LS C&S Asia is investing approximately KRW 6.8 billion in its subsidiary LSCV, located in Ho Chi Minh City, Vietnam, and the completion of its LAN cable (UTP) facility expansion.
The company expects improved performances, such as increased sales from the resulting increase in production output.
LS C&S Asia exports over 80% of its UTP cable output to the Americas. The present expansion came at clients’ request for increased supply, and the company projects its production capacity will increase by at least 15%.
An improved profit ratio is also expected following the expansion of high-value-added products. This investment was focused on reducing the company’s one-gigabit cable (CAT.5e) facilities, which are seeing declining orders, and expanding its 10-gigabit (CAT.6A) cable facilities.
UTP cables are used in connections for short-distance communication networks within buildings such as skyscrapers and apartments. The Americas account for more than 40% of the global demand for UTP cables. The market is continuing to grow due to increased infrastructure investments and a digitisation plan by the US government.
A company affiliate stated, “Our orders from the Americas have increased by more than 30% compared to last year,” and added, “We are planning to expand our business with products tailored to the Americas, such as highly fire-resistant cables.”
LS C&S Asia recorded its highest total sales in the third quarter, with KRW 624.2 billion. The company explained this feat as the result of improved performance due to the favourable events taking place for the company, such as exporting to the Americas.
Image source: Courtesy of LS Cable & System
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