SEOUL, June 18 (Yonhap) — LS Cable & System, a South Korean wire and cable maker, said Monday 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, LS Cable added.
LS Cable 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.