Last Year's Sales 1.5 Trillion, Next Year's Target 2.5 Trillion
"Securing New Growth Engines with Ultra-High Voltage and Submarine Cables"
Gaon Cable announced on the 19th that it has secured 100% ownership of LSCUS, a distribution cable manufacturing corporation in Tarboro, North Carolina, USA. The company plans to strengthen its growth engine by enhancing localization capabilities in the US and actively responding to the increasing global demand for power infrastructure.
LSCUS, a power cable manufacturing corporation in Tabor City, North Carolina, USA. Provided by Gaon Cable
LSCUS is a joint venture in which LS Cable and Gaon Cable have held 82% and 18% stakes, respectively. On the same day, Gaon Cable's board of directors approved the agenda of "third-party allotment paid-in capital increase and acquisition of LSCUS shares," and resolved to acquire LS Cable's 82% stake through a contribution in kind.
Gaon Cable is the first cable company established in 1947 with purely domestic capital. It recorded sales of 1.4986 trillion KRW last year. The sales target for next year is 2.5 trillion KRW. The company plans to achieve this goal by expanding the North American market and diversifying its business portfolio.
It is conducting business centered on the renewable energy market, such as solar power plants in the US. The company plans to expand its business into the power authority's power grid and plant sectors. Gaon Cable views this equity acquisition as an important foothold to expand its business and strengthen localization strategies in the US market.
Additionally, Gaon Cable plans to strengthen its ultra-high voltage cable business and newly enter the submarine cable market based on the technology and cooperation of its parent company, LS Cable.
Jung Hyun, CEO of Gaon Cable, said, "We will enhance competitiveness through product development tailored to local demand and a stable supply chain," adding, "We plan to use this acquisition as an important stepping stone for global market entry and accelerate overseas business expansion centered on North America."
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