LS Cable & System announced on the 5th that the company had won two contracts worth a total of $102 million (approx. KRW 112 billion) to supply power cables. The company will supply 220kV level extra high-voltage transmission cables worth $91 million (approx. KRW 100 billion) to the Qatar General Electricity & Water Corporation, and deliver large-capacity electric transmission 1,000V bus ducts worth $11 million (approx. KRW12.1 billion) to the Public Works Authority of Qatar for the Hamad Medical City project. These are the first meaningful contracts won from the Middle East since the Jasmine Revolution. It is expected that these projects will lead to sustainable revenue growth in the Middle East where the company has been strong in the market.
Of the two projects, the former was initiated when Qatar realized that their current power grid could not effectively keep up with the ever-increasing power demand generated by the continual economic development and urbanization happening within their borders. For this project, LS Cable & System will supply a total of 157km of 220kV level extra high-voltage cables and joint kits to the Doha area by July 2013. The latter is to supply Hyundai E&C who won a contract in 2010 to renovate the 2006 Doha Asian Games athletes’ village and office buildings into a four-building high-tech medical center. For this project, LS Cable & System will deliver bus ducts that are popularly used in buildings and factories to transmit large amounts of electricity through a small space.
Analysts point out that Middle East countries are currently promoting petrochemical, refinery and power plant projects as well as large-scale public works and construction projects to boost their economies with extra spending. With those awarded projects, LS Cable & System has secured a favorable position through intense competition for potential projects in the Middle East. LS Cable & System continues to pursue targeted marketing and local market-oriented R&D activities in the Middle East where the company has traditionally been strong.
LS Cable & System Executive President Jaein Yun said, “This project is very meaningful because it is the first important power network contract won from the Middle East since the Jasmine Revolution earlier this year.” He added, “As the demand for democracy and progress will increase in the future, national backbone industry implementation will be more activated in line with industrial development. Considering this, we will perform marketing activities more vigorously.”