LS Cable & System Zeros in on Communications Markets in Middle East

Signs an agreement with Al Reyami for entry into the UAE market; will focus on Turkey, Saudi Arabia and Qatar










LS Cable & System is drawing attention for its marketing activities to enter the Middle Eastern communications market by signing agreements with leading local companies. The company concluded a sales contract with Al Reyami Technologies, a major IT service provider in the UAE, to provide and install its own proprietary integrated wiring system solution, which it markets under the brand name simple. An integrated wiring system is where voice, data and security wiring that had previously been installed independently in intelligent buildings and IDCs are integrated into a single, more easily installed and managed system. In 2006, LS Cable & System succeeded in developing the first 10-Gb integrated wiring system solution in Korea and secured a foundation on which to compete against global enterprises in this field.
The integrated wiring solution market in the Middle East posted a 10 percent decline in 2010 from the previous year, but from the start of this year has been showing signs of recovery. To enter the Middle Eastern market, LS Cable & System has been assertively publicizing the excellence of its products through seminars and training sessions targeting local IT consulting and SI companies while also building its sales networks throughout the region. The company is especially planning to focus its efforts on Turkey, Saudi Arabia and Qatar, where continuous market growth is forecasted.
Lee Hae-seung of LS Cable & System's Overseas Communications Sales Division said, This contract will serve as an important founding stone for our entry into the data solution market in the Middle East. He added, With the implementation of IT infrastructures, the related markets are forecast to grow rapidly. LS Cable & System, based on our communications expertise, will strive to be a leader in the Middle Eastern markets. LS Cable & System, SPSX Begins Power Cable Plant Construction in North Carolina
LS Cable & System and Superior Essex Inc. held a ceremony on May 26 to mark the start of construction on a new power cable manufacturing facility in Tarboro, North Carolina. The groundbreaking ceremony was attended by over 200 local dignitaries, managers and employees including Son Jong-ho, President of LS Cable & System; Stephen Carter, President of Superior Essex Inc.; Keith Crisco, Secretary of the North Carolina Department of Commerce; Tarboro Mayor Donald Morris; Leonard Wiggins, chairman of the Edgecombe County Board of Commissioners; and Frank Harrison, chairman of Carolinas Gateway Partnership.
The $60 million production facility will have 24,000m2 of floor space and is scheduled to be completed next year. Production of low and medium-voltage power cables will also begin in 2012. LS Cable & System and Superior Essex plan to offer high voltage cables and other transmission products and services in the future. Through the construction of this plant, LS Cable & System aims to establish a local power cable operations base in the North American market. In addition, Superior Essex will be expanding its product portfolio beyond its current winding wire and communications cable product lines.
President Son of LS Cable & System said, We will strive to become a major player in the North American power cable market by combining LS Cable & System's competencies in power technologies with Superior Essex's strong market expertise. He added, The local economy of Tarboro, North Carolina, should also benefit greatly from our investment here. LS Cable & System will actively promote localization in the expanding power markets of North America and the developing market of India by investing a total of $96 million (104 billion won). LS Cable & System announced on April 15 that it will build a new power cable production facility in Tarboro, North Carolina, after receiving state government monetary incentives to locate the facility there. The investment will be made through Superior Essex, the U.S. subsidiary of LS Cable & System, with an investment totaling $60 million, including the cost of building purchase. This venture will establish a production and sales base for power cable products in the North American market. It is the first such investment to be made by any Korean cable manufacturer.
LS Cable & System explained that this investment is part of the company's global strategy to expand further into the United States, one of the largest power cable markets in the world. The new operation will fully leverage the human resources, customer relationships and technology of Superior Essex, which the company acquired in 2008. With this new production base, Superior Essex will expand into the large and growing power cable market, adding to its existing magnet wire and communication wire and cable product lines.
LS Cable & System and Superior Essex are planning for production to begin in 2012. In the initial phase, production will center on low-voltage and medium-voltage cable products, which will later be followed by high-voltage cable, services and other power solution products.
At the same time, LS Cable & System is building a new plant in India to gain a foothold in that market as well. With an investment of $36 million (39.2 billion won), a power cable production line is being added to an existing communications cable plant located in Gurgaon, Haryana. Construction should be completed by the end of 2011 and production is expected to commence in 2012. By 2015, LS Cable & System aims to be the No. 1 cable manufacturer in the expanding Indian market, in which sales of $136 million will be generated from the power cable business alone.
President & CEO Son Jong-ho of LS Cable & System said, ?ith power business localization, LS Cable & System will secure a foundation for entry into both advanced and emerging power markets.He added, starting from this investment, LS Cable & System will accelerate its march towards becoming the Global No. 1 by 2015. nw

LS Cable & Systems concludes a sales contract with Al Reyami Technologies to provide and install its own proprietary integrated wiring system solutions.

Photo on Courtesy of LS Cable & System

Copyright(c) 2003 Newsworld All rights reserved.
3Fl, 292-47, Shindang 6-dong, Chung-gu, Seoul, Korea 100-456
Tel : 82-2-2235-6114 / Fax : 82-2-2235-0799