LS Cable Completes Construction of Korea’s First Subsea Cable Plant

November 19, 2009 – LS Cable said yesterday that it has completed construction of a subsea cable manufacturing plant, the first of its kind in Korea and the fourth in the world, in a bid to crack the market dominated by European companies.

The 180 billion won ($156 million) factory, which is located in Donghae city in eastern Korea, has started to mass produce a 105 kilometer subsea power and communications cable system. It will connect Jeju Island and Jin Island (Jindo in Korean), a 330 billion-won project order it received from the Korea Electric Power Corp. LS Cable will start the installation of the subsea cable in May next year, and complete the installation in late 2011, the company said in a news release.

“Through this project, LS Cable will internalize engineering and construction technology and advance into the global market,” it said.

The global underwater cable market has been for decades dominated by three European firms — Nexance of France, Prysmian of Italy and ABB of Switzerland.

The global submarine cable market was estimated at $1.2 billion last year, and is growing at an annual average of more than 30 percent, LS Cable said.

“Our Donghae factory, Korea’s first submarine cable plant equipped with state-of-the art facilities, will serve as an outpost for LS Cable’s green business and ocean solutions business, and its future growth engine,” John Koo, chairman of LS Cable, said.

LS Cable, the world’s No. 3 cable manufacturing firm, aims to top the global subsea cable market, with sales of 1 trillion won by 2015.