LS Group to Integrate Raw Material Procurement and Metal Processing Businesses, Launch ‘LS Metal Plus’

[Financial News] LS Group is moving to integrate its raw material procurement and metal processing businesses to strengthen synergies among its affiliates. At the heart of the plan is LS Global’s acquisition of LS Metal’s copper tube and stainless steel processing businesses and the launch of an integrated company, LS Metal Plus. The plan aims to boost cost competitiveness and profitability while improving business efficiency across the group. 
LS Corp. said on the 5th that its subsidiary LS Global will acquire the copper tube and stainless steel processing businesses of LS Metal, a subsidiary of LS ELECTRIC Co., Ltd., and launch the integrated company LS Metal Plus. 
The decision was made to strengthen the group’s business competitiveness and enhance shareholder value by combining affiliates with closely related businesses. The name LS Metal Plus reflects the aim of creating synergies by adding global capabilities to its existing manufacturing expertise.
Through the acquisition, LS Global will combine its existing metal raw material procurement and trading businesses with LS Metal’s metal manufacturing capabilities, becoming a comprehensive metal processing specialist spanning procurement, processing, production and sales. In particular, it plans to boost cost competitiveness and further improve profitability through greater purchasing leverage from consolidated copper cathode procurement, unified inventory management, and integrated operations for copper futures and hedging.
LS ELECTRIC Co., Ltd., the parent company of LS Metal, plans to use the funds to invest heavily in expanding production capacity and growing its core infrastructure business to meet the power supercycle. It also plans to reduce its reliance on external borrowing while further strengthening its position in global markets. 
In connection with this, holding company LS Corp. will participate in a paid-in capital increase of about 150 billion won to establish a foundation for LS Global’s growth and strengthen its business expertise. LS plans to develop the integrated company LS Metal Plus, with about 1.3 trillion won in revenue and about 1 trillion won in assets, into a key platform for metal trading and processing, and expects this to also contribute to enhancing shareholder value. 
Meanwhile, the integrated company LS Metal Plus is expected to officially launch on January 1 next year, after LS Global’s extraordinary shareholders’ meeting approves the name change this December. 

[email protected] Lim Su-bin Reporter