LS Electric completed construction of a second ultrahigh-voltage transformer plant in Busan on Thursday, stepping up its global expansion with a focus on North America.
With the addition, LS now operates a full product lineup spanning ultrahigh-voltage transformers, transmission, substation and distribution systems. LS’ Busan complex is also Korea’s only production base for high-voltage direct-current transformers, positioning the company to respond quickly to rising government demand for HVDC transmission networks.
The company invested 100.8 billion won ($68.5 million) in the new 18,059-square-meter facility, which is 1.3 times larger than the existing facility and expands total output capacity by three times. Annual production of ultrahigh-voltage transformers is set to jump from 200 billion won to 600 billion won, with the Busan site targeting more than 1 trillion won in standalone sales next year.
“To fully expand our share of the global ultrahigh-voltage market, we’ve aggressively invested in capacity,” LS Electric Chair Koo Ja-kyun said. “The Busan plant will serve as a key production base with world-class manufacturing and testing capabilities, strengthening our competitiveness.”
LS Electric is currently benefiting from a global power-equipment supercycle driven by artificial intelligence-powered data-center expansion, upgrades of aging infrastructure and growth in renewable-energy facilities. The US transformer market alone is forecast to grow at an average annual rate of 7.7 percent, more than doubling from $12.2 billion in 2023 to $25.7 billion in 2034.
The company has recently secured contracts to supply distribution systems to major North American data centers and won a large ultrahigh-voltage transformer order from a power utility, and plans to further strengthen its production and sales capabilities to cement its position in the global market, an official said.
andreahaneu@heraldcorp.com
