglong president, (seen in Shanghai operation), during a digital contract signing ceremony.

LS ELECTRIC is tapping the Chinese energy storage system (ESS) market. LS ELECTRIC said it acquired a 19 percent stake in ChangZhou Kinglong, China’s No. 3 power conversion system (PCS) maker, from its parent company Kinglong for 10.52 million yuan (1.8 billion won) on June 30.

The latest deal is part of an agreement on a package of collaboration projects LS ELECTRIC signed with Narada Battery to enter the Chinese ESS market. LS ELECTRIC plans to expand the PCS business in China. The company is taking over a stake in ChangZhou Kinglong, owned by Kinglong.

LS ELECTRIC’s plan to acquire a stake in ChangZhou Kinglong was put on hold due to the spread of COVID-19, but the deal was completed over teleconference among related officials of both sides, an LS ELECTRIC official said.

In accordance with contactless protocols, LS ELECTRIC Chairman Koo Ja-kyun, appearing from LS Tower in Yongsan, Seoul, joined his counterparts, Narada chairman and Kinglong president, in attending a digital contract signing ceremony.

Under the deal, LS ELECTRIC will export PEBBs and core components of PCS to ChangZhou Kinglong, which will assemble FEBBs and Narada batteries into complete ESS products and sell them to China.

Based on advanced power solution technologies that maximize the efficiency and stability of power supply, LS ELECTRIC provides a wide range of electric equipment and systems covering both low voltage and ultra-high voltage capacities.

Combining its expertise in power and automation, LS ELECTRIC has developed an advanced Energy Storage System EnGather.

LS ELECTRIC plans to release power conversion systems with a competitive edge in China.

The company plans to invest an additional 650 million won into a production line and testing equipment on top of its acquisition of a stake in ChangZhou Kinglong, while dispatching Korean technology personnel to China.

LS ELECTRIC plans to secure a foundation to expand its market share by raising the quality competitiveness of PCS on the Chinese market to the level of its counterparts in Korea.

“The latest contract is designed to secure sales channels for market entry in China by producing high-quality PCS products and being combined with Narada’s batteries to comply with demand in China, which is surging,” an LS ELECTRIC said.

LS ELECTRIC plans to raise its market share by maximizing synergetic effects with Narada and ChangZhou Kinglong, while seeking to find direct sales in a long-term perspective, he said.

“We’ve seen hope on the signing of on-line contract even at a time when the implementation of new project is impossible due to the fallout in the global market, caused by the spread of COVID-19,“ the official said.

LS ELECTRIC Advances Payment of 40 Billion won to Cooperative Cos.

LS ELECTRIC practiced shared growth with SMEs by advancing payments to its financially strapped cooperative SMEs grappling with hardships, caused by the spread of COVID-19.

LS ELECTRIC decided to advance payments of goods and services, offered by its cooperative SMEs, worth about 40 billion won to relieve their financial burden.

The company plans to advance the date of settling payments to its cooperative SMEs from April 27 to April 22, five day earlier.

The step was designed to help LS ELECTRIC’s cooperative companies secure their operation fund in a stable fashion and settle raw material and equipment payments and push investment and R&D activities without interruptions.

LS ELECTRIC Tower in Anyang, south of Seoul. (Photos: LS ELECTRIC)