LS Group's Essex Solutions Sees Surge in Orders for Transformer Wires from North America and Europe

Annual Growth Rate in the 10% Range for Four Consecutive Years Driven by Orders
Market Share to Expand to 50% and 35% by 2028
Two Additional Production Lines Recently Added in North America

Essex Solutions, a US subsidiary of LS Group, announced on the 19th that it plans to expand its production capacity to meet the rapidly increasing demand for special transformer windings in North America and Europe.

Special winding equipment for transformers at Essex Solutions' North American factory. Photo by LS provided

The demand for special transformer windings has surged recently due to the growth of artificial intelligence (AI) data centers and the fact that about 70% of transformers in the US are reaching their replacement period.

Riding this wave, Essex Solutions has recorded an average annual growth rate of 11% and 8% in North America and Europe respectively over the past four years, achieving sales of approximately $129 million (about 190 billion KRW) last year. Essex Solutions plans to expand its market share of this product from the current 19% and 28% in North America and Europe to 50% and 35% respectively by 2028. To this end, it recently added two production lines to its manufacturing facilities at its North American plant. The current production capacity of about 3,500 tons is also planned to be increased by 143% to 8,500 tons by 2030.

Essex Solutions’ European plant also plans to increase its production capacity from the current level of 11,000 tons to a maximum of 15,000 tons through improved operational efficiency and replacement of aging equipment. The special transformer winding industry generally secures orders in 3 to 6-month cycles for production. Currently, the market is experiencing severe supply shortages, with delivery times exceeding two years after ordering. This supply-demand imbalance is expected to continue until 2030.

An Essex Solutions representative stated, "Based on innovations in special transformer winding manufacturing technology and efficient facility investments, we will actively respond to diverse customer demands and further solidify our position in global markets such as North America and Europe. We will continue to increase production capacity to establish ourselves as a key partner in the transformer industry."