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LS Cable & System Asia Ltd, Extension of Vietnam Wire Plant 2019-04-16

■ Production of wire materials 3.7x more, largest in Vietnam

■ Reduced production costs, grossly volume production and importation, revenue from sales
■ Highest-ever performance in 2019.Q1 and expected growth due to completion of facility investment

LS Cable & System Asia Ltd (CEO Kwon Young-il) held a ceremony on the 16th to celebrate the expansion of its electric wire material (cubic conductor) plant at LS-VINA Cable & System Joint Stock Co., a production company in Haiphong, Vietnam.
LS Cable Asia invested about 10 billion won and expanded production capacity of wire materials by 3.7 times from 27,000 tons a year to 100,000 tons, the largest in Vietnam. Vietnam's demand for wire materials amounts to about 200,000 tons per year, which translates into half of LS-VINA production.
100,000 tons of copper is enough to manufacture more than 60,000 kilometers of normal building power cables. It is a length that can travel around the earth 1.5 times.
LS-VINA has been importing some wire materials from outside the country as demand for electric wires has increased due to the Vietnamese government's increased investment in power grids and increased demand for foreign investment and construction, and even exports abroad. LS-VINA will consume its own and sell the remainder to wire companies in Vietnam and neighboring countries in the future.
The company expects to reduce production costs by doing its own production on behalf of mass production and imports, and reap profits from outside sales.
"LS Cable Asia expects growth to accelerate by completing investment in wire materials facilities this time, following last year's optical cable, medium voltage (MV) wire and bus ducts," said Kwon Young-il, CEO of LS Cable Asia.
LS-VINA was established in 1997 and is Vietnam's No. 1 cable company that supplies power cables to Vietnam's electricity authorities and construction companies. LS Cable Asia is a holding company of two Vietnamese production companies (LS-VINA and LSCV) and achieved sales of 122.3 billion won and operating profit of 6 billion won in the first quarter of 2019.
About 100 executives and employees, including LS Cable Chairman Koo Cha-yub, LS Cable CEO Myung Roe-hyun and LS Cable Asia CEO Kwon Young-il, attended the ceremony.


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