LS invests $681m to build largest submarine cable plant in US

2024. 7. 10. 14:43
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Korean cable manufacturer expected to secure $147m in government incentives with new facility
A projected image of LS GreenLink USA's new submarine cable manufacturing facility in Chesapeake, Virginia (LS Cable & System)

LS Cable & System on Wednesday announced its plan to invest $681 million to build the largest submarine cable manufacturing plant in the United States.

According to the announcement, the new facility will be in Chesapeake, Virginia. LS GreenLink USA, a US subsidiary of LS Cable & System, will break ground for the plant next year. The facility is expected to begin operations by 2027 and create over 330 jobs.

The site will include a 200-meter-tall submarine cable manufacturing building, which will mark the highest in the world.

LS Cable & System forecasts that the US submarine cable market will grow at an average rate of 30 percent for the next decade, emphasizing the decision to secure leadership in the burgeoning market with a local plant.

LS Cable & System will receive about $48 million in government subsidies and tax credits for the project. Combined with the $99 million in advanced energy project tax credits that LS Greenlink USA received in April under the Inflation Reduction Act, LS Cable & System has secured $147 million in US government financial support. The company said it is the biggest state funding for a global submarine cable manufacturer doing business in the US.

"This state-of-the-art facility represents our commitment to pushing the boundaries of technology and engineering," said Koo Bon-kyu, CEO of LS Cable & System.

"This facility will not only enhance our capability to meet the growing global demands for submarine power cables but will also position us at the forefront of the industry."

By Kan Hyeong-woo(hwkan@heraldcorp.com)

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