Gaon Cable has achieved its highest-ever performance in the first half of the year, driven by increased investments in AI data centers and power grid infrastructure in the United States. The demand for cables is shifting from construction to data centers, renewable energy, and power grid replacement, leading to a rise in exports and the share of high-value products.
According to Gaon Cable, the company recorded a consolidated revenue of 1.633 trillion won and an operating profit of 64 billion won in the first half of the year. Revenue increased by 27.3% compared to the same period last year, while operating profit rose by 41.8%.
Both revenue and operating profit are the highest ever recorded for a half-year period. The growth rate of operating profit outpaced that of revenue, indicating improved profitability. The company attributed its performance to a shift in its business structure towards high-value products.
The U.S. market has been a key driver of this performance. Investments in AI data centers and renewable energy are increasing simultaneously in the U.S. As servers and power equipment become larger, the demand for distribution cables and bus ducts is also growing.
Bus ducts are power distribution devices that supply large amounts of electricity within buildings. They are more efficient to install and manage than cables, making them suitable for large data centers, factories, and power generation facilities. AI data centers have a higher power usage per rack, leading to a rapid increase in demand for power infrastructure products.
Industry sources indicate that investments in AI data centers are driving demand for a wide range of power equipment, including transformers, switchboards, cables, and bus ducts.
Gaon Cable's exports of distribution cables are also increasing in response to supply shortages and expanded power grid investments in the U.S. The ongoing replacement of aging power grids and investments in renewable energy-related facilities have made securing local supply chains crucial.
Gaon Cable's U.S. subsidiary, LSCUS, is also experiencing growth. The company expects LSCUS's revenue to nearly double this year due to increased cable supply for AI data centers and solar power plants.
Collaboration with LS Cable is also expanding. Gaon Cable is supplying bus ducts to major U.S. tech companies' AI data centers in partnership with LS Cable. The company plans to leverage this collaboration to become one of the top five bus duct suppliers globally.
Gaon Cable aims to increase exports of high-value products to the U.S. in the second half of the year. The company plans to enhance its delivery responsiveness and supply stability by utilizing its local production base, as increasing orders from AI data centers make local production and quick supply capabilities competitive advantages.
Jung Hyun, CEO of Gaon Cable, stated, "The structural growth trend in the U.S. power infrastructure market continues, driven by investments in AI data centers and power grids. Based on the expansion of exports from our headquarters and the growth of LSCUS, we will continue to achieve revenue growth and improve profitability in the second half of the year."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.