LSIS completes solar plant in Bulgaria
By Kim Yoo-chul
LSIS, the nation’s top supplier of industrial components, said Thursday that its massive solar plant in Bulgaria has been completed.
In a statement, LSIS said the brand-new facility, located in the Bulgarian city of Yambol, can produce 14.5 megawatts of solar electricity.
The plant will produce solar electricity for use in some 4,800 households per month, according to company spokesman Kim Bong-kyu.
LSIS formed a consortium with China’s CHINT group for the project and the Korean firm invested some 30 million euros or 44 billion won for the construction.
Kim said its first Bulgarian plant will help it bolster its profile in the solar business in Europe. ``In Eastern Europe, LSIS plans to increase its stakes by providing a plant-based solar business, while the company is set to raise brand awareness in Western Europe by exporting various patented solar-related solutions for households,’’ he said.
The firm has identified the solar business as its next cash-generator and its vice chairman and CEO, Koo Ja-kyun, is directly leading the way to transform it as a total solutions provider from modules, inverters, design and construction.
LSIS was Korea’s first firm to enter the solar business in 1986, meaning it’s more advanced than other local rivals in terms of patents and business know-how.
At the plant, the company has applied ``ramming’’ technology and Kim said it has resulted in saving on construction costs by more than 40 percent and cut the building period.
The news has boosted the company’s stock price, with its shares rising by 1.8 percent to end at 68,500 won on Thursday.
``Foreign investors have been buying LSIS stocks for 11 straight sessions as it’s been steadily earning from its key cable-related businesses from countries in the Middle East and has a better product mix-up. Also, we’ve no major doubt about the firm’s decision to boost its solar business as the pre-emptive strategy looks reasonable considering the market upturn,’’ said Park Sung-hwan, a manager from IBK Investment’s E-BIZ division.
Park set 80,000 won as its target and expects LSIS to see average annual revenue and operating profits to grow by 19 percent and 39.4 percent respectively over the next three years.
The completion of the project comes after the global solar power market is showing signs of mild recovery thanks to government’s subsidies after a years-long market slump.