LS

■ Power industry accelerates growth aided by economic growth in Vietnam

 On October 16, LS Cable & System Asia (CEO Young-il Kwon) officially announced that in Q3 it recorded KRW137.2 billion in sales and KRW6.4 billion in operating profit, a 15% and 54% YoY increase respectively.  

 Total sales and operating profit as of Q3 increased 21% and 44% respectively, recording KRW394.5 billion and KRW19 billion. These figures are the highest in the entire history of the company. Operating profits for the past three quarters have already surpassed KRW18 billion, the annual figure for 2018.

 LS C & S Asia is the holding company of two production subsidiaries in Vietnam (LS-VINA, LSCV) and one in Myanmar (LSGM). LS-VINA manufactures power cables, such as HV (high voltage) and MV (middle voltage), and wire materials. LSCV produces communication cables such as UTP and optical cables, and MV power cables. LSGM produces LV (low voltage) power cables and overhead wires.

 A member of the company said that the sales increase was led by sales of power products for construction use, such as MV cables and bus ducts, for which investments were made last year. He explained that “a high factory operation rate has been maintained” as the demand for power products continues to grow, following the building of new power plants, and construction of new cities due to rapid industrialization.

 In the first half of this year, production capacity of wire materials was expanded to 100,000 tons, which is four times larger than previously. This is one of the main factors for growth. Furthermore, export of communication cables to Europe is also showing an increase.

 A company official explained, “Vietnam will continue to invest in power infrastructure as power shortages are forecast until about 2021.” According to their forecast, “When the second extension of the MV equipment in the LSCV plant is completed early next year, LSCV’s electric power supply capacity will increase by more than 30%, and total sales will also increase.”