LS C&S wins near $1 bn credit limit from KDB to expand eco-friendly submarine cable

[Photo by LS Cable & System Ltd.]

South Korea’s top cable maker LS Cable & System Ltd. has been promised with financing of up to 1 trillion won ($854.3 million) from state-run Korea Development Bank (KDB) for its eco-friendly submarine cable projects.

LS C&S and KDB on Thursday signed an agreement to collaborate on developing submarine cable businesses.

Under the agreement, the state lender will provide up to 1 trillion won to LS C&S over the next five years to finance the company’s renewable energy projects such as submarine cable production, facility expansion and research and development.

LS C&S is the sole cable maker in the country that owns a submarine cable manufacturing plant in eastern Gangwon Province. It also has the country’s largest 8,000-ton cable-laying vessel and its mainstay underwater cables are essential in building offshore wind farms.

The company is currently constructing at its Donghae site in Gangwon Province a 172-meter (564-foot) high-rise Vertical Continuous Vulcanization (VCV) tower that would be the country’s tallest VCV tower and aims to up its submarine cable production capacity by more than 50 percent.

“Our partnership with KDB would serve as an important first step towards expanding cooperation between the industrial and financial sectors on carbon-neutral and renewable energy policies,” LS C&S CEO Koo Ja-yeop said.

KDB Chairman Lee Dong-gull pledged the policy bank will support the industrial sector in building the carbon-neutral ecosystem with a goal to accelerate the country’s energy transition away from fossil fuels.

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