GANGWON-DO < invest Korea

[Courtesy of LS Cable & System]

According to Pulse by Maeil Business News Korea,

South Korean cable maker LS Cable & System on Monday announced an additional investment plan worth 100 billion won ($73 million) to expand its submarine cable manufacturing facility in Donghae, Gangwon Province.

The company signed an investment agreement with Gangwon Province and Donghae City to construct five new buildings, covering a total floor area of 19,451 square meters, by the second half of 2025.

Once completed, the company’s production capacity for high-voltage direct current (HVDC) submarine cables is expected to increase fourfold. This expansion follows the company’s earlier investment of 155.5 billion won in August 2023 to build the four submarine cable plants.

The company’s HVDC submarine cable orders have already filled its production capacity for the next three years, necessitating a continuous flow of investment for output expansion.

HVDC technology is economically advantageous for transmitting large amounts of electricity over long distances with lower losses compared to alternating current (AC). This makes it increasingly popular for long-distance transmission networks and renewable energy projects such as offshore wind and solar power.

“As the world emphasizes energy security and carbon neutrality as the driving forces for renewable energy expansion, the HVDC market continues to grow, particularly in Europe and the United States. We aim to secure a leading position in the market via Korean and international investments,” an LS Cable & System spokesperson said.

In addition to its expansion in Korea, LS Cable & System is also pushing forward with the construction of a new submarine cable plant in the United States and recently secured an investment tax credit of $99.06 million from the U.S. Department of Energy under the Inflation Reduction Act (IRA). The demand for cables in the United States is soaring due to developments in artificial intelligence, semiconductor production, electric vehicle manufacturing, and upgrades for outdated power grids.

For its part, LS Cable & System subsidiary LS Marine Solution announced a third-party allotment capital increase to raise funds for facility investments on the same day. Industry sources said that LS Marine Solution plans to introduce a large 10,000-ton capacity cable-laying vessel, which is expected to be deployed in LS Cable & System’s offshore wind power projects in the United States.



By Jung You-jung and Minu Kim

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (June 4, 2024)