LS Strengthens Electric Vehicle Parts Business... Will It Become a Cash Cow?

LS EV Korea to be Listed on KOSDAQ by End of Next Month
LS Poland Factory Expansion... Production Capacity Increase

An employee is inspecting parts for electric vehicle batteries at the LS Cable & System factory in Poland.

[Asia Economy Reporter Dongwoo Lee] LS Cable & System is strengthening its electric vehicle (EV) parts business as it announced its 'Vision 2030' to establish itself as a global company this year.

According to industry sources on the 23rd, LS Cable & System will spin off its EV parts division next month and list LS EV Korea on the KOSDAQ. The company supplies wiring harnesses and battery pack components for electric vehicles to global automakers such as Volkswagen, Volvo, BYD, and LG Chem.

LS Cable & System plans to expand investment in facilities and technology using the public offering funds to grow LS EV Korea into a global EV parts specialist. The company showed solid performance, recording sales of 218 billion KRW in 2018. Currently, its order backlog stands at around 400 billion KRW.

In 2009, LS Cable & System developed EV wiring harnesses by applying high-voltage power technology to its existing automotive wire manufacturing technology. Since then, it has secured market leadership mainly in China and expanded related businesses such as EV battery components. LS EV Korea aims to strengthen marketing centered on China and Europe and achieve sales of 1 trillion KRW by 2030.

LS Cable & System is also reportedly planning additional investment to expand the factory of its EV battery parts subsidiary, LS EV Poland, located in Zgorzelec in southwestern Poland. This expansion is intended to double the production capacity to grow the EV battery parts business.

The LS Poland factory was established in 2017 when the company invested 20 billion KRW to purchase a newly built factory on a 26,450㎡ site in the Zgorzelec Special Economic Zone and set up production facilities. Currently, the factory can produce battery parts for 300,000 units annually. The produced parts are supplied to LG Chem’s nearby plant in Wrocław.

Earlier this year, LS Cable & System announced its 2030 vision and declared its leap to become a ‘Global Leader in Cable Solutions.’ The company aims to solidify its position as a global company beyond Asia. Through business model innovation, it plans to grow not just as a cable manufacturer but as a provider of power and communication cable solutions.

Chairman Koo Ja-yeop of LS Cable & System said, "Vision 2030 is the compass that will lead LS Cable & System’s new decade," adding, "For change to succeed, we must thoroughly prepare based on a proactive and autonomous corporate culture."