Bastrop: LS Electric Co., a South Korean electric equipment manufacturer, announced plans to invest US$240 million to enhance its U.S. production capabilities by 2030 in response to import tariffs imposed by U.S. President Donald Trump.
According to Yonhap News Agency, LS Electric has recently upgraded its existing facility in Bastrop, Texas, to incorporate research and development (R and D) and planning functions. This strategic move is part of the company's broader initiative to transform the U.S. market and the enhanced Bastrop Campus into a pivotal platform for its ambition to become a global leader in electric equipment manufacturing.
Beginning this year, LS Electric plans to expand its production in Texas to include mid-voltage electric equipment and switch gears, specifically targeting supply to local big tech firms. This expansion aligns with the company's localization strategy, designed to mitigate "tariff risks."
Historically, the Bastrop plant has focused on producing circuit breakers and low-voltage electric equipment, primarily serving Samsung Electronics Co.'s semiconductor plant in Texas and local data centers. "We will make an additional investment of $240 million in the Bastrop Campus by 2030 to foster it as an electric equipment solution hub of the North American market," stated LS Electric Chairman Koo Ja-kyun in the release.
LS Electric's long-term goal is to increase its overseas market sales to 70 percent of its total revenue by 2030, up from the current 50 percent. In the previous year, the company's sales grew by 7.6 percent, reaching 4.55 trillion won ($3.18 billion), compared to 4.23 trillion won the previous year.
The company operates four domestic plants and five overseas facilities -- two in China, two in the U.S., and one in Vietnam. The other U.S. plant is located in Utah. LS Electric is an affiliate of LS Group, a company known for its expertise in power cable and electric equipment manufacturing.