15 Subsidiaries Incorporated Last Year
Over Half Focused on Eco-Friendly and Electric Vehicles
Transition Toward Future-Oriented Businesses
Acquisition of Three Companies in Indonesia, Among Other Moves
LS Electric has incorporated a resource circulation company that converts waste into solid fuel as a subsidiary. This is the first time a waste-based fuel company has joined the LS group. By adding eco-friendliness to its existing power equipment-focused business, the company is expected to expand its scope as an energy company.
According to the business report disclosed on the Financial Supervisory Service's electronic disclosure system on the 14th, LS Electric secured 100% of the shares of Jesco IG, which produces solid fuel from waste, last year and incorporated it as a subsidiary. This was done by exercising a pledge on shares that were held as collateral during the existing debt collection process.
Jesco IG processes combustible waste such as waste vinyl, waste wood, and paper to produce solid recovered fuel (SRF). This fuel is used in cement factories, industrial boilers, and power plants as a substitute for coal or heavy oil. It helps reduce carbon emissions and fuel costs, aligning with the government's carbon neutrality policy.
LS Electric currently covers the entire power infrastructure, including manufacturing power equipment such as high-voltage circuit breakers, relays, and distribution boards, as well as ultra-high voltage transmission and distribution systems, ESS (Energy Storage Systems), and smart grid solutions. By adding the solid fuel business, it has partially established a structure that can secure energy sources independently. For example, supplying solid fuel to large power consumers such as industrial boilers or power plants enables linkage. This creates the possibility of applying an integrated model vertically integrating energy production, power control, and smart operation using its own SRF.
LS Electric has recently emphasized its transformation into an 'energy solution company.' It has laid the foundation for building a vertical eco-friendly power ecosystem encompassing waste resource recovery → energy production → power control. This is expected to serve as a basis for securing both sustainability and technological independence in the domestic and international power infrastructure markets in the future.
A company official stated, "Jesco IG, which was previously a partner company, has capabilities that align with our eco-friendly strategy," adding, "We plan to actively utilize it in future businesses."
LS Electric has newly incorporated a total of 15 subsidiaries, including Jesco IG. More than half of these focus on new businesses such as eco-friendliness, automation, and electric vehicles. The focus was on changing the business direction itself toward the future, rather than simple external expansion.
In the electric vehicle parts sector, LS Electric established a local subsidiary in the United States called 'LS e-Mobility Solutions America' and built a production system for electric vehicle relays. In the automation sector, promising companies such as Tira U-Tech (31.85% stake), autonomous logistics robot manufacturer Tira Robotics (52.14% stake), and electric control equipment manufacturer Tira Atrobo (100% stake) were consecutively included in the group.
Overseas expansion has also been accelerated. In Indonesia, LS Electric acquired three companies specializing in power construction and distribution at once, targeting the Southeast Asian power infrastructure market. Local company Pura Mayungan (60% stake) and its subsidiary Puma Electric Nia, along with Prima Mega Kontraktor, are mid-sized companies with competitiveness across the entire process from distribution equipment manufacturing to construction and distribution. Through these companies, LS Electric aims to strengthen its local EPC (Engineering, Procurement, and Construction) capabilities and, in the long term, is considering exporting distribution systems.
At last month's regular shareholders' meeting, Koo Ja-kyun, chairman of LS Electric, stated, "Performance relying only on a boom can easily collapse in a crisis," and added, "We will fundamentally improve our structure through securing future growth businesses, strengthening global business, and expanding synergy among organizations."
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