LS Eco Energy to supply SP Group with voltage cables

[Photo provided by LS Eco Energy Ltd.]

South Korea’s LS Eco Energy Ltd. said on Tuesday that its Vietnamese production subsidiary, LS-VINA Cable & System Joint Stock Co., will supply 12 billion won ($9 million) worth of ultra-high voltage cables to Singapore Power Ltd., or SP Group, from the latter half of 2024.

LS Eco Energy is expanding its market share in collaboration with its affiliate, LS Cable & System Ltd., who is the market leader in the Southeast Asian country.

Singapore, considered one of the largest power markets in Asia, is building its power grid by only using underground ultra-high voltage cables without transmission towers, leading to a fierce global competition among global cable manufacturers.

“Ultra-high voltage cables have a high operating profit margin that is often in the double digits,” an LS Eco Energy official said, expressing the company‘s commitment to improving its performance by expanding the market for high-value-added products such as ultra-high voltage cables.

Industry insiders expect that the size of Singapore’s power market will further increase as its government pursues policies to expand green energy sources such as offshore wind power.

LS Eco Energy is also in discussions for a collaboration with Vietnam’s state-owned PetroVietnam Group, which is actively pursuing the construction of an underwater power grid between Vietnam and Singapore.