 |
LS Cable & System |
[Alpha Biz= Reporter Kim Jisun] LS Cable & System will invest approximately 1 trillion KRW to build the largest submarine cable factory in the United States.
On July 10th, LS announced its plan to invest 682.75 million USD (approximately 945.4 billion KRW) in its U.S. subsidiary, LS-Greenlink, dedicated to the submarine business.
The new factory will be located on a 396,700 square meter (approximately 12,000 pyeong) site in Chesapeake, Virginia, with a total floor area of 70,000 square meters (approximately 20,000 pyeong). It will feature a 200-meter tall power cable production tower, which will be the highest in the world. Construction is scheduled to begin in 2025 and is expected to be completed by 2027.
LS Cable & System will receive subsidies and tax benefits totaling about 48 million USD (approximately 66.5 billion KRW) from the Virginia state government. Including 99 million USD in support from the Inflation Reduction Act (IRA), the company has secured a total of 147 million USD. This is the largest support package received by a global cable company entering the U.S. market.
This investment aims to secure a leading position in the U.S. submarine cable market, which is projected to grow by more than 30% annually over the next decade. The U.S. is experiencing a surge in cable demand due to the expansion of artificial intelligence (AI), the construction of semiconductor and electric vehicle factories, and the replacement of aging power grids. Currently, only one European company operates a submarine cable factory in the U.S., indicating a significant supply chain gap.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
