April 24, 2024

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[THE INVESTOR] LS Cable & System said on June 18 it has decided to establish a joint venture in Indonesia to tap deeper into the large Southeast Asian country’s market.

Under the agreement with AG Group, the two companies will invest US$40 million to build a cable factory near Jakarta starting next month. LS Cable said the factory is anticipated to be completed in 2019.

The company said through a regulatory filing that it decided to purchase 280,000 shares in the joint venture, PT LSAG Cable Indonesia, at 21.6 billion won (US$19.5 million).

The factory is expected to post sales of $100 million annually by 2025. The firm said the deal is aimed at establishing a foothold in Indonesia.

The latest agreement gives LS Cable seven overseas affiliates in Asia, including those set up in Vietnam, China, India and Myanmar.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)