Anyang, June 3, 2015 - LS Cable & System (LS C&S) announced on the 3rd that it had won a $45 million underground cable contract from Singapore PowerGrid. Through this turn-key contract, which covers everything from cable supply to construction, LS C&S will install the cables in Jurong, the largest petrochemical complex in South-East Asia.
In Singapore, industrialization and urbanization have led to a continuous demand for power cables. In particular, Singapore had been a difficult market for Korean companies to enter due to the fierce price competition as well as quality competition among advanced companies to win contracts for value-added products and power network establishment deploying only extra high voltage cables laid underground rather than hanging from transmission towers.
LS C&S has secured both quality and price competitiveness since 2010 by utilizing its subsidiary LS-VINA Cable & System in Viet Nam so the company has been able to position itself as a key supplier in the Singaporean power cable market with a market share of over 35%.
Unlike general consumer goods, cross-selling is difficult for power cables. This is because the facilities used for manufacturing products and the country in which the products are manufactured serve as important factors in the bidding as product durability, safety and reliability are considered important.
“Singapore PowerGrid, which is conservative and demands high quality, selected our product manufactured in Viet Nam because they have confidence in our quality, which has been demonstrated through numerous projects implemented in the past,” said Heon-Sang Lee, Director of the Global Sales & Marketing Division of LS C&S. “Since its founding in 1996, the Vietnamese subsidiary has achieved technological stabilization through continuous facility investments and technology transfers.”
Located in Hai Phong in northern Viet Nam, LS-VINA Cable & System is the first-ranking cable company in that country recording a market share of 30% based on a stable demand from Electricity of Vietnam. Recently, through cooperation with the head office in Korea, the company has been expanding exports to Southeast Asia, Europe and America.