Seoul— South Korean electric equipment manufacturer LS Electric announced plans to invest $240 million to expand its U.S. production facilities by 2030, in response to potential import tariffs proposed by former U.S. President Donald Trump.
The company has recently enhanced its existing facility in Bastrop, Texas, adding research and development (R&D) and strategic planning capabilities. The upgraded site is expected to serve as a key hub in LS Electric’s efforts to establish itself as a global leader in electrical equipment, the company said in a press release.
Beginning this year, LS Electric will start producing medium-voltage electrical equipment and switchgear at the Texas facility to supply local tech giants, as part of a broader localization strategy aimed at mitigating tariff risks, according to Yonhap news agency.
The Bastrop plant has primarily manufactured circuit breakers and low-voltage equipment for Samsung Electronics’ semiconductor operations in Texas, as well as local data centers.
“We will invest an additional $240 million in the Bastrop Campus by 2030 to transform it into a solutions hub for the North American market,” said LS Electric Chairman Koo Ja-kyun.
The company is targeting a significant boost in international revenue, aiming to generate 70% of its total sales from overseas markets by 2030—up from the current 50%.
In 2023, LS Electric posted a 7.6% increase in annual revenue, rising to 4.55 trillion won ($3.18 billion) from 4.23 trillion won the previous year. The company operates four manufacturing plants in South Korea and five internationally—two in the U.S., two in China, and one in Vietnam. Its second U.S. facility is located in Utah.
An affiliate of LS Group, LS Electric reported strong performance in the final quarter of 2023, with net profit surging 44.1% year-over-year to 62.8 billion won ($43.7 million), driven by solid product sales. (Source: IANS)
