|Title||LS Cable & System completes construction of Indonesian power cable plant|
Photograph) From left : Energy and Mineral Resource Minister of Indonesia Arifin Tasrif, AG Group Chairman Panji Winata, LSAGI Chairman Kim Hyun-woo, Industry Minister Agus Gumiwang Kartasasmita, Korean Ambassador to Indonesia Park Tae-sung, Investment Minister of Indonesia Bahlil Lanhadalia, AMS CEO Felix Effendi and State-Owned Enterprises Minister Erick Thohir cut the ribbon at a completion ceremony for a new power cable plant jointly built by South Korea’s LS Cable & System and Artha Graha Network in Indonesia on Wednesday.
■ Indonesia is Asia’s largest cable market because it is building a power infrastructure and relocating its capital
■ Establishing supply chains for each global region through localization focused on growth markets
LS Cable & System announced on January 26 that the company completed the construction of a power cable plant in Indonesia (LSAGI).
LS Cable & System started construction of the plant at the 64,000 m² (19,360 pyeong) site in the Artha Industrial Complex near Jakarta in September 2020. LSAGI will mainly produce overhead lines for power transmission and distribution and low-voltage (LV) cables for buildings and plants.
Indonesia was the largest electric cable market in ASEAN where electric power infrastructure is actively constructed and the construction business is booming. The company expects that the cable market will show a rapid recovery after the COVID-19 pandemic due to Indonesia’s relocation of the capital and the entry of Korean companies.
“In the cable industry, each country is strengthening policies to protect its own companies,” said a company official. “LS Cable & System is pursuing new businesses tailored to the local market for each overseas business site and responding with a strategy to increase independent business capabilities.”
LSAGI is a joint venture between LS Cable & System and Artha Graha Network (AG Group), Indonesia's 10th largest company. LS Cable & System is planning to expand the market by utilizing the AG Group's local business experience and sales networks in banks, hotels, construction/resorts, and others.
With the completion of the Indonesian plant, LS Cable & System will operate a total of 12 production subsidiaries in foreign countries, including in the United States, Poland, Vietnam and China.
A panoramic view of LS Cable & System’s Indonesian production subsidiary