LS Electric completes new high-voltage transformer facilities in Busan

LS Electric Chairman Koo Ja-kyun speaks during the completion ceremony of the company's second ultrahigh-voltage plant in Busan, Thursday. Courtesy of LS Electric

LS Electric said Thursday it has completed the second ultrahigh-voltage power transformer plant at its Busan complex, in an effort to accelerate its push into the North American and other global transformer markets.

LS Electric Chairman Koo Ja-kyun, LS Group Chairman Koo Ja-eun, Busan Mayor Park Heong-joon and nearly 200 dignitaries attended the completion ceremony held at the plant in Gangseo District, Busan.

The second plant occupies 18,059 square meters of land in the Busan complex, which is 1.3 times bigger than the first plant. LS Electric has invested 100.8 billion won ($68.4 million) for the second plant, whose output is 2.3 times higher than the first.

With the expansion, LS Electric’s Busan complex will boost its annual production capacity for ultrahigh-voltage transformers from 200 billion won to 600 billion won. Based on its expanded capacity, the company expects 1 trillion won of revenue from the complex next year.

“The aggressive investment is aimed at expanding our market share in the global ultrahigh-voltage transformer market,” LS Electric Chairman Koo said.

“Since 2010, we have invested more than 420 billion won to rebuild the Busan complex into a fully integrated production base, and we will continue developing it into a key manufacturing hub for the global market. … The Busan complex will become a key growth engine not only for LS Electric, but for Korea’s power equipment industry.”

The Busan complex is capable of manufacturing a full lineup of ultrahigh-voltage transformers ranging from 145 kilovolts to 550 kilovolts, and the country’s only production base for high-voltage direct current converter (HVDC) transformers. So far, the company has invested a total of 420 billion won into the complex.

Upon completing the second plant, LS Electric plans to strengthen its manufacturing capacity for HVDC transformers, enabling the company to respond swiftly to the government’s HVDC transmission network expansion plans.

“The Busan complex will serve a pivotal role in the government’s in the government’s initiative of establishing an energy highway,” Koo said in congratulatory speech. “With our portfolio of ultrahigh-voltage transformers and cables serving as the heart and bloodline of energy infrastructure, LS Group will lead the future of Korea’s energy industry.”

The Busan complex is also expected to serve as the anchor for the company’s expansion into the global market. By leveraging the plant’s manufacturing capacity, LS Electric has recently secured major orders, including power distribution solutions for North American big tech data centers and large-scale ultrahigh-voltage transformer contracts with regional power utilities.