LS Electric Co., a leading electric power equipment manufacturer in South Korea, has announced plans to double its production capacity for high-voltage transformers at its Busan plant. The company is investing 80.3 billion won ($58.88 million) in this expansion, aiming to bolster its presence in the global market by strengthening its foothold in both the distribution and transmission sectors.

The expansion project involves constructing a new facility on a 13,223 square meter lot adjacent to the existing high-voltage production building. The upgraded plant will feature state-of-the-art equipment, including two vacuum drying ovens (VPD), assembly areas, test rooms, and welding shops, to support the entire production process for high-voltage transformers. VPDs play a crucial role in enhancing insulation performance and reducing the risk of transformer failure by maintaining a high vacuum environment at 120 degrees Celsius for over 72 hours to eliminate moisture.

Currently, the Busan plant has an annual production capacity of approximately 200 billion won worth of high-voltage transformers, serving both domestic and international markets. The expansion, slated for completion by September 2025, is expected to double the plant’s production capacity to 400 billion won annually. This move is in response to the growing demand for high-voltage transformers, particularly in North America, where the rise of renewable energy sources like wind and solar power necessitates efficient transmission solutions. Additionally, the region is experiencing a replacement cycle for transformers, which typically occurs every 30 to 40 years.

LS Electric has already secured orders for high-voltage transformers through 2026, with the Busan plant reporting an impressive 95.6 percent operational rate in the first quarter of 2024. Chairman Koo Ja-kyun emphasized the significance of this expansion at the company's shareholders' meeting in March 2024, highlighting the anticipated growth in the distribution solutions business following the high-voltage segment. This strategic investment aims to solidify LS Electric’s power-related portfolio, encompassing transmission, substation, and distribution sectors, and to elevate its standing in the high-voltage market traditionally dominated by competitors.

Source: pulsenews.co