LS Cable & System (LS C&S) is set to break ground on its U.S. subsidiary LS GreenLink’s submarine cable plant next month. With this new facility as a strategic base, the company is ramping up efforts to penetrate the North American high voltage cable market, which is expected to experience explosive growth driven by infrastructure modernization and the construction of artificial intelligence (AI) data centers.
According to LS C&S on the 27th, LS GreenLink will hold a groundbreaking ceremony for its submarine cable manufacturing facility in Chesapeake, Virginia, on the 28th of next month. The event will be attended by LS C&S CEO Koo Bon-kyu, Virginia Governor Glenn Youngkin, and other key figures.
The first phase of construction is scheduled for completion in the third quarter of 2027, with production commencing immediately afterward. The plant is expected to reach full-scale operation by the first quarter of 2028. The facility will create more than 330 jobs, positioning LS C&S as a major investor in the region.
Last year, LS C&S announced plans to establish the Virginia plant on a 98acre site. The advanced manufacturing base will feature a 656-foot power cable production tower, the tallest of its kind in the world. The total investment for the project amounts to $682.75 million. The facility will produce high voltage direct current (HVDC) cables and other products for the U.S. and North American markets.
The company has also secured $147 million in support from the U.S. government. As part of the Inflation Reduction Act (IRA), the Department of Energy (DOE) will provide $99.06 million, while the state of Virginia will offer $48 million in grants and tax incentives. This marks the largest financial support package for any global cable company entering the U.S. market.
The Virginia plant will be LS C&S’s first manufacturing base in North America. Leveraging this facility, the company aims to aggressively pursue submarine cable contracts in the region. LS C&S is also expected to benefit from increasing U.S. political concerns over security risks associated with Chinese cable manufacturers. Recently, the U.S. government imposed a 45% tariff on Chinese cables and tightened regulations on indirect exports involving Chinese materials.
The U.S. submarine cable market is projected to grow at an annual rate of over 30% over the next decade. Key growth drivers include ongoing investments in power and telecommunications infrastructure, as well as upgrades, maintenance, and restoration of aging electric grids. Factors such as renewable energy integration, AI data center construction, the need for power grid restoration, and advancements in smart grid technology are fueling the demand for infrastructure improvements.
LS C&S has recently been identified as a key beneficiary of former President Donald Trump’s ‘MAGA (Make America Great Again)’ economic policies. The company, along with its affiliate LS Eco Energy, recently succeeded in supplying medium voltage (MV) aluminum power cables to the U.S. market for the first time. The two companies will deliver $25 million worth of 35 kilovolt (kV) aluminum power cables to a U.S. solar energy engineering, procurement, and construction (EPC) company.
