American Superconductor and Korea's LS Cable Form Strategic Business Alliance
LS Cable's superconductor cable systems will utilize AMSC's proprietary second generation (2G) high temperature superconductor (HTS) wire, branded as 344 superconductors. This strategic alliance ensures that LS Cable will have an ongoing supply of high-quality HTS wire from AMSC. Founded in 1962 and based in Anyang, South Korea, LS Cable is Korea's largest power cable manufacturer with nearly 8,200 employees worldwide and annual sales in excess of US$6 billion.
"LS Cable is committed to advancing the broad adoption of superconductor cable systems to address the power demands and grid reliability challenges faced by electric utilities today," said Joon Hyung Cho, Executive Vice President and Chief Technology Officer of LS Cable. "With several superconductor demonstrations already complete, Korea's power grid is set to undergo continued upgrades in the years to come. We formed this strategic alliance with AMSC to advance the commercial production of superconductor cable systems to support Korea's grid of the future. We are delighted to expand our relationship with AMSC and secure the best-in-class superconductor wire needed to manufacture our commercial superconductor cable systems."
Power cables made with AMSC's HTS wire can conduct up to 10 times the amount of power of conventional cables, which are made with copper wire. They can be placed strategically in the power grid to draw flow from overtaxed conventional cables or overhead lines to mitigate grid congestion experienced in urban centers. They also automatically suppress dangerous power surges to create resilient, 'self-healing' Smart Grids that can survive attacks and natural disasters, making them an ideal modernization tool for metropolitan power grids.
"LS Cable is widely recognized as one of the world's most respected power cable manufacturers and innovators," said Dan McGahn, senior vice president and general manager of AMSC Superconductors. "This strategic agreement sends a powerful message about LS Cable's near-term plans for building the superconductor power cable market. LS Cable and AMSC both see tremendous opportunities inside and outside Korea for commercial deployments of transmission and distribution superconductor cable systems."
AMSC also announced today that LS Cable is currently working with the Korea Electrotechnology Research Institute (KERI) to develop a 100-meter, 154 kilovolt (kV) superconductor cable system that it plans to install in Gochang, South Korea's power grid in 2011. The system will utilize approximately 13 kilometers (8 miles) of AMSC's 344 superconductors. This will be Korea's first superconductor power cable demonstration at transmission voltages (voltages greater than 69 kV).
AMSC first established its relationship with LS Cable in 2005 when the company purchased AMSC's first generation (1G) HTS wire for use in a 30-meter, 22.9kV superconductor cable demonstration. LS Cable and KERI successfully tested the cable system in 2006. In 2008, the companies completed testing of a 100-meter, 22.9 kV superconductor cable system also powered by AMSC's HTS wire.
In April 2009, AMSC received its first commercial order from LS Cable for approximately 80,000 meters (50 miles) of its 344 superconductors to manufacture a 22.9 kV cable system that it will install in Korea Electric Power Corporation's (KEPCO) Icheon substation near the city of Seoul in 2010. Capable of carrying 50 megawatts of power, the cable system will be nearly a half mile in length, making it the world's longest distribution-voltage superconductor cable system.
AMSC today announced separately that it has formed "AMSC Korea" to locally serve the region's rapidly developing renewable energy and power grid sectors as well as the company's existing strategic relationships. The incorporated division will provide local sales and field service as well as applied engineering services for AMSC's Korean customers, which include LS Cable, KEPCO, KERI, Doosan Heavy Industries and Hyundai Heavy Industries.
LS stands for "Leading Solution." LS Group, the country's 17th-largest conglomerate, is leading the industry of energy and telecommunications systems. LS Cable, the flagship company of the conglomerate, is a global provider of cables and systems for the power and telecommunications industry. LS Cable also leads high-technology programs like high temperature superconducting cable and submarine power transmission cable. LS Cable has 17 subsidiaries and 40 operations in 17 countries. More information is available at http://www.lscable.com.
About American Superconductor (NASDAQ: AMSC)
AMSC offers an array of proprietary technologies and solutions spanning the electric power infrastructure - from generation to delivery to end use. The company is a leader in alternative energy, providing proven, megawatt-scale wind turbine designs and electrical control systems. The company also offers a host of Smart Grid technologies for power grid operators that enhance the reliability, efficiency and capacity of the grid, and seamlessly integrate renewable energy sources into the power infrastructure. These include superconductor power cable systems, grid-level surge protectors and power electronics-based voltage stabilization systems. AMSC's technologies are protected by a broad and deep intellectual property portfolio consisting of hundreds of patents and licenses worldwide. More information is available at www.amsc.com.
American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, D-VAR, dSVC, PowerModule, PQ-IVR, Secure Super Grids, Windtec and SuperGEAR are trademarks or registered trademarks of American Superconductor Corporation or its subsidiaries. All other brand names, product names or trademarks belong to their respective holders. The Windtec logo and design is a registered European Union Community Trademark.
Any statements in this release about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: we have a history of operating losses, and we may incur losses in the future; a significant portion of our revenues are derived from a single customer, and a reduction in business with this customer could adversely affect our operating results; adverse changes in domestic and global economic conditions could adversely affect our operating results; changes in exchange rates could adversely affect our results from operations; our common stock may experience extreme market price and volume fluctuations, which may prevent our stockholders from selling our common stock at a profit and could lead to costly litigation against us that could divert our management's attention; if we fail to implement our business strategy, our financial performance and our growth could be materially and adversely affected; we may not realize all of the sales expected from our backlog of orders and contracts; many of our revenue opportunities are dependent upon subcontractors and other business collaborators, and a reduction in orders stemming from these companies could adversely affect our operating results; our products face intense competition, which could limit our ability to acquire or retain customers; our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; and our international operations are subject to risks that we do not face in the U.S., which could have an adverse effect on our operating results. Reference is made to these and other factors discussed in the "Risk Factors" section of the company's most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, any forward-looking statements included in this press release represent the company's views as of the date of this release. While the company anticipates that subsequent events and developments may cause the company's views to change, the company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the company's views as of any date subsequent to the date this press release is issued.
SOURCE: American Superconductor Corporation
American Superconductor Corporation (NASDAQ: AMSC) Jason Fredette, 978-842-3177 Director, Corporate Communications jfredette@amsc.com
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