LS Cable & System to build largest U.S. submarine cable plant with about 1 trillion won investment

2024.07.10. The Fair Economy — LS Cable & System announced on Oct. 10 that it will invest about 1 trillion won (about $730 million) to build the largest subsea cable factory in the United States.

According to LS Cable & System, the plant will be located in Chesapeake, Virginia, and will be built on a 396,700-square-meter (about 120,000 pyeong) site along the Elizabeth River with a total floor area of 70,000 square meters (about 20,000 pyeong). Construction is scheduled to begin in 2025 and be completed in 2027. The facility will also feature a 200-meter-tall power cable production tower, the tallest in the world.

LS Cable & System forecasts that the U.S. submarine cable market will grow at an annual rate of more than 30% over the next decade and is pursuing a strategy of entering the market early to secure a leading position.

"Most U.S. offshore wind projects are being developed along the East Coast, and Chesapeake offers optimal conditions for bidding, shipping, and logistics," LS Cable & System said.

LS Cable & System will receive approximately $48 million in grants and tax incentives from the state government. Combined with $99 million in IRA support from the U.S. Department of Energy (DOE), the company has secured a total of $147 million (about 200 billion won) in support — the largest among global cable makers entering the U.S. market.

"This investment will strengthen our capacity to meet the rapidly growing global demand for submarine cables and help solidify LS Cable & System's position as a global leader," said Koo Bon-gyu, president of LS Cable & System.

Virginia Governor Glenn Youngkin said, "Virginia's skilled workforce, world-class site conditions, and business environment attracted LS GreenLink's investment."

Caren Merrick, Virginia's Secretary of Commerce and Trade, said, "We are proud that LS GreenLink has become a partner in Virginia's ambition to become a hub for the global offshore wind industry."

With LS Cable & System's U.S. plant construction moving forward, the building of large cable-laying vessels by LS Marine Solution and the advancement of LS Eco Energy's European submarine projects are expected to accelerate.