LS ELECTRIC has completed the second ultra-high-voltage transformer production building at its Busan business sites and is accelerating its push into the global ultra-high-voltage transformer market, centered on North America.
LS ELECTRIC said on the 4th that it held a completion ceremony for the second production building at its Busan business sites in the Hwajeon Industrial Complex in Gangseo District, Busan, with more than 200 people in attendance, including Chairman Koo Ja-Kyun of LS ELECTRIC, Chairman Koo Ja-eun of LS Group, and Busan Mayor Park Heong-joon.
LS ELECTRIC invested 100.8 billion won to complete the expansion of the second production building, with a total floor area of 18,059 square meters (about 5,463 pyeong), within the Busan business sites and is beginning production. The expanded second production building has 1.3 times the total floor area of the first production building and 2.3 times the production capacity.
With this expansion, the ultra-high-voltage transformer production capacity at LS ELECTRIC's Busan business sites will increase from 200 billion won to 600 billion won per year. Through this, the Busan business sites are targeting 1 trillion won in standalone sales next year.
Chairman Koo said, "We pushed ahead with the expansion through aggressive investment to begin in earnest expanding our share of the global ultra-high-voltage power market," adding, "Since 2010, we have invested more than 420 billion won, and we will nurture the Busan business sites, which have been reborn as a complete entity, into a core production base for the global ultra-high-voltage market."
He added, "With this completion, we now have world-class ultra-high-voltage transformer production and testing facilities and have secured differentiated competitiveness," and "the Busan business sites will become the key driver that leads LS ELECTRIC, as well as the K-power industry, to take off in the global market."
LS ELECTRIC's Busan business sites have secured production capabilities across the entire lineup of ultra-high-voltage transformers, from 154 kV to 550 kV. The second production building is equipped with a world-class quality control system through state-of-the-art production facilities and optimal process line design.
In addition, LS ELECTRIC's Busan business sites are the nation's only production base for HVDC (high-voltage direct current) converter transformers. Starting with the completion of Busan's first production building in 2010 with a 210 billion won investment, LS ELECTRIC expanded its production competitiveness by investing a total of 420 billion won, including an HVDC-dedicated plant in 2011 (110 billion won) and the second production building at the Busan business sites (100.8 billion won).
LS ELECTRIC is advancing into a power solutions corporations that covers transmission, substation, and distribution based on the Busan business sites. This year, it won a supply contract for distribution solutions for North American big tech data centers and secured large orders for ultra-high-voltage transformers from power utility companies.
Recently, with the arrival of the power supercycle driven by AI data center expansions, replacement of aging power grids, and increased investment in renewable energy facilities, the global power equipment market has entered a phase of structural growth. The U.S. transformer market is expected to more than double, growing at an average annual rate of 7.7% from $12.2 billion (about 17.8 trillion won) last year to $25.7 billion (about 37.5 trillion won) in 2034.