LS C&S signs $125 mil. supply deal with Bahrain
By Jun Ji-hye
LS Cable & System has won a contract worth $125.5 million to install extra high-voltage cables in Bahrain, the company said Thursday.
LS Cable & System CEO Myung Roe-hyun
The deal with Bahrain's Electricity and Water Authority is part of the Middle Eastern country's project to establish a new power grid in all parts of the country in accordance with its industrialization and urbanization, according to the Korean company.
Under the deal, Korea's leading power cable maker will supply 400 kilovolt extra high-voltage cables and carry out the necessary engineering work.
The Middle East has been regarded as an important market as its demand for extra-high voltage cables has accounted for about 20 percent of the global market. But large-scale investments into the region have been slow in recent years due to low oil prices.
LS Cable and System said its latest contract is meaningful in that it obtained a large-scale order despite this stagnation.
The company said it has successfully carried out projects to build transmission networks in Bahrain over a decade, and this led to the latest achievement.
“The fact that we have been awarded a large-scale contract in the stagnant Middle East market thanks to our world-level technical prowess is of great significance,” LS Cable & System CEO Myung Roe-hyun said. “Additional contracts are also expected as Bahrain, which has recently discovered a submarine oilfield expected to produce 80 billion barrels, is making efforts to develop indigenous industries.”
LS Cable & System ranked first in the Middle East with the largest market share. In 2012 and 2017, the company won contracts worth 500 billion won ($438 million) and 220 billion won, respectively, with Qatar to supply extra-high voltage submarine cables.