LS Cable & System Ltd., Korea’s leading cable maker, announced on Monday it has secured a contract to install high-voltage cables in Singapore, the biggest deal ever signed by the company.
The project, worth 370 billion won ($326.6 million), amounts to nearly 12 percent of the company’s total revenue last year.
LS Cable said the contract was won on a turnkey basis, meaning the company is responsible for the entire construction from design to completion.
The Singapore government has currently embarked on a large-scale national power grid project to ensure stable energy supply across the city-state. LS Cable beat out rivals from China and Japan.
The 230-kilovolt (kV) cables will be installed 60 meters below ground and cover five sections of Singapore by 2020. The underground cable will be as long as 360 km.
High-voltage cables are cables that run a voltage of up to 66kV, 300 times higher than the standard household voltages of 220V. Currently they have been commercialized up to 550kV. Because of their expensive cost, they are mainly used in transmission substations downtown or near cities. The high entry barrier also makes them a high value-added technology in the cable industry, along with submarine cables.
LS Cable is also making an aggressive foray into the global market. The company is seeking to expand investment in Myanmar via LS Cable Asia, the current leader in Vietnam’s cable market. It has also established a power cable production unit in the U.S. and a communications cable unit in France.
By Moon Ji-woong
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]