LS Cable & System Completes First Factory in Africa... Supplies Cables to Egypt Electricity Authority

An employee is manufacturing cables at LS Cable & System's Egypt factory (LSMC).

[Asia Economy Reporter Kim Hyewon] LS Cable announced on the 13th that it has completed the first cable factory in Africa, located in Egypt.

In January last year, LS Cable established a joint venture, LS Man Cable (LSMC), with the local cable specialist construction company Man (MAN) in the industrial city near Cairo (10th of Ramadan City).

Recently, LSMC signed a cable supply contract with the Egyptian Electricity Authority for the construction of power grids in new cities, and began mass production along with the factory completion. The factory mainly produces overhead transmission lines installed on towers between power plants and substations.

Myung Nohhyun, CEO of LS Cable, said, "Export barriers are rising worldwide due to regional economic bloc formation," adding, "We are strengthening competitiveness by directly investing in key hub countries."

The Egyptian cable market is growing at an average annual rate of over 5%, driven by the construction of the new administrative capital, new demand due to population growth, and replacement demand caused by aging existing power grids.

An LS Cable official stated, "Despite high demand for power cables in Africa including Egypt, export barriers were high due to about 20% tariffs and logistics costs," and added, "By producing locally, we can secure price competitiveness and quickly establish our business by utilizing the partner company's customer network."

LS Cable plans to expand its market to East African and Middle Eastern countries with which Egypt has free trade agreements (FTA).