Gaon Cable Acquires GNP... "Strengthening Competitiveness Through Vertical Integration"

Integrated Management of Wire Raw Materials and Products
"Strengthening US Market Penetration"

LS Cable & System's subsidiary Gaon Cable is acquiring G&P, a specialized company in distribution cables and wire materials, to vertically integrate its business and strengthen product competitiveness. The strategy is to maximize efficiency by integrating management of production from raw wire materials to finished products.

Exterior view of Gaon Cable Gunpo Factory in Gyeonggi Province. [Photo by Gaon Cable]

Gaon Cable announced on the 3rd that it will acquire 100% of G&P's shares. The day before, Gaon Cable held a board meeting and resolved the agenda of a 'third-party allotment paid-in capital increase and acquisition of G&P shares' targeting LS Cable & System, deciding to acquire all of LS Cable & System's 100% stake in G&P through a capital contribution in kind.

Gaon Cable is the third-largest comprehensive wire company in Korea, recording sales of 1.4986 trillion KRW last year. G&P is a specialized company producing distribution cables, wires for automobiles and ships, and compounds necessary for wire manufacturing.

Through this acquisition, Gaon Cable will achieve vertical integration covering the entire process from wire materials to cables. The company expects to maximize production efficiency by integrating management of the production process from raw materials to final products. Additionally, by absorbing G&P's ship wire and industrial special wire businesses, it plans to strengthen competitiveness across various industrial sectors.

Jung Hyun, CEO of Gaon Cable, said, "We plan to expand our portfolio focusing on high value-added products by incorporating G&P's compound technology. Through this, we will solidify our position as the number one in the domestic distribution cable market and also strengthen our approach to the U.S. market."

This content was produced with the assistance of AI translation services.