■ Investing KRW 250 billion to expand production facilities sixfold and increase distribution solution capacity to KRW 500 billion
■ Targeting operation in early 2027; to be built as an “all-in-one” complex hub for manufacturing, design, and R&D
■ “We will secure a firm leadership position in the power infrastructure supercycle market led by Big Tech”
LS ELECTRIC has begun a major expansion of its key local production hub, LS ELECTRIC Utah Inc., to gain an early foothold in the rapidly growing U.S. power infrastructure market.
LS ELECTRIC announced that it held a groundbreaking ceremony on the 25th local time to expand production facilities at LS ELECTRIC Utah, located in Cedar City, Utah, with a total investment of KRW 250 billion.
Scheduled to begin operations in early 2027, the expansion is a large-scale project that will add 66,115㎡ to the existing 13,223㎡ production facility, bringing the total facility area to 79,338㎡. This will expand the production facility by approximately six times.
The core objective of the expansion project is to establish a high-end power solution production facility in the United States and secure overwhelming production capacity. Once the new plant is completed, the switchgear production capacity of LS ELECTRIC Utah will increase to approximately KRW 500 billion per year, providing manufacturing infrastructure capable of responding swiftly to the rapidly growing demand for power equipment in North America.
Earlier, in 2022, LS ELECTRIC invested USD 6.3 million, or approximately KRW 7.7 billion, to acquire local switchgear manufacturer MCM Engineering II as part of its efforts to strengthen its North American distribution business. Through the first phase of expansion early last year, the company completed a second plant and tripled its production capacity. It began full-scale production in the second half of the same year, laying a solid foundation for localization.
This second large-scale expansion, being carried out under the new name LS ELECTRIC Utah, adopted this year, goes beyond a simple production line expansion. It marks the company’s transformation into a strategic North American hub that integrates design and R&D functions tailored to local customer needs. By building an “all-in-one” complex facility where product planning, development, and manufacturing take place in one location, LS ELECTRIC is expected to gain the competitiveness needed to respond more quickly and flexibly to demanding local requirements.
LS ELECTRIC’s proactive investment and localization strategy are already producing visible results. Amid a sharp rise in North American power infrastructure investment driven by the rapid growth of the AI industry and the data center construction boom, LS ELECTRIC generated KRW 1.2 trillion in sales from North American Big Tech companies by June this year, surpassing last year’s full-year performance of KRW 800 billion and achieving overwhelming results.
With demand for power equipment reaching record highs due to the combination of the U.S. government’s aging power grid replacement projects and Big Tech-led data center expansion, LS ELECTRIC plans to continue increasing its U.S. market share by leveraging the capabilities of its all-in-one complex hub in Utah.
An LS ELECTRIC official said, “This investment in LS ELECTRIC Utah will be a major turning point in further strengthening our credibility and brand recognition in the North American market. We will raise annual switchgear production capacity to around KRW 500 billion to secure additional revenue and establish firm leadership in the power infrastructure supercycle market led by Big Tech.”