LS Cable & System and LS Eco Energy Supply MV-Grade Cables for the First Time
KRW 36.3 Billion Project... Proven Unrelated to 'Chinese Material Controversy'
"Benefiting from De-China Policy... Expecting Record-High Performance"
LS Cable & System and LS Eco Energy will newly supply power cables worth KRW 36.3 billion to the U.S. solar power market. Although concerns were raised that LS Cable & System could be affected due to some cable manufacturers' use of Chinese aluminum, the company is expanding its dominance in the North American power infrastructure market.
On the 6th, LS Cable & System and LS Eco Energy announced that they will supply 35kV-grade aluminum power cables worth USD 25 million for solar power plants to a U.S. solar EPC company. EPC refers to a business model that takes full responsibility for Engineering, Procurement, and Construction during the construction of solar power plants. This is the first time LS Cable & System is supplying MV-grade aluminum power cables to the U.S.
These cables will be used to build power grids for solar power plants across the U.S., including California, New Jersey, and Indiana. They are designed to provide high durability and stable high-voltage transmission performance even under extreme conditions such as high temperatures, heavy rain, and dust, thereby enhancing the reliability of solar power systems. LS Cable & System and LS Eco Energy have made proactive efforts to respond to the continuous growth of the U.S. solar market by developing high-quality aluminum cables and obtaining UL (Underwriters Laboratories) certification, a representative safety standard in the U.S.
This order is expected to highlight LS Cable & System’s competitiveness, coinciding with the Trump administration’s 'de-China' policy. The U.S. Department of Commerce recently imposed high tariffs of around 45% on Chinese cables and has been investigating whether companies from Korea and other countries are attempting to circumvent tariffs by using Chinese materials. LS Cable & System and its affiliates do not use Chinese aluminum in the first place, and the recently controversial 1kV-grade low-voltage cables are not even subject to U.S. exports, so they maintain that this controversy is unrelated to them.
Last year, the companies’ exports of communication (UTP) cables to the U.S. grew by about 15% compared to the previous year, achieving record-high performance. With the expansion of aluminum power cable exports this year, a clear growth trend is expected.
An LS Cable & System official said, "LS Cable & System, LS Eco Energy, and related cable companies such as Gaon Cable do not use Chinese aluminum or copper, considering raw material quality and supply chain stability," adding, "We plan to expand the market not only in solar power but also in various power infrastructure projects."
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