LS Cable & System have applied for a screening to go public with plans to list on the KOSDAQ.
LS EV Korea was established by spinning off the EV component division of LS C&S in November 2017 after being fostered as a new growth engine.
LS EV Korea provides harnesses and battery packs for electric cars and ESS components, etc. to auto companies including BYD, Volkswagen and Volvo, as well as LG Chem and others. They are core components that supply power, operate systems and control sensors of electric cars.
LS EV Korea’s 2018 sales of KRW 220 billion were driven by the growth of the electric vehicle market that is accelerating with a backlog of orders that are nearly twice 2018’s volume at KRW400 billion.
President & CEO Roe-hyun Myung of LS C&S said, “The plan is to foster LS EV Korea as a global electric vehicle component supplier by expanding investments in facilities and technology through funds secured by going public.”
High voltage of 600V flows in electric cars, which is more than 50 times higher than that of conventionally powered cars. LS C&S has applied high voltage electric technology to existing cable production technology in 2009 to develop harnesses for electric cars. Ever since then, the company has secured market leadership by focusing on key regions in China and expanding its business including the electric car battery business.
LS EV Korea now plans to reinforce its marketing activities in China and Europe to achieve KRW1 trillion in sales by 2030.
LS EV Korea expects to receive benefits from the rapid growth of the Chinese electric vehicle market by being registered as a primary supplier, and fully expects to create synergies with LS C&S Poland subsidiary, LS EV Poland. After additional investment in facilities is completed in the second half of next year, the production capacity of LS EV Poland will increase by more than three times.
LS C&S owns 53% of LS EV Korea while private equity funds own the remaining 47%. The underwriter for the listing will be Korea Investment & Securities Co. Ltd.
Image source: LS C&S
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