LS Electric Secures Additional Ultra-High Voltage Transformer Production Capacity… Gu Ja-gyun "First Step Toward Global Market Expansion"

Affiliated Acquisition KOC Electric, Ultra-High Voltage Production Capacity Over 154kV Tripled
LS Elec's Annual Production Capacity to Reach 700 Billion Won Upon Completion of Busan Plant Next Year

KOC Electric, acquired by LS Electric, has taken its first step toward targeting the global market by increasing its ultra-high voltage transformer production capacity to 100 billion KRW, more than three times the previous level.

Gu Ja-gyun, Chairman of LS Electric, is signing a signboard commemorating the first production of ultra-high voltage transformers at the KOC electrical expansion plant. Photo by LS Electric

On the 10th, LS Electric announced that its affiliate KOC Electric recently completed the expansion of its ultra-high voltage transformer production plant at its Ulsan factory. The day before, a ceremony was held at KOC Electric’s Ulsan plant to commemorate the first production of 154-kilovolt (kV) transformers, attended by LS Electric Chairman Koo Ja-kyun and KOC Electric President Kim Ho-ryang, among others.

KOC Electric invested 29.6 billion KRW to complete an additional production building of 4,621 square meters (1,398 pyeong) capable of testing and producing 200-megawatt (MW) 345 kV class transformers. The product range was expanded from 154 kV class to 230 kV class ultra-high voltage transformers. Production capacity increased more than threefold from 30 billion KRW annually to 100 billion KRW.

According to LS Electric, KOC Electric is the only small and medium-sized enterprise with a portfolio covering offshore, onshore, and ultra-high voltage. It is a comprehensive transformer manufacturer producing ultra-high voltage transformers as well as molded, dry-type, and oil-immersed distribution transformers. It is the only domestic SME possessing 154 kV technology and facilities.

KOC Electric is one of the top five domestic suppliers of ultra-high voltage transformers to Korea Electric Power Corporation. It is also the number one domestic company specializing in ship-specific transformers, a special power equipment. Its customers include the domestic 'Big 3 shipyards'?HD Hyundai Heavy Industries, Hanwha Ocean, Samsung Heavy Industries?as well as numerous overseas shipbuilders.

LS Electric stated that KOC Electric is recently expanding its ultra-high voltage product production capacity in line with increasing energy infrastructure demand in North America, Europe, and the Middle East. The company plans to raise its export performance, currently in the 10% range of total sales, to 40% by 2026.

By 2026, LS Electric will have an ultra-high voltage production capacity worth 700 billion KRW annually. Combining this 100 billion KRW expansion of KOC Electric and the planned expansion of its ultra-high voltage plant at the Busan business site by the end of next year, production capacity will increase to 700 billion KRW per year.

Chairman Koo Ja-kyun said, "The representative small but strong company KOC Electric has successfully completed the expansion, enabling us to jointly respond to domestic and international ultra-high voltage market demand with LS Electric and create synergy. This is not an investment expecting a short-term boom but one aimed at securing sustainable market dominance, meaning we have taken the first step together to target the global market."