South Korea’s leading power cable manufacturer LS Cable & System Ltd. said on Tuesday it has signed a five-year contract to provide power cables to Western Power Corporation, a power supplier owned by the Western Australian Government. The value of the contract was not disclosed.
The contract gives supply priority to the Korean company for about 60 percent of low and mid-voltage cables ordered by Western Power until June 2023.
The massive deal comes two years after LS Cable & System set up a local sales point in Australia in 2016. The company aims to double its market share gradually from the current 5 percent. Cables for Western Power will be produced from LS Cable & System’s plant in Vietnam.
“Competition is fierce among global bidders in Australia, where demand for power cable is rising alongside the expansion of resource development and renewable energy. We were able to win the bid with price and quality advantages from our advanced plant in Vietnam,” said a company spokesman.
LS C&S established LS-VINA Cable & System in Northern Hai Phong City, Vietnam in 1996 for power cable production. In 2006, it established another subsidiary LS Cable & System Vietnam (LSCV) in Southern Ho Chi Minh City, becoming a general cable company producing both power and telecom cables in Southeast Asia. More recently, the company launched new overseas operations in the U.S., Myanmar, France, Poland and Indonesia to increase its global presence.