LS ELECTRIC has announced a major expansion of its U.S. manufacturing operations, investing KRW 250 billion (approximately USD 180 million) to significantly increase production capacity at its Utah facility as it seeks to capitalize on rapidly growing demand for power infrastructure across North America.
The company held a groundbreaking ceremony on June 25 (local time) for the expansion project at LS ELECTRIC Utah Inc. in Cedar City, Utah.
Scheduled for completion in early 2027, the project will expand the existing manufacturing facility from 13,223 square meters to a total of 79,338 square meters by adding 66,115 square meters of new production space. Once completed, the site will be nearly six times larger than its current footprint.
The expansion is designed to establish a high-end power solutions manufacturing base in the United States while dramatically increasing production capacity. Annual switchgear production at the Utah plant is expected to reach approximately KRW 500 billion, enabling LS ELECTRIC to respond more effectively to the rapidly expanding North American market.
The latest investment builds on the company's localization strategy launched in 2022, when it acquired U.S. switchgear manufacturer MCM Engineering II for USD 6.3 million. A first-round expansion completed in early 2024 tripled production capacity, with commercial operations beginning in the second half of the year.
Following its recent rebranding as LS ELECTRIC Utah, the facility's second expansion goes beyond increasing manufacturing output. The company plans to transform the site into a strategic North American hub that integrates product design, research and development, engineering, and manufacturing within a single location.
The all-in-one production complex is expected to improve responsiveness to customer requirements by shortening development cycles and enabling customized engineering solutions for the U.S. market.
The investment comes amid unprecedented growth in North America's power equipment sector, driven by artificial intelligence, hyperscale data center construction, and modernization of aging electrical grids.
LS ELECTRIC said it has already benefited from these market trends. As of June this year, the company had generated KRW 1.2 trillion in sales from major North American technology companies, surpassing its total North American sales of KRW 800 billion recorded during the previous year.
With large-scale investments in grid modernization continuing across the United States and demand from AI-driven data centers expected to remain strong, LS ELECTRIC plans to leverage its expanded Utah operations to further strengthen its presence and increase market share in the U.S. power infrastructure market.
