[Photo by LS Cable & System Asia Ltd.]
LS Cable & System Asia Ltd. (LS C&S Asia), a subsidiary of Korea’s leading cable maker LS C&S, broke ground for a power cable manufacturing plant in Thilawa Special Economic Zone, east of the capital Yangon in Myanmar, the company said on Tuesday.
The new power cable factory commanding a space of 19,800 square meters on a land of 66,000 square meters will produce overhead wires for power transmission or distribution and low-voltage cables for buildings and houses. The company aims to complete the construction by November next year.
The company expects the new cable factory would help to significantly reduce Myanmar’s heavy reliance on cable imports, which account for more than 50 percent of the country’s total cable demand, and help to lower cable prices in the country, said an official at LS C&S Asia.
The Korean cable manufacturer expects its new Myanmar factory would substantially meet the burgeoning cable demand in line with rapid growth in the construction market. Myanmar’s power cable market is expected to grow at about 10 percent per year.
For its business in Myanmar, LS C&S Asia established a joint venture LS-Gaon Cable Myanmmar (LSGM) with its sibling company Gaon Cable Co. under LS Group in Thilawa Special Economic Zone with an initial investment of $18 million in May.
The Asian operation of LS C&S was listed on Korea’s main Korea Composite Stock Price Index market last year. Its stocks Tuesday closed 2.65 percent up at 6,580 won from the previous session.
By Woo Je-yoon and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]