HD Hyundai and Hyosung Heavy Industries are also taking a step forward
LS Electric is making an additional investment in its high-voltage distribution board plant in Enoch, Utah, USA. Korean power equipment companies are rapidly increasing their exports and local production in the United States.
According to an industry source, LS Electric recently signed a contract with Utah to invest an additional KRW 200 billion in its high-voltage power distribution board plant in Enoch.
Its goal is to increase the current operating capacity of KRW 50 billion, to up to KRW 150 billion and expand the factory site from approximately 13,223m2 to about 79,338m2. It aims to start construction for expansion within the first half of the year.
LS Electric plans to increase the yield and quality of its plant to the level of its plant in Cheongju, the largest in Korea. Utah is expected to offer ‘Rural Economic Development Tax Increment Financing (REDTIF)’ benefits for this investment.
The reason for the factory expansion is the demand from U.S. big tech companies for high-voltage distribution boards for AI data centers.
In response, domestic power equipment companies, including LS Electric, are continuously increasing their investments in the region. HD Hyundai Electric intends to construct a second plant in Alabama, while Hyosung Heavy Industries plans to expand its ultra-high voltage transformer plant in Memphis, Tennessee, to the largest in the United States.
Due to the overwhelming demand for power equipment in the U.S. market, not only local production but also exports are increasing. According to the Ministry of Trade, Industry and Energy, exports of electrical equipment, including voltage regulators, cables, and circuit breakers, totaled USD 16.7 billion last year, a 7% increase from USD 15.6 billion in 2024. Exports are expected to reach USD 17.7 billion this year, a 6% increase from the previous year.
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