LS Electric builds rail signal system in Taiwan for $39.8 million

South Korea's LS Electric Co. on Friday said the Railway Bureau of the Taiwanese Ministry of Transportation and Communications named the company the contractor to build a rail signal system from Puxin to Yingge stations in Taoyuan, Taiwan, in a project worth 49 billion won ($39.8 million).

This project will build a temporary 24-km track between the two stations under a plan for widening the underground railway in Taoyuan, home to the island country's largest international airport.

Making history as the first Korean company to enter the Taiwanese rail sector in 2013, LS Electric is lauded for its high reliability and capability by winning orders through open competitive bidding in markets primarily led by major global companies from Europe and Japan and conducting a stable business.

Starting with the construction of a signal system for the Taitung general railway in 2013, LS Electric has completed projects such as the Taiwan Railways Administration Taitung Depot in 2015, a temporary track in Tainan in 2019, the power system for Kaohsiung Metro's red line in 2021 and the same for Kaohsiung Metro's yellow line last year. The company has received over 400 billion won in business from Taiwan.

"We have received steady orders from the Taiwanese railway market, which has high barriers to entry," an LS Electric source said. "This will grow into our base market in Southeast Asia through a thorough localization strategy."

Write to Sungsu Bae at baebae@hankyung.com