LS Cable & System Asia to Build Power Cable Plant in Myanmar

LS Cable & System Asia announced on Feb. 28 that it held a joint venture investment signing ceremony with its affiliate Gaon Cable and MJTD, a company in charge of developing the special economic zone in Myanmar.

LS C&S and Gaon Cable will invest a total of US$18 million (20.34 billion won) – US$9 million (10.17 billion won) each – in the establishment of a production company, LS-Gaon Cable Myanmar (LSGM), at the Thilawa Special Economic Zone in May and will complete a power cable plant next year.

The plant built on approximately 66,000 square meters of land will mainly produce aerial cables for power infrastructure and low-voltage (LV) cables for buildings and houses.

The Thilawa Special Economic Zone, one of the three special economic zones in Myanmar, is located about 20 kilometers south of Yangon, which is dubbed the economic capital of the nation, and it is slated to be 24 square kilometers in total. Myanmar Japan Thilawa Development (MJTD), a joint venture between the Myanmar government and Japan, is leading the development of the zone.

LS C&S Asia CEO Shin Yong-hyun said, “We are planning to expand our production items to medium-voltage (MV) and high-voltage (HV) cables through a phased investment. We will grow the Myanmar subsidiary just like our Vietnamese subsidiary which has grown by 240 times in 20 years after it entered the local market.”

In some regions in Southeast Asia, there is an increasing demand for underground cables, instead of aerial cables that pass through transmission towers. However, Myanmar still depends on transmission towers for most of its power transmission facilities. In addition, the demand for LV cables are soaring as the construction industry is booming with the special economic zones as the center.

LS C&S Asia, a subsidiary of LS C&S, is a holding company of the two Vietnamese corporations, LS-VINA and LSCV, and the largest power cable company in Vietnam. Gaon Cable, a subsidiary of LS Group, mainly manufactures low and medium-voltage cables.

BusinessKorea Co.