LS ELECTRIC is in full swing to achieve the target of raising the portion of its overseas sales to 70 percent on the back of its good business performance in the United States, the world’s largest power market.
LS ELECTRIC logged some 700 billion won in sales in the United States last year.
The company is predicted to see sales in the market surge to 1 trillion won on the back of the power super cycle, the “Great Boom.”
Global companies specializing in semiconductor, battery and automobiles sectors are scrambling to raise local facility investments in accordance with the U.S. policies of Making America Great Again (MAGA), thus pushing up electricity demand.
LS ELECTRIC has already secured outstanding orders worth 3.1 trillion won, to be done over the next five years.
As the AI industry, consuming large amounts of electricity, has evolved, countries are scrambling to expand power infrastructure, so Korea has seen transformer exports increase fast.
The Korean power industry predicts that the power super cycle will last for the next few years.
LS ELECTRIC is one of Korea’s top three electric instrument makers.
The company is making proactive investments to raise production capacity of the super-voltage transformer business on the top of the current cash cow sectors - electric instrument and distribution systems.
To this end, the company set aside 160 billion to expand facility capacity of the super-voltage transformer business.
As the super-voltage transformer demand is expected to is on the rise with a focus on the North American market, the company is to dedicate a new plant in Busan in September.
The firm plans to more than triple super-voltage transformer production capacity from the current 200 billion won to 700 billion won by 2027.
The company plans to secure production infrastructure, raise efficient stock management capability and make additional investments into global centers to secure the hegemony in the global distribution market whose competition is expected to heat up in the years to come.
LS ELECTRIC recently acquired KOC Electric, a super-voltage transformer maker, for 59.2 billion won.
KOC Electric, established in 1979, is the sole SME capable of producing 154kV, super-voltage transformers.
KOC Electric, now renamed LS Power Solution, has seen its plant in Ulsan expand its production capacity, so the company has now secured its capacity to produce up to 230kV transformers.
It aims to raise LS Power Solution’s super-voltage transformer production capacity from current 175 units to 350 units in 2027.
An LS ELECTRIC official said, “LS ELECTRIC will secure a hegemony in the electric equipment super cycle based on technology and business capability the nation’s representative company has accumulated for the past 50 year, and we will continue to make investments in Korea and abroad to maximize business achievements in the distribution system market, bigger than the transmission sector.”
A bird’s-eye view of a project to expand LS ELECTRIC’s plant in Busan.
LS ELECTRIC Redoubles Capacity of Busan Plant
LS ELECTRIC is building a new plant in Busan covering 3,223 sq. meters by investing 100.8 billion won. The second production plant now under construction will be outfitted with a super-voltage transformer production process system.
The second plant is designed to produce bigger transformers than the existing first one.
The progress rate of the project is now standing at 40 percent, and the plant is to be dedicated in September.
The new plant, scheduled to mass produce super-voltage transformers starting October, aims to post 40 billion won in sales this year.
KOC Electric Renamed as LS Power Solution
KOC Electric and ThiRa-Utech, acquired by LS ELECTRIC last year to expand synergetic effects in the electricity and automation businesses, the two pillars of LS ELECTRIC, made a fresh start under the new names, LS Power Solution and LS ThiRa-Utech, respectively.
KOC Electric and ThiRa-Utech, the two subsidiaries of LS ELECTRIC, held a general meeting of shareholders and approved the name change, respectively, on March 20.
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