Joint venture with local companies… Targeting the East Africa and Middle East markets
“Responding to economic block, expanding overseas markets through direct investment”
[서울=뉴스핌] Reporter Shim Ji-hye = LS Cable & System announced on the 13th that it has built the first African cable factory in Egypt.
In January 2020, LS Cable & System established a joint venture (LSMC·LS MAN Cable) with’MAN’, a local cable contractor, in the 10th of Ramadan City near Cairo, Egypt. It mainly produces overhead transmission lines installed in steel towers between power plants and substations.
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| [서울=뉴스핌] Reporter Ji-Hye Shim = An employee producing cables at LS Cable’s Egyptian factory (LSMC). [사진=LS전선] 2021.01.13 [email protected] |
LSMC recently signed a cable supply contract with the Egyptian Electric Power Authority to build a power grid for a new city, and began mass production with the completion of the plant.
Roh-Hyun Myung, CEO of LS Cable & System, said, “The export barrier is increasing globally due to regional economic blockages. We are strengthening our competitiveness by investing directly in major countries.”
The Egyptian cable market is growing by an average of more than 5% every year due to new demand due to the construction of a new administrative capital and population growth and replacement demand due to aging of the existing power grid.
An official at LS Cable said, “Egypt and Africa are in high demand for power cables, but export barriers are high due to about 20% tariffs and logistics costs.” I will be able to settle it as soon as possible.”
The company plans to expand the market to East Africa and Middle East countries where Egypt has a free trade agreement (FTA).
With the completion of the Egyptian subsidiary, LS Cable & System will operate a total of 11 overseas production subsidiaries in the US, China, Vietnam, and Poland.