SEOUL, Aug. 10 (Korea Bizwire) — LS Cable & System Ltd., South Korea’s leading wire and cable maker, said Thursday it will invest about 155.5 billion won (US$118 million) over the next two years to expand its submarine cable plant.
The expansion of the factory in Donghae on the east coast is designed to meet fast-growing demand for submarine cables amid rising offshore wind farm projects abroad, the company said.
The planned investment will be made until September 2025.
“Offshore wind farm projects worth billions of dollars have been under way in the global market due to carbon neutrality policies,” LS Cable said. “We will cope with increasing demand by boosting our production capacity.”
In addition, LS Cable said it will push to set up an overseas production base in an effort to preempt the growing global market.
In 2008, LS Cable built a submarine cable plant in Donghae for the first time in South Korea, and the company has so far spent around 700 billion won to expand its production capacity.
In May this year, LS Cable completed a high-voltage direct current (HVDC) cable facility at the Donghae factory, the largest of its kind in Asia and the first in South Korea.
HVDC is more economic than common alternating current for transmitting large amounts of power point-to-point over long distances. At long distances, the HVDC transmission scheme generally has lower losses than a typical transmission link.
LS cable is also pushing to acquire a 45.69 percent stake in KT Submarine Co., a local submarine cable construction company, in an effort to boost its competitive edge.