LS Eco Energy (229640.KS) is accelerating its push into the North American power distribution market by deepening cooperation with the U.S. unit of Gaon Cable (000500.KS).
LS Eco Energy said on the 15th that it recently supplied medium-voltage underground cable to a solar power complex in the United States. Under the arrangement, LSCUS, Gaon Cable's U.S. subsidiary, signed the contract with the local customer, while LS-VINA, LS Eco Energy's Vietnamese production unit, handled manufacturing and delivery.
The cable is used to collect electricity generated at the solar complex and carry it to substation equipment. Demand for distribution networks linking generation facilities has been expanding in the United States as construction of artificial intelligence data centers and investment in renewable energy pick up pace.
LS Eco Energy said LSCUS is more than doubling its local production capacity to meet growing demand for medium-voltage cable in the United States. The company is also making active use of LS-VINA's capacity to handle the surge in orders.
Building on its cooperation with Gaon Cable, the company plans to expand distribution cable supply to newly developed power infrastructure markets in the United States, including solar complexes.
"Gaon Cable is strengthening its ability to win orders by linking its U.S. production facilities with the production bases of affiliates," said Lee Sang-ho, chief executive of LS Eco Energy. "Through cooperation among affiliates, we will further strengthen our push into the North American power market."
The company expects LS-VINA's medium-voltage cable exports to the United States to rise more than 20% this year from a year earlier.
LS Eco Energy is also broadening its business beyond distribution into the extra-high-voltage cable market. Drawing on its experience supplying extra-high-voltage cable in Europe and Singapore, the company recently obtained certification in the United States for 230-kilovolt cable. On that basis, it plans to move ahead with a full-scale entry into the U.S. extra-high-voltage grid market.
