Lee Representative "Continuing Growth Without Chasm"
Expanding Vietnam and Europe Submarine Cable Projects
Lee Sang-ho, CEO of LS Eco Energy, stated on the 30th that "there will be a sustained large-scale electricity demand globally for more than the next 15 years," and announced plans to increase sales by 2.5 times by 2030. He mentioned that sustainable growth is possible as the demand for power infrastructure is rapidly increasing due to the widespread adoption of artificial intelligence (AI).
Sang-ho Lee, CEO of LS Eco Energy, is speaking at the 'LS Eco Energy Value-Up Day' event held on the 30th at the FKI Tower in Yeouido, Yeongdeungpo-gu, Seoul. [Photo by Chae-seok Moon]
Lee made these remarks at the 'LS Eco Energy Value-Up Day' event held at the FKI Tower in Yeouido, Yeongdeungpo-gu, Seoul, on the morning of the same day.
LS Eco Energy plans to expand its power and telecommunications cable business while fostering the rare earth permanent magnet business as a new growth engine. Through this, the company aims to increase its annual sales from 700 billion KRW last year to 1.8 trillion KRW by 2030, a 2.5-fold increase. Specifically, it plans to secure 200 billion KRW in rare earth sales by 2030, 1 trillion KRW from existing businesses such as cables, and about 600 billion KRW from the submarine cable factory.
Han Seung-jin, Head of Management Support at LS Eco Energy, said, "Future sales may vary depending on the scale of investment in the submarine cable factory," adding, "If the pace of 'undergrounding' work, which involves burying cables underground in Vietnam, accelerates, sales could increase further."
Currently, LS Eco Energy is the number one cable company in Vietnam. Recently, the proportion of business outside Vietnam has also increased, with 30% of sales recorded in North America and Europe. Additionally, LS Eco Energy is reviewing submarine cable projects in Europe and Vietnam.
Lee Sang-ho, CEO of LS Eco Energy (right), and Han Seung-jin, Head of Management Support Division, are speaking at the 'LS Eco Energy Value-Up Day' event held on the 30th at the FKI Tower in Yeouido, Yeongdeungpo-gu, Seoul. [Photo by Moon Chae-seok]
The company is also considering the construction of a rare earth factory in Vietnam and equity investment in LS Eco Advanced Cable, a joint venture established with the UK-based Global Interconnection Group (GIG). LS Eco Advanced Cable is planning to establish a high-voltage direct current (HVDC) cable factory.
Lee said, "All three projects?establishing submarine cables in Europe and Vietnam, equity investment in the UK joint venture, and starting the rare earth factory in Vietnam?will be pursued within this year."
The significance of LS Eco Energy within the LS Group is also growing. LS Eco Energy is the first overseas high-voltage cable production base for LS Cable & System, a major affiliate of LS Group. The company plans to create synergy between LS Cable & System’s research and development (R&D) and technological capabilities and LS Eco Energy’s raw material procurement and cost competitiveness in Vietnam. In fact, LS Eco Energy, together with LS Cable & System, has built a rare earth metal factory and established a supply chain system capable of producing permanent magnets. It also secured a large-scale rare earth oxide supply in Vietnam, a first in the domestic industry.
Lee emphasized, "We will expand the cable business while simultaneously promoting the rare earth permanent magnet business," adding, "We will continue growth without a chasm (temporary demand stagnation)."
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