LS Electric has announced a substantial investment of 20.5 billion won ($15 million) to expand its ultra-high voltage transformer plant in Busan. The decision, approved by the board on August 13, 2024, aims to address the rising global demand for electrical equipment, particularly in North America.

This new investment adds to the $60 million already committed in May, totaling $75 million. The expansion is set to be completed by September 2025. The Busan facility currently produces transformers with an annual capacity valued at approximately $150 million, but with the expansion, this is expected to increase to about $525 million by 2027.

The expansion will introduce two additional vacuum drying systems (VPDs), new assembly lines, testing facilities, and welding areas. VPDs are crucial for maintaining transformer interiors at high temperatures and in a vacuum state, which enhances insulation performance and reduces failure risks.

Global Market Insights projects the North American high-voltage power transformer market to grow from $3.9 billion in 2023 to $6.9 billion by 2032, reflecting a significant opportunity for LS Electric. The company has already secured orders through 2026, ensuring a steady stream of business as the facility expands.

Source: ajupress.com