Korea’s LS Cable & System Asia said on Thursday its Vietnamese subsidiary LS-VINA has signed an exclusive $67 million contract to supply 22㎸ cables to Singapore’s SP Power Assets for two years.

The deal value represents about 18 percent of the company’s 2017 revenue, making it the largest order ever received from country, according to the company.

LS Cable and System Asia is the holding entity overseeing the Vietnamese unit that went public on the Korean stock market.

The new cables will replace aging ones that transmit power to plants and buildings across Singapore.

“We were able to win a long-term exclusive supply deal based on our technology and price competitiveness in the Singaporean market, which emphasizes product quality. We expect sales to grow more than 20 percent from last year on the back of rising overseas orders and strong copper prices," said a company spokesman.

Earlier, LS Cable & System Asia said it will invest 10 billion won ($9.25 million) into LS-VINA to expand the firm’s annual Cu-Rod production capacity to 100,000 tons a year, up by 3.7 times from the current level. Commercial production will begin from the first half of next year.

On Wednesday, LS Cable & System Asia said its consolidated pro forma first quarter operating profit came to 5.3 billion won, up 7 percent from a year ago. Sales grew 16 percent to 95.5 billion won and net profit fell 11 percent to 3.4 billion won in the same period.

By Hwang Soon-min and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]