Expands North America business into public grid sector
North America sales seen growing 50% this year
Gaon Cable said Wednesday it has supplied medium-voltage cables to a major public utility in western Canada.
The deal marks Gaon Cable's first export to Canada. The move also expands Gaon Cable's North American portfolio into the public power grid sector. Until now, the company's North American business had centered on private-sector facilities such as AI data centers, semiconductor factories and power plants.
The company expects the move into overseas public infrastructure, a market with high entry barriers, to give it an edge in future bids for public contracts in North America.
The Canadian government projects that power demand will roughly double by 2050 as the country expands AI data centers and grows its advanced manufacturing sector. That is expected to drive continued growth in demand for power cables as transmission and distribution networks are expanded and modernized.
Gaon Cable plans to use its entry into Canada as a springboard to accelerate its push into the broader North American market. Leveraging supply chain synergy between its headquarters and US production subsidiary LSCUS in North Carolina, the company expects North America sales to surge more than 50 percent this year. Sales are projected to rise from about $300 million in 2025 to about $470 million.
"We will keep strengthening our presence in the North American power infrastructure market, spanning both the US and Canada," said Gaon Cable CEO Jung Hyun.
Meanwhile, Gaon Cable posted consolidated sales of 869.4 billion won ($648 million) in the second quarter of this year, up 35.1 percent from a year earlier. Operating profit rose 55.5 percent to 36.1 billion won, marking the company's best quarterly performance on record.
keg@heraldcorp.com
