Investment of 100.8 Billion Won, Second Production Building Begins Operations
Targeting 1 Trillion Won in Standalone Sales at the Plant Next Year
Korea's Only HVDC Converter Transformer Production Facility
LS Electric has completed the construction of the second ultra-high voltage transformer production building at its Busan plant, accelerating its efforts to penetrate the global ultra-high voltage transformer market, with a particular focus on North America.
On December 4, LS Electric announced that it held a completion ceremony for the second production building at its Busan plant, located in Hwajeon Industrial Complex, Gangseo-gu, Busan. The event was attended by approximately 200 participants, including Koo Ja-eun, Chairman of LS Group; Koo Ja-kyun, Chairman of LS Electric; Park Hyung-joon, Mayor of Busan; Lee Ho-hyun, Second Vice Minister of the Ministry of Climate, Energy and Environment; Seo Cheol-soo, Vice President of Korea Electric Power Corporation; Kim Nam-gyun, President of Korea Electrotechnology Research Institute; and Yang Jae-saeng, Chairman of the Busan Chamber of Commerce and Industry.
LS Electric invested 100.8 billion won to complete the expansion of the second production building at its Busan plant, which has a total floor area of 18,059 square meters (5,463 pyeong), and has commenced production. The expanded second production building is 1.3 times larger in total floor area and has 2.3 times the production capacity compared to the first production building.
With this expansion, LS Electric's Busan plant will increase its annual ultra-high voltage transformer production capacity from 200 billion won to 600 billion won. The plant is now aiming to achieve annual standalone sales of 1 trillion won next year.
Koo Ja-kyun, Chairman of LS Electric, stated, "We pursued this expansion through aggressive investment to significantly increase our share in the global ultra-high voltage power market. Since 2010, we have invested over 420 billion won to transform the Busan plant into a complete facility, and we will continue to develop it as a core production base for the global ultra-high voltage market." He added, "With this completion, we have established world-class production and testing facilities for ultra-high voltage transformers, securing differentiated competitiveness. The Busan plant will become a key driver not only for LS Electric but also for the advancement of Korea's power industry in the global market."
The LS Electric Busan plant possesses production capabilities across the entire range of ultra-high voltage transformers, from 154kV to 550kV. The second production building is equipped with state-of-the-art production facilities and optimally designed process lines, establishing a world-class quality management system.
Additionally, the LS Electric Busan plant is the only domestic production base for HVDC (high-voltage direct current) converter transformers. With the completion of the second production building, the company plans to strengthen its HVDC converter transformer production capacity to swiftly respond to government demand for HVDC transmission network construction.
Starting with a 210 billion won investment for the completion of Busan Plant Building 1 in 2010, LS Electric has expanded its production competitiveness by investing a total of 420 billion won, including a dedicated HVDC plant (110 billion won) in 2011 and the second production building (100.8 billion won) at the Busan plant.
Based on its Busan plant, LS Electric has grown into a comprehensive power solution provider, covering transmission, substation, and distribution. This year, the company has expanded its presence in the global power market by securing contracts to supply distribution solutions to major North American big tech data centers and winning large-scale ultra-high voltage transformer orders for power utility companies.
Recently, the global power equipment market has entered a phase of structural growth, driven by the expansion of AI data centers, replacement of aging power grids, and increased investment in renewable energy facilities, leading to a 'power supercycle.' The US transformer market is expected to more than double, growing at an average annual rate of 7.7%, from $12.2 billion (17.8 trillion won) last year to $25.7 billion (37.5 trillion won) by 2034.
An LS Electric official stated, "With the completion of this facility, we have established the optimal work environment for the production of ultra-high voltage transformers and HVDC converter transformers, enabling us to respond immediately to the rapidly growing market." The official added, "Based on the highest quality solutions, we will strengthen our sales efforts for AI data centers, renewable energy generation, and the power utility market, positioning ourselves as a global player in the ultra-high voltage market."
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