LSIS wins two big deals in Iraq
Oh Soo-hun, an executive at LSIS’ smart-grid business division, shakes hands with Nafaa Abdelsada, an official from the Ministry of Electricity in Iraq, after LSIS agreed with the Iraqi government to build a power control center, Thursday. / Courtesy of LSIS
By Kim Yoo-chul
LS Industrial Systems (LSIS) announced Thursday it has to bids worth over $100 million in Iraq, as the company strengthens its position overseas.
The Korean company said that it signed a contract with the Iraqi government to build a power distribution control center, estimated at $67 million.
LSIS said the facility, which will operate on wireless technology, will be based on smart grid technology that enables a more efficient power management system.
Along with the building project, the company has also signed a $39.4 million deal with the Iraqi electricity ministry to supply and install a gas-insulated switchgear facility in the Middle East country.
``LSIS is receiving rising attention from government-led projects in Asia such as Iraq. One of the noticeable things for the latest deal is that LSIS beat out global players such as Siemens of Germany and Alstom of France _ two big names in the smart grid sector,’’ said LSIS spokesman Kim Dae-seong by telephone.
Kim said a recent nomination by Thomson Reuters as one of the top 100 global innovators for a second consecutive year has helped his firm win big deals from the Iraqi government. He stressed LSIS will strive to win more contracts abroad with guarantee on-time completion and better pricing.
The spokesman said LSIS CEO Koo Ja-kyun was happy to win the smart grid-related contract in Iraq as he plans to use the latest deal as leverage to win more deals.
LSIS, the nation’s leading component supplier, has expanded its presence in the smart grid business as the firm believes that sector will become a new cash generator.
A smart electric grid allows homes and businesses to use, as well as produce and sell, electricity in a more advanced way. As smart grid solutions help enable utility firms and customers more effectively monitor and control energy use and costs, governments are busy announcing updates for environmentally-friendly smart grid businesses.
Since 2006, LSIS has invested over 80 billion won in the area. By 2015, it aims to create some 2.1 trillion won in revenue from smart grid business, according to the company.
LSIS has joined with local steel giant POSCO ICT in various smart grid-related projects in a bilateral partnership where smart grid technology is shared.
McKinsey & Company said in its latest internal analysis that the deployment of smart grid technology is accelerating in emerging economies.
China and other areas will grow faster in the smart grid area as the transmission and distribution infrastructure is still developing there and smart grid technology will be used.
Following the announcement of the deals, LSIS shares rose by 0.31 percent to end at 64,800 won on the main bourse, Thursday.