LS Group Steps on the Gas to Expand
Presence in China and Beyond
Dedicates the LS Industrial Complex in Wuxi City, Jiangsu Province
LS Group is accelerating its global management strategy by seizing Wuxi, Jiangsu Province, China as a bridgehead for its foray into the Chinese market.
LS Group Chairman John Koo said during a ceremony, "The dedication of the industrial complex in Wuxi is the starting point of LS Group's global management strategy, and Wuxi will serve as a bridgehead for its foray into the Chinese and global markets."The Koos with the LS Group, spun off from the LG Group, go together at the Chinese city to dedicate the LS Industrial Complex. The participants included John Koo, LS Cable chairman, Christopher Koo, LS Cable vice chairman & CEO, to declare what LS Group calls a global management strategy.
LS Cable aims to raise its sales target from its current $80 million to $800 million by the year 2009, while LS Industrial Systems sets its sights on taking a "second take-off" as the industrial complex allows the company to supply comprehensive solutions ranging from electric power devices to power systems.
In February last year, LS Cable signed an investment agreement with Wuxi to lease a 100,000-pyeong plot in the Wuxi High Technology Development District for 50 years. Under the deal, LS Cable, LS Machinery and LS Industrial Systems have moved into the industrial complex.
LS Cable, furnished with the latest equipment like silicone extruding molding machines and drawing machines, supplies automotive wires and machinery wires to such global automakers as GM, Ford, Nissan and Hyundai Motor Co. as well as such home appliance companies as LG Electronics, Samsung Electronics, Hynix, and Chinese companies. The company is conducting a bus-duck business for high-capacity power supply systems for foreign investment company and high-tech tenants of industrial complexes.
LS Machinery, an injection molding machine production and sale company established in May of last year, began to churn out products last July on a 70,000-pyeong plot. The company, which attracted $20 million worth of investments, aims to raise sales to $50 million in 2007 and $100 million in 2010. In 2007, the company is expected to be equipped with a full line-up system that can produce all models ranging from 25-ton small injection molding machines to 4,500-ton large-scale ones.
LS Industrial Systems will invest a combined $34 million into its production company by 2009, and the production company aims to increase a turnover target to $70 million in 2006 and $160 million in 2007.
LS Industrial System's dedication of power device and automation machinery production plant will have a synergetic effect with a power system marketing company in Dailian and a trade company in Shanghai, thus securing a competitive edge in the Chinese market by building up a comprehensive production/marketing system.
LS Group plans to invest a combined more than $70 million into the establishment and operation of the three subsidiaries in China in the four years. The group forecasts that the three companies would raise sales worth $250 million in 2007.
In the same day, LS Group held a ceremony celebrating the Wuxi City government's naming the 2 km-long, four-lane road surrounding the LS Industrial Complex LS Road. nw

LS Group executives transplant a tree sampling in celebration of the dedication of the LS Industrial Complex in Wuxi, China.