3 days Ago By Lee Jun-sung
On November 19, Gaon Cable announced that it has secured 100% ownership of LSCUS, its distribution cable production subsidiary in Tarboro, North Carolina, USA. This acquisition is part of Gaon Cable’s strategic plan to strengthen its localization capabilities in the U.S.
market and boost its competitiveness in the global power infrastructure market. LSCUS was originally a joint venture with LS Cable & System holding an 82% stake and Gaon Cable holding 18%. Gaon Cable’s board approved a third-party allocation capital increase and resolved to acquire LS Cable’s 82% stake through a capital contribution in kind.
With this acquisition, Gaon Cable plans to solidify its position in the U.S. market and pursue continuous growth to meet rising global demand for power infrastructure.
The company aims to expand its business, particularly in the U.S. renewable energy sector, such as solar power plants, and intends to broaden its scope to include power grid and plant sectors.
Established in 1947 as Korea’s first cable company with purely domestic capital, Gaon Cable recorded sales of 1.4986 trillion won in 2023, continuing its steady growth. The company is targeting 2.
5 trillion won in sales by 2025, driven by North American market expansion and portfolio diversification. The acquisition of LSCUS marks a pivotal point in Gaon Cable’s efforts to enhance its U.S.
localization strategy. Additionally, Gaon Cable plans to strengthen its ultra-high voltage cable business in collaboration with LS Cable and is set to enter the submarine cable market. "We will enhance our competitiveness by developing products suitable for the local market and establishing a stable supply chain," said Jeong Hyun, CEO of Gaon Cable.
"The acquisition will serve as a crucial foundation for global market entry as they plan to expand overseas operations with a focus on North America.".
