Establishment of joint venture and cable supply contract with local power office
A total of 11 overseas production subsidiaries…Expanding East Africa and Middle East markets
[에너지신문] LS Cable & System announced on the 13th that it has completed Africa’s first cable plant in Egypt.
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 in January of last year. LSMC mainly produces overhead transmission lines installed in steel towers between power plants and substations.
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 due to regional economic blockages worldwide.
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.” We will be able to settle it as soon as possible.”
LS Cable & System, which plans to expand its market to East Africa and Middle East countries where Egypt has a free trade agreement (FTA), will operate a total of 11 overseas production subsidiaries in the United States, China, Vietnam, and Poland with the completion of the Egyptian subsidiary. done.
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