LS Cable & System (CEO Myung No-hyun) will establish a joint venture in Indonesia to actively target markets for electric wires.
LS Cable & System signed a contract with the Artha Graga Network (AG Group) at the Embassy of Indonesia in Yeouido, Seoul, to establish the joint venture on June 18th.
The event was attended by CEO Myung No-hyun of LS Cable & System, Chairman Panji Winata of AG Group, and Indonesian Ambassador of Korea Umar Hardy.
LS Cable & System will invest a total of 40 million dollars to build a power cable plant at 64,000 sqaure meters near Jakarta in July of this year, and it is scheduled to be completed by 2019. It is expected to make about 100 million dollars in sales in 2025 by producing mid-low-voltage wires used for infrastructure processing, construction, and plant use.
AG Group was established in 1973 and is the 10th largest conglomerate in Indonesia with banking, hotel and construction/resort businesses. Synergy between LS Cable & System’s global cable business capacity and AG Group’s experience in Indonesia business is expected.
Indonesia has not only the largest electric power market in Asia due to its robust power infrastructure and construction business, but it has also grown rapidly by more than 8 percent every year.
“Indonesia has been seeking to enter the past few years as a booming economy. In November of last year, President Moon Jae-in announced the ‘New Southern Policy’ at the Korea-Indonesia Business Forum, and the negotiations came to an end,” said Myung No-hyun CEO of LS Cable & System.
LS Cable & System is continuing to pursue its global strategy to secure competitiveness through local expansion. With the establishment of the Indonesian production corporation, LS Cable & System has become one of the largest companies in the Vietnamese market, with seven manufacturing subsidiaries in Asia including China, India, and Myanmar.
