LS Cable & System Asia expands cable production capacity in Vietnam

LS Cable & System Asia said on Thursday that it has invested 6.8 billion won in its Vietnamese subsidiary LS Cable & System Vietnam to complete a project to expand the unshielded twisted pair (UTP) LAN cable production capacity. It expects its performance to improve through the move, including an increase in sales.

The company exports more than 80% of its UTP cables to the Americas. The latest capacity expansion was in response to a customer firm's request for more supply, and the company expects its production capacity to increase by more than 15%.

Profit margins are also expected to improve thanks to the expanded production of high-value-added items. This investment was made in the way of reducing aging 1-gigabyte (CAT.5e) facilities and expanding 10-gigabyte (CAT.6A) ones.

UTP cables are mostly used to connect short-distance networks within buildings, such as commercial buildings and apartments. The Americas account for more than 40% of the global demand. Demand is continuously increasing due to the expansion of infrastructure investment by the US government and the progress of digitalization.

 “The number of orders from the Americas has increased more than 30% compared to last year,” said a company official.

“We plan to expand our business to customized items in the Americas, such as high flame-retardant cables,” he added.

Write to Ji-eun Jeong at jeong@hankyung.com