What ownership structure will LS Electric, Nan Ya Plastics and KHI have in their Taiwan power infrastructure joint venture?

LS Electric will own 50 percent of the joint venture, while Nan Ya Plastics will hold 40 percent and KHI will hold 10 percent.

Why is LS Electric expanding its Taiwan business beyond supplying electrical equipment?

The company wants to move into project orders that include engineering capabilities. The expansion is tied to Taiwan’s investment in eco-friendly power facilities, energy storage systems and digital smart grids under its carbon neutrality policy.

LS Electric teams up with Formosa Plastics affiliates for Taiwan expansion

Q: What will LS Electric’s Taiwan joint venture do first?

The venture will initially establish local capabilities for bidding, design and technical support for Taiwanese power projects. It will combine LS Electric’s manufacturing and design technology with Nan Ya’s local production base and engineering, procurement and construction network.

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Summary

LS Electric signed an agreement Tuesday in Seoul with Nan Ya Plastics and KHI to establish a joint venture for Taiwan power infrastructure projects. LS Electric will hold 50 percent of the venture, Nan Ya 40 percent and KHI 10 percent. The venture will build local bidding, design and technical-support capabilities, combining LS Electric technology with Nan Ya’s production and engineering network. The partnership expands their cooperation beyond equipment supply.

Key Facts

Nan Ya Plastics produces petrochemicals, electronic materials and electronics and is expanding from power distribution products into extra-high-voltage transmission equipment and grid stabilization.
KHI was established last year with Formosa investment to commercialize technologies developed by the Korea Advanced Institute of Science and Technology.
The joint venture follows a memorandum of understanding signed by LS Electric and Nan Ya in March last year concerning eco-friendly power equipment and energy efficiency in Taiwan.
Taiwan aims to increase renewable energy to as much as 70 percent of its power mix by 2050 and is investing in energy storage systems and digital smart grids.

By Jhoo Dong-chan

Published Oct 7, 2026 12:41 pm KST

LS Electric Chairman Koo Ja-kyun, back row second from left, and Sandy Wang, an executive committee member of Formosa Plastics Group, back row third from left, pose with other executives after signing an agreement to set up a joint venture for power projects in Taiwan at LS Yongsan Tower in Seoul, Tuesday. Courtesy of LS Electric

LS Electric said Wednesday it will set up a joint venture with two affiliates of Taiwan's Formosa Plastics Group to win power infrastructure projects in Taiwan, expanding beyond its current business of supplying electrical equipment there.

The Korean maker of power equipment and automation systems signed the agreement Tuesday with Nan Ya Plastics and KHI at LS Yongsan Tower in Seoul. LS Electric will hold 50 percent of the venture, Nan Ya 40 percent and KHI 10 percent.

Nan Ya is a core Formosa affiliate that makes petrochemicals, electronic materials and electronics. It has been building a power solutions business, moving from distribution products into extra-high-voltage transmission equipment and grid stabilization, according to LS Electric.

KHI was set up last year with Formosa investment to commercialize technologies developed at the Korea Advanced Institute of Science and Technology, a state-run research university.

The venture will first build local capacity to handle bidding, design and technical support for Taiwanese power projects. It will combine LS Electric's manufacturing and design technology with Nan Ya's local production base and its network in engineering, procurement and construction, the turnkey contracting used for large infrastructure projects.

The deal builds on a memorandum of understanding the two companies signed in March last year on eco-friendly power equipment and energy efficiency in Taiwan. Their cooperation until now has centered on equipment supply.

Taiwan aims to raise renewable energy to as much as 70 percent of its power mix by 2050 under its carbon neutrality policy, and is investing in eco-friendly power facilities, energy storage systems and digital smart grids, LS Electric said.

"Our Taiwan business, which has been limited to supplying power equipment, will move up a level to project orders that incorporate engineering capabilities through the joint venture," an LS Electric official said.

This article was published with the assistance of generative AI and edited by The Korea Times.

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