Latest news with #KooJa-kyun
Korea Herald
21-07-2025
- Business
- Korea Herald
LS Electric targets 50% output boost at Vietnam plant
New production to serve Samsung SDI's ESS units, electrical needs of LG, Vingroup HANOI, Vietnam ― LS Electric aims to boost production capacity by 50 percent to $60 million at its facility in the city of Bac Ninh, just east of Hanoi, Vietnam, by expanding output for battery control panels and electrical protection devices. This strategic initiative is part of LS Electric CEO and Chair Koo Ja-kyun's commitment to Southeast Asia, the world's second-largest market for electric power systems after North America. '(On July 14,) Koo approved the construction project for a three-story building at the Bac Ninh plant,' said Choi Jong-hoon, general director of LS Electric Vietnam, during a group interview last Wednesday. 'The site will focus on the efficient manufacturing of mass-produced items, including battery control panels for Samsung SDI and air circuit breakers.' Battery control panels are control units designed to monitor and control battery voltage and protect battery systems in energy storage system products such as Samsung SDI's Samsung Battery Box. Air circuit breakers are devices that prevent abnormal electrical flow within power distribution systems used in industrial plants, commercial buildings, data centers and other facilities. According to Kim Sung-ho, technical director of LS Electric Vietnam, the Bac Ninh site seeks to increase its capacity from $40 million in 2022 to $60 million after completing the production expansion. Notably, it will manufacture approximately 10,000 air circuit breakers annually, spurred by recent investments from LS Electric's global competitors in Vietnam's electrical device market. Following the capacity growth, the facility will hire around 100 additional workers, increasing total employment to 500. As of May, it has 372 employees, with plans to expand to 400 by 2026. 'Starting with 20 billion won ($14.4 million) sales revenue in 2020, the Vietnam unit is set to achieve roughly 200 billion won this year,' noted Choi. 'In addition to the expansion project for the existing (Bac Ninh) plant, we are exploring the construction of additional facilities in Vietnam. Our goal is to reach $300 million in revenue by 2030.' Choi highlighted that the Vietnamese base is at the forefront of catering to the rapidly evolving global trend toward integrated energy solutions and high-value service offerings beyond production and sales. It already exports 60 percent of its production output to Saudi Arabia, the United Arab Emirates, Kazakhstan, Brazil, Kenya and other countries. As a member of the Association of Southeast Asian Nations, Vietnam also benefits from exemptions on intraregional export tariffs. Previously, it had focused on high-end power distribution panels as well as low-voltage power equipment. It supplied electric power solutions for South Korean companies' commercial buildings in Hanoi, including the Lotte Mall, Lotte Center and Landmark 72. In addition to Samsung SDI, the plant currently supplies LG Group factories in the Haiphong industrial park as well as utility company Electricity of Vietnam Ho Chi Minh City and Vingroup, Vietnam's largest conglomerate. One of the standout features of the Bac Ninh plant is how it uses flow production to maximize production efficiency, Kim noted. Unlike LS Electric's Cheongju facility in North Chungcheong Province, the site has few partner companies with which it can outsource manufacturing and support services. In the assembly line for battery control panels, the production team, identified by their green hats, manages the cabling for power connections in energy storage systems and places the modular components in pallets. Inspectors in yellow hats then determine whether they can proceed to the next stage and finally be attached to ESS products. These modules are designed to seamlessly integrate into the overall production process, enhancing time and cost efficiency while allowing for easy customization. Established in 1997, LS Electric's production facility in Dong Anh, inside Hanoi, relocated east of the city to Bac Ninh in 2022, expanding its capacity. Currently holding 40 percent market share in Vietnam's low-voltage power equipment sector, LS Electric Vietnam aims to capitalize on the Vietnamese government's renewable energy initiatives under its eighth Power Development Plan, which seeks to develop smart grids for modernizing power distribution systems.
Korea Herald
15-07-2025
- Business
- Korea Herald
Twice as fast, more affordable: LS Electric takes on US power giants
Chairman Koo Ja-kyun eyes US data center boom with speed, custom solutions HANOI, Vietnam — LS Electric Chairman and CEO Koo Ja-kyun is spearheading efforts to strengthen the company's foothold in the US power systems market, buoyed by the rapid expansion of the artificial intelligence-driven data center industry. 'Compared to the Big Four power system suppliers in the US — Schneider Electric, Siemens Energy, Eaton Corporation and ABB — LS Electric delivers to clients more than twice as fast and at more competitive prices,' Koo said during a group interview at LS Electric's Bac Ninh plant in Hanoi, Vietnam. Koo was visiting the country ahead of the Elects Vietnam 2025 exhibition, scheduled for July 16-18 in Ho Chi Minh City. The surge in AI-powered digital services across industries since the COVID-19 pandemic has driven global tech giants to accelerate investments in AI data centers. Koo emphasized that LS Electric is targeting this market, which requires server racks equipped with high power-density distribution systems — a sector where legacy US power companies have struggled to meet soaring demand. Previously, LS Electric's main clients in North America were manufacturing plants and utility providers, which together account for around 50 percent of the company's total sales. To expand its reach, the company is considering acquiring US-based power distribution panel suppliers to gain deeper access to what Koo described as a 'surprisingly conservative' electrical market — one where customers often remain loyal to the same suppliers for decades, in contrast to the fast-moving IT industry. In the meantime, LS Electric has steadily gained ground by servicing and customizing products originally supplied by US competitors, winning over big tech clients in the process. It also conducts performance testing at its Power Testing & Technology Center located within its Cheongju plant in Korea. 'Our 'fast and precise' customization strategies are gaining attention from US clients, with some even requesting exclusive supply agreements,' said Koo, noting the company is beginning to establish a track record in an industry traditionally dominated by local players. LS Electric is also the first Korean company to complete UL certification for its power distribution panels — a requirement often necessary in the US to meet safety and performance standards. Looking ahead, Koo said that transitioning from alternating current (AC) to direct current (DC) power systems could be South Korea's next major growth opportunity, likening it to the country's approximately 32-year transition from 110V to the globally adopted 220V standard, known for its higher efficiency. 'The market for DC products is rapidly expanding,' Koo noted. 'Key technologies — including energy storage systems, solar and wind power — all operate on DC. While DC is typically converted to AC for usage, using DC directly eliminates the energy loss during conversion. This global trend toward DC systems presents a major opportunity for South Korea to lead in the future of the power industry.' 'Electricity powers AI competitiveness — and AI boosts national competitiveness,' he added. As part of its strategy to expand in the North American market, LS Electric in April completed construction of its first US manufacturing and R&D facility in Bastrop, Texas. The company plans to begin production of medium- and low-voltage power equipment and distribution systems for local AI data centers within this year — a move aimed at increasing market share while mitigating tariff pressure in the US.
Korea Herald
12-06-2025
- Automotive
- Korea Herald
LS Electric, Spain's Power Electronics partner to expand in North American energy market
LS Electric, a Korean producer of power solutions, announced Thursday that it signed a memorandum of understanding with Power Electrics, a specialist in power conversion systems, ramping its efforts to penetrate the North American power market. The agreement was signed at Power Electronics' headquarters in Valencia, Spain, and marks a strategic collaboration focused on the supply of key power equipment, including transformers for energy storage systems. Executives from both companies, including LS Electric Chairman Koo Ja-kyun and Power Electronics CEO David Salvo, attended the signing ceremony. Power Electronics is recognized as a global leader in the renewable energy sector, particularly in North America, where it holds around 60 percent market share in PCS for solar and ESS projects. With over 2,800 solar and 315 ESS projects under its belt, the company has surpassed 120 gigawatt-hours in cumulative PCS installations worldwide. Under the agreement, LS Electric will prioritize Power Electronics' high-capacity PCS in its ESS projects across North America and Asia. In return, Power Electronics will expand the use of LS Electric's advanced distribution transformers and other power solutions in its renewable energy initiatives. 'Amid the turning point of power market trends driven by the energy transition, we expect to significantly upgrade our business competitiveness by strengthening partnerships with global top players,' a company representative stated. 'We will actively pursue business development in rapidly growing renewable energy markets such as North America and Europe to achieve visible outcomes.'
