Gaon Cable (000500.KS), a subsidiary of LS Cable & System, is expanding its North American business after winning a cable supply contract in Canada, following earlier deals in the United States.
The company said on the 9th that it will supply medium-voltage (MV) cable to a major public utility in western Canada. It is the first time Gaon Cable has won an MV cable supply order from a Canadian company or institution.
Canada is promoting artificial intelligence data centers and advanced manufacturing at the government level, and electricity demand there is projected to double from current levels by 2050. Demand for distribution network infrastructure, including MV cable, is rising as a result.
Gaon Cable plans to accelerate its push into the North American market on the back of the Canadian order. In the United States, it is already expanding supply contracts for MV cable and bus ducts, or power distribution equipment, with big tech companies through its local unit, LSCUS. Its MV cable plant in Tarboro is running at close to full capacity, and it has secured long-term bus duct supply contracts worth a cumulative total of more than 5 trillion won. The company said it expects North American revenue of $470 million (about 630 billion won) this year, up more than 50% from a year earlier.
Gaon Cable also highlighted that the order came from the public sector rather than a private customer. Barriers to entry in North America's public infrastructure market are especially high, the company said, and the contract gives it a reference that will allow it to strengthen sales across the region.
"This entry into Canada's public power grid is an important milestone that has improved the fundamentals of our North American business and broadened its scope," said Jung Hyun, chief executive of Gaon Cable. "We will continue to strengthen our influence in the North American power infrastructure market, spanning both the United States and Canada."
