Synopsis
LS Electric, a South Korean electric equipment manufacturer, plans to invest $240 million to expand its U.S. production facility by 2030 due to Trump’s tariffs. The investment aims to enhance capabilities and strengthen its position in the North American market.Key Takeaways
- LS Electric to invest $240 million in U.S. production by 2030.
- Expansion includes R&D and planning functions in Texas.
- Company aims for 70% of sales from overseas markets by 2030.
- Production to include mid-voltage equipment and switchgear.
- Last year's sales rose by 7.6% to $3.18 billion.
Seoul, April 16 (NationPress) LS Electric, a prominent South Korean manufacturer of electrical equipment, announced on Wednesday its plans to invest $240 million to broaden its U.S. production capabilities by 2030, in light of U.S. President Donald Trump's import tariffs. The company has recently enhanced its existing facility in Bastrop, Texas, incorporating additional research and development (R&D) and planning functionalities, as stated in a press release.
The upgraded Bastrop Campus is expected to play a crucial role in LS Electric's ambition to emerge as a significant player in the global electrical equipment sector, according to the announcement.
Commencing this year, the company will also manufacture mid-voltage electrical equipment and switchgear at the Texas site, targeting local major tech corporations as part of its localization strategy to mitigate tariff-related risks, as reported by the Yonhap news agency.
Previously, the plant primarily produced circuit breakers and low-voltage electrical equipment for Samsung Electronics Co.'s semiconductor facility in Texas and regional data centers.
“We will invest an additional $240 million into the Bastrop Campus by 2030 to develop it into a hub for electric equipment solutions within the North American market,” stated LS Electric Chairman Koo Ja-kyun in the press release.
By 2030, LS Electric aims to derive 70 percent of its total sales from international markets, up from the current 50 percent.
Last year, the company's sales increased by 7.6 percent, reaching 4.55 trillion won (approximately $3.18 billion), compared to 4.23 trillion won the previous year. Currently, LS Electric operates four domestic plants and five overseas facilities—two in China, two in the U.S., and one in Vietnam.
The other U.S. production site is situated in Utah. LS Electric is a subsidiary of LS Group, specializing in power cables and electrical equipment.
In the fourth quarter, LS Electric reported a 44.1 percent surge in net profit compared to the previous year, attributed to strong product sales. The net profit for the quarter ending December 31 rose to 62.8 billion won (around $43.7 million), up from 43.56 billion won in the same period the previous year.
