Photograph) Roe-Hyun Myung, President & CEO of LS Cable & System, (right) is checking the implementation of the production
facilities in the Polish business site.■ KRW14 billion (approx. 13 million in USD) investment to be made in Poland, Korea’s first European optical cable production line
■ Will shorten delivery times, help expand in the European economic bloc, and provide a base to enter the Eastern European and CIS marketsLS Cable & System(Roe-Hyun Myung, President & CEO) announced on April 10 that it will invest about €11 million (approx.. KRW14 billion and 13 million in USD) in its Polish plant to build new optical cable production facilities.
LS Cable & System is planning to install optical cable facilities in part of the plant it already owns in Dzierżoniów in the Southwestern region of Poland. The company purchased the plant last November to produce electric vehicle parts and plans to begin production of optical cables next April.
It is the third optical cable production line of LS Cable & System following those in its plants in Gumi, Gyeongsangbuk-do, South Korea and in Vietnam, and the first European production base operated by a domestic cablemaker. The Polish subsidiary is slated to produce about 3 million f.km of optical cables per year. (1 fiber kilometer: the length of 1 core of optical fiber.) It accounts for about 7% of the European optical cable market.
LS Cable & System is planning to increase its market share in Europe from its current 1~2% standing to no less than 10% by establishing a strong production base in Europe, which can be called the home ground of global cablemakers. The plant will shorten delivery times and prepare LS Cable & System for establishing itself in the burgeoning European economic bloc.
Roe-Hyun Myung, CEO of LS Cable & System, said, “We will reinforce our activities to win contracts from global common carriers through the French sales subsidiary and Polish production subsidiary, and expand our market to include the Eastern European and CIS (Commonwealth of Independent States) regions.”
In Europe, the optical cable market is growing by more than 5% annually as the French government is building high-speed communication networks in preparation for the 2024 Paris Olympics while Italy is increasing investments in its communication infrastructure throughout the country including its islands.
During the past two years, LS Cable & System’s optical cable sales in the European market optical have been increasing rapidly. The company won contracts worth about €53 million (approx.. KRW70 billion and 65 million in USD) in France and Italy in the first quarter of this year. This exceeds the total contract amount in the European market in 2017 by more than 40%.