Daijiworld Media Network- Seoul
Seoul, Apr 16: In a strategic move to mitigate tariff-related risks and strengthen its footprint in North America, South Korean electric equipment giant LS Electric announced a $240 million investment to expand its US production operations by 2030.
The company revealed that it recently upgraded its existing Bastrop, Texas facility, incorporating research and development (R&D) and planning functions to position the site as a pivotal base in its global growth strategy.
“The upgraded Bastrop Campus and the US market will serve as a springboard for LS Electric to emerge as a global electric equipment leader,” the company stated in a press release.
Beginning this year, LS Electric will begin producing mid-voltage electric equipment and switchgears at the Texas plant, shifting from its earlier focus on circuit breakers and low-voltage components. This pivot will help supply local tech giants, including Samsung Electronics’ semiconductor operations in Texas, and various U.S. data centres.
In a statement, Chairman Koo Ja-kyun emphasized the importance of this expansion:
“We will make an additional investment of $240 million in the Bastrop Campus by 2030 to foster it as an electric equipment solution hub for the North American market.”
The move is seen as a proactive response to ongoing tariff pressures under US President Donald Trump’s import policies, as LS Electric seeks to localize production and reduce exposure to international trade volatility.
Currently, LS Electric operates four domestic plants in South Korea and five international facilities — two in the U.S. (Texas and Utah), two in China, and one in Vietnam. The Texas plant has primarily supported Samsung’s U.S. operations until now.
The company aims to raise its overseas sales ratio to 70% by 2030, up from the current 50%. In 2024, LS Electric reported 7.6% growth in annual revenue, reaching ?4.55 trillion ($3.18 billion). Its Q4 net profit surged 44.1%, driven by strong demand for its electrical components, rising to ?62.8 billion ($43.7 million) from the previous year’s ?43.56 billion.