LS Electric plugs into electric power demand with Texas plant

LS Electric's factory in Cheongju [LS ELECTRIC]

LS Electric is establishing its first North American manufacturing plant to meet the growing need for electric power solutions from Korean companies operating in the region.

The company acquired a 46,000-square-meter (11-acre) site in the southeastern city of Bastrop in Texas last month to establish the manufacturing facilities and a research and development (R&D) center.

The site is located 55 kilometers (34 miles) from Samsung Electronics’ semiconductor plant in Taylor, Texas, which is currently under construction. The chip factory, which broke ground in 2022, is slated to launch operations in 2024 and manufacture chips deployed in 5G, artificial intelligence and high-performance computing.

LS Electric had already signed a 174.6-billion-won ($133.7 million) deal to supply an electric distribution system to Samsung Electronics’ Taylor factory last November.

LS Electric's overseas factories have focused on Asia until now, with operations in China and Vietnam.

The company's latest manufacturing facilities in Texas come as an increasing number of Korean companies are making facilities investments in the United States in recent years, following the U.S. government's aggressive incentive policies.

LS Electric was responsible for nearly 90 percent of electric equipment deals from Korean chip or battery companies running factories in the United States, such as BlueOval, a joint venture between Ford and SK Innovation, according to the company.

Korea's LG Energy Solution, SK On and Posco Future M are poised to become clients of LS Electric's new Texas factory, according to local reports.

"LS Electric's Texas factory [will have close ties] with Samsung Electronics' Taylor plant, but we are planning to cover more Korean companies as well as local companies with the new factory," said LS Electric spokesman Monday.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]