■ First step into overseas railroad cable markets; the first successive cooperative project with its affiliate SPSX Europe
■ The first accomplishment for the business model innovation toward customer-oriented solutions
Seoul, Korea, September 29th - LS Cable that it has entered into an agreement with Siemens Germany to supply railroad cable solutions worth 7.9 million Euros (approx. KRW 14 billion).
LS Cable will supply the entire cable system for the Saudi Arabian rail line linking Mecca with Jeddah. Delivery is slated for the end of November 2009. The cables include low- and mid-voltage power cables and specialty cables that supply power to ancillary and control facilities of the railroad and communication cables for signal transmission. LS Cable will manufacture and supply the ordered by customizing according to Siemens requirements.
Countries over the world are now expanding subway and railroad construction in line with the environment-friendly policies of their governments, and this agreement was the first among Korean companies to supply railroad cables to a foreign country.
LS Cable was chosen out of a total of 5 companies that participated in the bidding including some global cable companies and local companies in Saudi Arabia. Going forward, LS Cable will strengthen its cooperation with Siemens for wind power generation, aviation applications and power plants as well as railroad solutions. As Siemens continues to gain huge sales in Europe and North America, LS Cable’s share in these markets is likely to increase.
Jong-ho Sohn, President of LS Cable said, “This agreement is the first purchase order for an overseas solution project as a result of our business model innovation toward customer-oriented solutions while newly establishing a dedicated organization for solution sales at the beginning of this year. This order is also meaningful because it is the first purchase order made through cooperation with the European subsidiary of SPSX which we acquired last year.”
He also explained this contract showed how the acquisition of SPSX in the United States and Hongqi Electricity in China have visibly strengthened its global presence and competitiveness by allowing the combined organizations to share customers and sales networks, cross-sell, and collaborate in their purchasing requirements with its combined 60 strategic bases in 20 countries.
LS Cable to Supply Railroad Cable Solutions to Siemens
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