Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
LS Cable to invest $156 mil. in production subsidiary in Mexico
A rendered image of LS Cable & System Mexico's planned factory in Queretaro, Mexico / Courtesy of LS Cable & System
By Park Jae-hyuk
LS Cable & System (LS C&S) said Thursday it will invest about 230 billion won ($156 million) in LS Cable & System Mexico (LSCMX), its production subsidiary in the central Mexican state of Queretaro, to produce electric infrastructure and mobility components for the North American market.
With the investment, the Korean company aims to transform LSCMX into a strategic outpost for its energy and mobility businesses in the Americas, rather than just a manufacturing hub. To achieve that, LS C&S plans to expand capacity at its existing bus duct facility and build a new plant for automotive cables.
“LSCMX will serve as a key base that enhances synergy across our energy and mobility operations,” an LS C&S official said. “By optimizing our North American production network, we will position ourselves as a key partner to global tech companies and carmakers.”
LS C&S expects the expanded bus duct production capacity to help meet rising demand for power infrastructure from global technology firms. The new automotive cable plant will support North American automakers’ growing need for locally sourced components.
Given Queretaro’s strong logistics infrastructure and proximity to major carmakers, LS C&S expects the investment to improve access to the North American market.
The company also said LSCMX will help it respond proactively to the rapidly changing global trade environment, as locally manufactured products will qualify for tariff exemptions under the U.S.-Mexico-Canada Agreement.
Last year, LS C&S began building LS GreenLink’s submarine cable plant in Virginia. With the U.S. facility focusing on high-value-added products and the Mexican plant producing cost-competitive goods, the company aims to strengthen its presence in the North American market.