LS Cable & System Signs 8-Year Framework Agreement with National Grid
Supplying Submarine and Underground HVDC Cables Worth KRW 40 Trillion
LS Cable & System has secured an opportunity to participate in a project worth approximately KRW 40 trillion by signing a framework agreement to supply high-voltage direct current (HVDC) cables with National Grid, the company overseeing the UK power grid. This contract is expected to accelerate the expansion of its global market presence.
On the 14th, LS Cable & System announced that it had signed an HVDC cable framework agreement with National Grid in the UK. This is a long-term contract to supply products under fixed conditions within a specified period. National Grid is building large-scale transmission infrastructure across mainland UK and the North Sea region and plans to undertake 15 cable supply and installation projects over the next six years. The allocated budget is ?21.3 billion (approximately KRW 40 trillion).
The far right person, Sangdon Lee, Head of LS Cable & System's Europe Division, is signing an HVDC framework agreement with personnel from National Grid UK. Photo by LS Cable & System
This framework agreement was made to pre-select key suppliers and establish long-term cooperation systems before starting individual projects. Six companies worldwide, including LS Cable & System from Europe and Japan, participated, and specific contractual details for each project will be separately concluded in the future.
LS Cable & System will be responsible for supplying and laying submarine and underground HVDC cables, as well as connection works. A representative from LS Cable & System explained, "There are only six companies worldwide, including LS Cable & System, with experience in supplying HVDC cables, and LS Cable & System is the only one in Korea. Since supply is insufficient compared to demand, companies from various countries are proactively securing supply volumes in advance."
Since developing HVDC cable technology for the first time in Korea in 2007, LS Cable & System has successfully completed all domestic HVDC projects, including the Buk-Dangjin-Godeok Phase 1 and 2 projects and the Jeju Phase 2 and 3 interconnection projects. It also has overseas HVDC orders exceeding KRW 3 trillion in countries such as the UK and Germany.
Meanwhile, LS Cable & System will begin construction of a submarine cable factory in Virginia, USA, this April. It is also actively considering expanding into overseas markets such as the UK and Vietnam through LS Eco Energy and LS Marine Solutions.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
