LS Cable & Systems announced on June 3rd that it was selected as the preferred supplier by Wester Power to supply electrical cables to Western Australia for five years.
LS Cable & System will supply approximately 60% of the voltage (MV,LV) cable during its order to Western Power in Western Australia until June 2023. The deal came two years after LS Cable established a sales subsidiary in Australia in 2016.
As Australia’s resource development and renewable energy business become more active, demand for power cables is also on the rise, creating fierce competition among global cable companies. The company was able to succeed in this contract by securing both price competitiveness and quality through a Vietnamese production company.
Due to the low profit ratio and high cost of copper, labor and logistics costs account for a large portion of the cable industry. As a result, global cable companies are securing their competitiveness by acquiring local companies or constructing new plants.
“Strategies to strengthen business competitiveness at each base point are responding quickly to changes in global market environments. With this contract, we will actively pursue the Australian market with a market share of less than 5%,” said Myung Noh-hyun, CEO of LS Cable & Systems.
LS Cable & System has recently accelerated its entry into overseas markets, including establishing new subsidiaries and expanding investment in the U.S., Myanmar, France, Poland, and Indonesia.
