LS Cable Asia Invests 6.8 Billion to Expand 10-Gigabit Communication Cable Facilities in Vietnam

Investment in Vietnamese Subsidiary... "Production Capacity Increased by More Than 15%"

An employee of LSCV, LS Cable Asia's Vietnamese subsidiary, producing cables. (Photo by LS Cable)

[Asia Economy Reporter Moon Chaeseok] LS Cable Asia announced on the 1st that it invested approximately 6.8 billion KRW in its subsidiary Vietnam LSCV to expand LAN cable (UTP) facilities.

The company reduced its aging 1-gigabit (CAT.5e) cable facilities and expanded 10-gigabit (CAT.6A) facilities. The company expects profit margins to improve as it has increased high value-added products.

LS Cable Asia exports more than 80% of its UTP cable production to the Americas. The expansion was carried out in response to customer requests to increase supply. A company official said, "We expect production capacity to increase by more than 15%."

UTP cables are used for short-distance communication network connections in buildings and apartments. Demand from the Americas accounts for about 40% of the global market. There are many favorable factors such as the US government's increased infrastructure investment and informatization progress.

A company official hinted, "Orders from the Americas increased by more than 30% compared to last year," adding, "We plan to expand business with Americas-customized products such as flame-retardant cables."

LS Cable Asia's cumulative sales for the third quarter reached a record high of 624.2 billion KRW. The company explained that the strong exports to the Americas contributed to the improved performance.