LS Cable, the world's third-largest cable manufacturer, signed a long-term agreement to supply cable to Aker Solutions of Norway, the company announced Tuesday.
LS Cable became the first Korean cable manufacturer to be designated as a cable supplier by the global engineering company. Aker Solutions is a global provider of products, systems and services to the oil and gas industry.
The agreement calls for LS Cable to supply its subsea, power and system controlling cables to be used in exploration equipment and offshore plants managed by Aker Solutions for the next seven years, said LS spokeswoman Keum Dong-hee.
"The agreement is expected to generate at least $100 million in sales by the end of the contract," the spokeswoman said.
LS Cable guaranteed on-time delivery and better pricing of its products to the Norwegian company by running product warehouses and operating logistics systems there.
"We've been consistent in providing customized services in accordance with our clients' needs," said Keum.
Since 2009, LS Cable has been manufacturing subsea power cables ― major transmission cables for carrying electric power below the surface of the water ― at its plant in Donghae, Gangwon Province. LS Cable invested 180 billion won in the plant.
LS officials said the agreement will help it find additional business opportunities in the segment as subsea cables are an absolute necessity in the modern world.
The Research and Markets, a firm studying business trends, expects the subsea cable market to grow nearly 10 percent through 2016, as the cables remain necessary to link countries.