LS Cable & System Supplies Components for Eco-Friendly Vehicles to Dongfeng Motor, China

LS Cable & System (LS C&S) announced on the 15th that they were selected as a tier-1 supplier of HV harnesses for eco-friendly vehicles by Dongfeng Motor, China's No.2 automotive company. Products of LS Cable & System will be produced by its subsidiary located in Wuxi City, Jiangsu Province and incorporated into the E30, one of Dongfeng's EV models.

LS Cable & System expects that they will be able to supply the components to over 100,000 vehicles by 2020 as the Chinese government presses ahead with its policy to promote eco-friendly vehicles. A harness is a pre-assembled bundle of cables and connectors that supplies the power by connecting electronic control units and communication modules, activating and controlling various sensors. Most electric vehicles use 600V harnesses in comparison with 12V harnesses found in conventional fuel-powered vehicles.

"Our flexibility to actively accommodate Dongfeng's requirements in custom product development and commitment to quality improvement turned out to be effective in winning the contract," said Jae-In Yoon, LS Cable & System's Senior Executive Vice President. "We now expect to share in the subsequent vehicle development roadmap to further expand business opportunities and thus make a greater dent in the automotive market of China."

Dongfeng Motor is a state-run company incorporated in Wuhan City, Hubei Province in 1969. It is currently valued at $22.9 billion and staffed with 140,000 employees. Dongfeng Motor is bolstering its eco-friendly business initiatives by incorporating an eco-friendly automotive subsidiary to expand its product lineup and by launching an EV taxi service in Wuhan City.

In 2009 LS Cable & System succeeded in developing HV harnesses by applying extra-high voltage power technology to conventional automotive cable products and actively made inroads into China by concluding a supply contract in 2012 to provide products worth $110 million by 2017 to BDNT of China (an EV joint venture between Mercedes Benz of Germany and BYD of China). To support the deal, LS Cable & System invested $3.67 million in its subsidiary in Wuxi City to expand production capacity. As a result the Wuxi subsidiary has become one of the cash-cows of LS Cable & System, posting profits for five consecutive years in the wake of the recent boom for automotive cable products.

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