LS Cable & System will build a submarine cable factory in Donghae city, Gangwon Province of South Korea, on a floor area of 19,451 m2. On completion of the project by 2025, the HVDC cable production capacity of LS Cable will increase by about four times.
Jul 11, 2024
LS Cable & System has signed an investment agreement worth approximately USD 73 million with Donghae City, Gangwon Province, to build a submarine cable factory on a floor area of 19,451 m2.
As per a release issued by LS Cable & System, when factory #5 is completed in the second half of next year, its HVDC cable production capacity will increase by about four times.
This additional investment for expansion was decided on less than a year after the decision in August last year to invest KRW 155.5 billion in submarine cable factory #4. In May 2023, LS Cable & System completed submarine cable factory #4, Korea’s only and Asia’s largest HVDC cable factory.
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Compared to AC, HVDC has the advantage of sending a large amount of current over long distances with low loss, so its use is increasing, especially in long-distance transmission networks. HVDC cables are also used for renewable energy such as offshore wind power and solar power.
“With the increase of renewable energy to achieve global energy security and carbon neutrality, the HVDC market continues to grow, especially in Europe and the United States. We will enter the market early by expanding domestic and foreign investment,” said an official from the company.
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LS Cable & System has recently been making efforts to expand the market through cooperation with its subsidiaries, such as the construction of a U.S. plant, the facility investment by LS Marine Solutions, and the promotion of LS Eco Energy’s business in Europe and Asia.
