Korean Lucky Goldstar Wins 75% of Electric Co. Cable Tender

The company offered a price 40% below those of the European competitors in the tender.

The Korean concern Lucky Goldstar received 75% of the Electric Company tender for the supply of underground high-tension cables. The volume of the contract is estimated at $85-90 million. For the remaining 25% of the tender, it has been decided to conduct negotiations with four European companies, and the price closest to that offered by Lucky Goldstar will be awarded the tender.

The prices offered by the European companies are 40% higher than the price offered by the Korean company, according to net product price. After adding to this price the taxes to which the Korean company is subject and the European companies are not, the Korean company's price is only 10% lower than those offered by the European.

If the European companies leave their price offers in place, the tender's volume is estimated at about %140 million. In the event that the European companies offer a significant discount, the overall value of the tender could reach $120 million.