LS Cable & System (LSC&S) announced that the company has completed building its first plant in Africa, located in an industrial city in Egypt.
A press release said that LSC&S established a joint venture with a local cable installation company, MAN, Tenth of Ramadan City, near Cairo, in January 2020. The company wants to expand its market presence to East African and Middle Eastern countries, which have a Free Trade Agreement (FTA) with Egypt.
โExport barriers are rising due to the forming of regional economic blocks around the world,โ said Myung Roe-Hyun, President & CEO of LS Cable & System. โWe will reinforce our competitiveness by directly investing in key hub countries.โ With the Egyptian subsidiary, LSC&S now has 11 overseas production subsidiaries, including those in the U.S., China, Vietnam and Poland.
The release noted that the Egyptian cable market is annually growing by more than 5% due to facts such as population growth and the need to replace and upgrade old power grids. โThere is a high demand for power cables in Africa, including Egypt, but export barriers are high due to the high tariffs (about 20%) and logistics costs,โ said a LSC&S official. โWe are planning to secure price competitiveness through local production and use the customer networks of our partners to get the business on the right track as soon as possible.โ
