Attending 'InterBattery 2025'
LS Electric Acquired KOC Electric in May Last Year
Gu Ja-gyun, Chairman of LS Electric, said on the 5th, "After ultra-high voltage transformers, we are paying a lot of attention to distribution transformers," and added, "We are strategically considering (mergers and acquisitions)."
On the same day, at 'InterBattery 2025' held at COEX in Gangnam-gu, Seoul, Chairman Gu told reporters about this year's merger and acquisition (M&A) plans, "Our priority is to strengthen the capabilities of KOC, which we acquired last year, and to expand production," he said.
Earlier, LS Electric invested a total of 59.2 billion KRW in May last year to acquire a 51% stake in KOC Electric, a domestic small and medium transformer manufacturing company.
Chairman Gu explained, "After acquiring SYMPHOS, a transformer company in Indonesia, KOC Electric grew nearly threefold within a year," adding, "The key is how to expand the existing transformer production facilities, and if necessary, we plan to pursue M&A."
LS Electric invested a total of 100.8 billion KRW to expand its ultra-high voltage transformer production capacity in Busan. Through this, it expects the ultra-high voltage transformer capacity to increase to a total scale of 700 billion KRW starting from 2027.
The company's position in the global market is also strengthening. Chairman Gu said, "In the U.S., data centers have gained recognition and increased volume due to good delivery times, quality, and prices," adding, "We cautiously expect a major deal to occur within this year."
Previously, LS Electric began local production by acquiring MCM Engineering II, a U.S. power distribution panel manufacturer, in 2022. Regarding the tariff imposition policy of the second Trump administration, Chairman Gu said, "We acquired MCM and the Bestrop plant before the Trump administration, so tariffs do not affect us," and added, "If tariffs arise, we basically plan to split the costs evenly when signing contracts."
He continued, "Because of UL (product safety certification), I believe it is right to produce in the country, and our strategy remains unchanged," adding, "We have had the philosophy of manufacturing in the U.S. and selling to U.S. customers from the beginning, so there is no significant impact."
Regarding concerns about delays in construction periods for domestic battery companies building facilities in the U.S., Chairman Gu said, "The U.S. has separate certifications, and even for the same products, the certification process is complicated," adding, "Only our country meets the distribution standards." He also said, "China has one place, but its performance is insufficient," and added, "I think this is a great chance and opportunity."
Regarding the energy storage system (ESS) industry, which is LS Electric's future growth engine, he urged continuous government support. "In China's case, the industry was developed through enormous subsidies relative to the national size," he said, emphasizing, "For ESS activation, policies should not change every time the administration changes, and government support measures need to continue for 10 to 20 years."
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