South Korea’s Gaon Cable announced that it has secured 100% ownership of LSCUS, its distribution cable production subsidiary in Tarboro, North Carolina, USA, by buying out its joint venture partner, LS Cable & System.

A press release said that the acquisition is part of Gaon Cable’s strategic plan to strengthen its localization capabilities in the U.S. market and boost its competitiveness in the global power infrastructure market. LSCUS was created in 2017 when the LS Group acquired the Energy division from Superior Essex to create a subsidiary under the LS Cable & System umbrella. LS C&S had an 82% stake and Gaon Cable an 18% stake. Gaon Cable’s board approved the acquisition of LS Cable’s 82% stake.

The acquisition “marks a pivotal point in Gaon Cable’s efforts to enhance its U.S. localization strategy,” the release said. It noted that Gaon Cable plans to strengthen its ultra-high voltage cable business in collaboration with LS Cable and is set to enter the submarine cable market.

“We will enhance our competitiveness by developing products suitable for the local market and establishing a stable supply chain,” said Gaon Cable CEO Jeong Hyun. “The acquisition will serve as a crucial foundation for global market entry ... to expand overseas operations with a focus on North America.”

The 294,000-sq-foot Tarboro plant opened in 2012. It has a 128.5 ft. continuous catenary vulcanization (CCV) tower with machinery to produce medium-voltage cables, with upside capabilities to produce high-voltage cables.